BIR Ruling [DA-607-99]

October 21, 1999 BIR RULING [DA-607-99] Mr. Bienvenido A. Bibay 8-A Kentucky Street San Francisco del Monte Quezon City S i r : This refers to your letter dated August 2, 1999 requesting that the Revenue District Officer of Pangasinan be allowed to issue the Estate Tax Clearance for the Estate of Filomena Damasco vda. de Roldan who died a domicile of Davao City but whose estate tax liability was paid in the province of Pangasinan; as well as the issuance of the Certificate Authorizing Registration (CAR) on the subsequent disposition of the parcel of land by the heirs in your favor so that title to the said property may be issued in your name. It is represented that the late Filomena Damasco vda. Roldan died intestate on November 9, 1981; that she was the absolute and registered owner of a parcel of land located at Barangay Bantog, Asingan, Pangasinan, containing an area of 853 square meters and covered by TCT No. T-50340 issued by the Registry of Deeds for Pangasinan; that the decedent was survived by her Children, Glorioso D. Roldan and Zenida Roldan-Camello; that the estate of the decedent did not file an estate tax return and did not pay the estate tax due thereon; that on December 29, 1996, a Deed of Extra Judicial Partition with Absolute Sale was executed by and between Glorioso D. Roldan and Zenaida Roldan-Camello and Bienvenido Bibay whereby the former transferred to the latter a portion of 531 square meters of the above-mentioned parcel of land for and in consideration of P15,000.00; that you agreed to assume the payment of all taxes on the aforementioned transfer of the said portion of parcel of land; and that on July 8, 1999, you paid the following taxes: 1) Estate tax in the amount of P5,859.20 as evidenced by Official Receipt No. 484132; 2.) Capital gains tax in the amount of P8,129.80 as evidenced by Official Receipt No. 4848131; 3.) Documentary stamp tax in the amount of P1,493.75 as evidenced by Official Receipt No. 484130. In reply, please be informed that except on cases where the Commissioner otherwise permits, the return required under Subsection (A) shall be filed with an authorized agent bank, or Revenue District Officer, Collection Officer, or duly authorized Treasurer of the city or municipality in which the decedent was domiciled at the time of his death or if there be no legal residence in the Philippines, with the Office of the Commissioner. (Sec. 90(D) of the Tax Code of 1997) Thus, although the estate tax return of the decedent Filomena Damasco vda. de Roldan who died a domicile of Davao City, was filed and the estate tax corresponding to the said property located at Barangay Bantog, Asingan, Pangasinan and covered by TCT No. T-50340 had already been paid in the said province, nevertheless, the Estate Tax Clearance has to be issued by the Revenue District Officer of Davao City pursuant to Revenue Memorandum Order No. 17-97 as there might still be some properties registered in the name of the Decedent in Davao City where she was domiciled at the time of her death which were not included in the estate tax return filed in the Province of Pangasinan. In this connection, the RDO of Pangasinan shall transmit to the RDO of Davao the Extra Judicial Settlement of the Intestate Estate of the decedent, together with all the relevant papers which led to the payment of the estate tax. It shall also issue a letter to the RDO of Davao confirming that the tax due on the transmission of the estate of the deceased Filomena Damasco vda. de Roldan had already been paid insofar as the subject property in the Extra-Judicial Settlement of the Estate is concerned. With respect to the tax clearance for Capital Gains Tax, Section 6 of Revenue Regulations No. 8-98 provides that upon the presentation of the capital gains tax return or creditable withholding tax return with a bank validation evidencing full payment of the capital gains tax or the creditable withholding tax due on the sale, transfer, barter, exchange or other disposition of real property classified as capital or ordinary asset, as the case may be, the Revenue District Officer (RDO) of the revenue district where the property being transferred is located shall issue the corresponding Tax Clearance (TCL) or Certificate Authorizing Registration (CAR) for the registration of the real property in favor of the transferee. llcd Such being the case and considering that the subject property is located in Barangay Bantog, Asingan, Pangasinan where the capital gains tax and the corresponding documentary stamp tax on the aforementioned transfer were paid in the respective amounts of P8,129.80 and P1,493.75, the RDO of Pangasinan may now issue the CAR so that the title to the said property may be registered in your favor. 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.) BEETHOVEN L. RUALO Commissioner of Internal Revenue