BIR Ruling No. 120-82

April 15, 1982 BIR RULING NO. 120-82 249 000-00 120-82 Tabacalera Insurance Co. 900 Tabacalera Romualdez Street Paco, Manila Attention: Mr . Alejandro Ros President Gentlemen : This refers to your letter dated July 30, 1981 requesting authority to affix documentary stamps to your "Bordereaux" instead of the individual policies. cdtech Investigation conducted by this Office disclosed that you use the premium register as your monthly summary of individual policies, which is known as the Validating Listing General Bordereaux (VALBO) and termed as "Bordereaux" (latin term for the premium register); that VALBO has the following columns: 1. Code No. (for the line, i.e., fire, marine bonds, etc.) 2. Policy No. 3. Date of inception and expiry 4. Documentary stamps (amount) 5. Face amount of policy (amount) 6. Premium (amount) 7. Retention (amount) and below is the name of assured 8. Treaty (amount) 9. Facultative (amount) that the VALBO is more informative than the ordinary premium registers used by some insurance companies which do not have the respective columns for retention, treaty and facultative; that you will record all the policy in the VALBO, sum up the documentary stamp column (4) every month by lines and prepare a request for cashier's check; that this printout (VALBO) is submitted to the nearest BIR Office for verification of the amount; that once verified as correct, payment is made for the whole amount; that the RTRs and the CRs will be kept on file for future references after its number, amount and the date are stamped on all pages of the VALBO; and that the office copy of all insurance policies issued shall be stamped with the required notation by BIR Regulations No. 3-75, and initialled by a responsible office personnel. In reply, please be informed that Section 206 of Regulations No. 26 (Documentary Stamp Tax Regulations) as amended by Revenue Regulations No. 3-75, implementing Section 249 of the Tax Code, allows the affixture of documentary stamps on insurance policies to the register copy or premium register. Accordingly, since the findings of this Office show that the Validating Listing General Bordereaux is similar, and is in fact, the premium register, the documentary stamps on insurance policies may be affixed thereon. Very truly yours, RUBEN B. ANCHETA Acting Commissioner