Compensating Tax of a Retired American Serviceman

February 3, 1958 BIR RULING NO. 059-58 Mr. Pablo Caluza 69 Pulog Street Sta. Mesa Heights Quezon City S i r : In connection with your letter of the 1st instant, I have the honor to inform you that you do not become subject to the compensating tax if, after you retirement from the United States Navy in 1956, you continued to use your car described as follows: Make Plymouth Type Station Wagon Motor No. P-26-188256 Serial No. 13973142 which you brought into the Philippines tax-free while you were in the active service of the said United States Navy. Accordingly, you may, as a retired American serviceman, secure the re-registration for 1958 of the car described above, and an ordinary license plate may be issued to you without proof of prior payment of the compensating tax as required by Section 4, Article 3, Chapter I of Act No. 3992, as amended by Republic Act No. 1603. However, there shall be stamped in bold letters on the face of the registration certificate to be issued to you the clause, "SUBJECT TO TAX WHEN SOLD TO NON-EXEMPT PURCHASER". Very truly yours, (SGD.) MELECIO R. DOMINGO Deputy Commissioner of Internal Revenue