BIR Ruling [UN-248-95]

July 6, 1995 BIR RULING [UN-248-95] R.B. Ancheta & Associates Suite 702 ILAC Building 167 Legaspi St., Legaspi Village Makati, Metro Manila Attention: Atty . Ruben B . Ancheta Gentlemen : This refers to your protest for and on behalf of your client COLLEGE ASSURANCE PLAN PHILS. (CAP) against the assessments of this Office involving the respective amounts of P45,661,987.89 and P532,798.45 or a total of P46,194,786.34 as deficiency business (percentage) taxes for the year 1990 covered by Assessment Notice Nos. FAS-4-90-93-00-861 and FAS-4-90-93-00862, both dated April 13, 1993. In reply, please be informed that after a careful study of the facts of the case and the laws and pertinent rulings applicable thereto, this Office has finally decided that your said client is not liable to the payment of the aforementioned deficiency percentage tax on its sales of pre-need plans in 1990. Moreover, it is not subject to documentary stamp tax on pre-need plans issued in 1990, inasmuch as Republic Act No. 7660 which amended among other Section 186 of the Tax Code, imposing the documentary stamp tax of Fifty Centavos (P0.50) on each Five Hundred Pesos (P500.00) or fractional part thereof, of the value or amount of the plan took effect only on January 14, 1994. In view thereof, the deficiency assessments of this Office against CAP involving the total amount of P46,194,786.34 are hereby cancelled and this case considered closed and terminated. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue