BIR Ruling

April 17, 1974 Mr. Ramon S. Sevilla, President Ramon S. Sevilla, Inc., 2028 Taft Avenue Pasay City S i r : Referring to your letter dated April 16, 1974, please be informed that your proposed production of an 18% Philippine Sherry to be produced by fortifying your 12% local fruit wines with tax-paid domestic alcohol is exempt from the payment of the specific tax, when it is removed for exportation and is actually exported without returning to the Philippines. cdi When the same is removed for domestic sale or consumption, your aforesaid fortified Philippine Sherry (18%) is subject to specific tax under Section 134(c) of the Tax Code, in the amount of P2.00 per liter of volume capacity less the specific tax paid on the alcohol used to fortify it. However, before you can mix your local wine and your taxpaid alcohol you must first be a duly licensed and registered compounder. Accordingly, you need to apply for a permit to do business as a compounder of distilled spirits and wines by submitting the following requirements to this Office, to wit: (3 copies each) 1. A written application stating the business to be engaged in and the complete address of the place where the business is to be dealt in. The tax account number of the applicant should be indicated. 2. The plot and plan of the premises. 3. A surety Bond with a penal sum of not less than P10,000.00. 4. Articles of Incorporation. 5. Your income tax return and evidence of payment for the prior year. 6. Certificate of sanitation by the local health officer. 7. The Mayor's permit for you to do business in the place. 8. Copies of the Certificate of Registration of your business or trade name with the Bureau of Commerce. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5