BIR Ruling

January 25, 1967 The President Silahis Marketing Corporation 1789 Dian St. Makati, Rizal S i r : This refers to your letter dated January 6, 1967, requesting for a ruling as to whether the activities to be undertaken by your company, Silahis Marketing Corporation, would constitute it a broker. It appears that in the dealership agreement, Silahis Marketing Corporation (as one of several hundred dealers) would purchase and sell for its own account articles being carried by Theo H. Davies and Co., Far East Ltd; that credit risk in this transaction shall be for the account of Silahis Marketing Corporation; and that while the principal transaction is that of any ordinary buyer to seller, the arrangement is for Theo H. Davies & Co., Far East Ltd. to make straight delivery to the customers of Silahis Marketing Corporation upon the latter's instructions. In reply, I have the honor to inform you that under the foregoing facts, this Office believes as it hereby holds that Silahis Marketing Corporation is not constituted a commercial broker but an ordinary dealer subject only to the payment of the graduated annual fixed tax prescribed in Section 182(A)(2) of the Tax Code. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue