BIR Ruling No. 142-62

December 3, 1962 BIR RULING NO. 142-62 The Revenue Operations Head (Assessment) B.I.R., Manila S i r : This has reference to the proposed assessment for advance sales tax in the amount of P111,159.48 against the Alhambra Cigar & Cigarette Manufacturing Co., Inc. cdi It appears that last December 31, 1961, the Alhambra Cigar & Cigarette Manufacturing Co., Inc. was dissolved, it having reached the maximum period of 50 years provided by law for the existence of an corporation; that during its lifetime, the corporation imported a considerable amount of materials for use in its production of cigars and cigarettes which were released tax-free in accordance with the exempting provisions of section 183(B) of the Tax Code. It further appears that on December 27, 1961, or four days before actual dissolution, the corporation sold such portion of such materials as were unused to the Alhambra Industries, Inc., a corporation duly organized and existing under the laws of the Philippines and which is also engaged in the manufacture of cigars and cigarettes and that the latter's are incorporators, members of the board of directors and stockholders are the same as those of the Alhambra Cigar & Cigarette Manufacturing Co., Inc. It appearing that the unused imported articles were the result of importation that is over and beyond the materials needed by the taxpayer, and considering that to enjoy the exemption provided for in section 183(b) of the Tax Code, the imported materials should have been used by the taxpayer itself in the manufacture or preparation of cigars and/or cigarettes, the sale in question is subject to the corresponding advance sales tax. Be guided accordingly. Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue