BIR Ruling [DA-189-98]

May 14, 1998 BIR RULING [DA-189-98] Confederation of Non-Stock Savings and Loan Association, Inc. c/o Manila Teachers M.A.B. Building 918 U.N. Avenue, Ermita Manila Attention: Ms . Digna B . Dela Cruz Board Member Gentlemen : This refers to your letter dated May 12, 1998 in effect, requesting authority from this Office regarding the possibility for the grant of a collective tax exemption to all members of the Confederation of Non-Stock Savings and Loan Association, Inc. (CONSLA), including incoming future members, instead of individual exemption, from the payment of withholding taxes on interest income from deposits with any bank. In reply, we regret to deny your aforesaid request for lack of legal basis. Every Non-Stock Savings and Loan Association desiring to secure a certificate of tax exemption from the 20% final withholding tax on interest income from deposits with any bank must file its own individual request and we shall determine whether it is really exempt pursuant to the provisions of Section 5 of R.A. No. 8367. It will be difficult for our revenue enforcement officers to ascertain and monitor the activities of all the members of CONSLA if they will be granted a collective certificate of tax exemption. LexLib Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)