Restaurants and Refreshment Parlors Owned and Operated by the Association Members

April 13, 1960 BIR RULING NO. 192-60 The Aparri Filipino Traders' Association, Inc. (AFITRA) Aparri, Cagayan Attention : Mr . Juanito R . Reyes Gentlemen : Reference is made to your letter dated October 9, 1959 requesting opinion whether or not the restaurants and refreshment parlors owned and operated by the members of your association allegedly within the Aparri public market compound are within the scope f the exemption provided for by Republic Act No. 2376 exempting from the 3% tax the receipts of restaurants, refreshment parlors and other places situated inside public markets. The findings of the B.I.R. Provincial Revenue Officer of Aparri, Cagayan show the following: 1. The building which houses the market tiendas of the Aparri Filipino Traders' Association, Inc. is erected on land belonging to the municipal government of Aparri; 2. Mr. Calixto Aquino, who constructed and owns this building pays rental to the municipal government of Aparri; 3. The occupants of these market tiendas pay monthly rental to Mr. Calixto Aquino; and 4. The building of the said tiendas do not constitute part of the public market building, it not being under the same roof. Under the above fats, the building used by your members does not form part of the public market. Their establishments are not, therefore, considered situated inside a public market. Such being the case, the proprietors or operators of the restaurants and refreshment parlors situated in said building are subject to the fixed and percentage taxes prescribed by sections 182(A)(1) and 191 of the National Internal Revenue Code. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue