Surcharge Imposed on a Holder in Due Course of Negotiable Certificates of Indebtedness

July 24, 1958 BIR RULING NO. 394-58 The Treasurer of the Philippines Manila S i r : Reference is made to your letter dated May 14, 1958, informing this Office that Regina, Inc. is the holder in due course of negotiable certificates of indebtedness (back pay) in the aggregate amount of P36,338.49 and that said corporation has requested that Office that the same be applied to the income tax due from it for the year 1957 in the same amount. However, in view of the fact that the corresponding check to be issued in favor of this Office may not be finished on or before May 15, 1958, the date for payment of the income tax, you now request that in that event, no surcharge be imposed against Regina, Inc. In answer thereto, I have the honor to inform you that in the light of the doctrine enunciated in the case of "Lim Co. Chui vs. Posadas" (47 Phil., 460), said request cannot be granted. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue