Deductibility of Common Carrier's Tax

September 25, 1958 BIR RULING NO. 560-58 The Auditor Bureau of Public Highways Manila S i r : In answer to your letter dated September 23, 1958, in relation to that dated September 19, 1958 of the Equipment Inspector, Bureau of Public Highways, I have the honor to inform you that, pursuant to the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. V-40, the 2% common carrier's tax should be deducted and withheld by the cashier and disbursing officer of the Bureau of Public Highways from the payment of the passage fares to be made by him to the airline company concerned thru the Philippine Travel Bureau. Said tax is due from and payable by the airline company and the fact that said payment has to be made thru a commercial broker, which in this case is the Philippine Travel Bureau does not have the effect of exempting such payment from the operation of the withholding provisions in question. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue