Unutilized Balance of Tax Credit Certificate

July 29, 1981 BIR RULING NO. 130-81 253-00 094-81 130-81 CDCP Mining Corporation 2nd Floor, Alco Bldg. 391 Buendia Ave. Ext. Makati, Metro Manila Attention: Mr . Virgilio C . Jordana Senior Vice-President Gentlemen : This refers to your letters dated April 20, and May 7, 1981 requesting that the unutilized balance of your Tax Credit Certificate No. A-01325-B amounting to P182,255.25 which was granted to you as an enterprise registered with the Board of Investments under Republic Act No. 5186, be partially applied to the occupation fees on the various mining claims of different claimowners with whom you have executed "Mining Agreements" and "Assignments of Mining Claims" under which instruments you have agreed to pay the occupation fees on the said mining claims. In reply, please be advised that as provided for under Section 3(j) of Republic Act No. 5186, as amended, a tax credit certificate may be used only by the registered enterprise to pay taxes due to the National Government in connection with its registered operations and is non-transferable. On the other hand, the occupation fee imposed by Section 253 of the Tax Code of 1977, as amended, is required to be paid by the locator, holder or occupant of the mining claims for the occupation of the same. Such being the case, it is our opinion, as we hereby hold, that you cannot use the unutilized balance of your Tax Credit Certificate No. A-01325-B for purposes of paying the occupation fees on the mining claims listed in your aforecited letters. If your tax credit certificate is utilized in payment of the occupation fees, that would in effect transfer the utilization of said certificates, since the locator, holder or occupant of the mining claims, and not your Corporation, are the parties directly liable for the payment of the occupation fees. aisadc It is regretted, therefore, that we cannot grant your request. Very truly yours, RUBEN B. ANCHETA Acting Commissioner