BIR Ruling [DA-203-A-98]

May 21, 1998 BIR RULING [DA-203-A-98] Atty. Luis Jose P. Ferrer B27 124 New Capitol Estates 1 Commonwealth Avenue Quezon City S i r : This refers to your letter dated March 12, 1998 requesting for a clarificatory ruling to the effect that the two parcels of land situated at Novaliches, Quezon City and Baguio City covered respectively by TCT Nos. 176437 and 34121 registered in the name of Chua Tee & Company, Inc. (CTCI) are included among the properties transferred by CTCI in favor of General Metal Container Corporation of the Philippines (GMCC) in the Deed of Assignment they executed on December 29, 1997 which were inadvertently omitted in BIR Ruling No. S-34-323-97 dated December 23, 1997. cdtech Records of this case show that on December 29, 1997, a Deed of Assignment was executed by and between CTCI (transferor) and GMCC (transferee) whereby the transferor transferred in favor of the transferee the following properties in exchange for the number of shares of stock, viz: Property TCT No. Location Land and Buildings 176433 Novaliches, Q.C. 176437 Novaliches, Q.C. Land and Buildings 206599 Balintawak Q.C. 206600 Balintawak Q.C. Land 28046 Cebu City Land 34120 Baguio City 34121 Baguio City that pertinent portion of BIR Ruling No. S-34-323-97 dated December 23, 1997, reads: xxx xxx xxx "that Chua Tee & Company, Inc. will transfer and convey its undivided share in the above-mentioned properties in favor of GMCC, representing 50% interest only for TCT Nos. 206600, 206599, 28046, 34121 at their historical cost/net book value . . ." that the properties covered by TCT Nos. 176437 and 34121 situated in Novaliches, Quezon City and Baguio City, respectively, listed in your client's request and in the Deed of Assignment were not included in the said ruling as among those transferred and conveyed to the transferee. In view thereof, this Office hereby includes the two (2) omitted properties to BIR Ruling No. S-34-323-97 dated December 23, 1997, by amending the pertinent portion thereof and which should now read as follows: "that CTCI will transfer and convey its undivided share in the above-mentioned properties in favor of GMCC, representing its entire interest in TCT Nos. 176433 and 176437 as well as its 50% interest only for TCT Nos. 206600, 206599, 28046, 34120 and 34121 at their historical cost/net book value . . ." In this connection, the historical costs of the subject real properties of CTCI are as follows: Property TCT No. Location Historical Cost Land and Buildings 176433 Novaliches, Q.C. P1,236,562.20 176437 Novaliches, Q.C. 16,282,390.98 Land and Buildings 206599 Balintawak Q.C.) 1,266,125.69 206600 Balintawak Q.C.)(50%) Land 28046 Cebu City (50%) 217,987.94 Land 34120 Baguio City) 199,951.00 34121 Baguio City) (50%) P19,203,016.81 ============ This ruling shall serve as an authority for the Revenue District Office No. 28, Revenue Region No. 5, Novaliches, Quezon City, to include TCT Nos. 176437 and 34121 in the properties transferred pursuant to the Deed of Assignment executed by and between Chua Tee & Company, Inc. and General Metal Container Corporation of the Philippines dated December 29, 1997. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)