BIR Ruling

September 23, 1971 Philippine Electric Plant Owners Association 5th Floor, Ramon Magsaysay Center Roxas Blvd., Manila Attention: Mr . Raquilino B . Pagan Office Manager Gentlemen : This refers to your letter dated May 20, 1971 requesting information as to what projects of interest to utility operators may be considered as infrastructure and whether it includes, aside from access roads to plant sites, transmission and distribution system also, along with terminal facilities. Your letter states also that it is a follow-up to your letter dated October 28, 1970 requesting for a ruling on "Tax Credit" as applied to infrastructure projects undertaken by private companies. cdt In reply, I have the honor to inform you that the infrastructure projects are those provided under Section 1, R. A.. No. 5279, the pertinent provisions of which are quoted hereunder: ". . . contracts for the construction, reconstruction, repair, and/or improvement of buildings, highways, artesian wells, waterworks system, shore protection works, river control, irrigation, airports and air navigation facilities, portworks, telecommunications and other public works including the acquisition of necessary sites and rights-of-way, with private persons, corporations, associations or partnerships . . ." An analysis of the aforesaid provision will show that electrification projects as well as its transmission and distribution system are not included as infrastructure projects for purposes of R. A. No. 5279. This Office has already answered your letter dated October 7, 1970 c/o Atty. Pilar Nable, 116 10th Street, Gilmore, Quezon City on November 18, 1970 requesting a ruling on "Tax Credit Law" as applied to infrastructure projects undertaken by private companies, a copy of which is herewith attached, which is self-explanatory. aisa dc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue