Tax Imposed on Scaler-Ratemeter Kit and Accessory Kit

September 30, 1960 BIR RULING NO. 421-60 The Honorable The Secretary of Foreign Affairs M a n i l a S i r: This is in connection with the request of Mr. Melvin Levine of the University of Michigan, Ann Arbor Medical School, for tax exemption on one (1) scaler-ratemeter kit and one (1) Accessory kit which will be sent to Mrs. Virginia L. Aprieto of the Zoology Department of the Far Eastern University, Manila. lexlib It appears that, as part of the program of the Atomic Energy Commission, these laboratory equipment are presented to each participant who completes training in the Institute. Each participant receives the following instructions for the use of this equipment: "It should be understood that this Scaler-Ratemeter is given to you to use in teaching students the fundamentals of radiation and radiobiology. Since you have received specific training in this area during the current Summer Institute of Radiobiology, the University and the Atomic Energy Commission feel that the best use will be made of the instrument and kit if they remain with you during that period in which you are teaching, whether this be at your current position or at another college or university. The University of Michigan reserves the right granted it by the Atomic Energy Commission to recall the kit should you enter another field of work or leave the kit behind when moving to another teaching position." The above instructions are in fact conditions for sending the equipment to Mrs. Aprieto. If Mrs. Aprieto brings the abovementioned articles home or accepts them when sent to her in the Philippines, it can be presumed that she abides by the above conditions and therefore becomes practically the owner thereof. Moreover, under the provisions of section 190 of the National Internal Revenue Code, in order that the compensating tax shall accrue, it is not necessary that the recipient of the article be the owner thereof. It is enough that the article received be for the use of the recipient thereof. In view of the foregoing, the abovementioned articles are subject to the 7% compensating tax prescribed in section 190 of the Tax Code. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue