Force and Effect of January 26, 1957, BIR Ruling

February 20, 1958 BIR RULING NO. 120-58 The New Zealand Insurance Company, Ltd. Post Office Box 2066 Manila Attention : Mr . J . C . Flitcroft Representative Gentlemen : In reply to your letter dated February 10, 1958, I have the honor to inform you that the ruling of this Office dated January 26, 1957 to the effect that premiums on reinsurance paid to non-resident foreign insurance companies under contracts of reinsurances executed or consummated abroad are subject to the withholding income tax prescribed in Section 54 in relation to Section 53, both of the Tax Code, remains in full force and effect notwithstanding the fact that there are now cases pending before the Court of Tax Appeals involving the legality of said ruling. Decisions and rulings of the Bureau of Internal Revenue are given the stamp of finality and the attributes of a court decision. (Li Yao vs. Collector of Internal Revenue, (Res.) C.T.A. No. 30, 12/11/54; Sta. Clara Lumber Co. vs. Collector of Internal Revenue, (Res.) C.T.A. No. 91). Said decisions and rulings are, therefore, binding and effective, unless and until found to be contrary to law by a court of competent jurisdiction or other competent authority. Accordingly, premiums paid or forwarded in 1957 by you to non-resident foreign insurance companies under treaty agreements executed outside the Philippines should be declared in the withholding income tax return which should be filed not later than March 3, 1958. LibLex Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue