BIR Ruling [DA-397-04]

July 21, 2004 BIR RULING [DA-397-04] Rizal Commercial Banking Corporation RCBC Head Office Yuchengco Tower RCBC Plaza, 6819 Ayala Avenue Makati City Attention: Mr. Vittorio M. Gomez Senior Assistant Manager and Atty. Federico P. Tancongco Vice President Trust Legal Counsel Gentlemen : This refers to your letter dated July 15, 2003 requesting for a ruling on the tax consequence relative to the change of trustee for the Philippine Fuji Xerox Corporation Retirement Plan. It is represented that the Rizal Commercial Banking Corporation (RCBC) through its Trust and Investments Division was appointed on May 7, 1970 by Philippine Fuji Xerox, Inc. (then Spectron Business Systems Corporation) as trustee of its company retirement plan (Fuji Xerox Retirement Plan); that the Fuji Xerox Retirement Plan was determined by the BIR to be a tax qualified retirement plan under R.A. No. 4917 under a ruling dated July 27, 1972; that as trustee of Fuji Xerox Retirement Plan, RCBC made several investments including investments in shares of First Malayan Leasing Corporation (FMLC) which are all registered in the name of RCBC as trustee of the Fuji Xerox Retirement Plan; that subsequently, Metropolitan Bank and Trust Company (Metrobank) was appointed to replace/succeed RCBC as trustee of the Fuji Xerox Retirement Plan; that in the implementation of this change of trustee, the assets of the Fuji Xerox Retirement Fund were turned over by RCBC to Metrobank; that to reflect the change of trustee bank in the stock certificates covering the FMLC shares owned by the Fuji Xerox Retirement Fund, RCBC, as outgoing trustee, wants to execute a deed of assignment transferring the FMLC shares of the Fuji Xerox Retirement Plan to and in favor of Metrobank as incoming trustee of the Fuji Xerox Retirement Plan. In reply thereto, please be informed that the change of trustee of the Fuji Xerox Retirement Plan from RCBC to Metrobank for the purpose of consolidating the administration of the Fuji Xerox Retirement Plan is not taxable, and therefore, all properties both real and personal, monies, shares of stock, etc., in the name of the former trustee may be transferred to the newly designated trustee bank. ( BIR Ruling No. 209-91 dated October 18, 1991 ) 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. aIEDAC Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service