BIR Ruling

December 14, 1972 Manaoag Mill District Sugar Producers' Cooperative Marketing Association, Inc. Manaoag, Pangasinan Attention: Mr . Patricio S . Mangonon President Gentlemen : This refers to your letter dated September 19, 1972 requesting that the Manaoag Mill District Sugar Producers' Cooperative Marketing Association, Inc. be exempted from the 2% miller's tax imposed by Section 189 of the Tax Code on its sugar produced from the sugarcane land belonging to its various members which cane the said cooperative caused to be milled under a milling contract with the Hind Sugar Company, Inc. of Manaoag, Pangasinan, the exemption to take effect on October 1, 1972. In reply, I have the honor to inform you that your request is hereby granted pursuant to Section 48 of Act No. 3425, as amended. However, the shares of the members of your cooperative is subject to the said 2% tax in accordance with Revenue Memorandum Circular No. 22-71 dated July 15, 1971 which provides, in part, thus: ". . . Proprietors and operators of sugar mills and centrals shall withhold and pay to the Commissioner of Internal Revenue the 2% tax due on the shares of all the planters or owners of the sugar cane, without exception whatever and irrespective of whether or not their sugar canes are caused to be milled by their respective association in their names or in the name of their association ." (Emphasis supplied) Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue