BIR Ruling

July 19, 1968 Mr. Antonio Fernandez Imus, Cavite S i r : This refers to your letter dated July 3, 1968 requesting exemption from the payment of compensating tax on a 1964 Model Pontiac car brought in by you tax-free while you were in the active service of the U.S. Navy. In reply, I have the honor to inform you that inasmuch as you are an American citizen and since you acquired the aforesaid car when you were qualified as a tax-exempt person under the provisions of the U.S.-P.I. Military Bases Agreement, you continued possession thereof for your personal use after your retirement from the naval service of the United States will not render you liable for the payment of the compensating tax thereon. This will serve as authority for the Special Deputy Collector, Customs Subic Sub-Station, Olongapo City, in releasing the car in question free from taxes. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue