BIR Ruling

January 17, 1973 Mr. Conrado Manglicmot 23 Jones St., Olongapo City S i r : This refers to your letter dated January 15, 1973 requesting a certification to the effect that the 1962 Chevrolet 4 door Sedan Impala car with Motor No. F0316A which arrived in the Philippines on June 7, 1962 while you were in the active service of the U.S. Naval Forces is exempt from the compensating tax. cd In reply, I have the honor to inform you that it appearing that you are an American citizen who was assigned in the active service of the U.S. Naval Forces at Subic Bay from November, 1958 to March 31, 1963, the date of your retirement, and since you acquired the aforesaid car while you were an exempt person under the U.S.-P.I. Military Bases Agreement, you continued possession thereof for your personal and family use will not render you liable to the compensating tax due thereon. It is understood however that should you sell the aforesaid car to a non-exempt person, the latter shall be liable to the corresponding tax due thereon. This will serve as authority for the Land Transportation Commission in rendering the registration of the aforesaid car in your name without the payment of the compensating tax. acd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue