BIR Ruling [DA-166-00]

March 21, 2000 BIR RULING [DA-166-00] Ms. Marissa M. Crisologo No. 30 Bagong Buan Street Teresa Heights Subdivision Novaliches, Quezon City M a d a m : This refers to your letter dated November 22, 1999 requesting a ruling to the effect that a Certificate Authorizing Registration (CAR) and/or Tax Clearance Certificate (TCL) may now be issued in favor of Spouses Virgilio and Gliceria Reyes by Revenue District Office (RDO) No. 39, South, Quezon City, since the capital gains tax and the corresponding documentary stamp tax had already been paid. It is represented that Rustico, Antonio, Susana, Nicanor, Armando and Monina, all surnamed Manapat, are the absolute and registered owners of a parcel of land located at 133 K-7 Kamias, Quezon City covered by TCT No. N-206809 issued by the Registry of Deeds for Quezon City containing an area of 150 square meters; that on October 1, 1999, a Deed of Absolute Sale was executed by the above-named owners, represented herein by you, as their Attorney-in-Fact by virtue of a Special Power of Attorney executed also on October 1, 1999, in favor of Spouses Virgilio and Gliceria Reyes for and in consideration of P1,200,000.00; and that on October 21, 1999, you paid the capital gains tax and the corresponding documentary stamp tax due on the above-mentioned transaction in the respective amounts of P72,000.00 and P18,000.00 as shown in the Official Receipt Nos. 2431819 and 2431820 issued by the Development Bank of the Philippines, Quezon Avenue Branch. In reply thereto, please be informed that Section 6 of Revenue Regulations No. 8-98 provides that upon presentation of the Capital Gains Tax Return . . . with a bank validation evidencing full payment of the capital gains tax . . . due on the sale, transfer, barter, exchange or other disposition of real property classified as capital asset . . , the Revenue District Officer (RDO) of the revenue district where the property being transferred is located shall issue the corresponding Tax Clearance (TCL) or Certificate Authorizing Registration (CAR) for the registration of the real property in favor of the transferee. In view thereof, if the capital gains tax and the corresponding documentary stamp tax due on the said transaction had already been fully paid with the Authorized Agent Bank (AAB) located within the RDO having jurisdiction over the place where the property being transferred is located as prescribed in Section 3, Revenue Regulations No. 8-98, the RDO concerned may issue the TCL or CAR for registration of the above-mentioned parcel of land in favor of the transferee. 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.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)