BIR Ruling [DA-136-01]

August 13, 2001 BIR RULING [DA-136-01] 27 (D) (5); 209-91 & DA-048-99 ATR-Kim Eng Capital Partners, Inc . 17/F Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City Attention: Messrs . Abelardo V. Cortez Director/Trust Officer and Felix A. Magno Trust Operations Officer Gentlemen : This refers to your letter dated April 4, 2001 requesting for the issuance of a Certificate of Tax Exemption on the payment of creditable withholding tax, documentary stamp tax and other taxes relative to the Deed of Assignment executed by Security Bank Corporation (SBC) in favor of ATR-KIM ENG Capital Partners, Inc. as successor-trustee of Trust Account No. 2039 of SBC. Documents submitted disclosed that The Professional Group Plans, Inc. (TPGPI) is duly licensed and registered to engage in the selling of pre-need educational plans to the general public; that it is required by law and by the Securities and Exchange Commission to deposit in a trust account for the benefit of its planholders a certain percentage of its collection under Section 6 of the Revised Rules on Registration and Sale of Pre-need Plans, Pension Plans, Life Plans and Similar Contracts and Investments; that on July 19, 1993, SBC entered into a Trust Agreement with Professional Academic Plans, Inc. (PAPI) later named TPGPI in compliance with the requirements of the SEC for pre-need companies; that on October 28, 1998, TPGPI terminated its trust agreement with SBC and appointed Urban Bank Trust Department (UBI) as successor-trustee, which appointment was duly approved by SEC on November 4, 1998; that on December 17, 2000, TPGPI terminated its trust agreement with UBI and appointed ATR-KIM ENG Capital Partners. Inc. as successor-trustee, which appointment was duly approved by the SEC on October 26, 1999; that by virtue of Section XIII of the Trust Agreement between SBC and TPGPI. "all cash, securities, other property as well as the liability and charges then constituting the fund shall be properly assigned and delivered by the TRUSTEE to such successor or successors duly approved by the Securities and Exchange Commission (SEC)"; and that to date, all the properties constituting the Trust Fund has been turned over to, and properly received by ATR-KIM ENG Capital Partners, Inc., including the loans which were considered as investment outlet of the Trust Fund such as: (a) Appliances/Consumer Loans; (b) Car Loans; (c) Personal Loans; and (d) PCI Loans, except a parcel of land together with all the improvements thereto, described as Trust Account No. 2039 of Security Bank and Trust Company covered by Transfer Certificate of Title No. 8348 of the Registry of Deeds for Mandaluyong, Metro Manila. In reply, please be informed that the change of trustee for the purpose of consolidating the administration of Trust Account No. 2039 is not taxable, and therefore, all properties, both real and personal, monies, shares of stock and others in the name of the former trustee, SBC, may be transferred to the new designated trustee, ATR-KIM ENG Capital Partners, Inc. (BIR Ruling Nos. 209-91 dated October 18, 1991 and DA-048-99 dated January 25, 1999) 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, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group