BIR Ruling

July 22, 1970 2nd Indorsement Returned to the Revenue Operations Head (Assessment) the herein attached letters of the Ford Foundation, Makati, Rizal dated April 17 and April 23, 1970, relative to the disposition by negotiated sale to the Central Bank of the Philippines of two (2) units Ford Falcon Standard Fordor Sedan 54A, 3-Speed Manual Transmission, Model 1966, with Serial Nos. 6F023-302410 and 6F023-302413, and Plate Nos. E-922 and E-920, respectively, with the information that pursuant to Republic Act No. 265, said purchase of cars by the Central Bank is not subject to the compensating tax imposed by Section 190 of the Tax Code. It should be noted that the exemption from compensating tax granted by special laws to certain persons and entities in respect of their importation of automobiles for their own use and not for sale has not been revoked by Republic Act No. 6110. (BIR Ruling No. 70-026, dated April 30, 1970). Consequently, the exemption granted to the Central Bank of the Philippines from the payment of compensating tax under the provisions of Republic Act No. 265 still stands. MISAEL P. VERA Commissioner of Internal Revenue