Specific Tax Due on the Replacement Shipment of the "The FBI Story" Film

March 31, 1960 BIR RULING NO. 168-60 The General Manager Warner Bros. First National Pictures, Inc. Dee C. Chuan Bldg. Rizal Ave. Katubusan St. M a n i l a S i r : Reference is made to your letter dated February 18, 1960 requesting that a ruling be issued to the effect that the replacement film imported by you to replace a total of 455 ft. of a previous importation of one used feature entitled, "The FBI Story", which is said to be in damaged condition to that extent received, is exempt from tax. cdll In reply I have the honor to inform you that the National Internal Revenue Code does not contain any provision to the effect that replacement films imported to replace tax-paid and previously imported cinematographic films. On the oft-repeated theory of taxation that exemption is highly disfavored by law unless there is a clear grant in express terms, this Office is of the opinion that your request for exemption lacks legal basis. We cite hereunder previous rulings of this Office involving request for exemption from the payment of the specific tax on imported articles which are, more or less, of the same nature as your case, to wit: "Cinematographic films imported to take the place of films which are not in good condition for return engagements are subject to the specific tax imposed by section 146 of the Tax Code even if said films are intended to be exhibited in this county for a week only." (Ruling, Feb. 2, 1954). "Specific taxes paid on an imported cinematographic film which was released from customs custody cannot be refunded if the film was banned from public exhibition by the Philippine Board of Review for Moving Pictures." (Ruling, Aug. 18, 1954). Accordingly, it is requested that you pay the specific tax due on the alleged replacement shipment of the film in question. LLjur Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue