BIR Ruling

October 23, 1969 Sister Lauretta Guertin, p.m. Presentation of Mary Catalunan Grande Davao City M a d a m : This refers to your letter dated August 28, 1969 thru the BIR Regional Director of Davao City stating among others, that sometime in June, 1960, the Presentation of Mary, Inc., a religious organization of Catalunan, Davao City, received as donation from abroad one Volkswagen Combi exclusively for religious purposes only which was then released to you free from tax under Republic Act No. 1916; that in recent years said vehicle had become so run-down that repairing it entailed so much expense which your congregation cannot afford; and that you now plan to sell said vehicle to any buyer for any amount the proceeds of which will go exclusively to your congregation without any amount inuring to the benefit of any member thereof. You now posed the questions as follows: "(1) Can your office allow us to sell the said vehicle? "(2) If so, what procedure should we follow in the sale of the vehicle in order that we will not violate internal revenue laws and regulations?" In reply thereto, I have the honor to inform you that considering that the vehicle in question was donated to your congregation in 1960 or more than nine (9) years ago and considering further its present run-down condition, it is the opinion of this Office as it hereby holds that the sale of the vehicle is a mere disposition of a fully depreciated asset, hence, the sale thereof to non-exempt purchaser is not subject to tax. You may thereof sell the vehicle in question without being required to pay taxes due thereon. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue