BIR Ruling No. 453-61

December 27, 1961 BIR RULING NO. 453-61 There is returned herewith the docket bearing on the internal revenue case of the . . . Co. The . . . Co. received as compensation in the form of management fees from the . . . Inc., from August 24, 1955 to December 31, 1958, the total gross receipts in the amount of P1,218,137.00 as consideration for managing the business operations of the latter, in accordance with their Agreement dated December 20, 1950. prll It is the opinion of this Office that the . . . Co. is not subject to the independent contractor's tax, but may be subject to the broker's fixed and percentage taxes prescribed in Sections 182(A)(3)(s) and 195 of the Tax Code, under a situation similar to the doctrine laid down in the case of A. Soriano y Cia, vs. Collector of Internal Revenue (G.R. No. L-8886, May 22, 1957). He is, therefore, instructed to submit evidence utilized in court as in A. Soriano y Cia, case wherein the latter was held a commercial broker. As . . . Inc. appeared to have managed its own business, it is possible that . . . Co. merely sold products, like A. Soriano y Cia. cdasia