Members of the Calaca FACOMA Who are Not Entitled to Exemption

July 11, 1959 BIR RULING NO. 296-59 The Resident Manager Central Azucarera Don Pedro Nasugbu, Batangas S i r : Reference is made to your letter dated March 30, 1959 relative to the case of the Calaca FACOMA, Calaca, Batangas. In our letter to said association dated February 27, 1959, we ruled that, for undertaking the milling of the sugar cane delivered to it by its members, it is exempt from the 2% tax in the share of its members in the sugar milled by the Central Azucarera Don Pedro out of the sugar cane belonging to said members which the Association, for and in behalf of its members, delivered to said Central for milling, pursuant to section 48 of Act No. 3425, as amended by Republic Act No. 702. We reiterate the correctness of this ruling. However, members of the Calaca FACOMA who directly deliver to the Central their sugar cane for milling and who, in their individual capacity, effects the transactions on their milled cane personally are not entitled to exemption. prcd Please be guided accordingly. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue