BIR Ruling

June 17, 1968 La Estrella Distillery, Inc. 51 Ragang Street, Barrio Manresa Quezon City Attention: Mr . Chan Fook Him General Manager S i r : This refers to your letter dated September 29, 1967, requesting opinion as to whether rice wines from 20 proof or above but not more than 50 proof is considered as imitation wine for specific tax purposes. In reply, I have the honor to inform you that in an investigation conducted by this Office, it was ascertained that the rice wine is produced by the soaking of cooked rice in alcohol and extracting the sap therefrom to be used as flavoring material; that this flavoring extract is added to the distilled spirit which has been reduced to the desired grade by the mixture of water. Under the foregoing facts, the rice wine which you manufacture is considered a compounded liquor and, therefore, not subject to the specific tax. However, as compounder, you are subject to the P450.00 annual fixed tax prescribed in Section 182(A)(3)(c) of the Tax Code. lexlib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue