BIR Ruling No. 161-61

April 20, 1961 BIR RULING NO. 161-61 Mr. Jose B. Gonzales P. O. Box 2466 Manila S i r : Reference is made to your letter dated January 26, 1961 stating the following: 1. "Organizations like fraternal beneficiary society and business leagues are exempted from income tax under Section 27 of the Tax Code. Should these organizations be exempted, too, from filing income tax returns? If returns for previous years have been filed, should its discontinuance have any legal effect?" 2. "Said organization is not considered engaged in business. Should it be subject to the corporate residence tax? The additional residence tax?" 3. "If said association organized principally not for profit leased a building and sub-1st part of the building to others receiving rental income therefrom, is the rental income taxable even if it is not the principal source of revenue? If so, how should its expenses be apportioned?" 4. "Said latter organization pays the privilege tax as a real estate dealer under Section 194 of the Tax Code. Is it considered to be engaged in business under C.A. No. 465? If it is subject to the corporate residence tax, should the term 'Gross receipts' under said Act 465 include only the rental income or both the rental income and the receipts representing members' dues and contributions?" cdtech In reply thereto, I have the honor to quote hereunder Section 24 of Revenue Regulations No. 2: "Section 24. Proof of exemption In order to establish its exemption, and thus be relieved of the duty of filing returns of income and paying the tax, it is necessary that every organizations claiming exemption file an affidavit with the Collector of Internal Revenue, showing the character of the organization, the purpose for which it was organized, its actual activities, the sources of its income and its disposition, whether or not any of its income is credited to surplus or inures or may inure to the benefit of any private shareholder or individual, and in general, all facts relating to its operations which affect its right to exemption. To such affidavit should be MISSING PAGE