Bureau of Local Government Finance Opinion

September 6, 1994 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully referred to the City Treasurer, Lipa City, the herein copy of the letter dated July 1, 1994 of Pepsi-Cola Products Phils., Inc. (PCPPI) addressed to the Secretary of Justice, Department of Justice, which was subsequently referred to the Department of Finance (DOF) and ultimately to this Bureau for appropriate action. This refers to the claim of PCPPI for refund/tax credit of community tax paid to that city which has been allegedly denied despite a ruling from the DCF. Consistent with previous actions on similar cases the Department expressed the view that Article 246 (e) (3) of the Implementing Rules and Regulations (IRR)implementing the Local Government Code (LGC) of 1991 has been clarified under Section 2 of Memorandum Circular No. 153, dated June, 4, 1992, of the Office of the President, copy attached, which states: "SEC. 2. The community tax shall be paid in the place of residence of the individual, or in the place where the principal office of the juridical entity is located and, upon payment thereof, the corresponding community tax certificate shall accordingly be issued." (Emphasis supplied.) In view of the foregoing, that Office is hereby instructed to cease and desist from collecting the community tax on sales offices, branches or warehouses of corporations and other juridical entities and instead collect the said tax only from principal offices located thereat, pursuant to the provisions of M.C. No. 153. That Office is further instructed to communicate with the Manager of the PCPPI sales office for the purpose of refunding the amounts erroneously paid thereat, by way of tax credits. Report of the action taken hereon within ten (10) days from receipt hereof is requested. LORINDA M. CARLOS Executive Director