Tax Due on the Cases of Dewar's White Label Whisky

August 6, 1958 BIR RULING NO. 429-58 The Manila Wine Merchants, Inc. P. O. Box 403 Manila Gentlemen : Reference is made to your letter dated March 10 and 21, 1958, requesting exemption from the specific tax due on the seven (7) cases of Dewar's White Label Whisky sold by you to the Philippine Executive Committee of the Third ECAFE Regional Technical Conference on Water Resources Development. In answer thereto, I have the honor to inform you that, while it may be true that the aforesaid liquor were used by the aforenamed Committee for entertaining the delegates to that conference, which was held from December 4 to 10, 1957, and that they were sold to you by the United Commodities Corporation before the same had been removed by the latter from customs custody, however, investigation disclosed that the specific tax due on the whole shipment of liquor (of which the seven cases were only a part) had been paid, except that corresponding to the seven cases, by the United Commodities Corporation and the regular official labels affixed to the outside containers thereof at its instance. These circumstances show that ownership of the liquor, including those in question, remained with the United Commodities Corporation until their release from customs custody. Consequently, it is that corporation, and not you, who should be liable for the tax due on the seven cases of liquor which remains unpaid up to the present. The fact that they were subsequently sold by you to the aforenamed Committee and used for the abovementioned purpose did not affect the liability of the United Commodities Corporation. In view of the foregoing, and as your subsequent sale of the liquor in question is no longer subject to the specific tax, this Office is of the opinion that there is no basis for your present request. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue