BIR Ruling No. 086-64

December 29, 1964 BIR RULING NO. 086-64 The Ford Foundation P. O. Box 776 Manila Attention : Mr . Henry L . Case Representative Gentlemen : Reference is made to your letter dated December 3, 1964 requesting that the said Foundation be exempt from the specific tax on gasoline purchased by it from local gasoline dealer for use of Ford Foundation foreign personnel in connection with assigned projects in this country. You contend that the Foundation is exempt from payment of the specific tax on said gasoline, pursuant to Section 1 of Republic Act No. 3538, quoted in part, as follows: cdll "SECTION 1. The provisions of existing laws or ordinance to the contrary notwithstanding, the Ford Foundation shall be exempt from the payment of gift, franchise, specific, percentage, real property and all other taxes, duties and fees provided under existing laws or ordinances. This exemption shall extend to goods imported under the Ford Foundation grants for scientific, educational and training purposes to government organizations and private institutions recognize by the government and to goods brought in or imported for the personal use of foreign personnel whose services are paid by the Ford Foundation; Provided, however, That this exemption is without prejudice to the collection of customs duties and taxes on goods or articles brought or imported into the Philippines for the use of such foreign personnel should such goods or articles subsequently be sold, transferred or exchanged in the Philippines to persons not entitled to exemption from said customs duties and taxes pursuant to existing law and regulations governing the matter." In answer thereto, I have the honor to inform you that the exemption granted the Foundation is understood to refer only to taxes to which the Foundation is directly liable. The specific tax on gasoline is payable by the manufacturer or producer thereof. The fact that the tax may ultimately be shifted or passed over to the buyer will not constitute the tax as a tax on the buyer. In view of the foregoing, your request for exemption has to be as it is hereby denied. llcd Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue