Requirements in the Filing of a Bond

October 23, 1959 BIR RULING NO. 523-59 2nd Indorsement Respectfully returned to the Chief, Tobacco and Miscellaneous Tax Division, the papers pertaining to the internal revenue tax case of the Katubusan Tobacco Corporation with the information that pursuant to General Circular No. V-269 all bonds filed with the Bureau of Internal Revenue, to be sufficient must state the following: ccdi 1. The correct amount of the tax, surcharges and penalties; 2. The kind of tax involved; if the tax covered by the bond is an income tax, it must be so stated in the bond; if the amount covered by the bond includes surcharges, interest and penalties, such fact must be specifically and definitely stated in the bond; in case interest is imposed, the definite date of accrual thereof must be stated in the bond; 3. The exact period of the tax liability; for example, if the tax liability pertains to a month of a certain year, the month and the year should be stated, or if it pertains to a period from a certain day of a month in a certain year to another day of another month in another year, such details should be so stated in the bond; The following new and additional conditions must also be incorporated in the bond: (a) That the principal and the surety or sureties waive the statute of limitations under the National Internal Revenue Code. (b) That the obligation of the surety or sureties under the bond may be enforced by the Commissioner of Internal Revenue by means of the summary remedy of distraint and levy as provided for in sections 315 to 330 of the National Internal Revenue Code. (c) That the principal and the surety or sureties agrees to pay to the Republic of the Philippines exemplary or corrective damages of not less than P100.00, in case it becomes necessary to bring a court action for the forfeiture of the bond and the bond is actually forfeited. Inasmuch as the bond filed by the abovementioned taxpayer does not comply with the above requirements, the same is hereby returned for proper correction. MISAEL P. VERA Deputy Commissioner of Internal Revenue