BIR Ruling

October 14, 1969 Sycip, Gorres, Velayo & Co. Certified Public Accountants P.O. Box 589 Manila Attention: Mr . J. U. Ong Tax Division Gentlemen : This refers to your letter dated September 5, 1969 requesting that the personal and household effects of your client, Mr. Andre J. Rodes be exempted from the payment of compensating tax pursuant to Section 190(f) of the Tax Code. It is represented that Mr. Rodes together with his wife, came to settle for the first time in the Philippines as the Executive Vice-President of Olivier (Phil), Inc., a domestic corporation organized and existing under the laws of the Philippines; that the carries passport No. 4369 issued in Hongkong by the French Consulate on March 25 1969; that while Mr. Rodes first came and was admitted to the Philippines as immigrant on April 17, 1969, his decision to settle and establish residence in the Philippines became definite only after August 22, 1969 when the Board of Investments advised Olivier (Phil.), Inc., of the approval of its application to undertakes business activities in the Philippines pursuant to the rules and regulations of the Board of Investments implementing the provisions of Republic Act No. 5455. It is also claimed that during the pendency of the application of Olivier (Phil.), Inc. with the Board of Investments, the status of Mr. Rodes' stay was uncertain, for certainly, he would not have decided to settle and establish residence in the Philippines had the application been denied by the Board of Investments; and that on account of such uncertainty, he did not bring his personal effects into the Philippines when he first came on April 17, 1969. Under such peculiar circumstances, you now contend that the ninety-day period mentioned in Section 190(f) of the Tax Code should not be counted from Mr. Rodes' initial arrival in the Philippines on April 17, 1969, but from August 22, 1969 of the date when the Board of Investment informed Olivier (Phil.), Inc. of the approval of its application to engage in business in the Philippines. In reply, I have the honor to inform you that under the foregoing facts, it is the opinion of this office as it hereby holds that August 22, 1969 may be reckoned as the date for purposes of determining the period of ninety (90) days before or after the arrival of a person coming to settle for the first time in the Philippines under Section 190(f) of the Tax Code. Accordingly, personal and household effects belonging to Mr. Rodes which arrive within ninety (90) days before or after August 22, 1969, may be exempted from the compensating tax accordance with Section 190(f) of the tax Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue