Tax Exemption Granted in Favor of the Council on Economic and Cultural Affairs

February 9, 1959 BIR RULING NO. 071-59 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila. Following the decision of the Supreme Court in the case entitled "The Collector of Internal Revenue, Deputy Collector of Internal Revenue and Municipal Treasurer of San Fernando, La Union vs. Marcelino T. Viduya and the Court of Tax Appeals" G.R. No. L-10808 promulgated February 28, 1959, tax-exempt luxury or semi-luxury articles purchased from tax-exempt individuals prior to June 16, 1956 are not subject to the tax; but those purchased from and after said date are subject thereto. The date of purchase of the car in question does not appear on the records of this case. However, inasmuch as the taxpayer arrived in the Philippines only on August 6, 1958, the car in question could not have been purchased prior to June 16, 1956. This Office is not aware of any tax exemption granted in favor of the Council on Economic and Cultural Affairs. In view of the foregoing, this Office is of the opinion that the purchaser is liable for the payment of the compensating tax on the aforesaid car, payment of which cannot also be deferred inasmuch as the said tax is due upon receipt of the car. LLjur (SGD.) JOSE ARAAS Commissioner of Internal Revenue