BIR Ruling [DA-141-A-96]

April 8, 1996 BIR RULING [DA-141-A-96] MEMORANDUM FOR : The Revenue District Officer Revenue District No. 39 Quezon City Referred to you herewith is the tentative capital gains tax return covering the sale made by Dunlop International A.G. (DIAG), a non-resident foreign corporation, of its 573,458 shares of stock in Dunlop Slazenger Philippines (DSP) in favor of Dunlop Slazenger Holdings Ltd. (DSH), another non-resident foreign corporation, for filing and collection of the capital gains tax due thereon, inviting attention to our letter of even date to Punongbayan & Araullo, counsel of taxpayer. Upon presentation of the evidence of payment of the capital gains tax in the amount of P2,921,949.00 and the surety bond from a reputable bonding company, you are hereby authorized to issue the Certificate Authorizing Registration and transfer of the shares of stock in the books of DSP from the name of DIAG (seller) to DSH (buyer). Investigation should thereafter be conducted to determine the legality of the claimed expenses of sale and the net gain actually realized from the said transaction. Any deficiency capital gains tax that may be found still due thereon should be immediately assessed and collected from the taxpayer. AcDHCS Moreover, the payment of documentary stamp tax on the transfer of stock from DIAG to DSH under Section 176 of the Tax Code, as amended, regardless of whether or not a certificate of stock is issued in pursuance of the aforestated sale should be strictly monitored and reported in accordance with existing rules and regulations. (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue