BIR Ruling No. 103-65

September 14, 1965 BIR RULING NO. 103-65 Col. Juan D. Crisologo (Ret.) Retired Army Protective & Security Agency, Inc. 268 Camagong St., San Antonio Village Makati, Rizal S i r : This refers to your letter dated August 4, 1965 requesting a ruling on whether or not salaries of security guards, which the Retired Army Protective & Security Agency, Inc. receives but earmarked for the guards should be included in its gross receipts for purposes of the 3% tax. You stated that the Retired Army Protective & Security Agency, Inc. is engaged in the business of supplying security guards to business firms, commercial establishments and residences; that the said corporation, in consideration of such services, receives compensation in the form of commission; and that while the salaries of the security guards are paid to it by clients, nevertheless, it holds such salaries only in trust for the guards. In answer thereto, I have the honor to inform you that, as the Security Agency actually receives from clients amounts corresponding to the salaries of the guards only for and in behalf of the latter, said amounts cannot be considered part of its compensation for purposes of the 3% tax prescribed by section 191 of the Tax Code. (Commissioner of Internal Revenue vs. Manila Jockey Club, Inc., G.R. L-13890 & 13887, June 30, 1960). Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue