Exemption from Tax of the Automobile Donated to Confederation of Filipino Veterans

November 28, 1960 BIR RULING NO. 510-60 The National Commander Confederation of Filipino Veterans 1202 General Luna, Ermita M a n i l a S i r : This is with reference to your letter dated November 21, 1960 requesting further the reconsideration of our ruling denying your request for the exemption from tax of the automobile donated to your confederation under the provisions of Republic Act No. 1916. cdt In our ruling (B.I.R. Ruling No. 405, s. of 1960), we held that your organizations neither a duly incorporated or established international civic organization, religious or charitable society or institution within the contemplation of the documents submitted by you however, we observe that your confederation is one among the few organizers of the World Veterans' Federation 1951, an international civic organization. As part and parcel of the World Veterans Federation, you, therefore, qualify as a civic organization within the purview of Republic Act No. 1916. To our mind, your status is similar to the Boy Scouts of the Philippines and Young Men's Christian Association. We observed further from your constitution that, among the aims of your confederation, is the building of a strong and law-abiding citizenry. This is an obvious disclosure of the civic character of your organization. In the light of the foregoing, this Office is of the opinion and so holds that you fall within the purview of Republic Act No. 1916, as part and parcel of an international civic organization. Such being the case, the car donated to your organization is exempt from tax. B.I.R. Ruling No. 405, s. of 1960, is accordingly revoked. Your attention, is however, hereby called to the proviso in Republic Act No. 1916 to the effect that in case the articles imported thereunder free from tax and subsequently conveyed or transferred to other parties for a consideration, taxes and duties shall be collected thereon at double the rate provided under existing laws, payable by the transferor. Please be advised further that the donated car should be registered with the Motor Vehicles Office in the name of the Confederation and that report of registration should be made to this Office within fifteen (15) days from release of motor vehicle from customs custody. This will serve as authority for the Commissioner of Customs in effecting the release of the car in question from customs custody free from either the advance sales or compensating tax. cdll Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue