Tax Exemption on the Business Operation of Cubi-Subic Branch 213 of the Fleet Reserve Association

December 2, 1960 BIR RULING NO. 509-60 The President Cubi-Subic Branch 213 of the Fleet Reserve Association Olangapo, Zambales S i r : This is with reference to your letter requesting that the business operation of Cubi-Subic Branch 213 of the Fleet Reserve Association at Olongapo, Zambales, be exempt from the internal revenue tax. It appears that the Cubi-Subic Branch 213 of the Fleet Reserve Association is a non-profit, non-partisan and non-sectarian organization, with its executive office in the City of Washington, D.C., U.S.A.; that it is operating a "closed meeting hall" and bar exclusively for its officers, members and their invited guests only, on a non-profit basis. It appears further that the amount charged in excess of the actual costs for drinks is barely for maintenance of the said association or club. Such being the facts as presented and duly verified by this office, I have the honor to inform you that the proceeds or gross receipts derived by the above-mentioned Association from its "close meeting hall" and bar at Olongapo, Zambales, is not subject to the fixed and percentage taxes prescribed by sections 182 and 191 of the Tax Code, as amended. Please be informed, however, that this privilege may be revoked anytime by this Office the moment said Association is found not operating in accordance with the facts above-cited. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue