BIR Ruling

May 8, 1973 Atty. Amando K. Gaitos Baptist Bible Church 3970 Sociego St., Sta. Mesa Manila S i r : This refers to your letter dated April 27, 1973 requesting that the transfer by donation to Reverend Joseph Boyd Lyons of the Baptist Bible Church by SMSGT. Don W. Minton of a Buick Model 1964 V-B Skylark, 4 door sedan HT; Motor No. 3K3003895 be exempt from the payment of tax under Department Order No. 13-62 dated April 18, 1962. cdta In reply, I have the honor to inform you that considering the fact that the aforesaid vehicle is a nine year old model; that under Department Order No. 13-62, dated April 18, 1962 which published the guidelines in determining the dutiable value of all makes of cars, regardless of country where manufactured, an old model car of the description is entitled to 90% depreciation allowance of its Red or Blue Book Value, it is the opinion of this Office that the transfer of the aforesaid vehicle by donation is a disposition of a fully depreciated asset. Such being the case, the same may be disposed of without the payment of internal revenue tax due thereon. cdt Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue