Publication of Sections 45(b) and 86 (as amended by Batas Pambansa Blg. 41) and Section 72 (Amended by Batas Pambansa Blg. 37) of the Tax Code

February 14, 1980 REVENUE MEMORANDUM CIRCULAR NO. 06-80 SUBJECT : Publication of Sections 45(b) and 86 (as amended by Batas Pambansa Blg. 41) and Section 72 (Amended by Batas Pambansa Blg. 37) of the Tax Code TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, Sections 45(b) and Section 86 of the National Internal Revenue Code as amended by Batas Pambansa Blg. 41 and Section 72 of the same Code as amended by Batas Pambansa Blg. 37 are reproduced below: "Sec. 45. Individual returns . . . . xxx xxx xxx "(b) Where to file . Except in cases where the Commissioner otherwise permits, the return shall be filed with the Revenue District Officer, Collection Agent, or duly authorized Treasurer of the municipality in which such person has his legal residence or principal place of business in the Philippines, or if there be no legal residence or place of business in the Philippines, then with the Office of the Commissioner of Internal Revenue." cd "Sec. 86. Place of filing declaration and paying quarterly income tax . - Except in cases where the Commissioner otherwise permits, the declaration shall be filed with, and the tax thereon paid to, the Revenue District Officer, or the Collection Agent, or duly authorized Treasurer of the municipality where the individual is residing or in case of a corporation, in which is located its principal office and where its books of accounts and other data from which the return is prepared are kept; in case of an individual who has no legal residence in the Philippines, or a corporation that has no office of any kind or agency in the Philippines, then the returns shall be filed and the tax thereon paid with the Office of the Commissioner of Internal Revenue." "Sec. 72. Surcharge for failure to render returns; for rendering false and fraudulent returns; and for failure to file income tax returns in the proper revenue office . In case of willful neglect to file the return or list required under this Title within the time prescribed by law, or in case a false or fraudulent return or list is willfully made, the Commissioner of Internal Revenue shall add to the tax or to the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud, a surcharge of fifty per centum of the amount of such tax or deficiency tax. The Commissioner shall add to the tax twenty-five per centum of its amount: "(a) In case of any failure to make and file a return or list within the time prescribed by law or by the Commissioner or other internal revenue officer, not due to willful neglect, except that, when a return is voluntarily and without notice from the Commissioner or other officer filed after such time, and it is shown that the failure to file it was due to a reasonable cause, no such addition shall be made to the tax; cd i "(b) In case the return is filed with a person other than that mentioned in Sections 45(b) and 86 of this Code; and "(c) In case the tax imposed under Section 34(h) on capital gains realized from a deferred-payment sale where the vendor retained title to the property, or on gains on any installment payments, is not paid within the time prescribed in Section 51(a)(4) of this Code. "The amount so added to any tax shall be collected at the same time in the same manner and as part of the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount so added shall be collected in the same manner as the tax." FEATURES OF THE AMENDMENT Before the amendment of the aforesaid sections of the Code, an individual taxpayer may file his income tax return with the Commissioner, the Regional Director, Revenue District Officer, Collection Agent, duly authorized treasurer of the province, city, municipality or authorized agent banks in the locality where the taxpayer resides or where he holds his principal office or place of business. cdt Under the amendment, an individual taxpayer is required to file his income tax return only with the Revenue District Officer, Collection Agent, or duly authorized municipal treasurer having jurisdiction over the individual taxpayer's legal residence or principal place of business. If the taxpayer has no legal residence or place of business in the Philippines, then his return may be filed with the Office of the Commissioner of Internal Revenue. Legal residence . The legal residence of an individual taxpayer shall be understood as the address where the taxpayer normally resides. Principal place of business . This term shall be understood to mean the place where the main business activity of the taxpayer is conducted. a) For individuals practicing their profession, this will mean the place where his main office is located; and b) For employees the principal place of business will be their place of work . In the case of corporations, the adjustment income tax return, as well as the corporate quarterly income tax return, shall be filed with the Revenue District Officer, or Collection Agent, or duly authorized Municipal Treasurer having jurisdiction over the principal office and place where the books of accounts and other data of the corporation are kept. The filing of the income tax return in a place outside the jurisdiction of the internal revenue officer or municipal treasurers mentioned above is subject to the ad valorem penalty of 25% based on the tax due per return. As an exception to the foregoing rules, the following individuals may, under any of the conditions hereunder stated, file their income tax returns in places other than those indicated in Section 45(b) of the Tax Code. 1. Nonresident Filipino citizens as well as Filipino officials and employees of the Philippine Government assigned abroad, and Filipino citizens who are employed by United Nations and similar international organizations abroad may file their returns with the nearest BIR Attache or representative or with the nearest consular officer in the country in which they reside, or in which their place of assignment is located. Alternatively, they may mail their income tax returns and remit the tax due thereon directly to the Commissioner of Internal Revenue, Diliman, Quezon City, Philippines; casia 2. Members of the Armed Forces of the Philippines who are temporarily assigned in places other than their legal residence may file their income tax returns with the Revenue District Officer or Municipal Treasurer nearest their current place of assignment. All internal revenue officers and others charged with the enforcement of internal revenue laws are enjoined to be guided accordingly and to give this circular as a wide publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner