Tax Exemption Granted to Log Producers Who Export Their Logs Thru an Agent

July 29, 1959 BIR RULING NO. 361-59 Atty. Mariano C. Eresco, Jr. 107 13th Street, Port Area P.O. Box 2288, Manila S i r : In reply to your letter dated June 5, 1959, I have the honor to inform you that log producers who export their logs thru an agent are exempt from the sales tax, provided that the agency relationship is bona fide . Accordingly, if the Desiderio Dalisay Investment Corporation in whose name the logs are exported acts as bona fide agent of the producers thereof, no sales tax is due and payable. However, the Desiderio Dalisay Investment Corporation is, in the exportation of the logs of producers for commission, constituted a commercial broker, subject to an annual fixed tax of P150.00 and to the 6% tax on its gross commissions, pursuant to sections 182 (A) (3)(5) and 195 of the National Internal Revenue Code. If there is a sale of logs to the Corporation by the producers, the 7% sales tax is due and payable, the same being the liability of the producers. It is always the privilege of producers or manufacturers to shift the sales tax to their customers, regardless of contract. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue