BIR Ruling No. 080-61

February 16, 1961 BIR RULING NO. 080-61 2nd Indorsement Returned to the Chief, Narcotics Drugs Unit, Manila, the attached papers bearing on the case of BASILAN HOSPITAL, INC., Basilan City, with the following comments: LexLib Issue : Whether or not the physicians and nurses employed in the Basilan Hospital, Basilan City, are subject to the occupation tax. The article of incorporation and by-laws of the Basilan Hospital, Inc. show that the hospital in question is not operated or conducted for private gain. No evidence appears on the record that profit were earned and that said profits, if there was any, inured to the benefit of private individuals or members thereof. The fact that the hospital has several companies (the American Rubber Co. and Goodrich Rubber Co.) as retainers, such fact alone does not prove that the same is conducted for private gain. In this connection, however, physicians and nurses employed therein do not automatically enjoy tax-exemption privileges. The Actual professional activities of every physician or nurse must be ascertained to enable this bureau to determine whether or not they are subject to the occupation tax. More employment in a hospital not conducted for private gain does not carry with it exemption from the occupation tax. It is possible that said physicians are pursuing their occupation not only in the hospital in question but also in their respective residence or other clinics. It has been noted, likewise, that the names of professionals employed in said hospital are not found or even mentioned in our records. In view of the foregoing reasons, it is desired that this case be referred for further investigation to ascertain the facts above-explained. cdt (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue