Tax Liability of Pacific Adjustment Co., Inc.

October 20, 1960 BIR RULING NO. 461-60 The Vice President Pacific Adjustment Co., Inc. 2nd Fl., 435 Evangelista Quiapo, Manila S i r : Reference is made to your letter dated October 12, 1960 requesting information as to what your corporation is subject. cdi According to your articles of incorporation, your corporation is organized for the following purposes: 1. Primary . To engage in the business of handling all phases of claims on insurance of fire, marine, casualty, automobile, and all other types of insurance, including surveys, inspections, appraisals investigations, adjustments and settlements thereof, except life; to represent and act for non-life insurance companies and other firms, individuals or associations, in all manner and nature of claims by, for and against said parties, and to negotiate and adjust said claims, and to perform all manner of services incidental thereto. 2. Secondary . To act as agent for ocean, coastal, interisland, bay and river steamships, motor ships, and other vessels and carriers. Under the primary purpose, you are in effect an insurance adjuster. As such adjuster, you are not subject to any internal revenue tax on business. Under secondary purpose, you are constituted a commercial broker, subject to the annual fixed and percentage taxes prescribed by sections 182(A)(3)(s) and 195 of the Tax Code. LLphil Your liability to the income and residence taxes is of course understood. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue