BIR Ruling

November 25, 1971 Mr. Carl Furer Vice- President, International Division La Tondea, Inc. P. O. Box 937 Manila S i r : This refers to your letter dated October 26, 1971 stating that the Board of Travel and Tourist Industry has recently put up duty free stores at the Manila International Airport; that you are one of their suppliers of liquors and at present you sell your products to the BTTI tax paid; and that during a recent meeting, BTTI Deputy Commissioner Jose Clemente, Jr. requested you to sell your products to them less specific tax to keep up with the true nature of a duty free shop. cdta Under the foregoing circumstances, you are requesting the approval of this Office that you sell your products to the BTTI less the specific tax. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. The sale of your products to the BTTI is a domestic sale. Hence, it falls under the provision of Section 124 of the Tax Code which states that specific taxes on domestic product shall be paid by the manufacturer immediately before removal from the place of production. cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue