Regulations Governing the Accounting of the Gasoline, Oil and Other Fuels Imported by Airline Companies

January 20, 1954 REVENUE REGULATIONS NO. V-36 SUBJECT : Regulations Governing the Accounting of the Gasoline, Oil and Other Fuels Imported by Airline Companies Enjoying Exemption from the Specific Tax TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of section 338 of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations governing the accounting of the aviation gasoline, lubricating oil, and other fuels imported by air companies operating under a franchise granted by the Philippine Government are hereby promulgated and shall be known as Revenue Regulations No. V-36: SECTION 1. Books of Accounts to be Kept. The airline companies enjoying exemption from the specific tax by virtue of their franchises shall keep separate books of accounts to record the quantities of gasoline, lubricating oil and other fuels directly imported by them supported by pertinent shipping and other commercial documents, and the removals of such products for consumption by their aircraft. The books shall at all times be subject to inspection by internal revenue officers, in accordance with the bookkeeping regulations. HcDATC SECTION 2. Storage Tanks. The said airline companies shall establish and maintain storage tanks for the gasoline, lubricating oil, and other fuels imported by them. Stocktaking of the contents of these tanks may be made by internal revenue agents from time to time to determine whether the tax-exempt fuels imported by the airlines are devoted exclusively for the use of their aircraft and no part thereof are diverted for other purposes. SECTION 3. Use of Other Storage Tanks. Until such time as the said airline companies mentioned above can provide themselves with their own storage tanks, permission may be granted upon previous request in writing for the said companies to use the storage facilities of regular importers of gasoline and other fuel oils. SECTION 4. Withdrawals from Storage Tanks Used in Common . Should the said airline companies use the storage facilities of the commercial companies, the airline companies shall not withdraw from such storage banks gasoline and other petroleum products in excess of their own importations. Should an unforeseen event arise necessitating the consumption of the fuels beyond the quantities actually imported by the airline companies, the tax-paid gasoline of the gasoline companies may be utilized by the airlines, but in such case, said airlines will only be entitled to 50% rebate of the specific tax paid on such fuels, in accordance with section 142 of the National Internal Revenue Code, as amended. SECTION 5. Use by the Gasoline Companies of Tax-Exempt Fuels Imported by the Airlines. The gasoline companies whose storage tanks and other facilities are used by the airline companies as depositories of the tax-exempt fuels imported by them may, if a national emergency arise, borrow and use a part of such tax-exempt fuels after paying the specific tax due thereon, and the said gasoline companies may replace the stock so borrowed and used from their incoming shipments for the account of the airline companies without prepayment of the specific tax. SECTION 6. Submission of Report. The airline companies shall submit to the Collector of Internal Revenue a report of all importations and consumption of tax-exempt gasoline and other petroleum products once every quarter of the year, which report shall contain all necessary details required by these regulations and shall be filed within the twenty (20) days after the end of each calendar quarter with the Bureau of Internal Revenue. SECTION 7. Effectivity. These regulations shall take effect on the date of its promulgation in the Official Gazette. (SGD.) JAIME HERNANDEZ Secretary of Finance RECOMMENDED BY: (SGD.) J. ANTONIO ARANETA Acting Collector of Internal Revenue