BIR Ruling No. 070-65

June 29, 1965 BIR RULING NO. 070-65 Mr. Eligio A. Reyes U.S. Naval Base Subic Bay, Olongapo Zambales S i r : Reference is made to your letter dated May 31, 1965 requesting in effect that in the computation of the compensating tax due on your automobile (1960 Model, Chevrolet, 2 door, 3 Cyls., Impala), freight be excluded from the total landed cost thereof. In support thereof you stated that you were re-assigned to the US Navy stationed at Subic Bay, Olongapo, Zambales, and that the said car was transported on board the Ex "STEEL APPRENTICE", a U.S. Navy Military Sea Transport Service Ship from the United States to the Philippines free from freight. In answer thereto, I have the honor to inform you that, notwithstanding the certificate issued by Lt. J. B. Boyette, Supply Corps, USN, Director, Household Goods Division, which was submitted with your letter, that the car in question was shipped at the expense of the U.S. Government free from freight, nevertheless, the corresponding freight that should have been paid is considered in arriving at the landed cost of the automobile. Your request is, therefore, hereby denied. This supersedes all previous rulings inconsistent herewith. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue