Tax Exemption Granted to Calamba Sugar Planters' Cooperative Marketing Association, Inc.,

February 26, 1958 BIR RULING NO. 129-58 Messrs. Garcia, Perlada & Associates Suite 315, Gonzaga Building Rizal Avenue, Manila Gentlemen : Reference is made to your letter dated February 24, 1958 requesting a ruling to the effect that your client, the Calamba Sugar Planters' Cooperative Marketing Association, Inc., as an association duly organized under the provisions of Act No. 3425, as amended, be declared exempt from the payment of taxes on its share in the molasses and alcohol produced by the Central of the Canlubang Sugar Estate, among others, from the sugar cane delivered by it to the Central for milling. In reply thereto, I have the honor to inform you that in respect of its share in the molasses, your client is exempt from the 2% tax otherwise due thereon, it being a by-product of the sugar cane delivered by it to the Central for milling, pursuant to Section 189 of the National Internal Revenue Code. Your client is not, however, entitled to exemption from tax on its share in the alcohol produced by the Central because alcohol is not subject to the percentage tax but to the specific tax and in accordance with Section 48 of Act. No. 3425, as amended by Republic Act No. 702, a cooperative association duly organized thereunder is exempt only from the income, sales and all percentage taxes of whatever nature and description. This will serve as authority for the Canlubang Sugar Estate in not withholding the 2% tax due on the share of your client in the molasses as by-product of the sugar cane delivered to it by your client for milling. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue