Authority of the Non-Resident Alien Stockholders to File Their Income Tax Returns on the Basis of the Old Law

April 7, 1960 BIR RULING NO. 151-60 The Everett Steamship Corporation 245 Juan Luna, Manila Gentlemen : In answer to your letter dated March 28, 1960, requesting that authority be granted to your non-resident alien stockholders receiving cash dividends on March 31, 1959, that is, prior to the passage of Republic Act No. 2343, to file their income tax returns on the basis of the old law for the reason that the withholding and final payment of the said net dividends took effect and was consummated before the passage of the amendment to the Income Tax Law under the aforesaid Republic Act, I regret to inform you that your request cannot be granted inasmuch as incomes distributed on or after January 1, 1959, but prior to June 20, 1959, and subjected to withholding under the provisions of sections 53 and 54 of the Tax Code at the old rates shall be subject to deficiency tax which shall be collected by the withholding agent by simply deducting the deficiency from the income he will subsequently distribute to the corresponding recipients. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue