Taxable Gross Receipt of a Labor Union

November 4, 1958 BIR RULING NO. 660-58 3rd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila, the within papers bearing on the case of the Philippines Labor Federation, Tandag, Surigao. LLphil Labor unions, like any other organizations, when engaged in any taxable activity, are subject to the corresponding tax. The Union Obrera Makabayan, for instance, a labor union engaged in the loading and unloading of cargoes to and from vessels was held as a stevedore, subject to the 3% tax prescribed by Section 191 of the Tax Code on stevedores (Union Obrera Makabayan vs. Collector of Internal Revenue, BTA Case No. 177) The taxable gross receipt of a labor union consist of its entire receipts undiminished by the 2 % operational expenses of the union. LLjur (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue