BIR Ruling No. 385-61

1961 BIR RULING NO. 385-61 Respectfully referred to the Regional Director, . . . , the whole docket bearing on the specific tax case of the Philippine Manufacturing Co., with the instruction that he cause to be assessed and collected the specific tax due on the films, entitled: Toilet Goods Symposium and Case Soap Symposium, imported by it. LLphil It is now settled that where the educational quality of a film is but incidental to its mail purpose of promoting or advertising the taxpayer's products, such film does not fall within the meaning of "educational films or cinematographic films used for visual education" exempt from the specific tax pursuant to Section 146 of the Tax Code ( Phil. Manufacturing Co. vs. Collector of Internal Revenue , G.R. No. L-13355, January 28, 1961). As found by Revenue Inspector II Ricardo A. Veza, the films in question have for their main purpose the promotion or advertisement of the company's products (see his report of findings). cda