BIR Ruling

September 16, 1976 The Philippine National Oil Co. Petrophil Bldg., 7901 Makati Ave. Makati, Rizal Attention: Mr . A . V . del Rosario Executive Director Gentlemen : This refers to your letter dated July 8, 1976 requesting a ruling on whether oil companies can now destroy the accumulated subsidy coupons surrendered to them by service station dealers. These coupons were surrendered to the latter by bus and jeepney operators, small fishing boats below three gross tons and NGA rice and corn haulers as part payment of their purchases of gasoline and diesel, when these consumers availed of the Special Price Assistance Program (Petroleum Subsidy) provided under LOI 280 issued on May 15, 1975 and extended by LOI's 306, 327, 349 and 390 up to June 30, 1976. It appears also that the oil companies issued credit notes or coupon receipts corresponding to and after verifying the actual number of the coupons surrendered and that said credit notes or coupon receipts shall form part of the accounting system of the oil companies which must be preserved within the five-year period prescribed by Section 337 of the Tax Code. In reply, I have the honor to inform you that under the foregoing circumstances, the oil companies may now destroy the accumulated subsidy coupons surrendered to them by the service stations. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3