BIR Ruling No. 064-62

March 27, 1962 BIR RULING NO. 064-62 Messrs. Manongdo & Chua-Manongdo Certified Public Accountants P. O. Box 465, Davao City Gentlemen : Reference is made to your letter dated August 28, 1961, requesting opinion whether or not, under the Agreement executed between her and the Oceanic Wireless Network, Inc., Mrs. Maria F. Erickson is a bona fide employee and, therefore, not subject to the commercial broker's fixed and percentage taxes. In accordance with the Agreement, Mrs. Erickson shall serve as the corporation's Local Branch Station Manager & Sales Promotion Mati, Davao, and receive as such the compensation provided therein (pars. 5 & 7). In the performance of her duties as such manager and promoter, Mrs. Erickson is bound by the existing rules and regulations, policies, directives and instructions of the corporation and those which may be issued in the future (par. 9), non-compliance with which is penalized under paragraph 10 of the Agreement. In reply thereto, I have the honor to inform you that under the circumstances, Mrs. Erickson is considered a bona fide employee and not a commercial broker. Accordingly, she is not subject to the broker's fixed and percentage taxes. Very truly yours, BENEDICTO PADILLA Acting Commissioner of Internal Revenue