Question & AnswerQ&A (Republic Act No. 1051)
The main objective of Republic Act No. 1051 is to require all government bureaus, offices, agencies, instrumentalities, including government-owned or controlled corporations, provinces, cities, and municipalities, to deduct and withhold any and all taxes due and payable from money payments made to private individuals, corporations, partnerships, and/or associations.
It applies to all bureaus, offices, agencies, instrumentalities of the government, including government-owned or controlled corporations, provinces, cities, and municipalities, in their payments to private individuals, corporations, partnerships, and/or associations.
Before making any money payment, the government entities must deduct and withhold any and all taxes the amount of which can be fixed, determined, computed, or ascertained due from the recipients on account of the said money payment.
Yes, withholding is not required if previous payments of the tax liability or liabilities have already been made by the corresponding payee.
The tax liability includes any and all taxes which can be fixed, determined, computed, or ascertained on account of money payments.
The Secretary of Finance is empowered to promulgate the necessary rules and regulations to implement and effectively carry out the provisions of the Act.
It is unlawful and subject to penalties including a fine of not less than one thousand pesos nor more than two thousand pesos, imprisonment for not more than one year, administrative proceedings which may lead to dismissal from service, and for aliens, deportation without further proceedings.
Yes, it is unlawful for any person or persons to induce or connive with government officers or employees to commit the unlawful act of paying or receiving payment without the required withholding, and such acts are punishable under the law.
Violations are punishable by a fine between one thousand pesos and two thousand pesos, imprisonment of not more than one year, administrative sanctions for public officers including dismissal from service, and deportation for alien violators.
Republic Act No. 1051 took effect upon its approval on June 12, 1954.