Imposition of Compensating Tax Cadillac Automobile Sold by the House of Representatives to Mr. Jose Laurel, Jr.

February 3, 1958 BIR RULING NO. 066-58 5th Indorsement Respectfully returned to the Acting Secretary, House of Representatives, Manila. cdt Cars brought or imported into the Philippines tax-free by tax-exempt persons, entities, or agencies are, when sold or transferred therein to non-tax exempt persons or entities, or changed for other articles belonging to the latter, subject to either the compensating or advance sales tax depending upon whether the same will be used personally or resold by the vendee or recipient thereof, pursuant to Sections 183(b) and 190 of the National Internal Revenue Code, as amended. Accordingly, and on the assumption that the Cadillac automobile sold by the House of Representatives to Mr. Jose Laurel, Jr. will be for the latter's personal use only, the same is subject to compensating tax prescribed in the aforesaid Section 190, payable at the Bureau of Customs. Such tax is the liability of Mr. Laurel who is under such kind of transaction, considered the importer of the automobile in question. This Office cannot advance any opinion on the question of whether or not any special import tax is due on the transaction under consideration, the matter being within the jurisdiction of the Department of Finance. aisadc (SGD.) JOSE ARAAS Commissioner of Internal Revenue