BIR Ruling No. 079-64

December 24, 1964 BIR RULING NO. 079-64 The Regional Director BIR Regional District No. 4 Quezon City S i r : Returned herewith is the docket regarding the internal revenue cases of Dr. Felicisimo Manalese and Mesdames Manuela M. Verceles and Corazon Arcebal-Baclig all employed as physician and nurses at the Manila Railroad Hospital, Caloocan City, respectively. The issue raised here is whether or not a physician or nurses employed in a government owned or controlled corporation engaged in private functions are subject to the occupation tax prescribed by Section 182(B) of the Tax Code. cdtech Please be informed that in Opinion No. 213, s. 1958 of the Secretary of Justice, it was held that "the function of the Manila Railroad Company is to own and operate railroads, tramways and other kinds of land transportation, for the purpose of transporting for consideration, passengers, mail, and property between any points in the Philippines. The transportation business is not a sovereign function of the government (Op. No. 240, s. 1941, Secretary of Justice; Op. No. 167 s. 1957, Gov't Corporate Counsel). The Manila Railroad Company is engaged in an ordinary business enterprise and is not charged with furthering a policy of the government or accomplishing a governmental program". In view of the foregoing, you are informed that Dr. Manalese and Mesdames Baclig and Verceles, all employed as physician and nurses, respectively, at the Manila Railroad Hospital, Caloocan City, are subject to the occupation tax prescribed by Section 182(B) of the Tax Code. Be guided accordingly. cdta Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue