BIR Ruling

February 1, 1968 Mr. Roberto T. Reyles 163 Hermanos del Trabajo Cavite City S i r : This refers to your letter dated January 31, 1968 requesting exemption from the payment of compensating tax on a 1966 Model Chevrolet car brought in by you while you were in the active service of the U.S. Navy in the Philippines. In reply, I have the honor to inform you that inasmuch as you are a Naturalized American citizen and since you acquired the aforesaid car when you were qualified as a tax-exempt person under the provisions of the U.S.-P.I. Military Bases Agreement, your continued possession thereof for your personal use after your retirement from the naval service of the United States will not render you liable for the payment of the compensating tax thereon. This will serve as authority for the Land Transportation Commission in effecting the registration of the above mentioned car free from the compensating tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue