Case of Jos. S. Johnston & Sons, Inc.

April 17, 1959 BIR RULING NO. 213-59 2nd Indorsement Returned to the Regional Director, BIR Regional District No. 10, Davao City, the herein papers bearing on the internal revenue case of Jos. S. Johnston & Sons, Inc. The papers of this case show that Jos. S. Johnston & Sons Inc. (hereinafter called the Corporation for brevity) leases office spaces in a building belonging to it. (p. 12, Docket). In 1949, 1950 and 1954 up to the present, the Corporation has paid the real estate dealer's fixed tax. (Ibid.). However, in 1951, 1952 and 1953 it did not pay the said tax. (Ibid). The annual rental income received by the Corporation during each of the years that it did not pay the real estate dealer's fixed tax is more than P3,000.00. (p. 11, Docket). The failure of the Corporation to pay the real estate dealer's fixed tax was discovered in 1956 and the letter of demand for payment of said tax was issued on October 23, 1957 which was received by the Corporation on October 28, 1957. (p. 4, Docket). The Corporation refused and still refuses to pay the fixed taxes demanded from it. (p. 12, Docket). From the foregoing considerations, it is clear that the Corporation is liable to the real estate dealer's fixed tax. He is, therefore, instructed to proceed immediately with the collection of the said tax by distraint and levy and to inform this Office of the action he has taken on the matter. (SGD.) JOSE ARAAS Commissioner of Internal Revenue