REVENUE MEMORANDUM CIRCULAR NO. 64-2009 issued on November 25, 2009 publishes the letter of the Commissioner of Internal Revenue (CIR) revoking the tax exemption status of Davao Contractors Development Cooperative (DACODECO).
     The cooperative was discovered to have not complied with the conditions as a tax exempt credit cooperative after its registration. DACODECO amended its articles to include a business of being engaged in engineering construction, manpower service and distribution of construction materia ls. Thereafter, DACODECO engaged in said businesses by transacting with non-members of DACODECO. These transactions are basically profit oriented, and does not anymore serve the objectives and purpose of a cooperative.
      In the said letter, CIR Esquivias revoked BIR Ruling No. ECCP-063-2008 on the basis of the findings made by Revenue Region No. 19 – Davao City.