No Conflict between Sec. 245 (NIRC) and Sec. 1024 RA No. 1937

October 22, 1958 BIR RULING NO. 648-58 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila. Section 245 of the National Internal Revenue Code provides as follows: "The royalties or ad valorem taxes, as the case may be, shall be due and payable upon the removal of the mineral products from the locality where mined. However, the output of the mine may be removed from such locality without the prepayment of such royalties or ad valorem taxes if the lessee, owner, or operator shall file a bond in the amount and form and with such sureties as the Collector of Internal Revenue Code may require, conditioned upon the payment of such royalties or ad valorem taxes, in which case, it shall be the duty of every lessee, owner, or operator of a mine to make a true and complete return in duplicate under oath setting forth the quantity and actual market value of the output of his mine removed during each calendar quarter and pay the royalties or ad valorem taxes due thereon within twenty days after the close of said quarter." cdta On the other hand, Section 1024 of Republic Act No. 1937, or the Revised Tariff and Customs Code, prescribes the following: "A Collector shall not allow products to be laden aboard a vessel clearing for a foreign port until the shipper shall produce a receipt from an internal revenue official showing that the taxes and other charges upon such products have been paid or a certificate from a proper official showing that the products are exempt from the payment of taxes and other charges. This Office believes that there is no conflict between the provisions of the laws quoted above. Section 1024 of the Revised Tariff and Customs Code merely provides a means to insure the collection of the tax. Obviously, it finds application only in those cases where, at the time of exportation, the tax had already become due and payable, because it is certainly improper to enforce collection of a tax which is not yet due and payable. This Office is, therefore, of the view that in case mineral products, the tax on which is payable quarterly under the provisions of Section 245 of the Tax Code, are removed for exportation, internal revenue clearance may be granted without prior proof of payment of the tax, unless the tax thereon is already due and payable. LibLex (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue