BIR Ruling No. 130-62

November 27, 1962 BIR RULING NO. 130-62 The Filipinos-First Consumers Cooperative 870 Aurora Bldg., Quezon City Gentlemen : This has reference to your letter dated May 15, 1962, requesting exemption from the compensating tax on your importation of 133 bales of cotton remnant. You stated that said articles are for distribution to your members and, therefore, exempt from said tax in accordance with Republic Act No. 2023. Your letter was referred for comment to the Director, Cooperatives Administration Office and in his return indorsement he stated as follows: "Respectfully returned . . . the letter dated May 15, 1962 of the Filipino First Consumers Cooperative, Inc., with the information that said cooperative was registered with the Office on May 16, 1962, under Registry No. 000329 with a paid-up capital of P8,040.00. Said cooperative has a total membership of 120 and its store was opened only last July 16, 1962. "The primary purpose of said consumers cooperative is to operate a store to provide its members with quality goods at a reasonable prices. Its aim is to render service and not to make profit. "This Office limits the importation of financially able consumers cooperatives to essential commodities only and in qualities that will meet only the immediate and actual needs of the members of record . However, in the case of the importation of the Filipino First Consumers Cooperative, Inc., this Office was not consulted of before the same was made. It must be noted that the goods arrived in Manila on April 24, 1962, barely one month after its registration and long before the cooperative store was opened on June 16, 1962. Furthermore, it is believed that the importation for exceeds the requirements of the members." (Emphasis supplied). Considering the position taken by the Cooperative Administration Office, which is the one charged with the administration and enforcement of Republic Act No. 2023 and, therefore, its acts in that regard cannot be given great weight, this Office is constrained to deny your request. prcd Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue