Request for Authority to Allow San Miguel Corporation (SMC) to Secure from the RDO Mandaluyong Presigned ATAP Good for One Week to be Replenished Every Tuesday Thereafter

August 25, 1995 BIR RULING NO. 128-95 126 000-00 128-95 San Miguel Brewing Group 40 San Miguel Avenue City of Mandaluyong Attention: Atty . Amado A . Colon Gentlemen : This refers to your letter dated June 14, 1995 stating that San Miguel Corporation (SM) is a domestic corporation engaged, among others, in the manufacture of beer with principal office or place of business at the City of Mandaluyong; that it has five (5) brewery plants located in various parts of the country; that under the law, the ad valorem tax on beer shall be paid before removal from the place of production; that classified as a large taxpayer under RA No. 7646 as implemented by Revenue Regulations No. 12-93, SMC is mandated to pay the ad valorem tax on beer wherever produced at the RDO Mandaluyong; that since SMC has daily removal of beer from all its plants nationwide, it has to prepare the check, go to the RDO Mandaluyong for the accomplishment of the ATAP and pay the ad valorem tax to any of the duly accredited banks of BIR; that the daily preparation of check and ATAP, securing the signature of RDO Mandaluyong, and paying it to the bank can stand a lot of streamlining, which can optimize further manhours utilized; that you deem it more effective if the efforts of both BIR and SMC be zeroed in on more critical tasks than the daily, routinary and mandate activities. prll In connection therewith, you are requesting authority to allow SMC to secure from the RDO Mandaluyong presigned ATAP good for one week to be replenished every Tuesday thereafter; that you would like to emphasize that there is no prejudice to the government assuming that SMC will not make use of any or all of the ATAP; that SMC will be at the losing end as it will bear the heavy penalties imposed by law (surcharge, interest and compromise penalty) for non-payment or delay in the payment of ad valorem taxes on daily removals of beer; and that to allay any fear the government may have, SMC shall fax on a daily basis, to the RDO Mandaluyong, copy of the ATAP duly acknowledged and validated by the bank and submit liquidation of all ATAP's secured for the week prior to the succeeding weekly withdrawal of ATAP. In reply, thereto, please be informed that in view of the aforementioned justifiable reasons your request is hereby granted. SMC can secure from the RDO of Mandaluyong presigned ATAP good for one week to be replenished every Tuesday thereafter and that SMC shall fax on a daily basis, to the RDO of Mandaluyong, copy of the ATAP duly acknowledged and validated by the bank and submit liquidation of all ATAP's secured for the week prior to the succeeding weekly withdrawal of ATAP. LLpr Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue