BIR Ruling No. 212-61

June 7, 1961 BIR RULING NO. 212-61 Atty. Jose D. Reyes 420 Samanillo Bldg. Escolta, Manila S i r : This is with reference to your letter dated April 22, 1961, requesting a ruling on the following queries: LibLex "1. A lawyer who appear in court out of pure sympathy, charity, or love of the profession is he subject to the professional or occupation tax? "2. A lawyer who do not earn but spend more on his cases he handles is he subject to the professional or occupational tax? "3. A lawyer who practices his profession for free, charity, or sympathy to the people for being a candidate for an elective position and do not charge but spend for his clients or voters in helping him for his political aspirations is he subject to the professional or occupational tax?" In reply to the foregoing queries, I have the honor to inform you that the test in determining whether a person is subject to pay the professional tax is not the compensation or honorarium received but the taxable character of the profession. Section 182 (D) [formerly Sec. 201] of the Tax Code does not distinguish between practitioners who practice for compensation and those who practice without it. (People vs. Timog, G.R. No. 44128, May 19, 1930). In other words, the occupation tax, unlike the income tax, is not based on the amount of receipts or earnings of the taxpayer. It is a fixed tax on the privilege of exercising or engaging in a profession or occupation . Accordingly, a lawyer, who practices his profession and does not earn a single centavo, or who practices his profession out of pure sympathy, or charity, or love of the profession, for his clients, without any compensation, is subject to the occupation (professional) tax prescribed in Section 182(B) of the Tax Code. LexLib Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue