Requesting Entity: University of Southeastern Philippines (USEP)
Issues Concern: Tax Clearance Requirement
Whether the submission of other documents in lieu of the Tax Clearance requirement under Section 34.2 of the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 may be considered as compliance with the rules.
[T]he requirement under Section 34.2 of the IRR of RA 9184 for the submission of Tax Clearance is based on Executive Order (EO) No. 398 (or Tax Clearance Form 17.4B). Section 1 of EO 398 requires the submission of Tax Clearance issued by the Bureau of Internal Revenue (BIR) to prove full and timely payment of taxes of all persons desiring to enter into or participate in any contract with government.
[I]t is clear that EO 398 specifically requires the submission of Tax Clearance issued by the BIR. Hence, we are of the view that the submission of the other documents in lieu of the Tax Clearance requirement cannot be considered in compliance with Section 34.2 of the IRR of RA 9184.