Summary
RMC No. 64-2013 circularizes the revocation of BIR Ruling No. NSNP-(S30C-028) 726-09, which granted income tax exemption under Section 30(C) of the Tax Code of 1997 to the Philippine Canine Club Incorporated (PCCI).
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Key points
- Not a Section 30(C) entity. PCCI does not appear to operate as a society, order or association exclusively for its members’ benefit, nor as a non-stock corporation paying benefits exclusively to members or their dependents.
- Pleasure and recreation clubs. PCCI’s original exemption came from Section 26(H) of Presidential Decree No. 1158. That provision was intentionally omitted when Republic Act No. 8424 (Tax Code of 1997) was enacted. Income of clubs organized exclusively for pleasure, recreation and other non-profitable purposes, from any source, is subject to income tax.
- VAT. An investigation by the Special Investigation Division shows PCCI did not remit VAT for taxable years 2004 to 2012. The ruling of 20 November 2009 never granted VAT exemption. Section 105 makes even non-stock, non-profit organizations liable for VAT on sales of goods or services.
- Revocation. The BIR revokes the ruling because it has no legal basis.
Who is affected
- Philippine Canine Club Incorporated (PCCI)
Deadlines and effectivity
- Ruling revoked; VAT non-remittance covered taxable years 2004 to 2012
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.