REVENUE REGULATIONS NO. 3-2001 issued April 16, 2001 grants moratorium on the withholding of Income Tax on the compensation income of public elementary and secondary school teachers employed by the national government. The collection of withholding tax on the compensation of the teachers will be suspended for the period from May 1, 2001 to June 15, 2001 to allow sufficient time to process their claims for tax refunds covering taxable years 1997 to 1999. The tax, which should have been withheld during the period of suspension, will be paid beginning August 2001 by offsetting the same against the claims for tax refunds approved by the BIR. If the approved amount of refund exceeds the deferred withholding tax due, the excess will be processed in accordance with the existing procedures in the BIR. On the other hand, if the amount of refund is not sufficient or there is no refund to offset the deferred withholding tax, the said tax or the balance thereof may be paid by the teachers in five (5) equal monthly payments through salary deductions, in addition to the regular withholding tax due beginning August 2001.