BIR Ruling

May 2, 1969 The General Manager United Philippine Carriers, Inc. P.O. Box 126 Manila S i r : This refers to your letter dated April 29, 1969 requesting exemption from the payment of compensating tax due on Motor Tanker "Philippine Leader" which you purchased from Japan. It appears that the United Philippine Carriers, Inc. is a corporation organized and existing under the laws of the Philippines, that, among others, its principal purpose is to own, acquire, purchase, build or otherwise charter merchant vessels, tankers, and bulk carriers of whatever class and descriptions together with equipment and appurtenances thereto, and to employ and operate the same in the carriage of goods, wares and merchandise of every description, and of passengers, in overseas commerce and/or domestic shipping; that it paid its privilege tax as a common carrier for the past few years; and that to further carry out its shipping activities, it purchased from Japan a Motor Tanker with a gross tonnage of 47,485.11 tons. In reply, I have the honor to inform you that under the foregoing facts the Motor Tanker "Philippine Leader" which you purchased from Japan is exempt from the payment of compensating tax pursuant to Section 190(d) of the Tax Code, as amended by Republic Act No. 4103. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue