BIR Ruling [DA-340-00]

September 11, 2000 BIR RULING [DA-340-00] Sec. 101 (A) (3) DA-269-2000 06-27-200 The Superior General of the Religious of the Virgin Mary, Inc. Econome General's Office 214 N. Domingo, Quezon City Attention: Sr . Ma . Elna Del Mar, RVM Econome General Gentlemen : This refers to your letter dated July 3, 2000 requesting for a ruling that he donation of 388 shares of stock in San Miguel Corporation made by Sr. Maria Corazon F. Francisco, R.V.M. on June 17, 1991 in favor of The Superior General of The Superior General of the Religious of the Virgin Mary, Inc. is exempt from, donor's tax. In reply thereto, please be informed that pursuant to then Section 94 (a)(3) of the National Internal Revenue Code of 1977, which is the applicable law at the time the aforementioned transaction took place or on June 17, 1991, gifts in favor of an educational and/or charitable or religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or research institution or organization are exempt from donor's tax. In view of the foregoing and since The Superior General of the Religious of the Virgin Mary, Inc. is a corporation engaged in religious activities, this Office finds and so holds that the donation of 388 shares of stock in San Miguel Corporation made by Sr. Maria Corazon F. Francisco, R.V.M. in its favor is exempt from the payment of the donor's tax, subject to the condition that not more than 30% of the said gift shall be used by such donee for administrative purposes. (BIR Ruling No. DA-269-2000 dated June 27, 2000) 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, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group