Pending the decision of the cases now before the Court of Tax Appeals, the collection of the...

September 30, 1960 BIR RULING NO. 441-60 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants 490 San Luis, Manila Gentlemen : With reference to your letter dated August 10, 1960 relative to the P168,833.80 deficiency withholding tax assessment, including surcharge and penalty, against your client, the Commonwealth Insurance Co., please be informed that it is the position of this Office that reinsurance premiums ceded to non-resident foreign insurance companies under the so-called reinsurance treaties executed aboard are subject to the withholding tax on the total amount thereof. However, this Office has allowed the withholding agents, as a temporary arrangement during the pendency of the court cases involving this question, to withhold the tax on the remittable premiums only, but they shall remain liable for any deficiency withholding tax that may be assessed according to the decision in said cases. Pending the decision of the cases now before the Court of Tax Appeals, the collection of the assessment against your client may be held in abeyance provided that it execute a waiver of the statute of limitations. Accordingly, you are requested to advise your client to execute said waiver and submit the same to this Office within ten (10) days from your receipt hereof; otherwise, this Office will enforce collection thereof accordingly. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue