BIR Ruling No. 058-62

February 19, 1962 BIR RULING NO. 058-62 Laurel Law Offices P. O. Box 1059, Manila Gentlemen : Reference is made to your letters dated January 16, and 22, 1962, requesting the exemption of your client, the Negros Electric Power Corporation, from the compensating tax on the automobile (Mercedes Benz 220 Sedan) imported by its President and General Manager Mr. Anselmo S. Diaz allegedly for its exclusive use. In answer thereto, I have the honor to inform you that it is well settled that tax-exemption provisions are construed strictly against the taxpayer and in favor of the government. Such being the case, it follows that the exemption from all internal revenue taxes granted in favor of your client under Section 2 of Republic Act No. 1610 has reference only to those taxes which are directly payable by its in respect to its business. There seems to be little doubt that the compensating tax due on the vehicle in question cannot be considered as among the taxes directly payable by the Negros Electric Power Corporation in respect to its business of distributing or selling electric light, heat and powers. Moreover, it seems evident from the papers submitted with your request that the importer of the vehicle is Mr. Diaz and not your client. Accordingly, it is regretted that your request has to be, as it is hereby denied. That this Office had previously authorized the tax-free importation by the Negros Electric Power Corporation of two motor vehicles is not a justifiable reason from exempting the vehicle in question. Likewise well settled is the rule that the government is not stopped by the mistakes or wrongful acts of its officials and employees. aisadc Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue