Tax Liability of LPA Collaborative

February 18, 1959 BIR RULING NO. 109-59 Mr. Conrado M. Valera Attorney-at-Law R-301 Roman R. Santos Bldg. Plaza Goiti, Manila S i r : This has reference to your letter of July 24, 1958, requesting reconsideration of our ruling dated January 29, 1958, holding the LPA Collaborative as an unregistered partnership subject to income tax pursuant to Section 24 of the National Internal Revenue Code, in relation to Section 84(b) of the same Code. cdll After a careful study of the facts of the case, I have the honor to inform you that the LPA Collaborative (name designated by a group of architects) is a different entity from the League of Philippine Architects and therefore, exemption of the latter from income tax does not include the former. The LPA Collaborative is composed only of Messrs. Rufino D. Antonio, Estanislao J. dela Fuente, Cresenciano C. de Castro, Melchor V. Calderon, Nicanor M. Bautista, Ruperto C. Gaite and Jose M. Vibar, Jr. who entered into a contract of service with the Philippine Government regarding the preparation of plans of the National Capitol Buildings (See contract of service dated December 22, 1955). It is noted that on page 7 of the aforesaid contract of service, the abovenamed person will receive 4.25% of the estimated cost of the building or buildings under contract. Naturally, the compensation they will receive from the Philippine Government will be divided among themselves. Under this circumstances, it is clear that a partnership was formed among the aforesaid person, who entered into a contract with the Philippine Government to render architectural services in drafting the plans of the National Capitol Buildings. For the foregoing reason and those already stated in our letter to the LPA Collaborative, dated January 29, 1958, your request for reconsideration is hereby denied. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue