BIR Ruling

June 26, 1969 The Manaoag (Pangasinan) Farmer's Cooperative Marketing Association, Inc. Manaoag, Pangasinan Attention: Mr . Fausto Salva Manager Gentlemen : This refers to the exemption of your Association from the payment of the 2% miller's tax which this Office confirmed in its letter to you dated February 12, 1968. In this connection, please be informed that in an investigation conducted by an examiner of this Office on the actual business operations and activities of that Association, it was found out that the agricultural products handled by that Association are mostly palay, corn and tobacco; that it seldom deals in sugar with the Hind Sugar Company because it has no milling contract with the latter; that an ocular inspection of its office which is also its store, shows that it caters to the needs of palay, corn and tobacco producers, granting loans, selling fertilizers and insecticides to them; and that according to the records of Hind Sugar Company there was only one quedan of centrifugal sugar issued to that Association which belongs to Mr. Fausto Salva. Under the foregoing facts that Association cannot claim exemption from the 2% miller's tax in accordance with Section 48 of Act No. 3425, as amended. Accordingly, the letter of this Office to that Association dated February 12, 1968 is hereby revoked. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue