BIR Ruling

November 24, 1977 Mr. Pedro Z. Aguilar Presidential Staff Director Office of the Presidential Executive Assistant Malacaang, Manila Dear Director Aguilar : This refers to your memorandum dated September 8, 1977, enclosing therein for appropriate action the attached protest of a certain Atty. Alfredo de los Santos, against the alleged refund of One Hundred Eighty Million Pesos to importers of sardines and other similar products. In reply, I have the honor to inform you that I have already acted on the same protest filed by a certain Atty. Alfredo de los Santos through the Office of the Hon. Secretary Ruben B. Ancheta, Presidential Assistant, Malacaang, Manila, who likewise endorsed the same to this Office. (Xerox copy of my letter dated August 31, 1977, is herewith attached). In addition to the cited justifications, it may be mentioned further that this Office has to refund overpaid advance sales taxes on imported basic food items under Section 186-B of the Tax Code, as the imposition of 5% advance sales tax on said items became effective upon promulgation of Presidential Decree No. 69, on January 1, 1973; hence the ruling imposing 7% advance sales tax on said imported items under Section 186-B of the Tax Code was issued contrary to the provision of said law and, therefore, null and void. Consequently, payments of 7% advance sales tax which were made not in accordance with the provisions of Presidential Decree No. 69, inserting Section 186-B in the Tax Code, are creditable or refundable. We cannot address our reply to the said Atty. Alfredo de los Santos, whose only known address is Quezon City. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8