Withholding Tax on Government Payments

Ask AI

Republic Act No. 1051: Withholding Tax on Government Payments

What do you want to know about the law?
Ask AI quickly gives answers based only on the current context to avoid mistakes. Always verify with the original text.

New Chat Started

Ask AI

Title Source: Supreme Court: Withholding Tax on Government Payments

Law: Republic Act No. 1051

Decision Date: Jun 12, 1954

Republic Act No. 1051 requires all government entities in the Philippines to deduct and withhold taxes from money payments made to individuals, corporations, partnerships, and associations, ensuring the collection of taxes due and payable. Violators may face fines, imprisonment, administrative proceedings, dismissal from service, or deportation.

Law Summary

Definition of Tax Liability Subject to Withholding

Covers any and all taxes that can be fixed, determined, computed, or ascertained from the payment.
Emphasizes the comprehensive scope of taxable amounts subject to withholding under this law.

Rulemaking Authority

Grants the Secretary of Finance authority to promulgate necessary rules and regulations.
Aims to ensure proper implementation and effective enforcement of the withholding provisions.

Prohibition and Unlawful Acts

Prohibits public officers or employees and officials or employees of government-owned or controlled corporations from authorizing payments without required withholding or prior tax payment.
Forbids inducing or conniving with such officials to commit withholding violations or receiving payments in violation of the law.

Penalties for Violation

Imposes a fine ranging from one thousand pesos to two thousand pesos.
Includes imprisonment for up to one year for violations.
Public officers found guilty face additional administrative proceedings and possible dismissal from government service.
Aliens violating the law face penalties and mandatory deportation without further proceedings.

Effectivity

The law takes effect immediately upon approval, June 12, 1954.

END