BIR Ruling No. 298-61

August 16, 1961 BIR RULING NO. 298-61 3rd Indorsement Respectfully returned, thru the Auditor, Bureau of Internal Revenue, to the Honorable Auditor General, Attn: Manager, National Government Auditing Department, Manila, the papers bearing on the withholding tax case of the National Shipyards and Steel Corporation. The pertinent provision of Section 1, Republic Act No. 1051 is quoted below: "All bureaus, offices, agencies and instrumentalities of the government, including government owned or controlled corporations, provinces, cities and municipalities, shall, before making any money payment to private individuals, corporations, partnerships and/or associations, deduct and withhold any and all taxes . . . due from such individuals, corporations, partnerships and/or associations on account of said money payment . . . ." It seems quite clear that the duty to deduct and withhold any tax arises only when the recipient of a money payment is either a private individual, corporation, partnership, or association. As the National Shipyards and Steel Corporation, the recipient of the money payment in question, is a government-owned and controlled corporation, whatever tax is due from said corporation on account of such payment need not be deducted and withheld in accordance with Republic Act No. 1051, as implemented by Revenue Regulations No. V-40. LLphil