BIR Ruling [DA-050-02]

March 21, 2002 BIR RULING [DA-050-02] The Bengzon Law Firm 9th Floor, Ayala Life-LGU Center 6811 Ayala Avenue Makati City Attention: Attys. Ma. Romela M. Bengzon and Manolito S. Soller Gentlemen : This refers to your letter dated December 12, 2001 stating that Comprehensive Annuity Plans and Pension Corporation (CAP Pension) is primarily engaged in the selling of pre-need pension plans, as well as other types of pre-need plans and services; that a Trust Fund was created by CAP Pension to guarantee its undertaking to fund the pension plan of its planholders and in compliance with the requirements of the Securities and Exchange Commission (SEC); that relative thereto, CAP Pension entered into a Trust Agreements with the Trust Services Department of Bank of Commerce and Allied Banking Corporation; that among the assets in the name of Trustee-Bank of Commerce is a parcel of land covered by TCT No. 245714 issued by the Registry of Deeds for the Province of Pangasinan situated at Barangay Nancayasan, City of Urdaneta, with a lot area of 1,251.80 square meters more or less; that it was acquired at a value of P15 million; that in its desire to comply with the rules and regulations for pre-need companies duly promulgated by the SEC, CAP Pension intends to transfer the above-described parcel of land together with the improvements thereon by instructing Trustee-Bank of Commerce by virtue of a Deed of Assignment dated November 26, 2001, to transfer in favor of Trustee-Allied Banking Corporation; and that the transfer was authorized by the board of CAP Pension. Based on the foregoing representations, you now request for a ruling on the tax consequences relative to the change of trustee of CAP Pension from the Bank of Commerce to Allied Banking Corporation. In reply thereto, please be informed that the change of trustee of CAP Pension from Bank of Commerce to Allied Banking Corporation for the purpose of consolidating the administration of the CAP Pension is not taxable, and therefore, all properties both real and personal, monies, shares of stock, etc., in the name of the former trustee may be transferred to the newly designated trustee bank. ( BIR Ruling No. 209-91 dated October 18, 1991 ) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service