All persons, natural or juridical, local or foreign who have existing contracts with the government, its departments, bureaus, offices and agencies, SUCs, GOCCS, government financial institutions, and LGUs for the supply of goods and services including infrastructure projects, shall secure from the BIR and updated tax clearance certifying that they have no outstanding liabilities and that they have duly filed the latest income and tax returns and paid the corresponding taxes thereon. It shall be presented by the contractor to the departments concerned prior to the final settlement of the contract. Failure to secure and present the prescribed BIR tax clearance shall entitle the respective government agencies mentioned above to suspend the final settlement for any goods or services including infrastructure projects delivered by the contractor.