Income Derived from the Business of a Duly Registered General Co-Partnership

May 18, 1960 BIR RULING NO. 240-60 Jamilton Coffee & Chocolate Factory & Co. Makati, Rizal Attention : Mr . Bayani S . Cruz Supervisor Gentlemen : Reference is made to your letter dated May 12, 1960, requesting a ruling from this Office as to whether or not income derived from the business of a duly registered general copartnership engaged in a new and necessary industry are taxable to the recipient members thereof. You further requested as to whether or not the ruling promulgated by this Office on August 13, 1952 and published in the Quarterly Bulletin, Vol. I No. 3 & 4, dated September, 1952 is still applicable. In reply thereto, I have the honor to inform you that under the present ruling, income received from January 1, 1959 to June 30, 1959 is taxable only to the extent of 10% of the income tax assessed, pursuant to Section 1 of Republic Act No. 901 and subject to full tax on profits received corresponding to the period from July 1 to December 31, 1959 under Republic Act No. 2351. The ruling, promulgated by this Office on August 13, 1952 and cited in your letter was reversed by the Department of Finance stating that exemption from the payment of income tax granted to a duly registered general copartnership by virtue of the provisions of section 1 of Republic Act No. 35, as amended by Republic Act No. 901 extends to the individual members thereof. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue