BIR Ruling [DA-221-96]

July 2, 1996 BIR RULING [DA-221-96] National Electrification Administration 1050 CDC Building, Quezon Avenue Quezon City Attention: Mr . Teodorico P . Sanchez Administrator Gentlemen : This refers to your letter dated February 27, 1996 and follow-up letter dated May 13, 1996, requesting deferment of payment of VAT without surcharge for a period of thirty (30) days from the date of arrival at the designated ports of entry of your importations of IFB 72 materials and equipment as shown in your attached list. You have represented that the Bureau of Customs is currently holding the release of those shipments unless the corresponding VAT is paid; that you have not allocated funds for the payment of VAT since the shipments in question are duty and tax exempt being consigned to electric cooperatives; that you have identified some funds which could temporarily be used to pay the assessed VAT but are not enough to cover all the shipments arriving this year; that the funds which you have temporarily used to pay for the shipments that have already arrived is now exhausted and you are still awaiting for the approval by the Fiscal Incentives Review Board (FIRB) of your request for realignment of your Certification for Entitlement to Subsidy (CES); hence, this request to enable you to withdraw your shipments from the ports as soon as they arrive to prevent incurrence of additional storage and demurrage charges. In reply, please be informed that in view of the above justifiable reasons, your request for a grace period of thirty (30) days from the date of arrival of the imported materials/equipments within which to pay the assessed VAT without surcharge, is hereby granted. However, you shall be liable to pay the corresponding interest at the rate of 20% for late payment, pursuant to Section 249 of the Tax Code, as amended. cdlex Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue