BIR Ruling [DA-070-03]
BIR Ruling [DA-070-03] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Mar 11, 2003
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March 11, 2003 BIR RULING [DA-070-03] 60 (B) 209-91 dated October 18, 1991 Lepanto Consolidated Mining Co. BA-Lepanto Building 8747 Paseo de Roxas Makati City Attention: Ms. Odette A. Javier Assistant Corporate Secretary Gentlemen : This refers to your letter dated December 5, 2002 requesting for confirmation of your opinion that the consolidation of the administration of the Lepanto Consolidated Mining Company Employees' Pension Plan (Plan) to Lepanto Investment and Development Corporation (LIDC) will not impair the tax-exempt status of the said Plan. It is represented that the Plan is managed by two (2) trustees both approved by the BIR namely: the Bank of the Philippine Islands (BPI formerly Far East Bank and Trust Company) and LIDC; that BPI was the sole trustee until January 2000 when the BIR approved the appointment of LIDC for the purpose of holding, investing and managing the additional contributions to the Plan; that BPI on the other hand retained its task of investing and managing the portion of the Plan held by it and issuing checks to retirees or their beneficiaries in accordance with the subject Plan; and that to cut costs and preserve the income of the Plan for the benefit of its retirees, your company decided to terminate the trust Agreement with BPI and consolidate all the functions of trustee under LIDC. DAETcC In reply, thereto, please be informed that your opinion to the effect that the designation of a single trustee bank or a change of trustee or trustees for the purpose of consolidating the administration of the Lepanto Consolidated Mining Company Employees' Pension Plan will not affect the tax-exempt status of the plan is hereby confirmed. Accordingly, all properties, both real and personal, monies, shares of stock, etc. in the name of the former trustee bank or trustee banks and described as such may be transferred to the newly designated trustee, LIDC. ( BIR Ruling No. 209-91 dated October 18, 1991 ) Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service
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