BIR Ruling

March 18, 1976 Calagan Producer's Corporation Magsaysay Public Market Mati, Davao Oriental S i r : This refers to your letter dated October 12, 1975 to the Administrator, Southern Philippines Development Administration, requesting exemption from the payment of income tax. aisadc It appears from the documentary evidence submitted that the Corporation is a profit and stock corporation duly registered with the Securities and Exchange Commission; that the purposes for which you are organized are: (1) to buy and sell all kinds of native and other products including agricultural crops and (2) to engage in any legitimate profitable business such as merchandising tailoring, barber shop; that the Corporation has an authorized capital stock of Two Hundred Thousand (P200,000.00) Pesos; that twenty per centum (20%) of said capital has been subscribed; and that twenty five per centum (25%) of the subscribed share of stock has been paid up. Investigation conducted by this Office further disclosed that the Corporation is engaged in the buying and selling of agricultural products, principally copra and corn for profit; and that it realized a net gain of P47,851.47 for 1974. Considering that the Corporation, is a stock corporation, organized and operated for profit, it is subject to the payment of income tax, and therefore should file the corresponding income tax returns. In view thereof, your request for tax exemption has to be, as it is hereby, denied. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."