BIR Ruling No. 098-82

March 30, 1982 BIR RULING NO. 098-82 199-00 069-79 098-82 Philippine Veterans Investment Development Corporation 2nd & 3rd Floors, DAO I Bldg. Salcedo St., Legaspi Village Makati, Metro Manila Attention: Mr . Mario V . Billano VP & Manager Administrative & General Services Division Gentlemen : This refers to your letter dated March 9, 1981 requesting that Delta Motor Sales Corporation (Delta Motor) be authorized to sell to you a Jeep Mini-Cruiser exclusive of the sales tax due thereon, since by virtue of Presidential Decree No. 243, as amended by Presidential Decree No. 353, you are "a corporation exempt from the payment of any and all taxes, duties, charges, fees and assessments of whatever nature and description imposed by any authority, whether national or local." cd In reply, please be informed that your request cannot be granted. Under the above-quoted provision of Presidential Decree No. 243, as amended, the exemption applies only to such taxes for which you are directly liable. Consequently, you cannot claim exemption from the sales tax due on the Jeep Mini-Cruiser which you intend to buy for the reason that said sales tax is a tax directly payable by Delta Motor, the manufacturer thereof. The fact that the sales tax may ultimately be shifted to or passed on to you as the buyer will not convert the same as taxes on the buyer for purposes of exemption. (Philippine Acetylene Co., Inc. vs. Commissioner of Internal Revenue, G.R. No. L-19707, August 17, 1969) cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner