In answer thPayment of the Specific Tax Due on the Whiskey

March 13, 1958 BIR RULING NO. 182-58 The Manila Wine Merchants, Inc. P. O. Box 403 Manila Gentlemen : Reference is made to your letter of the 10th instant, requesting that, in view of the following circumstances, this Office withdraw its demand to the United Commodities Corporation for the payment of the specific tax due on the whiskey referred to therein. cdti "In November last year we were approved by the Philippine Executive Committee of the Third ECAFE Regional Technical Conference on Water Resources Development to supply them with 7 cases of Dewar's White Label Whisky and 2- cases of Bourbon whisky on a tax and duty free basis. These stocks were required by them for the purpose of the official entertainment of the delegates to this conference which was held in Manila from December 4 to December 10, 1957. The Executive Committee secured the approval and authorization of the Secretary of Finance and the Commissioner of Customs for this supply to be made ex our bonded stocks and we enclose herewith photostatic copies of their letters of approval. "At the time the supply was requested we did not have any White Label whisky in our bond actually in the name of the Manila Wine Merchants, Inc. However, we had purchased as shipment in Bond from the United Commodities Corporation and consequently we made the supply of 7 cases White Label whisky ex their stocks which had been purchased by us." In answer thereto, I have the honor to inform you that, pursuant to Section 125 of the Tax Code, the specific tax on imported articles is the liability of the owner or importer of the articles, and not of the purchaser thereof. Such being the case, and it appearing that the United Commodities Corporation is the importer of the whisky in question, said corporation is liable for the specific tax due thereon, notwithstanding the fact that the ultimate purchaser thereof was the Bureau of Public Works, the government being exempt only from taxes which are directly payable by it. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue