Punitive Action Against Persons, Stores and Markets Selling U. S. PX Goods

March 8, 1967 REVENUE MEMORANDUM ORDER NO. 10-67 SUBJECT : Punitive Action Against Persons, Stores and Markets Selling U . S. PX Goods TO : All Internal Revenue Officers and Others Concerned The President of the Republic of the Philippines, in a memorandum dated February 3, 1967, to the Commissioner of Internal Revenue, called attention to the notes exchanged between the Department of Foreign Affairs and the American Embassy, both dated December 14, 1966, and noted the fact that the resale of most articles purchased at U. S. base exchanges and commissaries to non-tax-exempt persons in the Philippines is absolutely prohibited by U.S. military regulations. Reference is made to the U. S. Embassy's Note No. 507 dated December 14, 1966, the pertinent portion of which reads as follows: "During discussion of this subject United States authorities emphasized that re-sale of most articles purchased at base exchanges and commissaries, including cigarettes, liquors, precious jewels, and food items to non-tax-exempt persons in the Philippines is absolutely prohibited by military regulations. Under long standing base regulations articles imported by base personnel upon arrival in the Philippines and used in this country, as well as a few types of appliances purchased at base exchanges and used in the Philippines, may be sold to non-tax-exempt persons but only with the prior written approval of the base commander in each case." In view thereof, the President in his abovementioned memorandum directed thus: "The Bureau of Internal Revenue, for its part, is hereby directed to take punitive action against stores and markets selling U. S. PX goods whose resale to non-tax-exempt persons in the Philippines is absolutely prohibited by U. S. military regulations, such as cigarettes, liquors, precious jewels and good items." All Revenue Regional Directors, Revenue District Officers, and others concerned are hereby directed to implement the aforequoted Presidential directive by launching a vigorous campaign to ferret out and apprehend all persons, entities, stores and markets selling the above-mentioned articles with a view to the imposition of penalties appropriate in such cases. A report of action taken hereon should be submitted to this Office not later than fifteen days after receipt hereof and every first day of the month thereafter. MISAEL P. VERA Commissioner of Internal Revenue