BIR Ruling No. 107-61

March 13, 1961 BIR RULING NO. 107-61 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589, Manila Gentlemen : Reference is made to your letter dated September 21, 1960 as supplemented by that dated February 14, 1961, requesting a ruling that the merger to be effected by and between the Philippine Thread Mills, Inc., Riverside Manufacturing Corporation and Philip Manufacturing Corporation, as well as all the exchanges incident thereto, in accordance with the merger agreement (copy of which has been submitted by you) is not subject to income tax, pursuant to Section 35(c) of the Tax Code, as amended. It appears from the copies of the respective articles of incorporation of said corporations submitted by you that the lives thereof are 50, 25 and 50 years and that the years of their incorporation are 1952, 1951 and 1947, respectively. In answer thereto, I have the honor to inform you that, it appearing from the aforesaid merger agreement that Riverside Manufacturing Corporation and Philip Manufacturing Corporation, which are parties to the contemplated merger, will exchange their respective properties solely for stocks in the Philippine Thread Mills, Inc., which is also a part to that merger, no gain or loss will be recognized by reason of such exchanges. Accordingly, the exchanges in question are not subject to income tax by virtue of the aforementioned section of the Tax Code. Neither is the contemplated merger subject to any tax. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue