Unpaid Income Tax Liabilities of Examiner Alberto Lloren

August 31, 1960 BIR RULING NO. 376-60 The Regional Director B.I.R. Regional District No. 4 Quezon City S i r : In connection with the unpaid income tax liabilities of Examiner Alberto Lloren of that Office, you are hereby informed that money still in the hands of government disbursing officers, although intended as salary of a government employee cannot be garnished in satisfaction of his income tax delinquencies. The reason being that, under this situation, the government as a "garnishee" cannot be sued indirectly by itself or without its consent. Moreover, the state by virtue of its sovereignty may not sue itself in its own courts, and to subject its disbursing officers to garnishment would be permitting indirectly what is prohibited directly. (The Director of the Bureau of Commerce and Industry vs. Honorable Pedro Conception et al., 43 Phil. 394). However, the delinquencies of said employee as a taxpayer may be collected by exercising the remedies prescribed in section 316 of the Tax Code which are either by distraint and levy upon his personal and real estate property or by judicial action against the employee. We would be warned also that disciplinary action will be taken against him if he persists in no paying his lawful obligation. lexlib Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue