BIR Ruling No. 048-63

May 29, 1963 BIR RULING NO. 048-63 Messrs. Arguelles & Co., Inc. 379-D Callejon Mateinza San Miguel, Manila Gentlemen : Reference is made to your letter dated March 14, and 28, 1963 requesting exemption from compounder's privilege tax and the regulatory requirements on your contemplated activity of mixing "tuba" with alcohol. In support of your request, you stated that "tuba will be mixed with tax paid alcohol only for trial sampling and surveying of its marketability" that you will use not more than three (3) drums of alcohol of fifty (50) gallons each; that production will be done for a period no exceeding six (6) months; and that the product will be sold to prospective outlets of a price not in excess of its production cost, which is P0.304 per bottles. In other word, the production of such kind of "tuba" will at first be done only for the purpose of finding out wether or not it would be advisable to continue with the business. Your request therefore, covers that period only during which the production will be done for said purpose. In answer thereto, I have the honor to inform you that notwithstanding the reason cited in support of your request this Office is of the opinion that for mixing "tuba" with alcohol during said period, you are considered engaged in "business" as the term is used-in Section 178 of the Tax Code. It is, therefore, regretted that your request has to be, as it hereby is denied. In this connection, it may be stated that, for mixing "tuba" with alcohol, you shall constituted a compounder subject to the fixed tax prescribed by Section 182(A)(3)(c) of the Tax Code. Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue This is to certify that this ruling was duly signed by the Acting Commissioner of Internal Revenue on May 29, 1963. (SGD.) P. F. LANDAS Revenue Operation Head (Legal)