BIR Ruling

April 13, 1970 Mr. Walter J. Powierza 12 Mercurio St., Mapayuan Olongapo City S i r : This refers to your letter dated April 8, 1970 requesting exemption from the payment of compensating tax due on a 1962 Ford Falcon 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 on said car. 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 said car free from taxes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue