BIR Ruling

January 29, 1969 Mr. Generoso Alano San Carlos City Pangasinan S i r : This refers to your letter dated January 23, 1969 requesting exemption from the payment of compensating tax on a 1968 Chevrolet Impala 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, your 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 due 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. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue