BIR Ruling No. 252-61

July 13, 1961 BIR RULING NO. 252-61 2nd Indorsement Returned to the Revenue Operations Executive (Assessment), B.I.R., Manila. LLpr Re : (1) Maximo Anaredo of Zamboanga City (Memorandum dated January 6, 1958). Under Section 39 of Revenue Regulations No. 85, the right of internal revenue officers or the deputy provincial treasurers to seize abandoned or drifted forest products arises only when the said products were recovered by a person other than the cutter or gatherer. The report on the matter does not show whether or not Mr. Maximo Anaredo is at the same time the cutter and gatherer of the logs he allegedly recovered from the sea, in view of which it would not be possible to rule on the question presented. Re : (2) Time for payment of forest charges due from Class C sawmills and other bonded licensee who are not sawmills operators or proprietors; when subject to surcharges, etc. (Memorandum dated January 6, 1958). Operators or proprietors of class C sawmills should pay the forest charges on the logs sold or exported by them within seventy-five days from the last day of the month when said logs were scaled. Bonded forestry licenses who are not sawmill operators or proprietors shall pay their forest charges within 60 days from the date of arrival of the logs at destination. (Sec. 12, Revenue Regulations No. 85). Payments made after the expiration of the 60-day period are subject to 25% surcharge. Re: (3) Mr. Proceso Samson (Memorandum dated January 6, 1958). Since Mr. Proceso Samson is an ordinary licensee, he should pay his forest charges before transporting or removing his logs from the forest. Hence, if Mr. Samson did not pay his forest charges before removal of the logs from the forest, he is liable to the 25% surcharge for late payment. prll Upon arrival of the logs in question at Mr. Samson's lumber yard in Zamboanga City, he was under obligation to secure a discharge permit. Failure on his part to get the said permit makes him liable to the 25% surcharge for discharging without permit. Re: (4) West Basilan Timber Co., Inc., Viteli, Zamboanga City (Memorandum dated January 7, 1958). Refer to ruling on bonded licensees stated in case No. (2) hereof. Re: (5) Port Banga Timber Co., Zamboanga City (Memorandum dated January 7, 1958). Refer to the ruling on Mr. Samson's case (Case No. 3). In the preparation of auxiliary invoices, all data required therein must be properly shown in the corresponding blanks or columns. The mere accomplishment of the recapitulation column in said invoices cannot be deemed a substantial compliance with the requirement of preparing such invoices. Accordingly, if forest products are transported or removed on auxiliary invoices which contain only the information under the recapitulation column, such transporting or removal shall be deemed one without auxiliary invoice and will, therefore, be subject to the 25% surcharge. cdta Re: (6) Lianga Lumber Co., Ltd. (Memorandum dated January 8, 1958). The requirement of accomplishing the auxiliary invoices before transporting forest products and of securing discharge permits for the same upon arrival at destination is mandatory and applies to both ordinary and bonded licensees. Since it appears from the memorandum that the Lianga Lumber Co., Ltd. transported logs it cut from its concession in Agusan to Lianga, Surigao without accomplishing the corresponding auxiliary invoices for said logs, the company is, therefore, liable to the 25% surcharge for transporting logs without invoice and another 25% surcharge for discharging without permit. Re: (7) West Basilan Timber Inc., Curuan, Zamboanga City (Memorandum dated January 8, 1958). Auxiliary invoices covering logs cut by the licensees must be accomplished before the said logs can be transported or removed from the forest and the discharge permit for the same must be secured upon arrival of the logs at destination regardless of whether or not the logs are intended for export. The West Basilan Timber Inc. is subject to the aforesaid requirements. It must secure the discharge permit at the time of arrival of the logs at destination. In the case of logs intended for export, the company must secure the discharge permit before delivery to the buyer. Re: (8) Domingo Abarro (Memorandum dated January 10, 1958). Refer to the preceding ruling on the case of Lianga Lumber Co., Ltd. (Case No. 6). cdti (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue