BIR Ruling

May 22, 1969 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants 6760 Ayala Avenue Makati, Rizal S i r : This refers to your letter of May 19, 1969 requesting the withdrawal and cancellation of our letter to you dated March 6, 1969 sustaining our previous assessment of P9,091,766.66 against Procter & Gamble Company, c/o Procter & Gamble, PMC as a result of the re-organization thru consolidation of the Philippine Manufacturing Co., and the Philippine Trading Company, in view of the fact that you have elevated to the Secretary of Finance by letter dated October 12, 1967, the issue of whether or not the re-organization would give rise to the recognition of gain or loss. In reply, I have the honor to inform you that this Office cannot see its way clear to withdrawing and cancelling its aforesaid letter-decision. However considering the fact that you have, prior to our decision against your protest to the assessment in question, elevated the legal issue of whether or not the reorganization gives rise to the recognition of gain or loss to the Secretary of Finance, this Office is holding in abeyance the enforcement of our aforesaid letter-decision of March 6, 1969 and will consider your request for the cancellation of the same when the Secretary of Finance shall have rendered his opinion on the legal issue you raised before him. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue