Tax Exemption of Reparation Goods

November 21, 1960 BIR RULING NO. 503-60 The Director Bureau of Fisheries Diliman, Quezon City S i r : This is in answer to your letter dated November 14, 1960 requesting this Office to furnish you a copy of BIR Ruling No. 580, s. 1958 concerning the tax exemption of reparation goods. The ruling referred to holds that reparations goods obtained by private parties from the Reparations Commission are exempt only from the payment of customs duties, consular fees and the special import tax but are subject to the advance sales or compensating taxes, depending on whether said goods are for resale or use. (See, 14, Reparations Law, R.A. No. 1789) If, as stated by you, it is true that the "Reparations vessels procured by the Reparations Commission was "transferred" by said Office in the Bureau of Fisheries for its use, then, said vessel is exempt from payment of the compensating tax because all reparations goods obtained by the government for its use are exempt from all duties, fees and taxes. (Ibid) prcd Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue