BIR Ruling

June 15, 1973 The Chief, Legal Branch Thru the Regional Director Revenue Region No. 9 San Pablo City S i r : This refers to your letter dated November 3, 1971 requesting information on whether or not the ruling of this Office dated September 9, 1970, which revokes a previous ruling exempting planter-members of sugar producers cooperative marketing associations from the payment of the 2% tax imposed by Section 189 of the Tax Code on their shares in the sugar which their association caused to be milled, as cited in Revenue Memorandum Circular No. 22-71 dated July 15, 1971 (a copy is hereto attached), has a retrospective effect so as to cover all cases of taxpayers with similar facts before said date in view of the non-retroactivity of rulings or circulars under Section 338-A of the Tax Code. In reply, you are informed that Section 338-A of the Tax Code, as inserted by Republic Act No. 6110 prohibits the retroactive application of rulings or circulars of this Bureau which revoke, modify, or reverse previous rulings or circulars of the revocation, modification or reversal will be prejudicial to the taxpayers affected. Since the ruling dated September 9, 1970 if applied respectively, will be prejudicial to taxpayers affected, the same should be given prospective application. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue