BIR Ruling [DA-195-01]

October 17, 2001 BIR RULING [DA-195-01] BIR Retirees and Ex-Employees Association, Inc. Ground Floor, DPC Building BIR National Office, Diliman Quezon City Attention: Mr. Benjamin D. Parungo President Gentlemen : This refers to your letter dated December 18, 2000 requesting for a ruling as to whether the BIR Retirees and Ex-Employees Association, Inc. (BIRREXEA) which is housed in the DPC Building, within the compound of the Bureau of Internal Revenue (BIR) is still a part of the BIR and thus, has no obligation to pay a separate monthly telephone bill. It is represented that BIRREXEA has for its members, retirees of the BIR and its former employees; that it is a non-profit organization; that its income is derived from the interest earned by its meager investment in the BIR Savings and Loan Association; that the Association renders to the Commissioner of Internal Revenue, advisory and consultative services when requested to do so; that the Association is presently located on the Ground Floor of the DPC Support Building where the telephone, subject of this query is installed; that the DPC Support Building is one of the annexes of the BIR located at the same address; and that the Philippine Long Distance Telephone Company (PLDT) issued statements of account all addressed to the Bureau of Internal Revenue, Diliman National Office Building, BIR Road, Diliman National Government Center, Quezon City, for the months of September, October and November, 2000 as follows: Invoice No. Month Amount Deposit 10002448944 September P5,425.60 P400.00 100025514559 October 6,665.20 400.00 10002581320 November 7,959.25 400.00 In reply, please be informed that the BIRREXEA has a distinct and separate personality from the Bureau of Internal Revenue. It is a non-profit association catering to the needs of the retirees and former employees of the BIR while the BIR is a government agency. The mere fact that the BIRREXEA renders advisory and consultative services to the Commissioner of Internal Revenue when requested to do so does not qualify nor makes the same a part of the BIR, although it is housed in one of the rooms of the BIR. Thus, being a separate entity, the BIR has no obligation to pay for the telephone expenses incurred by the BIRREXEA. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group