Status of C.T.A. Case No. 203, entitled "Rafael Gerona vs. Collector of Internal Revenue"

December 18, 1958 BIR RULING NO. 709-58 The Regional Director B.I.R Regional District No. 6 Naga City S i r : In connection with your memorandum dated November 24, 1958, requesting information as to the present status of C.T.A. Case No. 203, entitled "Rafael Gerona vs. Collector of Internal Revenue," your are informed that the trial of the case is already finished and the parties are presently submitting their respective memoranda, after which the case will be considered submitted for decision. prcd In the above-entitled case, this office ruled that, under the "pacquiao contracts" entered into by Mr. Gerona and the District Engineer, the former acted as an independent contractor. Accordingly, this Office finally decided that Mr. Gerona is liable for the payment of the 2% tax as building contractor imposed by Section 191 of the Tax Code. This ruling has to be applied in cases of the same nature until reversed by final decision of the courts. Your are further advised that this Office believes, and so holds, that in cases involving the businesses specifically enumerated in Section 191 of the Tax Code, the question as to whether or not the taxpayer is an independent contractor is immaterial. In view thereof, you can now take action on a similar pending case of Mr. Gerona, involving the amount of P2,730.87 as 2% tax by issuing a letter of demand for the collection thereof. LLpr In this connection, it may be stated that the assessment should be issued against the taxpayer at once so as to avoid the lapse of the period of prescription. Very truly yours, (SGD.) MISAEL P. VERA Acting Deputy Commissioner of Internal Revenue