Corporation Engaging in the Business as Insurance Adjuster

July 12, 1971 BIR RULING NO. 009-71 Corporation engaging in the business as insurance adjuster . A corporation which is engaged in the business as insurance adjuster falls under the category of "other independent contractors" as provided for under Section 191(15) of the Tax Code, subject to the 3% tax on its gross receipts. BIR Rulings Nos. 541 and 628 dated October 1, 1958 and December 4, 1959, respectively, holding that insurance adjusters are not independent contractors within the meaning of the term as used in Section 191 of the Tax Code, on the ground that the functions of an independent contractor is limited only to manual and mechanical services or labor are erroneous and therefore, considered revoked. As defined by the Supreme Court in the case of Luzon Stevedoring Co. vs. Trinidad, 43 Phil. 803, independent contractors refer to persons who, in the pursuit of an independent business, undertake to do a specific job or work for other persons, using their own means and methods without submitting themselves to control as to petty details. This definition evidently conveys a broader field of service so as to include not only manual or mechanical service or labor but also all kinds of services. In fact, the work performed by the contractors enumerated under Section 191 of the Tax Code is not limited to manual and mechanical services or labor. The corporation is not subject to the occupation tax as only natural persons are subject thereto. However, its employees rendering professional services as insurance adjusters are subject to occupation tax pursuant to Section 182(B) (2) of the Tax Code, as amended. cdt