Altar Bread Making Machines Received from Canada as Donation Subject to Compensating Tax

February 22, 1984 BIR RULING NO. 042-84 204-058-83-042-84 Gentlemen : This refers to your letter dated October 12, 1985 requesting exemption from compensating tax of six (6) crates of altar bread making machines received from Canada as donation. Documentary evidence submitted show that the Sisters of the Precious Blood of the Diocese of Hamilton, Ontario, Canada donated to the Most Reverend Lucilo B. Quiambao, Auxiliary Bishop and Rector of the Cathedral of Albay, Legaspi City, the following second-hand altar bread making equipment, viz: 4 Bakers flour Mixers Sifters 1 Humidifier 1 Cutter for large altar breads 2 Cutters for small altar breads large containers for large altar breads for use in churches in the Philippines; and that the six (6) crates which contained machines for altar bread making is covered by Bill of Lading No. 2 dated July 5, 1983 of Vessels "Zim Genoa". In reply, I regret to inform you that your aforesaid importation is subject to the compensating tax imposed under Section 204 of the Tax Code, as amended. This provision of law enumerates the articles which are not subject to compensating tax and those imported and/or donated from abroad by organizations like the Sisters of the Precious Blood of the Diocese of Hamilton, Ontario, Canada are not included in the enumeration. (BIR Ruling No. 204-00-296-82-058-83) cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner