BIR Ruling [DA-162-97]
BIR Ruling [DA-162-97] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Apr 14, 1997
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April 14, 1997 BIR RULING [DA-162-97] Mr. Vivencio M. Vidallo Chief, Special Investigation Division Revenue Region No. 11-B Davao City S i r : In reply to your letter dated October 18, 1996, please be informed that Letter of Instructions No. 1133 dated May 21, 1981, which became Section 7-A of Revenue Regulations No. 14-80 as added by Revenue Regulations No. 13-81 dated May 29, 1981 reading: "SEC. 7-A. Limitation on substantiation requirements; penalty for violation thereof . For purposes of imposing the capitals gains tax realized from stock transactions, only the selling price acquisition cost and the allowable deductible expenses may be looked into in the verification of tax returns. In no case shall the inquiry be made as to the sourcing of funds used in the acquisition of stocks listed in the stock exchanges. Any officer or employee in the Bureau of Internal Revenue who violates this prohibition shall be subject to removal or suspension from Office." cdtech is still being enforced by the Bureau of Internal Revenue. Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)
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