BIR Ruling No. 140-62

November 28, 1962 BIR RULING NO. 140-62 4th Indorsement Respectfully returned to the Revenue Operations Head (Assessment), the herein papers bearing on the proposed assessment against Lianga Bay Logging Co., Lianga, Surigao del Sur, with the following comment: Any forest licensee, whether bonded or not, who transports or remove logs, from his concession without accomplishing the corresponding auxillary invoices shall be liable to the 25% charge for transporting without invoice, pursuant to section 267 of the Tax Code, notwithstanding the fact that the logs being transported are covered by log scale reports by Forestry Officers. (BIR Ruling No. 140 S. 1959). The 25% surcharge should be based on the regular forest charges paid or payable by the licensee. It appears in the instant case, that the timber cut by the license were "mostly exported to Japan" and that the loading took place near its logpond." In this connection, auxillary invoices need not be prepared by the licensee. (BIR Ruling No. 505, S. 1959). However, those transported outside its concession must be invoiced accordingly even if the logs transported are already covered by log scale reports made by forestry officers. The proposed imposition of P300.00 as a compromise penalty against the Company for using commercial table (Brereton Scale) appears to be in order, in view of the pertinent provisions of Section 4(j) of Regulations No. 85 which provides as follows: "(j) Illegal use of the so-called 'Commercial Table' in any commercial sale of timber in the local marker, the timber shall be measured in accordance with the provisions of this section, and the use of the so-called 'commercial table' is hereby prohibited, . . .." Violation for the foregoing regulation is punishable under Section 41(h) of the same Regulations No. 85. The new rates prescribed in Forestry Administration Order. No. 32 took effect on July 5, 1961 and was suspended on January 24, 1962. Accordingly, the assessment based on the new rates from April to June 1961 was correctly eliminated. LLjur JOSE B. LINGAD Acting Commissioner of Internal Revenue