BIR Ruling

July 2, 1970 Mr. F. E. Garcia Chief, Fire Department Manila S i r : This refers to your letter dated May 21, 1970 requesting information as to the percentage allowed for the evaporation of motor gasoline per month in the storage tanks of gasoline stations. Your request is in connection with losses of certain percentage of your gasoline stored in underground tanks of your fire stations through evaporation. In reply, I have the honor to inform you that this Office does not allow evaporation losses of gasoline in customers' or users storage tanks for purposes of tax credit or refund of specific tax paid on such losses. The refund or tax credit of the specific taxes paid on gasoline lost thru evaporation is granted only when the evaporation occurred while the gasoline is stored in the bonded warehouse, the correctness of the evaporation loss being certified by the customs bonded storekeeper. (Ruling B.I.R. File No. 210.06, dated Jan. 21, 1955; Qtrly. Bull. B.I.R., Vol. IV, No. 1) Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue