Corporation which Availed of the Tax Amnesty Under E.O. No. 41, as amended, is No Longer Subject to Payment of Deficiency Advance Sales Tax

September 17, 1987 BIR RULING NO. 291-87 162 000-00 291-87 Gentlemen : This refers to your letter dated July 22, 1987 requesting confirmation of your opinion that Unisol Industries & Manufacturing Corporation (Unisol) is no longer subject to the payment of deficiency advance sales tax for taxable years 1981 to 1985 because it has availed of the tax amnesty under Executive Order No. 41, as amended by Executive Order No. 64. It is represented that Unisol imported certain articles prior to January of 1985 which were withdrawn from customs custody before December 31, 1985; and that it availed of the tax amnesty under E.O. No. 41 by paying 10% of its increase in networth and the additional 5% amnesty tax pursuant to E.O. No. 64 on its sales tax liabilities as evidenced by a Certification dated July 30, 1987 issued by the Tax Amnesty Implementation Officer. In reply, please be informed that your opinion is hereby confirmed. Pursuant to Section 3 of E.O. No. 64, such availment of the said amnesties relieved Unisol from any income, estate, donor's and business tax (Chapter II, Title V, par. 1.2.4, RMO No. 42-86) liabilities as well as of all civil, criminal, or administrative liabilities under the National Internal Revenue Code for the years 1981 to 1985, in which case Unisol cannot be held liable for the payment, among others, of the aforementioned deficiency advance sales tax liability for the year 1985. Moreover, under paragraph 1.02 of Revenue Memorandum Order No. 4-87, a certification by the Tax Amnesty Implementation Officer of the fact of the availment of the said tax amnesties is sufficient basis for the cancellation/withdrawal of assessment notices and letters of demand issued after August 21, 1986 for the collection of income, business, estate or donor's taxes due during the taxable years 1981, 1982, 1983, 1984 and 1985. Accordingly, Unisol is also no longer subject to the deficiency advance sales tax of 1985 if the assessment notices and letters of demand thereof were issued after August 21, 1986. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner