BIR Ruling

January 17, 1967 Mrs. R. D. Cabatit 1925-A M. Adriatico St. Malate, Manila M a d a m : This refers to your letter of even date requesting information on the following: "My deceased husband, former Consul General Irineo I. Cabatit left a car which we bought in the United States in 1959, brought to the Philippines in 1961, to Kuala Lumpur in 1963, and then back to Manila in 1964. Since my husband enjoys a free tax free status by authority of the President because the Philippine officials in the Philippine Embassy in Kuala Lumpur were made to leave Malaya by its Government, no tax or duty was paid on the car. "This car has been under my administration as part of the property left by my husband and how I have been authorized by the Court to sell it. Consequently, I want to dispose of it as soon as possible. "The question arises therefore whether a car brought tax-free under the name of my late husband, is not taxable even when it is sold to private individual who does not enjoy tax free status." In reply, I have the honor to inform you that under the foregoing facts the sale of the car to a private individual who does not enjoy tax-free status is not subject to tax. Very truly yours, (SGD.) AMBROSIO M. LINA Commissioner of Internal Revenue