Service Cooperatives

February 24, 2017BIR MEMORANDUM NO. 008-2017FOR:Caesar R. Dulay  Commissioner of Internal Revenue   SUBJECT:Service Cooperatives This has reference to the Memorandum dated February 24, 2015 by former Commissioner Kim S. Jacinto-Henares directing all Regional Directors, Regional Legal Divisions, Revenue District Offices and other Revenue Officials, Employees and others concerned to refrain from issuing Certificate of Tax Exemption (CTE) to cooperatives not specifically identified under Republic Act (RA) No. 9520 such as labor contracting, professionals, construction, mining and other cooperatives similarly created. The Bureau also issued Revenue Memorandum Circular (RMC) No. 12-2012 which circularized the instruction of the Cooperative Development Authority (CDA) to its Regional Directors to refrain from registering the cooperatives (i.e., as labor contracting, professional, construction, mining and other cooperatives similarly created) and conduct inspection/examination and/or investigation and to verify complaints that the cooperatives previously registered were used as tax shield which could be considered as fraudulently registered, one of the grounds for cancellation and revocation of Certificate of Registration.The affected cooperatives, however, posit that Article 23 of Republic Act (RA) No. 9520, specifically includes...