Compensating Tax Exemption on the 1958 Oldsmobile Sedan

August 24, 1959 BIR RULING NO. 403-59 Capitol Rural Bank of Quezon City, Inc. Quezon City Gentlemen : In connection with your letter dated August 7, 1959 requesting exemption from the payment of the compensating tax on the 1958 Oldsmobile sedan bearing Motor No. 8193165 purchased by you from Colonel Ralph C. Rockwood, a tax-exempt person, I have the honor to inform you that it having been certified to by the Acting Director of the Department of Rural Banks, Central Bank of the Philippines that you are a duly established rural bank under the provisions of the Rural Banks Act, and that your net asset does not exceed P700,000.00, you are exempt from the payment of the compensating tax on the said automobile, pursuant to Republic Act No. 1097, provided, however, that the same shall be registered with the Motor Vehicles Office in your name (Capitol Rural Bank of Quezon City, Inc.) and not in the name of any of your officials or members. LLjur Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue