Non-exemption from the Payment of the Fixed and Percentage Taxes as Soft Drinks Manufacturer

October 19, 1960 BIR RULING NO. 465-60 Mrs. Rosalina Conopio Atimonan, Quezon M a d a m : In reply to your letter dated February 9, 1960 requesting exemption from the payment of the fixed and percentage taxes as soft drinks manufacturer under the provisions of sections 182(c)(4) and 188(d) of the National Internal Revenue Code, I have the honor to inform you that upon investigation the following facts were duly established: 1. That you have four (4) hired laborers receiving compensation, working regularly in the factory. 2. That your son, Jessie Conopio, whom you claim to be working in the factory, is not actually working but instead is presently studying in the high school, only 13 years old, and not capable of working regularly and efficiently. 3. That the output or production of your factory based on your 1959 income tax return show that the total production for the said year was 9,164 cases of soft drinks as against 3,650 cases as alleged in your letter. Under the established facts, you cannot qualify for exemption under sections 182(c)(4) and 188(d) of the Tax Code. Such being the case, you are subject to the fixed and percentage taxes prescribed by sections 182(A)(3)(r) and 186 of said Code. lexlib Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue