BIR Ruling No. 027-61

January 19, 1961 BIR RULING NO. 027-61 This is with reference to your letter . . ., requesting information from this Office as to whether or not your Association is required to register its books of accounts with this Bureau. prcd It appears that the . . . Co., Inc., Malabang, Lanao; . . . Co., Cebu City; and . . ., Inc. formed an association called the Cassava Development Association, allegedly for the purpose of marketing their product (cassava flour) and promoting their interest in the cassava industry. An office was put up in Manila under the management of a representative who will sell the cassava products in the individual names of the producers, using the individual producer's invoiced and other sales forms and receiving the payments, likewise, in the name of the respective producers above-mentioned. Please be informed that the Cassava Development Association, under the foregoing facts, is considered, for internal revenue tax purposes, a distinct and separate entity from that of its principal companies. Any income earned or compensation received by said Association is subject to internal revenue tax or taxes, depending upon its actual business operation or activities. Such being the case, said Association is required to register its books of accounts with this Bureau, in accordance with Section 19 of Revenue Regulations No. V-1 (otherwise known as the Bookkeeping Regulations), as amended. LLpr