10% Compensating Tax — Importation of Spotlights

May 8, 1980 BIR RULING NO. 044-80 The Miraculous Medal Apostolate Marian Center P. O. Box 2013 959 San Marcelino, Manila Attention: Rev . Teodoro Barquin C . M . Director Gentlemen : This refers to your letter dated March 7, 1980 requesting exemption from the payment of compensating tax on the importation of spotlights to be used by your organization. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Pursuant to Section 204 of the Tax Code of 1977, as amended, your organization is not among those exempt from the payment of compensating tax. Consequently, your importation of the abovementioned article is subject to the 10% compensating tax prescribed in Section 204 of the Tax Code of 1977, as amended, in relation to Section 199 of the same Code. However, if the said importations will be sold, bartered or exchanged, the same will be subject to the advance sales tax. cdti Very truly yours, EFREN I. PLANA Acting Commissioner