BIR Ruling

November 17, 1972 San Miguel Corporation 6766 Ayala Avenue Makati, Rizal Attention: Mr . D . T . Reyes Asst . Vice President Gentlemen : This refers to your letter dated November 14, 1972 requesting confirmation of your treatment of your J.P. Laurel Street property consisting of 3,028 square meters of land and the improvements thereon comprising your old main office building, an annex and other minor improvements, as capital assets considering that you do not foresee any further use of the property now or in the future. In reply, I have the honor to inform you that the above referred to property falls within the ambit of the ruling issued by this Office to you dated August 18, 1971. In said ruling, this Office held that your Echague plant which you have abandoned with no further foreseeable use thereof became a mere investment property of your corporation it not being used in your trade or business anymore and, therefore, is a capital asset citing Steward Title Guranty Co., 20TC 630; Providence Coal Mining Co. v. Glenn, 39 AFTR, 219. Your treatment, therefore, of the property in question as capital asset is hereby confirmed. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue