Payment of Licenses or Taxes out of Backpay Certificates

July 2, 1959 BIR RULING NO. 339-59 Philippine Free Press 708 Rizal Avenue M a n i l a Attention : A . R . Torres Gentlemen : Reference is made to your letter dated February 6, 1958, wherein information is requested on the following queries: cdt QUERY of Mr. Jose L. Dormentes 1) Is there any law or regulations to the effect that we could not pay our licenses or taxes out of our backpay certificates? 2) When did such regulations took effect if there be any? 3) Under what circumstances could we made use of our backpay certificates in the payment of our obligations to the government? QUERY of Mr. Jose P. Benzon 1) I own a piece of land and fishpond, which is the only source of my income. I have my income from these properties yearly, that is during the harvest season. I file my income tax return. 2) Am I required to keep a "Simplified Set of Bookkeeping Records" duly signed by agents of the Bureau of Internal Revenue? If so, do I have also to pay P20.00 as fixed tax and the 5% tax? In reply thereto, I have the honor to inform you as follows: RE QUERY of Mr. Dormentes Original backpay holders under Republic Acts Nos. 304 and 897 can apply their backpay in payment of taxes to which they are directly and personally liable. RE QUERY of Mr. Benzon 1) Before August 24, 1956, owners or operators of fishponds are not subject to the fixed and percentage taxes prescribed under Title V of the National Internal Revenue Code. 2) From August 24, 1956 to June 21, 1957, the date of effectivity of Republic Act No. 1612, they are subject to a fixed tax of P20.00 per annum and to a sales tax of 5% of the gross selling price or gross value in money of the fish and its by-products produced by them. 3) From June 22, 1957 to date they are again exempted from the fixed and percentage taxes. Fishpond owners or operators must keep a journal and ledger or their equivalents. However, should their gross quarterly receipts not exceed P5,000.00, a simplified set of bookkeeping records may be kept. Should their gross quarterly receipts exceed P25,000.00, their books of accounts must be audited and examined yearly by independent certified public accountants and their income tax returns accompanied with certified balance sheets, profit and loss statements, schedule listing income-producing properties and the corresponding incomes therefrom and other relevant statements. There are returned herewith the original queries as requested. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue