BIR Ruling No. 254-61

July 31, 1961 BIR RULING NO. 254-61 1st Indorsement Respectfully returned to the Chief, Alcohol Tax Division, B.I.R., Manila, the papers bearing on the contemplated sale by Smith, Bell & Co. (Phil.), Inc. of Peter Dawson Special Scotch Whisky to the United States Air Force, Navy and Diplomatic Corps in the Philippines. We understand that Smith, Bell and Co. imported said whisky. llcd It being the case that the primary containers of said whisky are already affixed with internal revenue auxiliary labels, to exempt them from the specific tax would be prejudicial to the enforcement of internal revenue laws and regulations. For the only way by which Smith, Bell and Co. can be exempted from the tax on those wines is to require payment of the tax due thereon but allow it to import tax free the same quantity and quality of wines disposed of for purposes of replacement. In that event, we shall have a case wherein those sold to the U.S. Air Force, Navy and diplomatic corps are affixed with auxiliary labels, while those subsequently imported will not be so affixed. And the moment the wines imported as replacement are placed on the market, it would be almost impossible to distinguish them from others also without labels but are not similarly tax exempt. Accordingly, the whisky in question should be taxed. LibLex (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue