BIR Ruling No. 127-62

November 17, 1963 BIR RULING NO. 127-62 The Acting Regional Director BIR Regional District No. 1 Baguio City S i r : This is with reference to your letter dated June 13, 1962, requesting clarification of BIR Ruling No. 415, series of 1961, embodied in (Collection agents) Division Memorandum Circular No. 5 dated November 10, 1961, and our ruling dated February 28, 1962 bearing on the collection of fees, fines, forfeitures, costs and other moneys paid to justices of the peace and municipal courts insofar as the Mountain Province is concerned. Please be informed that the Commissioner of Internal Revenue has the administrative jurisdiction over the collection of moneys accruing to the National Government in courts of justices of the peace, pursuant to Section 93 (superseded Sec 225, Rev. Adm. Code) of Republic Act No. 296, which provides as follows: "SEC. 93. Moneys paid into courts of justices of the peace . By whom to be received . All moneys accruing to the Government in courts of justices of the peace, including fees, fines, forfeitures, costs, or other miscellaneous receipts, and all trust of depository funds paid into such courts shall be received by the deputy provincial treasurer, or in the City of Manila by the Collector of Internal Revenue, for disposition according to law." These moneys are turned over to the National Treasury and credited to the general funds of the National Government. (Sec. 94, R.A. 296; superseded Sec. 226, Rev. Adm. Code.) By virtue of a special law applicable to the Mt. Province, however, the fines imposed by a justice of the peace for infractions of provincial, municipal or other ordinances shall accrue to the treasury of the municipality or township where the violations has been committed. For ready reference, quoted hereunder is the pertinent law on this point: "SEC. 7. The fines imposed by a justice of the peace for infractions of provincial, municipal or other ordinances shall accrue to the treasury of the municipality or township, wherein the violation has been committed; but, if committed outside the territory of any municipality or township, the fines shall be covered into the provincial treasury." (Act No. 2418, enacted on Nov. 10, 1914. NOTE : Not repealed by subsequent laws.) You will note that the aforequoted provisions of Sec. 93, R.A. No. 296 (Judiciary Act of 1948) and Sec. 7 of Act No. 2418 were made the basis of Sec. 214 of the "Revised Manual of Instructions to Treasurers" which took effect in June 1955. The said Manual provides, thus "SEC. 214. Moneys paid into courts of justice of the PEACE . By whom to be received . All moneys accruing to the Government in courts of Justices of the peace, including fees, fines, forfeitures, costs, or other miscellaneous receipts, and all trusts or depository funds paid into such courts shall be received by the deputy provincial treasurer or in the City of Manila by the Collector of Internal Revenue for disposition according to law. [Section 225, Revised Administrative Code and section 93, R.A. 296] All fines and fees in criminal proceedings, and all fees charge in civil actions or for any other service rendered by justices or auxiliary justices of the peace, while acting in those capacities, accrue, when collected, to the National Government, except in the case of fines or fees imposed by a justice of the peace in the Mountain Province, [Section 7, Act No. 2418] and in the provinces in Mindanao and Sulu, [Section 2, second paragraph, Act No. 2664] for any infraction of provincial or municipal ordinances, which should accrue to the corresponding municipal treasury if the violations have been committed within the territory of organized municipalities. In case the offense is committed outside the territory of an organized municipality, the fines imposed therefor will accrue to the corresponding provincial treasury. In the Mountain Province, fines to accruing to the provincial treasury may be spent by the provincial board for any provincial purpose, but in the provinces in Mindanao and Sulu such fines will be spent only for the benefit of the municipal districts concerned. Premises considered, it is our opinion that (a) fees, fines or other moneys paid to justices of the peace and municipal courts in the Mountain Provinces which accrue to the National Government shall be collected by our Collection Agents therein assigned, and (b) fees or fines imposed by the same courts for any infraction of provincial or municipal ordinances in the Mt. Province which purely accrue to the local governments shall be collected by the corresponding local treasurers. All previous rulings issued by this Office which deal on the same issue, as above-explained, should therefore be interpreted in accordance with the foregoing opinion. However, rulings inconsistent herewith are hereby revoked. Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue