BIR Ruling

September 10, 1971 Mrs. Alice T. Furman c/o Mrs. Ofelia Magpayo 44-B Data Street Quezon City M a d a m : This refers to your letter dated September 9, 1971 requesting exemption from the payment of compensating tax on a 1965 Ford Fairlane car, a 1962 Rambler Station Wagon, a refrigerator, a freezer, stereo components, two television sets, two air-conditioners (feeders), beds, lamps and other miscellaneous items bought and used by you while you were a civilian employee at Clark Air Base, Angeles, Pampanga. aisa dc In reply, I have the honor to inform you that inasmuch as you are an American citizen and since you were qualified as a tax-exempt person under the provisions of the U.S.-P.I. Military Bases Agreement, your continued possession thereof for your personal use after your retirement as a civilian employee of the U.S. Air Force in the Philippines will not render you liable for the payment of the compensating tax due on said cars and articles. It is understood, however, that should you sell the aforecited cars and articles to a non-exempt purchaser, the latter shall be subject to the corresponding internal revenue taxes. This will serve as Authority for the Bureau of Customs, Sub-station, Clark Air Base, Angeles City in releasing said cars and articles free from taxes. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue