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BIR Ruling

BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Feb 7, 1967

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February 7, 1967 Messrs. Guzman, Bocaling & Co. Certified Public Accountants 416 Regina Building Manila Gentlemen : This has reference to your letter dated January 13, 1967 requesting opinion on what constitute "actual market value" of the annual gross output of mines under Section 243 of the National Internal Revenue Code, in relation to Republic Act No. 4859, An Act to Provide for Assistance to the Gold Mining Industry, for purposes of computing the ad valorem tax due of 1 1/2%. In reply, I have the honor to inform you that the official price of gold of $35.00 an ounce constitutes necessarily the actual market value thereof. This price, exclusive of the assistance received by gold producers under existing law, therefore, serves as the basis of the 1 1/2 ad valorem tax in accordance with Section 243 of the Tax Code. LLpr Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue

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