2% Tax Exemption on the Share of the Members of Talisay-Silay Planters' Cooperative Marketing Association, Inc.

May 13, 1958 BIR RULING NO. 264-58 Messrs. Garcia, Perlada & Associates Attorneys-at-Law Suite 315 Gonzaga Bldg. Rizal Ave. cor. Garriedo Manila Gentlemen : Reference is made to your letter dated May 7, 1958 requesting that your client, the Talisay-Silay Planters' Cooperative Marketing Association, Inc., hereafter referred to as the Association, be exempted from the 2% tax prescribed by Section 189 of the Tax Code on the share of its members in the milled sugar which it undertook to be milled by the Talisay-Silay Co., Inc., hereafter referred to as the Central. cdpr It appears from the documentary evidence submitted by you that the Association is duly organized under the provisions of Act No. 3425, as amended. It appears also that the Association is undertaking the milling by the Central of the sugar produced by its members and delivered to it, as evidenced by the Central's "Weekly Sugar Distribution" and "Official Warehouse Receipt". In reply thereto, I have the honor to inform you that, as an association organized under the provisions of Act No. 3425, as amended, your client, for undertaking the milling of the sugar cane produced by its members, is exempt from the 2% tax on the share of its members in the sugar which it caused to be milled by the Talisay-Silay Milling Company, Inc. This will serve as authority for the Central from not withholding the 2% tax on the share of the Association in the sugar which it mills out of the sugar cane delivered to it for milling by the Association. prcd Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue