BIR Ruling

October 31, 1972 Mr. Antonio F. Artadi Traffic Manager Maritime Company of the Philippines 105 Dasmarias St., Manila S i r : This refers to your letter dated October 16, 1972 stating that Mr. Antonio B. Arando, your representative at New York, U.S.A. for the last five (5) years is coming to the Philippines, and has shipped on board your M/V "Philippine Bataan" his used 1971 Ford LTD, 4 door sedan from San Francisco, California to San Fernando, La Union under Bill of Lading No. SF/SFDO-12; that the Maritime Company of the Philippines has accepted the above-mentioned shipment free of charge considering the position of Mr. Arando in the Company where it is customary to extend free freight to valued employees on items which are occasionally shipped to the Philippines. cd Under the foregoing circumstances, you are requesting that the freight for the car which would ordinarily have been collected be excluded in the computation of the taxes due thereon. In reply, I have the honor to inform you that when no freight was paid for shipping the aforementioned automobile from San Francisco to the Philippines, freight need not be included in the computation of the landed cost of the automobile for the purpose of determining the compensating tax due thereon. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue