Failure to Pay the C-13 Graduated Fixed Tax

December 23, 1959 BIR RULING NO. 637-59 1st Indorsement Returned to the Regional Director, B.I.R. Regional District No. 6, Naga City, the docket of the case of Erquiaga, Inc. involving the amount of P2,750.00 as annual fixed tax and compromise. It appears from the records of the case that during the period from 1951 to 1955, Erquiaga, Inc. engaged in business as buyer and exporter of copra but failed to pay the C-13 graduated fixed tax due on its annual gross receipts for the same period. Said company refuses to pay the fixed tax due alleging that since it does not sell copra locally in the Philippines it is not subject to tax. It is the opinion of this Office that inasmuch as Erquiaga, Inc. buys copra in the Philippines and exports the same, said company is engaged in business in the Philippines and, therefore, subject to the graduated fixed annual tax (C-13) prescribed by section 182 of the Tax Code. It is requested that immediate action be taken towards the collection of the aforesaid amount of P2,750.00. (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue