Tax Status of Willy Commercial Company

September 29, 1959 BIR RULING NO. 461-59 Willy Commercial Company 185-A J. Teodoro Street Grace Park, Caloocan Gentlemen : Reference is made to your letter of even date, requesting opinion as to tax status of your intended business, on the following facts: cdtech "1. That Willy Commercial Company is a partnership duly formed and registered with the Securities and Exchange Commission and Bureau of Commerce, and having the Mayor's Permit and Health Permit from the Municipality of Caloocan, province of Rizal, as a repacker of food products; (cocoa powder only) "2. That the said company is not yet operating any business but proposes to repack locally-purchased cocoa powder only for the meantime; "3. That the locally-purchased cocoa powder will be repacked in small containers without any process, either physically or chemically, nor altering or changing the substance, quality or form, and neither any other product nor raw material is added to the locally-purchased cocoa powder; and "4. That the said company will sell and distribute the repacked locally-purchased cocoa powder at wholesale." On the basis of the above facts, I have the honor to inform you that, you are a repacker of locally-purchased cocoa powder, subject only to the graduated fixed annual tax (C-13) as prescribed in Section 182(A)(2) of the National Internal Revenue Code in addition to the income, residence and additional taxes. Before commencing said business you are required to pay the initial amount of P10.00 and for the succeeding years, the tax will depend upon the gross sales during the preceding calendar year. Likewise, you are required to register the name and style of said business in the manner provided for in section 203 of the same Code. Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue