BIR Ruling No. 293-11

August 12, 2011 BIR RULING NO. 293-11 Section 2 (r), Revenue Bulletin No. 01-03; BIR Ruling DA-136-06 dated March 17, 2006 Gifts of Faith No. 5 Lourdes Castillo St., Don Manuel, Quezon City 1113 Attention: Rene S. Koa Gentlemen : This refers to your letter received by this Office on June 16, 2010 requesting to reconsider the registration of GIFTS OF FAITH from non-vat percentage tax to non-vat only not subject to business tax as the company is engaged purely in the sale of religious books pursuant to Section 109 (1) (R) of the Tax Code of 1997, as amended. In reply, please be informed that GIFTS OF FAITH is subject of a letter issued by Revenue District Office No. 39, South, Quezon City dated May 19, 2010 wherein the company is directed to pay deficiency value-added tax and penalties for taxable year 2008 and 2009 based on the findings that "your gross sales has exceeded the maximum threshold of Php1,500,000.00 gross sales/receipt, hence, your transactions are already subject to VAT." Thus, pursuant to Revenue Bulletin No. 1-2003 on "No Ruling Areas", Section 2 (r) thereof, this Office cannot rule or render an opinion as it violates the above issuance, to quote: "(r) Issue/s or transactions involving directly or indirectly the same taxpayer/s which is/are the subject of an investigation, on-going audit, administrative protest, claims for refund or issuance of tax credit certificate . . . ." Please be guided accordingly. SDAcaT Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue