Exemption from Compensating and Other Taxes-Electroencephalograph Machine

August 21, 1981 BIR RULING NO. 161-81 204-00 000-00 161-81 Brain Foundation, Inc. Section of Neurology Philippine General Hospital Taft Avenue, Metro Manila Attention: Eric P . Flores, M . D . Secretary Gentlemen : This refers to your letter dated August 12, 1981 requesting exemption from compensating and other taxes on your importation of one (1) electroencephalograph machine (Nihon Kohden EEG model with accessories). It is represented that the said machine has been purchased in Japan on April 13, 1981 and has arrived in Manila by ship on July 13, 1981; that it will be used for research on neurological sciences; that electroencephalograph services will be offered to indigent Filipino patients on a charity basis; that the machine has been purchased through donations to the Foundation; and that it will not be sold, or used for commercial purposes. It was also certified by the National Science Development Board that the Brain Foundation, Inc. and all its funds are dedicated to the cause of scientific advancement. In reply, I have the honor to inform you as follows: Section 24-a of Republic Act No. 2067, as amended by Republic Act No. 3589 states: "Any provision of existing laws to the contrary notwithstanding, apparatus, instruments, utensils, equipment, and materials may be imported into the Philippines, whether or not foreign exchange has been allocated by the Central Bank for the payment of such importations, free from all taxes and duties, upon certification of the National Science Development Board that such articles are imported solely for scientific and technological research and development and not for barter, sale or hire: Provided, however, that in case such articles are subsequently conveyed or transferred to other parties for a pecuniary consideration, taxes and duties shall be collected thereon at double the rate provided for under existing laws, payable by the transferor. . . ." We believe, and so hold, that the above provision allows your importation of electroencephalograph machine for scientific and beneficent purposes free of compensating and other taxes, and is not precluded by the silence or restrictive enumeration of Section 204 of the Tax Code because the aforequoted section of R.A. 2067, as amended, has a more specific application. "Where one statute deals with a subject in general terms, and another deals with a part of the same subject in a more detailed way, the two shall be harmonized if possible; but if there is any conflict, the latter shall prevail regardless of whether it was passed prior to the general statute." (Laxamana v. Baltazar, 92 Phil. 32) cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner