Excess Payment for the Taxable Year

November 3, 1981 BIR RULING NO. 211-81 086 000-00 211-81 Inter-World Steel Mills-Inc. 80 Ramon Delfin Street Marulas, Valenzuela, Bulacan Attention: Mr . Juan Chang Manager Gentlemen : This refers to your letter dated August 31, 1981, requesting a ruling whether your overpayment of income tax for the taxable year 1980 could be applied against your income tax liabilities for the taxable year 1981. In reply, I have the honor to quote hereunder Section 86 of the Tax Code, as amended by Presidential Decree No. 1705: "Every corporation liable to tax under Section 24, shall file a final adjustment return covering the total net income for the preceding calendar or fiscal year. If the sum of the quarterly tax payments made during the said taxable year is not equal to the total tax due on the entire taxable net income of that year the corporation shall either: (a) Pay the excess tax still due; or (b) Be refunded the excess amount paid as the case may be. In case the corporation is entitled to a refund of the excess estimated quarterly income taxes paid, the refundable amount shown on its final adjustment return may be credited against the estimated quarterly income tax liabilities for the taxable quarters of the succeeding taxable year. Under the foregoing provision, you can credit the overpayment/refundable amount shown in your final adjustment return against your estimated quarterly income tax liabilities for the taxable quarters of the year 1981. This means that excess payment for the taxable year 1980 can be automatically credited by you without further decision from this Office. (Sec. 7, Revenue Regulations No. 10-77) Very truly yours, RUBEN B. ANCHETA Acting Commissioner