Tax Liability of Heald Lumber Company

June 20, 1958 BIR RULING NO. 334-58 Messrs. Ross, Selph, Carrascoso & Janda Attorneys-at-Law P. O. Box 781, Manila Gentlemen : In connection with your request for a reconsideration of our decision holding your client, Heald Lumber Company liable for the payment of the sum of P1,300.00 as additional documentary stamp tax on 1000 no par value shares of stock, plus penalty, I have the honor to inform you that after a careful restudy of the facts of this case, this Office still believes that your client is liable for the payment of the aforesaid amount of P1,300.00. The documentary stamp tax on the original issue of certificates of stock without par value is based on the actual consideration received by the corporation for the issuance of such stocks. Instead of declaring dividends, your client transferred the sum of P300,000.00 from its surplus account to its capital account. This resulted in an increase of the consideration actually received by the corporation for each share issued and consequently, in a deficiency documentary stamp tax due thereon. In view thereof, you are requested to advise your client, the Heald Lumber Company to pay the amount of P1,300.00 within ten (10) days from your receipt hereof in order that this case may be closed. LexLib Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue