Philippine Information and Credit Agency, Inc.

September 15, 1959 BIR RULING NO. 456-59 The Regional Director B.I.R. Regional District No. 3 M a n i l a Re: Philippine Information and Credit Agency, Inc . S i r : There is returned herewith the entire record of the pending internal revenue tax case of the Philippine Information and Credit Agency involving an assessment of the amount of P3,801.65 as independent contractor's fixed and percentage taxes, including surcharge and penalty. As gathered from the records of the case, the mode of operation of the subject-company is confined to investigating and submitting of reports to interested parties, concerning the life, identity, personal habits, health, occupation, character, reputation and financial standing of the latter's prospective clients. For services so rendered therefor, the subject-company charges professional fees. In fine, it is the essence of the company's operation to employ the mental faculties of an individual, who has mastered in this line through training and experience, rather than the use of his physical or manual faculties. This, in our opinion, is a determining factor in differentiating the activities of the subject-company from those contemplated under Section 191 of the Tax Code. In view thereof, this Office is of the opinion and so holds that the Philippine Information and Credit Agency, Inc. is not an independent contractor within the purview of section 191 of the Tax Code and, therefore, it is not subject to the tax prescribed therein. B.I.R. Ruling No. 557, series of 1958, had already been superseded by B.I.R. Ruling No. 377, series of 1959. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue