BIR Ruling

May 24, 1972 Mrs. Juanita Ivison 470 21st Street Josefa Subdivision Angeles City M a d a m : This refers to your letter dated May 23, 1972 requesting exemption from the payment of compensating tax due on a 1967 Model Ford Stationwagon and a 1969 Model Chevrolet car which were acquired by your late husband, Mr. Robert Ivison, an American citizen who was employed as Civilian Engineering's Deputy Chief of Operation and Maintenance at Clark Air Base. In reply, I have the honor to inform you that inasmuch as your late husband was an American citizen and since he acquired the aforesaid vehicles when he was qualified as a tax-exempt person under the U.S-P.I. Military Bases Agreement, your continued possession thereof as the surviving spouse, for your personal use after your husband's death will not render you liable for the payment of compensating tax due on said vehicles. It is understood, however, that should you sell the aforesaid vehicles to a non-exempt purchaser, the latter shall be subject to the corresponding internal revenue taxes. This will serve as authority for the Bureau of Customs, Clark Air Base, Angeles City in releasing said vehicles free from taxes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue