BIR Ruling

July 22, 1969 Sagay Sugar Planters' Cooperative Marketing Association, Inc. Bacolod City Attention: Mr . Plaridel G . Villadelgado Board Secretary Gentlemen : This refers to your letter dated March 16, 1969 requesting exemption from the miller's tax under the provisions of Act No. 3425, as amended by Republic Act No. 702. cdll In reply, I have the honor to inform you that according to the investigation conducted by the examiner of this Bureau and the documents submitted, the Sagay Sugar Planters' Cooperative Marketing Association, Inc. is duly registered with the Securities and Exchange Commission and is affiliated with the Agricultural Credit Administration; that the Association is operating in accordance with Act No. 3425, as amended; that all the quedans covering the sugar manufactured shall be in the name of the Association; and that under the marketing agreement and power of attorney entered into by and between and Association and its members, the Association is undertaking the processing and marketing of the sugar and other agricultural products of its members. In view thereof, the Sagay Sugar Planters' Cooperative Marketing Association, Inc., a cooperative marketing association duly organized and operating under Act No. 3425, as amended, is exempt from the 2% miller's tax, the merchants' sales tax, and all other percentage taxes of whatever nature and description, pursuant to Section 48 of Act No. 3425, as amended by Republic Act No. 702. (Calamba Sugar Planters' Cooperative Marketing Association vs. Commissioner of Internal Revenue, CTA Case No. 216, January 5, 1957). Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue