Time and Place of Payment of "Forest Obligations" and "Back Accounts" of a Forest Concessionaire

April 5, 1960 BIR RULING NO. 201-60 Mrs. Ulyssess C. Mabasa 159 San Roque Extension Roxas City M a d a m : Your letter inquiring about the time and place of payment of what you stated as "forest obligations" and "back accounts" of a forest concessionaire was referred to this Office by the Bureau of Forestry for reply. LLjur With regard to charges, dues, or fees to be paid by forest concessionaires of licensees, this Office administers and enforces collection only of the forest charges provided in Chapter V, Title VIII of the Tax Code. Other fees which may be due from forest concessionaires, such as the reforestation fee, are not enforced and collected by this Bureau. Hence, this reply shall be limited only to that portion of the "forest obligations" and "back accounts" of a forest concessionaire referred to in your letter which consists of the forest charges prescribed in the Tax Code. Generally, forest charged should be paid at the municipality where the products are cut before removal of the products from the forest. However, if the products are transported under bond, the forest charges may be paid within sixty (60) days from arrival of the products at the place of destination or at such time and place as the Commissioner of Internal Revenue may direct. (Sec. 273, Tax Code; Secs. 11 and 12, Revenue Regulations No. 85). Forest charges due from concessionaires or licensees which remain unpaid after the expiration of their forest license may be paid to the deputy provincial treasurer of the municipality where the products were cut, or in the case of bonded licensees, to the deputy provincial treasurer of bonded licensees, to the deputy provincial treasurer of the place where products are sent. If the charges are not paid within sixty (60) days after the same became due and payable the 25% surcharge shall be imposed. (Sec. 267, Tax Code). Please note that the 60-day period is not counted from the date of expiration of the forest license. There is no inter-revenue rule or regulation giving forest concessionaires a grace period for payment of forest charges which is counted from the date of expiration of their license. Payment of forest charges is made only to the deputy provincial treasurer. cdt Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue