BIR Ruling

July 2, 1975 Norkis Trading Co. Inc. Bonifacio St., Mandaue City Attention: Mr . Benjamin N . Borromeo Vice President for Finance and Comptroller Gentlemen : This refers to your letter dated June 26, 1975 informing this office that sometime last month, you received a letter from the Collector of Customs of the Port of Cebu informing you that as per their records, your importations of knocked-down motorcycles which arrived in Cebu on December 24, and 30, 1970, were withdrawn from the Bureau of Customs without filing the corresponding entries and therefore no payment made for customs duties and advance sales taxes and requesting that same be paid; that you are aware of the ruling of this office that customs duties are not covered by the ultimate tax amnesty, but you request a ruling on the propriety of the assessment of the advance sales tax in view of the following reasons: "1. That the hidden wealth and/or undeclared income represented by the non-payment of the customs duties and advance sales taxes on the above-subject importations were included when we availed of P.D. 23, as amended and also P.D. 370; "2. That we also availed of P.D. 631 which is the ultimate tax amnesty and, therefore, covered by the immunities and guaranties of said decrees; "3. That the imported articles were withdrawn and sold prior to December 31, 1973." In reply, I have the honor to inform you that it being represented that the imported articles arrived in 1970, were withdrawn from customs custody and sold prior to 1973, and that you have availed of the tax amnesties under Presidential Decrees Nos. 23, as amended, 370 and 631 (as certified to by our tax implementation officer), then, it is the opinion of this Office as it hereby holds that you are no longer liable for the payment of the advance sales tax due on the aforesaid importations. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5