Non-prepayment of the Specific Tax on the Sale and Delivery of Petroleum Products to the AFP, the USAF and Civilian Agencies in the Philippines

February 7, 1958 BIR RULING NO. 097-58 Standard-Vacuum Oil Company 1071 Isaac Peral Manila Gentlemen : With reference to you letter dated December 27, 1957 (3112 SUF) requesting that you be allowed to sell and deliver petroleum products to the Armed Forces of the Philippines, the United States Armed Forces and civilian agencies in the Philippines, the same to be taken from your bonded stocks and released from the bonded warehouse, without the prepayment of the specific tax, I have the honor to inform you that your request is hereby granted, provided that the following requirements are complied with: 1. That before effecting a particular sales or delivery of petroleum products, you should file an application therefore with the Chief, Tobacco and Miscellaneous Tax Division of this Office. The application shall specifically state the particular unit, branch or agency of the entities mentioned above to which the products are to be sold and delivered, its location or address the kind and quantity of products to be sold, the price of the products per unit measure and the total price thereof, exclusive of the specific tax. 2. That the application shall be accompanied by an original and two (2) duplicate copies of the tax exemption certificates issued by the unit, branch or agency concerned of the abovementioned entities, said certificates to be signed by the commanding officer or head of such unit, branch or agency, or by the responsible officer or official designated for the purpose. The tax exemption certificates, aside from stating the kind and quantity of products to be purchased, shall certify that the products described therein will be used officially in connection with the authorized activities of the aforesaid entities. In the case of the tax exemption certificates to be issued by the units or branches of the Armed Forces of the Philippines, the same shall certify that the products will be used exclusively for military purposes. 3. That upon delivery of the products to the buyers, you shall submit a report to this Office, thru the Chief, Tobacco and Miscellaneous Tax Division, within fifteen (15) days from the date of delivery, stating the kind and quantity of products actually delivered to and received by the buyer. The reports shall be accompanied by copies of the sales invoices issued by you, stating therein the quantities actually delivered. The sales invoices must bear the names and signature of the responsible officer or official of the buyer actually receiving the products. 4. That the quantities of petroleum products required to be stated in the documents mentioned in the foregoing shall be in terms of the measurements specified in the National Internal Revenue Code. For example, gasoline, lubricating oil and kerosene should be in terms of liters and not in gallons, drums or tin cans, while diesel fuel oil, bunker fuel oil and all similar oils should be in terms of metric tons and not in liters, gallons or drums. 5. That you shall require the units, branches or agencies of the entities mentioned above to furnish this Office with samples of the signatures of their commanding officers or heads, or the responsible officer or official designated for the purpose, who shall be the only persons to sign the tax exemption certificates and the sales invoices mentioned in the foregoing. In other words, before any officer or official can sign the said documents, his name and a sample of his signature should first be submitted to this Office. LLphil 6. That your authority to sell and deliver petroleum products to the Armed Forces of the Philippines under the above arrangement shall be effective only as long as the tax exemption proviso in favor of the said entity as provided in the current Appropriation Act is embodied in subsequent Appropriation Acts. Very truly yours, (SGD.) JOSE ARAAS Collector of Internal Revenue