Bond to Guaranty Payment of the Compensating Tax on Reparation Goods

January 29, 1960 BIR RULING NO. 135-60 Carlos J. Valdez & Co. 6th Floor, San Luis Terraces San Luis, Ermita M a n i l a Gentlemen : In reply to your letter dated May 16, 1959, I have the honor to inform you that under the provision of section 190 of the National Internal Revenue Code, it is not necessary that the recipient of the imported articles be the owner thereof in order that the compensating tax shall accrue and become due and payable. The tax is due from person residing or doing business in the Philippines who purchase or receive goods from abroad. Accordingly, your client is liable for the payment of the compensating tax on reparation goods received by it thru the Reparation Commission although title to said goods will be vested in it only upon full payment of the price thereof. There being no doubt as to the legality of the tax being collected, your request that your client be allowed to file a bond to guaranty payment of the compensating tax on reparation goods that may be received by it, is hereby denied. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue