Authority to Use Convenient Procedure

November 9, 1981 BIR RULING NO. 220-81 030-h 000-00 220-81 Messrs. Sycip, Gorres, Velayo & Co. P.O. Box No. 989, Manila 2800 Attention: Mr . B . V . Abera Gentlemen : This refers to your letter dated August 12, 1981, requesting for convenience, authorization of the following procedure relative to the implementation of Sections 6, 7 and 8 of BIR-NEDA Regulations No. 1-81 dated April 30, 1981. "1. That your donees, in complying with Section 6 of the said Regulations, will accomplish only one Certificate of Donation for each donation received, naming SGV as the donor therein, and giving the original thereof to SGV. "2. That instead of the SGV partners executing individually the Notice of Donation, SGV will prepare one consolidated Notice of Donation for each donation made and covered by each Certificate received from donees, and file the same. "3. That at the end of each calendar year, SGV will allocate the amounts claimable in full and the amounts subject to 6% (individual) limitations to the individual partners, furnishing each with the necessary information or details as will enable said partners to comply with Section 8(A) of the Regulations." You have represented that your firm is a general professional partnership engaged in the practice of accountancy, makes donations or among others, services to institutions and foundations which donations would qualify for full deductibility upon compliance with certain requisites, that since you have quite a substantial number of partners (about 70 at present) it would be very inconvenient for you and for your donees if the latter would be made to accomplish numerous Certificates of Donation required under Section 6 of the aforestated Regulations to be given to each of the donors-partners, and for each of the donors-partners to execute and file a Notice of Donation, each attaching the Certificate of Donation of the donee, as required under Section 7 of the same regulations; and that when you consider the number of donations made by your firm per month, it could be seen that the paper work entailed on the part of SGV, of the donees, and of the BIR could assume herculean proportions which, as you have said, is a situation neither intended nor contemplated when the Regulations were drafted. In reply thereto, I have the honor to inform you that since BIR-NEDA Regulations No. 1-81 implementing Section 30(h) of the Tax Code is promulgated, on the one hand, in order to provide the BIR the procedure in determining the qualifications of donee institutions and the requirements for the deductibility or the non-deductibility of donations in general, and considering, on the other hand, that your proposed procedure would not in effect change the said requirements, particularly on the Certificate of Donations and the Notice of Donations requirements provided for under Sections 6 and 7 of the aforestated Regulations, it is our opinion that your proposed procedure, being more pragmatic and practicable for organizations like yours, may be adopted by you for purposes of implementing the said provisions of Section 30(h) of the Tax Code of 1977, as amended by Batas Pambansa Blg. 45. Very truly yours, RUBEN B. ANCHETA Acting Commissioner