Harvest Contract Executed By and Between Doroteo Alvarez and the Canlubang Sugar Estate, Canlubang, Laguna

April 22, 1958 BIR RULING NO. 244-58 1st Indorsement Respectfully returned to the Regional Director, BIR Regional District No. 5, Lipa City, the herein papers bearing on the case of Mr. Doroteo Alvarez of Pasuquin, Ilocos Norte. After a careful perusal of the Harvest Contract for 1955 to 1956 executed by and between Doroteo Alvarez and the Canlubang Sugar Estate, Canlubang, Laguna, relative to the harvesting of sugar cane of the latter for the aforesaid period, this Office is of the opinion that Mr. Doroteo Alvarez, before August 24, 1956, the date when Republic Act No. 1612 took effect, is not considered as a contractor as contemplated in Section 191 of the Tax Code. However, on and after August 24, 1956, he is deemed to be an "independent contractor" in view of the fact that he bound himself, for a compensation, to harvest the sugar cane of the Canlubang Sugar Estate. Such being the case, Mr. D. Alvarez, a harvesting cane contractor, is subject to the 3% tax, the same to be based on his gross monthly receipts. cdpr (SGD.) JOSE ARAAS Commissioner of Internal Revenue