Deficiency Real Estate Dealer's Fixed Tax and Compromise Penalty of Mrs. Pilar Gil Vda. de Murciano

May 5, 1960 BIR RULING NO. 221-60 3rd Indorsement Respectfully returned to the Regional Director, BIR Regional District No. 2, San Fernando, Pampanga, the herein papers bearing on the deficiency real estate dealer's fixed tax and compromise penalty of Mrs. Pilar Gil Vda. de Murciano of Tarlac, Tarlac. cd The only issue in this case is whether or not the taxpayer should be held liable for the payment of the assessed additional real estate dealer's fixed annual tax for the year 1956 based on her 1955 receipts as contended by the PRO of Tarlac in accordance with the new rates prescribed by Republic Act No. 1612. It appears that the basis of the deficiency fixed tax of P160.00, inclusive of compromise penalty, is the 1955 receipts of the taxpayer, and that the latter paid the real estate dealer's fixed tax of P150.00 as imposed by section 182(a)(3)(s) of the Tax Code (before R.A. No. 1612 took effect) , as evidenced by O.R. No. 871009 paid on January 9, 1956. It has been the position of this Office that the increased rates prescribed by R.A. No. 1612 is reckoned from January 1, 1956. Accordingly, the instant assessment is in order. In this connection, he is informed that R.A. No. 1856 which took effect on June 22, 1957, amended the date of effectivity of R.A. No. 1612 to January 1, 1957. However, the said amendment applies only to fixed taxes on occupation and not to fixed taxes on business. While this opinion was reversed by the Court of Tax Appeals on November 22, 1958 in C.T.A. Case No. 447, entitled "Filipinas Compania de Seguros vs. Collector of Internal Revenue", yet, said CTA decision (appealed by this bureau to the Supreme Court, docketed as G.R. No. L-14880) is not binding on this bureau until the same is finally decided by the Supreme Court. cdtech (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue