Rambler/American Automobile Consigned to the Wife of Mr. Erast Holzborn

September 7, 1960 BIR RULING NO. 382-60 Lykes Lines Agency, Inc. M a n i l a Gentlemen : Reference is made to your letter dated September 6, 1960 requesting the reconsideration of BIR Ruling No. 369 dated August 31, 1960 insofar as it pertains to the Rambler/American automobile consigned to the wife of Mr. Erast Holzborn which was brought into this country free from freight on board a vessel of your principal. With respect to the car consigned to Mr. Holzborn, we held that no freight shall be included to the landed cost thereof for purposes of the compensating tax considering that the privileges was granted him because he is an executive of that Company in line with BIR Ruling No. 242, current Series. Similar privilege was denied Mrs. Holzborn because she is not an executive of your company not even an employee thereof. We restudied very carefully the principle underlying the promulgations of B.I.R. Ruling No. 242 and find that under the circumstances prevailing in the case of the car consigned to Mrs. Holzborn similar treatment may be given thereon as that given to the car consigned to Mr. Holzborn. This is for the reason that no freight was actually charged on the car consigned to Mrs. Holzborn perhaps for the same consideration prevailing in the case of the car consigned to Mr. Holzborn, that is the letter's employment in your company as an executive. This will serve as authority for the Commissioner of Customs in not considering the freight which has not been actually incurred in computing the compensating tax due on the car consigned to Mrs. Holzborn. cdtech Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue