BIR Ruling [DA-302-98]

July 3, 1998 BIR RULING [DA-302-98] Bormaheco 1191 Vito Cruz Ext. Makati City Attention: Mr . Jackson R . Ricarte VP Finance Gentlemen : This refers to your letter dated February 16, 1998 stating that on December 23, 1996, you purchased in a foreclosure proceeding a real estate property situated at Norzagaray, Bulacan; that you registered the Certificate of Sale with the Register of Deeds of Bulacan; and that for failure of the mortgagors of the foreclosed property to redeem it within twelve (12) months from the date of registration of the Certificate of Sale, the Sheriff issued to you the Final Deed of Sale. casia Based on the foregoing, you now request of a ruling as to when the appropriate taxes should be paid. In reply, please be informed that a certificate of sale is an evidence of the perfection of a contract or a sale. The said certificate comes after the actual sale. (BIR Ruling No. 050-96 dated April 11, 1996) The operative act in the execution of foreclosure sale is the issuance of the Certificate of Sale. (BIR Ruling No. 004-97 dated January 15, 1997) Accordingly, payment of appropriate taxes is reckoned from the date of issuance of the Certificate of Sale. 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. cdlex Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)