Tax Liability of Agents who Peddle Stocks from Place to Place

March 28, 1960 BIR RULING NO. 166-60 La Perla Cigar & Cigarette Factory, Inc. Paraaque, Rizal Attention : Mr . Lorenzo Lim General Manager Gentlemen : Reference is made to your letter of March 15, 1960 wherein you inquire as to whether your agents who peddle your stocks from place to place, covering the entire country, should be liable to the wholesale tobacco dealers annual fixed tax of P60.00 as prescribed under paragraph (p) of section 182 of the National Internal Revenue Code, or to the tax on wholesale peddlers of manufactured tobacco under paragraph (e) of the same section of the said Code which is only P50.00. In reply I have the honor to inform you that your agents are each liable only to the payment of P50.00 annual fixed tax as wholesale peddlers of manufactured tobacco under paragraph (e) of section 182 of the same Code. This is in line with the decision of the Supreme Court in the case entitled, "Liggett & Myers Tobacco Co. vs. Trinidad" R.G. No. 20330 the pertinent portion of which decision states: "The peddler's tax . . . is intended to be an individual tax, constituting a proper charge against each particular peddler, that is, against the person having responsible control of each peddling outfit. Each of the salesman sent out by a company doing business as a wholesale vendor of manufactured tobacco is, therefore, liable for the tax; and when such company, as principal, assumes responsibility of all of them it must pay the tax to which each is liable." casia Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue