Tax Liability of a Commercial Broker

September 22, 1959 BIR RULING NO. 472-59 Mr. Angel V. Valladolid Attorney-at-Law P. O. Box 744 M a n i l a S i r : In answer to your request for a copy of BIR Ruling No. 294 dated June 2, 1959, this Office regrets to inform you that your request cannot be granted because the said ruling contains statements revealing the business operation of a taxpayer, the divulgence of which is prohibited by section 347 of the Tax Code. It may be stated, however, that in the aforesaid ruling, this Office held that a person who undertakes to sell merchandise of another under the so-called "Trade Discount Plan" and receives a "discount" for each sale is a commercial broker subject to percentage tax prescribed in section 195 of the Tax Code. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue