BIR Ruling [DA-433-99]

July 27, 1999 BIR RULING [DA-433-99] RR 8-98 Philippine Deposit Insurance Corporation 2228 Pasong Tamo Street Makati City Attention: Ms . Ana Rosa E . Viray Deputy Liquidator, Daily Savings Bank Gentlemen : This refers to your letter dated January 15, 1999 which was indorsed to this Office by the Revenue District Officer of Revenue District Office No. 48, West Makati, Makati City, for a ruling as to who should issue the Certificate Authorizing Registration (CAR) on foreclosed accounts wherein the capital gains tax and documentary stamp tax were paid under the Voluntary Assessment Program (VAP). It is represented that the following papers and documents relative to the twenty (20) foreclosed accounts of Daily Savings Bank where the capital gains tax and documentary stamp tax amounting P90,319.44 were paid to the Revenue District Office No. 48 under the Voluntary Assessment Program on January 2, 1998, viz : 1. Certification from Traders Royal Bank dated October 4, 1998; 2. Traders Royal Bank Official Receipt No. 600702 for P90,319.44; 3. BIR Form No. 1701 E-2 for P90,319.44 duly validated; 4. Voluntary Assessment Form for P90,319.44; and 5. Listing of the twenty (20) foreclosed accounts with their corresponding CGY/DS totaling to P90,319.44 duly received and acknowledged by TRB, Palanan Branch. that you requested the said Revenue District Office No. 48, the issuance of their corresponding CAR; that, however, the said Revenue District Office informed you to secure the aforesaid CAR from the Revenue District Office where the property is located, citing the provisions of Revenue Regulations No. 8-98 dated August 25, 1998; that you submitted the necessary documents to the BIR Revenue District Offices of Valenzuela, Caloocan, Bulacan and as far as Cabanatuan City for issuance of CAR, but they were one in their stand that the Certificate Authorizing Registration should be issued by Revenue District Office No. 48 on the following grounds: 1. The payment of P90,319.44 covering capital gains tax and documentary stamp tax was made in 1997 under the Voluntary Assessment Program (VAP); 2. Revenue Regulations No. 8-98 stating among others, revising the time and place of payment of capital gains tax took effect on August 25, 1998; 3. Revenue District Office No. 48 received the payment. Due Credit was given the Revenue Office for the amount collected for the year ended 1997, hence, Revenue Regulations No. 8-98 which took effect only on August 25, 1998 should be enforced/implemented on said date and onward. cIHCST In reply, please be informed that Paragraph III, No. 7 on Procedures of Revenue Memorandum Order (RMO) No. 60-97 Supplementing RMO No. 59-97 on the Voluntary Assessment Program provides, viz : "III. Procedures "xxx xxx xxx "7. The Revenue District Officer and the Assessment Division shall process the returns for issuance of the Tax Clearance [i.e. the Certificate Authorizing Registration (CAR) or (TCL)] after the payment of VAP, following the existing procedures provided under the Audit Systems for Computerized Districts and RMC No. 12-96 for Non-Computerized Districts." Thus, in the instant case, since the payment for capital gains tax and documentary stamp tax amounting to P90,319.44 on the twenty (20) foreclosed accounts of Daily Savings Bank was received by Revenue District Office (RDO) No. 48, Revenue Region No. 8, Makati City under the Voluntary Assessment Program, the Revenue District Officer thereat shall therefore, issue after processing the return, the Tax Clearance, i.e. Certificate Authorizing Registration (CAR) or the TCL, following the existing procedures provided under the Audit System for computerized Districts and not the Revenue District Offices where the properties are located. This shall serve as an authority for the Revenue District Officer of Revenue District Office No. 48, Revenue Region No. 8, Makati City to issue in favor of Daily Saving Bank thru its liquidator the corresponding Certificate Authorizing Registration (CAR) of the Tax Clearance (TCL) whichever is applicable on its twenty (20) foreclosed accounts paid under the Voluntary Assessment Program (VAP) on January 2, 1998. 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, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)