BIR Ruling [DA-183-01]

October 08, 2001 BIR RULING [DA-183-01] Lt. Col. George Villaruz c/o Geovil Enterprises Roxas City S i r : This refers to your letter dated February 24, 2001, requesting payment of the corresponding informer's reward for having filed Confidential Information No. 35-96 denouncing Mr. Armando Fuentes and Ms. Delia dela Cruz, for allegedly undervaluing their Deed of Sale to evade payment of the correct capital gains tax on their capital gains transaction. In connection therewith, please be informed that this Office has just received the letter dated August 20, 2001 of Ms. Bethanie S.M. Sy, Chief, Special Investigation Division, Revenue Region No. II, Iloilo City, relative to the above transaction of Mr. Fuentes and Ms. dela Cruz wherein she categorically stated that ". . . the claim for informer's reward cannot be given due course for the reason that no underpayment of capital gains and documentary stamps taxes has been established during the investigation. Mr. Villaluz failed to submit additional documents particularly checks issued as evidence of payment for said transaction to establish the correct selling price as per his allegations. The investigation disclosed that the payments made for the capital gains transaction as computed by the revenue officer were based on the selling price/market value or zonal value whichever is higher in compliance with existing regulations and as such, there was no undervaluation in the computation of the capital gains and documentary stamps tax paid. Absence of evidence to the contrary, the BIR is bound to compute the taxes due based on the documents presented which in this case is the Deed of Absolute Sale executed between the parties to the sale. In view of the foregoing, we regret to inform you that your claim for informer's reward cannot be favorably acted upon by this Office. Very truly yours, (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service