BIR Ruling No. 328-61

September 1, 1961 BIR RULING NO. 328-61 C. C. Nazario & Sons, Inc. Manila Gentlemen : Reference is made to your letter dated August 28, 1961 requesting exemption from payment of the compensating tax on reparations goods obtained by you from the Reparations Commission. It appears that although these goods were obtained from the Reparations Commission before the effectivity of Republic Act No. 3079 they have not been released from the Bureau of Custom up to the present. The question now is which law shall apply to these goods. cdti The Supreme Court in the case of Luzon Brokerage Co. Inc., vs. Juan Posadas, Inc., 51 Phil. 305 held that "the law in force when payment is made is the one that should prevail, for human voluntary acts are governed by the laws at the time of their performance unless there is a legal provision to the contrary." Republic Act 3079 was approved and became effective beginning June 17, 1961. Inasmuch as those goods have not been released from the Bureau of Customs up to the present, the provisions of Republic Act 3079 shall apply to them. Section 14 of Republic Act 3079 reads as follows: "Reparations goods obtained by private parties shall be exempt from the payment of customs duties, compensating tax, consular fees and the special import tax". It is clear from the abovequoted provisions of our present law that goods obtained from the Reparations Commission by private entities are now exempt not only from payment of customs duties, consular fees and the special import tax but also from payment of the compensating tax. In view of all the foregoing, this Office is of the opinion that goods obtained from the Reparations Commission before June 17, 1961 but released from the Bureau of Customs after the said date are exempt from the payment of the compensating tax prescribed in Section 190 of the National Internal Revenue Code. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue