Re-registration of a Vehicle With No Internal Revenue Tax Paid

March 16, 1960 BIR RULING NO. 113-60 Messrs. Sycip, Salazar & Associates Attorneys at Law 5th Floor, Trade and Commerce Bldg. 215 Juan Luna, Manila Gentlemen : Reference is made to your letter of the 10th instant, stating that your client, Mrs. Camille J. Darling, is the owner of a Chevrolet sedan with motor No. 0607522 F 55 Z. duly registered with the Motor Vehicles Office in 1959. At the time of said registration, Mrs. Darling was employed as Acting Director of the Manila USO Club, an agency of the United States Government, for which reason no internal revenue tax was paid on the automobile. Subsequently, on March 31, 1959, she resigned from said position. having remained up to the present time the owner of the vehicle, she now seeks the re-registration thereof; however, the Motor Vehicles Office held action thereon pending resolution of the question whether or not it is subject to the compensating tax. In answer thereto, I have the honor to inform you that, based on the facts narrated above, the registration of the motor vehicle in question can be renewed without the necessity of presenting any proof evidencing prior payment of the compensating or sales tax in accordance with section 4, article 3, Chapter I of Act No. 3992, as amended by Republic Act No. 1603. The fact that Mrs. Darling is no longer connected with the Manila USO Club does not of itself make her liable to any internal revenue tax on said vehicle. However, as in the case of the original registration, the certificate to be issued by the Motor Vehicles Office covering the re-registration in this case shall contain a notation stamped with bold letters on the face thereof reading as follows: SUBJECT TO TAX WHEN SOLD TO NON-EXEMPT PURCHASER. This serves as authority for the Chief, Motor Vehicles Office, to effect the re-registration of the motor vehicle in question without requiring the presentation of any proof of tax payment. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue