BIR Ruling [DA-008-02]

January 25, 2002 BIR RULING [DA-008-02] Sycip Salazar Hernandez & Gatmaitan SycipLaw-All Asia Capital Center 105 Paseo de Roxas City of Makati Attention: Atty . Ernesto S . Tario, Jr . and Atty . Jhoanna Jasmine M . Javier Gentlemen : This refers to your letter dated October 2, 2001, the contents of which is quoted as follows: "In connection with BIR Ruling No. S-40-075-2001 dated September 12, 2001 . . . issued pursuant to our request for a ruling dated August 9, 2000 that the transfer by Mrs. Carolina Basa-Salazar of her real property to Lestin Development Corporation ("Lestin") by way of payment for her subscription to additional shares in Lestin, as a result of which transfer she will gain control of Lestin, is a tax-exempt transaction, we note that Lestin was indicated on page 1 of the said ruling as "a corporation in the process of incorporation with the Securities and Exchange Commission." Please be advised that Lestin was already duly incorporated as of the date of our letter-request. In fact, submitted together with our letter-request, was a copy of the articles of incorporation of Lestin . . . "In view of the foregoing, we respectfully request that the oversight on page 1 be corrected so that Lestin will be Properly indicated as a duly incorporated and existing corporation . . . " In reply thereto, please be informed that Paragraph 2, Page 1 of BIR Ruling No. S-40-075-2001 dated September 12, 2001 is rectified to read as follows: "It is represented that Lestin Development Corporation is a domestic corporation duly registered with the Securities and Exchange Commission with an authorized capital stock of Ten Thousand Pesos (P10,000.00) divided into Ten (10) shares with a par value of One Thousand Pesos (P1,000.00) per share; that the present stockholders of the corporation, with the corresponding number of shares subscribed and paid-up are as follows:" We regret the inadvertence. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service