BIR Ruling

October 15, 1971 Mrs. Elizabeth S. Hebreo 1963 Manila Blvd. Caridad, Cavite City M a d a m : This refers to your letter dated October 14, 1971 requesting exemption from the payment of compensating tax on a 1964 Plymouth car, one Whirlpool refrigerator, two used air conditioners, one used washing machine, two used RCA television sets (one console, one portable), one used turntable, two used speakers and one used tape recorder bought and used by your husband, SKC Benjamin R. Hebreo of the U.S. Navy. cdt In reply, I have the honor to inform you that inasmuch as your husband, SKC Benjamin R. Hebreo is an American citizen and since he acquired the aforesaid car and appliances when he was qualified as a tax-exempt person under the U.S.-P.I. Military Bases Agreement, your continued possession thereof for your personal use after your husband's reassignment in Vietnam will not render you liable for the payment of compensating tax due on said car and appliances. It is understood, however, that should you sell the aforecited car and appliances to a non-exempt purchaser, the latter shall be subject to the corresponding internal revenue taxes. This will serve as authority for the Bureau of Customs, Subic Sub-Station, Olongapo City in releasing said car and appliances free from taxes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue