Taxability of Sugar Mill Operators or Proprietors

September 11, 1958 BIR RULING NO. 510-58 The Municipal Treasurer Culasi, Antique S i r : In reply to your letter dated March 26, 1958, wherein you inquired as to the taxability of sugar mill operators or proprietors, you are hereby informed as follows: In CTA Case No. 163, entitled Juan Ledesma vs. Collector, which was decided on January 17, 1957, the Court of Tax Appeals held that sugar mills are not subject to the tax prescribed by Section 189 of the Tax Code. However, this Office appealed said decision to the Supreme Court for which reason it considered itself not bound by the aforesaid ruling of the court. cdll Accordingly, pending decision of our appeal by the Supreme Court, the ruling of this Office holding proprietors or operators of sugar mills liable to the 2% tax imposed by Section 189 of the Tax Code shall have to be enforced. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue