BIR Ruling

May 24, 1972 Mrs. Raymunda C. McGuinness 105 Checkpoint Road Balibago, Angeles City M a d a m : This refers to your letter dated May 23, 1972 requesting exemption from the payment of compensating tax on a 1967 Model Chevrolet car which was acquired by your late husband, Lt. Col. John J. McGuinness, an American citizen who worked as a civilian employee at Clark Base. In reply, I have the honor to inform you that inasmuch as your husband, Lt. Col. John J. McGuinness was an American citizen and since he acquired the aforesaid car when he was qualified as a tax-exempt person under the U.S.-P.I. Military Bases Agreement, your continued possession thereof as the surviving spouse, for your personal use after your husband's death will not render you liable for the payment of 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 taxes. cdt This will serve as authority for the Bureau of Customs, Clark Air Base, Angeles City in releasing said car free from taxes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue