Tax Exemption Granted to the Forbes Park Association, Inc.

March 31, 1959 BIR RULING NO. 177-59 Forbes Park Association, Inc. Makati, Rizal Attention : Mr . Marcos B . Roces , President Gentlemen : This is with reference to your letter dated May 15, 1957, requesting exemption of the FORBES PARK ASSOCIATION, INC. of Makati, Rizal, from the income tax under section 27 of the Tax Code. cdll The report of investigation by our Examiner shows that the following facts, among others, as gathered from the papers and documents submitted, are correct and in order, to wit: (1) That the activities of the Forbes Park Association, Inc. consists in the doing of such acts and things designed to promote the best interest and well-being as well as safeguard the community welfare of the residents of the Forbes Park which is a contiguous community of property owners and residents within the area of about one hundred hectares of land situated at Makati, Rizal; and among which activities are the adoption of rules and regulations of the Association designed to improve the community and to protect the residential character of the area; to adopt such measures which are necessary for the well-being of the community, such as the repair of the streets, provide street lights thereon, hire laborers to maintain, clean and repair the same, provide security guards for the area and fire prevention facilities; (2) That its source of income comes from the dues assessed against the members on the basis of their relative holdings in Forbes Park which, at present, is fixed at P0.06 per square meter of land owned by each member; and (3) That such income does not inure to the benefit of any private shareholder or individual, but disbursed by the Association to maintain the activities mentioned in your by-laws and articles of incorporation. Under the foregoing facts, the Forbes Park Association, Inc. is exempt from the income tax pursuant to section 27(g) of the Tax Code. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue