Tax Exemption Granted to Balayan, Batangas Cooperative Marketing Association, Inc.

April 25, 1960 BIR RULING NO. 178-60 Messrs. Garcia, Perlada & Associates 1589 Mayhaligue Street M a n i l a Gentlemen : Reference is made to your letter dated April 21 and 25, 1960 requesting the exemption of your client, Balayan, Batangas Cooperative Marketing Association, Inc., from the 2% tax on its share in the sugar milled by the Central Azucarera de Don Pedro out of the sugar cane delivered by it to the letter for milling. It appears from the Articles of Incorporation of your client that it was duly organized under Act No. 3425. It appears also that your client is duly affiliated with the ACCFA. From its Articles of Incorporation and By-Laws, it appears further that your client is operating and doing business in accordance with Act No. 3425. It appears still further from the Marketing Agreement and Power of Attorney executed by and between your client and its members that your client is undertaking the milling of the sugar of its members pursuant to existing milling contracts. In reply, I have the honor to inform you that a cooperative association organized under Act No. 3425 is exempt from, among others, all kinds of percentage taxes otherwise due and payable in the exercise of its authorized activities, pursuant to section 48 of said Act, as amended by R.A. No. 702. In view thereof, your client is exempt from the 2% tax on its share in the sugar milled by the Central Azucarera de Don Pedro out of the sugar cane of its members which is causes to be milled by said Central This will serve as authority for the Central Azucarera de Don Pedro from not withholding the 2% tax on the share of the members of the Balayan, Batangas Cooperative Marketing Association in the sugar which the Association caused to be milled by said Central. LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue