Compensating Tax Exemption Granted to a Retired American Serviceman

May 15, 1958 BIR RULING NO. 273-58 Mr. Apolonio Adamos Masinloc, Zambales S i r : In connection with your letter of the 12th instant, I have the honor to inform you that you do not become subject to the compensating tax if, after your retirement from the United States Navy in June, 1956, you continued to use your car described as follows: MAKE BUICK TYPE SEDAN MOTOR NO. V-931445 SERIAL NO. 66887620 which you brought into the Philippines tax-free while you were in the active service of the said United States Navy. Accordingly, you may, as a retired American serviceman, secure the re-registration for 1958 of the car described above, and an ordinary license plate may be issued to you without proof of prior payment of the compensating tax as required by Section 4, Article 3, Chapter I of Act No. 3992, as amended by Republic Act No. 1603. However, there shall be stamped in bold letters on the face of the registration certificate to be issued to you the clause, "SUBJECT TO TAX WHEN SOLD TO NON-EXEMPT PURCHASER". LLjur Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue