Exemption of Mr. Paul W. Gordon, Senior Mission Chief of CARE from Payment of Income Tax

January 21, 1958 BIR RULING NO. 062-58 Mr. Allen Kline Chief of Mission of Care 1313 M. H. del Pilar Manila S i r : Reference is made to your letter dated January 14, 1958, stating the following: LexLib "CARE (Cooperative for American Remittances to Everywhere, Inc. is a voluntary, non-profit, relief agency incorporated in the United States. Its welfare activities in the Philippines were undertaken originally under an agreement with the Philippine Government signed July 14, 1949. By the terms of that agreement CARE employees of American nationality in the past have been exempted from the payment of Philippine income tax and related fees. I therefore wish to request that such exemption be accorded Mr. Paul W. Gordon, Senior Mission Chief of CARE, who hopes to leave the Philippines July 25, 1958. Mr. Gordon last entered the Philippines July 26, 1957, and has been here continuously since that time. He is the holder of United States Passport No. 65046 issued at Manila September 23, 1957, and of Alien Registration Certificate No. B-017100 dated September 20, 1957. Mr. Gordon's activities in the Philippines have been confined entirely to CARE affairs. They have been almost exclusively devoted to establishing with the Philippine Government arrangements for a supplementary school-feeding program. In this connection it should be said that the welfare activities of CARE inaugurated by the 1949 agreement were extended by an additional agreement dated May 14, 1957, between the Government and CARE. Under this special agreement the Department of Education and CARE are cooperating in a comprehensive school-feeding program in which CARE will supply over 25,000,000 pounds of foodstuffs toward the welfare of more than 1,300,000 elementary school children. This extensive program provides for additional American personnel on the CARE staff and in presenting this specific request for exemption and clearance for Mr. Gordon, I would solicit your attention to the status of such additional representatives of American nationality so that requests for exemptions in their cases, as the occasions arise, might receive your favorable consideration. At present time, in addition to Mr. Gordon, the Americans on the staff number three. One of these is accompanied by his wife. One more American may be added at a later date. The section of the contract of July 14, 1949, to which reference has been made reads as follows: "1. The Government will : "b. Levy no duties, tolls, or taxes : "(2) And to the extent that it is not in conflict with the Philippine legislation, and in conformity with treaties and agreements between the Government of the United States and the Government of the Republic of the Philippines, on CARE, its assets, property, income, operations or transaction, or the salaries or other renumerations for personal services paid by CARE to its personnel of non-Philippine nationality and non-resident in the Philippines." You now request exemption of Mr. Paul W. Gordon from the payment of income tax on the compensation received by him for personal services rendered in the Philippines as Senior Mission Chief of the Cooperative for American Remittances to Everywhere, Inc. (CARE). In reply thereto, I have the honor to inform you that Mr. Paul W. Gordon is exempt from income tax on the compensation received by him from the above organization (CARE), pursuant to the provisions of Section 4(b)(2) of the agreement concluded between the Republic of the Philippines and the CARE on July 14, 1949. cdtech Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue