RMC No. 64-2009: Publishes the letter of the Commissioner of Internal Revenue revoking the tax exemption status of Davao Contractors Development Cooperative (DACODECO)

Key points

1. Ground for revocation. DACODECO was found not to have complied with the conditions of a tax exempt credit cooperative after its registration. It amended its articles to add engineering construction, manpower service and distribution of construction materials.
2. Dealings with non-members. DACODECO then engaged in those businesses by transacting with non-members. The letter describes these transactions as profit oriented and no longer serving the objectives and purpose of a cooperative.
3. Ruling revoked. CIR Esquivias revoked BIR Ruling No. ECCP-063-2008, on the basis of findings by Revenue Region No. 19 in Davao City.

Who is affected

• Davao Contractors Development Cooperative (DACODECO)