Sale of the Privilege to Operate and Assets of a Gasoline Station...

November 14, 1958 BIR RULING NO. 676-58 5th Indorsement Returned to the Regional Director, BIR Regional District No. 3, Manila, the herein papers pertaining to the case of Mr. Perfecto Maalac. LLjur The sale in this case, contrary to what Mr. Maalac contends, involves not only the sale of the privilege to operate a gasoline station, but also all the assets of Mr. Maalac in his business of operating the said station which were on hand at the time of the sale on June 3, 1954. This is evident from the entry of the sale in the books of Mr. Maalac as reported by the examiner, Mr. Jesus F. Llamas, in his indorsement dated March 20, 1957, to wit: Accounts Receivable (Ines Mercado P17,453.09 Reserve for Depreciation of machinery and equipment 515.33 Machinery & Equipment P1,752.00 Inventory (June 2, 1954) 877.87 Accounts Receivable (June 1 & 2) 575.22 Profit & Loss 14,763.33 xxx xxx xxx." The sale in question is, therefore, a sale of business, pure and simple. As such, the same shall be treated as a sale of ordinary asset which should be taxed in full. He is instructed to take action in the light of the foregoing considerations. llcd (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue