Separate Scale Reports for Separate Entities

October 24, 1958 BIR RULING NO. 651-58 Sta. Cecilia Sawmills, Inc. 87 South 9th Street Quezon City Gentlemen : This is with reference to your letter to the Director of Forestry requesting that separate scale reports be rendered for the Sta. Cecilia Veneer & Plywood Mill and the Sta. Cecilia Sawmills, Inc. inasmuch as the former has been granted tax exemption by the Department of Finance under Republic Act 901. LexLib In this connection, I have the honor to inform you that the exemption granted under Republic Act 901 covers only taxes directly paid by the new and necessary industry in respect to said industry. Inasmuch as the forest charges is not a tax paid in respect to the manufacture of veneer and plywood, the tax exempt industry, the same is not covered by the grant of tax exemption. However, in view of the fact that a similar case involving the same question is now pending before the Supreme Court, your request for a separate scale report for each entity is hereby granted. The forest charges due on all timber covered by both scale reports should, however, be paid. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue