Tax Status of Independent Credit Inspection Service

October 6, 1959 BIR RULING NO. 476-59 Independent Credit Inspection Service Rm 402 Republic Super Market Bldg. M a n i l a Gentlemen : Reference is made to your letter dated September 23, 1959, requesting information as to the tax status of your firm. In reply thereto, I have the honor to inform you as follows: The function and operation of your firm, as gathered from the brochure submitted, may be briefly stated as one organized solely to soliciting credit and/or related information upon specific requests of clients. Said information is furnished to be used as a guide in determining legitimate business transactions. Your firm, as stated, is manned by experienced credit investigators who have had rigid and practical training. They have been trained in credit reporting; namely, the proper techniques, the right sources of information, the correct psychological approach to informants, courtesy to public relations and most of all, the inherent ability to keep information in confidence. In fine, it is the essence of your firm'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. Under the circumstance, you are not subject to any business taxes. However, you are subject to the income, and basic and additional residence taxes as prescribed by section 24 of the Tax Code and by section 2 of Commonwealth Act No. 465, respectively. As to licenses and fees payable by you, please be informed that the same are not within the province of this Office to decide. It is advised that this matter be referred to the City Treasurer, Manila. Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue