Timber Producer's Privilege Tax-Receipt

October 12, 1959 BIR RULING NO. 511-59 D. C. Plaza Enterprises, Inc. 484 Rosario, Manila Gentlemen : Reference is made to your letter dated October 9, 1959 stating the following: "Mr. D. O. Plaza is a timber concessionaire in Agusan. In order to better exploit the concession, he organized the D. O. Plaza Enterprises, Inc. with himself owning 96% of the capital stock thereof. Thereafter, the Corporation undertook the exploitation of the concession, providing itself with the timber producer's C-14 privilege tax-receipt. The timber concession is now being operated totally in the name of the Corporation without reference whatsoever to the name of Mr. D. O. Plaza. As timber producer, D. O. Plaza Enterprises, Inc. exports most of the timber produced from the said concession. All papers incident to the exportation are manifested in the name of the corporation as the exporter-producer." You now request information as to who is the producer and/or whether or not Mr. D.O. Plaza in his individual capacity should still provide himself with the timber producer's privilege tax-receipt. You also request information whether or not the timber exported by the D.O. Plaza Enterprises, Inc. is subject to the sales tax. In reply thereto, I have the honor to inform you that from the time of the organization of the corporation and his assignment to the latter of his right to exploit his timber concession, Mr. D. O. Plaza ceased personally to be a timber producer. The producer since then is the D. O. Plaza Enterprises, Inc. Mr. Plaza need not, therefore, provide himself with a distinct timber producer's privilege tax-receipt. As timber producer, D. O. Plaza Enterprises, Inc. is exempt from the sales tax on timber produced and exported by it, pursuant to subparagraph (e) of the 1st paragraph of section 188 of the Tax Code. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue