Application of the Backpay of Cesaria Santos in Tax Settlement

June 17, 1959 BIR RULING NO. 309-59 Miss Cesaria Santos 200 Petain Street San Juan, Rizal M a d a m : In reply to your letter of March 29, 1959, we quote hereunder the opinion of the Secretary of Finance dated May 25, 1959: ". . . backpay certificates issued under Republic Act No. 897 may be accepted in payment of the taxes of the original backpay claimant provided that the same is his own personal obligation, pursuant to the provisions of Section 2 of the said Act, the pertinent part of which reads: ". . . That upon application and subject to such rules and regulations as may be approved by the Secretary of Finance a certificate of indebtedness may be issued by the Treasurer of the Philippines covering the whole or a part of the total salaries or wages the right to which has been duly acknowledged and recognized, provided that the face value of such certificate of indebtedness shall not exceed the amount that the applicant may need for the payment of . . . (2) his taxes; . . .; Provided, further, That such settlement shall be effected by indorsement on the instrument . . ." (Emphasis supplied.) "The Memorandum of the Presidential Committee on Backpay Claims, dated March 16, 1959, regarding the stoppage of the issuance of both negotiable and non-negotiable certificates of indebtedness mentioned herein, refers to backpay certificates issued under R.A. No. 304, as amended by R.A. No. 800, which matured on June 18, 1958, and does not affect those issued under R.A. No. 897 which will mature in 30 years." "In view thereof, the backpay of Miss Cesaria Santos may be applied in settlement of her taxes if it could be shown that she is the original backpay claimant under the provisions of R.A. No. 897." aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue