Tax Imposed on Corn Mill Operator

June 30, 1958 BIR RULING NO. 350-58 Mr. Domingo O. Veloso Tabango, Leyte S i r : With reference to your letter dated April 11, 1958 to His excellency, the President of the Philippines and which was indorsed by the Department of Commerce to this Office, I have the honor to inform you that a corn mill operator, regardless of the size of his mill, is subject to the 2% tax prescribed in Section 189 of the Tax Code. The law operates indiscriminately to all operators or proprietors of rice and corn mills irrespective of the capacity of their mills. However, pursuant to Section 4 of Revenue Regulations No. 7, known as the "Rice and Corn Mills Regulations", in case palay or corn is milled for compensation, the 2% tax shall be charged to the owner thereof, and withheld by the operator or proprietor of the rice or corn mill. It will, therefore, be observed that the operator or proprietor in such case is a mere withholding agent of the Government, but if he fails to withhold the tax, he shall be held liable for the payment thereof. Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue