BIR Ruling

October 31, 1967 Messrs. Matic, Aguiluz & Acsay Suite 202-203 Gochangco Building T.M. Kalaw Street, Ermita Manila Attention: Atty . Tomas P . Matic , Jr . Gentlemen : With reference to your letter dated October 6, 1966, protesting our assessment issued to your client, Mr. Catalino S. Caragay, in the amount of P21,875.02 as deficiency percentage and fixed taxes, inclusive of surcharge and compromise penalty, for the years 1961 to 1963, I have the honor to inform you that, after a judicious study of the issues presented in the instant case and the law and administrative decisions applicable thereto, this Office has finally decided to sustain your said protest. cdll We find merit in your contention that the gross receipts derived by your client from certain Mutual Defense Assistance Pact (MDAP) projects constructed by him in 1961 to 1963 for the Armed Forces of the Philippines are exempt from the payment of the 3% contractor's tax under Section 191 of the Tax Code. In view thereof, the aforesaid assessment of P21,875.02 against Mr. Catalino S. Caragay is hereby withdrawn and cancelled and this case now considered closed and terminated. llcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue