BIR Ruling [UN-070-95]

February 16, 1995 BIR RULING [UN-070-95] SGV & Co. 6760 Ayala Avenue Makati, Metro Manila Attention: Mr . J . A . Osana Gentlemen : This refers to the internal revenue tax case of your client, Hongkong & Shanghai Banking Corporation, involving the amounts of P10,141,927.44 and P1,629,701.02 representing deficiency withholding tax arising from its Swap Transactions with Central Bank of the Philippines (CB ) and deficiency documentary stamp tax on telegraphic transfer under the said transactions, together with surcharge and interest, respectively, for the years 1982 to 1986. In connection therewith, please be informed that since your client was able to prove that the foreign exchange used in its Swap Transactions with the CB originated from the exempt sources enumerated in the Memorandum of Understanding executed on July 31, 1990 between the BAP-BIR Tax Committees, the deficiency withholding tax assessment in the aforesaid amount of P10,141,927.44 is hereby withdrawn and cancelled. However, your client remains liable to pay the documentary stamp tax assessment in the aforesaid amount of P1,629,701.02 which it must pay within ten (10) days from receipt hereof. After the lapse of said period and no payment is made, collection thereof will be enforced thru the remedies prescribed by law. This constitutes the final decision of the Office in this case. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue