Tax Liability of Owner-Operators of Rice Mill or Kiskisan

November 10, 1960 BIR RULING NO. 480-60 Sgt. Dominador B. Calderon "D" Company, 20th Bn Combat Team 1st Infantry Div. Philippine Army Tres Cruses, Tanza, Cavite S i r : In reply to your letter dated October 12, 1960, I have the honor to inform you that the owner-operators of rice mill or kiskisan, aside from income tax, are subject to the annual fixed tax of twenty pesos prescribed in section 182(A)(1) of the Tax Code and also to the 2% percentage tax of the gross value in money of all the rice and by-products milled, the tax to be based on the actual selling price or market value of these articles at the time they leave the warehouse or factory, prescribed in section 189 of same Code. It is the duty of the owner-operator to make a true and complete return of the amount of his/her gross monthly sales, receipts or earnings, or gross value of output actually removed from the mill warehouse and within twenty days after the end of each month, pay the 2% percentage tax due thereon. If it is not paid within this specified time, the tax shall be increased by twenty-five per centum, the increment to be a part of the tax and in case of neglect or fraudulent return there shall be added to the deficiency tax, or in case any payment has been made on the basis of such return before the discovery of such fraud, a surcharge of fifty per centum of such amount, prescribed by section 183(a) of the same Code. In addition to the simplified set of books of accounts required under section 334 of the Tax Code they should also keep and use the record book prescribed by Section 9 of Revenue Regulations No. 7 otherwise known as the Rice and Corn Mills Regulations. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue