Backpay Certificates Issued under RA No. 897

December 5, 1960 BIR RULING NO. 521-60 Mr. Jesus F. Bordalba Subangdaku, Mandawe Cebu S i r : In reply to your letter dated October 30, 1960, I have the honor to inform you that backpay certificates issued under Republic Act No. 897 may be accepted in payment of the taxes of the original backpay claimant provided that the same is his own personal obligation , pursuant to the provision of Section 2 of the said Act, the pertinent part of which reads: . . . That upon application and subject to such rules and regulations as may be approved by the Secretary of Finance, a certificate of indebtedness may be issued by the Treasurer of the Philippines covering the whole or a part of the total salaries or wages the right to which has been duly acknowledged and recognized, provided that the face value of such certificate of indebtedness shall not exceed the amount that the applicant may need for the payment of . . . (2) his taxes; . . . Provided, further, that such settlement shall be effected by indorsement on the instrument. . ." (Emphasis supplied). In view hereof, your backpay can not be applied in settlement of taxes of the indorsee or assignee, because he is not the original backpay claimant under the provision of Republic Act No. 897. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue