BIR Ruling

September 25, 1970 Mr. Raymundo A. Bernabe 1433 Apelo Cruz, Malibay Pasay City S i r : This refers to your letter dated September 24, 1970 requesting exemption from the payment of compensating tax on a 1967 Model Oldsmobile car brought in by you tax-free while you were in the active service of the U.S. Navy. In reply, I have the honor to inform you that inasmuch as you are an American citizen and since you acquired the aforesaid car when you were qualified as a tax-exempt person under the provisions of the U.S.-P.I. Military Bases Agreement, your continued possession thereof for your personal use after your retirement from the naval services of the United States will not render you liable for the payment of the compensating tax due thereon. It is understood, however, that should you sell the aforesaid car to a non-exempt purchaser, the latter shall be subject to the corresponding internal revenue tax. This will serve as authority for the Special Deputy Collector, Customs Subic Sub-Station, Olongapo City in releasing the aforesaid car free from tax. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue