BIR Ruling [UN-090-94]

March 9, 1994 BIR RULING [UN-090-94] Hon. Nelson C. David Municipal Mayor Limay, Bataan S i r : This refers to your letter dated June 2, 1993, requesting this Office to instruct our Regional Director of BIR Region No. 4-B2, Makati, to accommodate your municipal officials who will conduct an examination of the records, i. e., Income Tax Returns, Financial Statements, etc., of various companies located in Limay, Bataan but whose principal offices are located in Metro Manila. Your request is mainly based on Art. 259(e) of the Rules and Regulations Implementing the Local Government Code of 1991 which provides that the records of the revenue district officer of the BIR shall be made available to the local treasurer, his deputy or duly authorized agent. casia In reply, attention is invited to the pertinent provisions of Art. 243(a) (1), also of the said Rules and Regulations which provide, viz.: "ART. 243. Situs of the Tax . (a) Definition of terms "(1) Principal Office the head or main office of the business appearing in the pertinent documents submitted to the Securities and Exchange Commission, or the Department of Trade and Industry, or other appropriate agencies, as the case may be. The city or municipality specifically mentioned in the articles of incorporation or official registration papers as being the official address of said principal office shall be considered as the situs thereof. "(2) . . .". It is clear from the aforequoted provisions that you have no jurisdiction over those companies because while their factories are located in your municipality, their principal offices are admitted located in Metro Manila. As such, the situs of the tax is at the city or municipality in Metro Manila where the principal office of the corporation is situated and, therefore, the city or municipal treasurer thereat is the one who can request our revenue district officer to make available the books of accounts and other records of said corporation for purposes of imposing local taxes, fees and charges. cdt Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue