Exemption from the Compensating Tax of the Chevrolet, model 1957 Car

November 3, 1959 BIR RULING NO. 535-59 Mindanao Conference of the Evangelical Church of Christ, Inc. Ozamiz City Gentlemen : Reference is made to your letter dated October 30, 1959 requesting exemption from the compensating tax of the car, Chevrolet, model 1957, and with Serial No. VC-57F-200-731 under the provisions of Republic Act No. 1916. It appears that the donor, Dr. Ernesto P. Mendoza is married to an American and presently residing in the United States. It appears also that the Mindanao Conference of the Evangelical Church of Christ, Inc. is a religious organization organized under Philippine laws and duly registered with the Securities and Exchange Commission. Under the circumstances, and it appearing that the fact of donation is duly established in writing, the car in question is exempt from the compensating tax, pursuant to the provisions of Republic Act No. 1916. It is understood of course that the car in question shall be registered in the name of the religious organization and used by it for religious purposes. Attention is invited in this connection to provisions of Republic Act No. 1916 to the effect that should the car be subsequently conveyed or transferred to other parties for consideration, taxes and duties shall be collected thereon at double the rate provided under existing laws. This will serve as authority for the Commissioner of Customs in effecting the release from customs custody of the car in question free from the compensating tax. LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue