Fixed and Percentage Tax Liability of the Fishpond Owners and Operators

May 17, 1960 BIR RULING NO. 245-60 The President Bataan Association of Fishpond Owners and Operators Orani, Bataan S i r : This refers to your letter regarding the fixed and percentage tax liability of the fishpond owners and operators of your province under sections 182 and 186 of the Tax Code, as amended by Republic Act No. 1612. In behalf of said owners and operators, you manifested their willingness to pay the above-mentioned taxes. However, you maintain that the assessment of the percentage tax must be based on the income tax returns filed by them. The investigation conducted in connection with this case disclose that "many if not all" of the fishpond owners and operators concerned are not keeping and using books of accounts. They did not pay the fixed and percentage (sales) taxes due on their operations during the period in question. Neither did they file the sales tax returns. Under the above circumstances, the sales tax in question should, as you have correctly stated, be assessed on the best evidence obtainable. The income tax return is the best evidence for purposes of the sales tax although it may be admitted that the same may be of some help in determining the true and correct amount of sales tax due. This Office believes that the official determination of the value of production of each class of fishpond made by the provincial treasurer and assessor of your province should be given more credence in the absence of the books of accounts and sales tax returns of said owners and operators. In view of the foregoing, we regret to inform you that we find your contention untenable. As soon as the fishpond owners and operators herein involved receive the demand for payment of the taxes in question, this Office will appreciate it very much if you will advise them to pay promptly. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue