BIR Ruling

July 3, 1973 Mr. Nemesio G. Co 211-15 Alliance Bldg. Rosario Street Manila S i r : This refers to your letter dated July 2, 1973 relative to the application of P. D. No. 23 to a transaction represented as follows: A taxpayer sold shares of stock to his brothers and sisters in 1971 but he did not return for tax the gains he derived in the transaction. As a means to conceal his gains, the transaction was not recorded in the books of the corporation although he endorsed the certificates of stock property to the buyers. Apparently the parties to the transaction conspired to avoid or delay the payment of the tax derived by the seller in 1971. In reply, I have the honor to inform you that the undeclared gains of the seller in 1971 is a clear case of untaxed wealth, and therefore, the seller's availment of P. D. No. 23 with respect to such untaxed wealth entitles him to all the benefits provided for by the Decree. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue