BIR Ruling No. 173-82
BIR Ruling No. 173-82 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 19, 1982
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May 19, 1982 BIR RULING NO. 173-82 204-00 276-81 173-82 The Honorable Minister Ministry of Social Services & Development M a n i l a M a d a m : This refers to your letter dated January 21, 1982 referred to us by the Bureau of Customs, informing that the shipment of 2,202 cartons of Butteroil consigned to Don Bosco Youth Center Tondo has been turned over to that Ministry. Having agreed to assume payment of the compensating tax, you are requesting to defer payment thereof until the next calendar year budget. The records show that Don Bosco Youth Center, Tondo, received from the European Economic Community/Action of SOS Villagio del Fanciullo di Roma, a donation consisting of 2,202 cartons of Butteroil for free distribution to the needy youths of the Philippines. The goods shipped from Antwerp, Europe, aboard the ocean vessel "Ever Victory", arrived in Manila on January 13, 1982. Its dutiable value is P76,523.79 as shown in the Customs Consumption Entry bearing Serial Number 0066368 (Entry Number 6106-82). In a 3rd Indorsement dated January 28, 1982, the Bureau of Customs agreed to release the goods without payment of customs duties. In reply, please be informed that your request cannot be granted for lack of legal basis. Inasmuch as the said goods were transferred to your Ministry before release from customs custody, you are considered the importer thereof and is therefore liable for the payment of the 10% compensating tax based on landed cost thereof, pursuant to Section 204 in relation to Section 199 of the Tax Code. However, as a government agency, you are not required to pay cash or its equivalent for the tax due from it, but instead the revenue collecting agencies shall issue a "payment compliance certificate" indicating the nature of the assessment and amount due. The subsidy shall be effected through journal vouchers or their equivalent. (Joint Budget Circular No. 289 & Finance Circular No. 2-78 dated May 9, 1978 implementing PD No. 1177) cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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