BIR Ruling

April 19, 1972 The Director Revenue Region No. 9 San Pablo City S i r : Your assessment against Mr. Severo dela Cruz of the amount of P141.62 as 2% sugar processing tax, including surcharge and compromise penalty for the year 1966 was protested with this Office. In this connection, you are informed that Revenue Circular No. 22-71 which revoked the ruling exempting planter-members of sugar producers cooperative marketing associations from the payment of the 2% tax on their shares in the sugar which their respective association caused to be milled is not to be applied retroactively. It appears, that the Southern Tagalog Farmers' Cooperative Marketing Association of which Mr. dela Cruz is a member was issued an exempting ruling on December 13, 1972. Such being the case, your assessment against Mr. dela Cruz was an error and should, therefore, be countermanded. Besides, the right to assess had prescribed, your assessment having been made only on March 23, 1972 or more than five (5) years from 1966. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue