Taxability of a Lawyer

September 29, 1958 BIR RULING NO. 537-58 Mr. Teopisto Batungbacal, Jr. Attorney at Law c/o Del Rosario Bros., Inc. Plaza Goiti, Manila S i r : With reference to the affidavit executed by you on April 12, 1957 but filed with this Office only on even date, I have the honor to inform you that a lawyer becomes subject to the occupation tax imposed in Section 182(B) of the National Internal Revenue Code, as amended, only when he engages in the active practice of his profession. Accordingly, and based on your representations in said affidavit that you had stopped your private practice from May 16, 1956, the date you were employed in the Credit and Collection Department of Del Rosario Bros., Inc., and that your said employment does not involve the practice of law and on the assumption that said employment has continued up to the present time, you are not liable for the aforesaid tax during the years 1957 and 1958. In this connection, it may be stated that should you intend to engage again in private practice or should the nature of your employment change as to call for the practice of law, you shall be liable for the occupation tax during the semester in which you resume your private practice or the change in the nature of your employment commences. LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue