BIR Ruling

February 3, 1976 Phesco, Incorporated 73 Quezon Blvd. Extension Quezon City Attention: Mr . Benjamin D . Ynson President and General Manager Gentlemen : This refers to your letter dated November 3, 1975 to the honorable, Secretary of Finance, Manila, requesting that the customs duties and/or revenue taxes which Phesco, Inc. has to pay on its importation of one (1) unit 1975 Ford Ltd., 4-door Sedan to be used in the inspection of its project, undertaken in accordance with its contract with the National Power Corporation be allowed as deductions from its gross income under Section 30(c) of the Tax Code. In reply thereto, I have the honor to inform you that Section 80 of the Income Tax Regulations provides in part as follows: xxx xxx xxx "Import duties paid to the proper customs officers, and business, occupation, license, privilege, excise and stamp taxes and any other taxes of every name or nature paid directly to the Government of the Philippines or to any political subdivision thereof, are deductible. . ." Accordingly, the customs duties and/or revenue taxes which Phesco, Inc. has to pay on its importation of one (1) unit 1975 Ford Ltd. 4-door Sedan are deductible from its gross income under Section 30(c) of the Tax Code as implemented by Section 80 of the Income Tax Regulations. cdt Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3