BIR Ruling

June 6, 1972 San Miguel Corporation Ayala Avenue Makati, Rizal Attention: Mr . D . T . Reyes Gentlemen : This refers to your letter dated June 2, 1972 stating that, in line with our ruling dated August 18, 1971, you have taken up in your books certain assets withdrawn from business operations as capital assets. These assets are specifically indicated as follows: (1) Old Medical Clinic at Aviles Street, San Miguel . It appears that in view of the establishment of the corporation's multi-million peso medical clinic at Otis Street, Pandacan, the lot and building at Aviles Street which you have formerly used as medical clinic have been completely abandoned and that you do not expect nor foresee any further use of said lot and building. (2) Old Store at Aviles . This property which was a residential lot and house was used as a commissary store but abandoned and not used in business since the passage of the Retail Trade Act. (3) Old Davao Coca Cola Plant Your Soft Drinks Plant at Matina, Davao, was transferred to Talomo, Davao, where a new plant was erected, the facilities in the latter place being much better. Hence, the Matina Plant was completely abandoned, there being no further use thereof now nor in the foreseeable future. In reply, I have the honor to inform you that your treatment of the foregoing assets in your books as capital assets conforms with the ruling, contained in our letter of August 18, 1971 and is, therefore, in order. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue