Ms. Mariquita L. Montelibano

December 19, 2007 BIR RULING [DA-668-07] Ms. Mariquita L. Montelibano E282 Alexandra Condominium Meralco Avenue Pasig City M a d a m : This refers to your letter dated August 21, 2007 which was referred to this Office by Revenue Region No. 7, Quezon City, by way of 2nd Indorsement dated November 22, 2007, requesting for the release of her Escrow Deposit with the Philippine National Bank (PNB) in the amount of 677,424.00 relative to the sale of her principal residence to Michele Pineda Curran pursuant to Section 24 (D) (2) of the Tax Code of 1997. It is represented that on May 31, 2006, a Deed of Absolute Sale was executed by Mariquita L. Montelibano, involving a condominium unit located at Unit E282 of Alexandra Condominium Project covered by CCT No. PT37222 issued by the Registry of Deeds for Pasig City, in favor of Michele Pineda Curran in the amount of P9,000,000.00; that in compliance with Revenue Regulations No. 14-2000 implementing Section 24 (D) (2) of the Tax Code of 1997, an Escrow Agreement dated June 26, 2006 was executed by Mariquita Corazon Montelibano, PNB and the BIR whereby the former has deposited in escrow to PNB, as escrow agent, the amount of P677,424.00 which represents the equivalent of the 6% capital gains tax otherwise due on the presumed capital gains derived from the sale of the above-mentioned property; that on the other hand, Ortigas & Company Limited Partnership is a developer of townhouse condominium project known as the Luntala Valle Verde; that on May 11, 2007, a Contract to Sell was executed by and between Ortigas & Company, Limited Partnership, as the Developer/Seller, and Mariquita L. Montelibano, as the Buyer, whereby the latter purchase on installment a townhouse condominium unit more particularly described as Block 2 Unit D, Classic-Middle with an area of 181 square meters for the amount of P9,955,000.00; that P2,986,500.00 shall be paid as follows: P100,000.00 August 29, 2006 962,167.00 September 29, 2006 962,167.00 October 29, 2006 962,167.00 November 29, 2006 that the balance of P6,968,500.00 shall be paid in twenty one (21) monthly installments commencing on December 29, 2006 or in the amount of P331,833.33; that as of November 14, 2007, the total amount paid is P6,636,667.63 considering that the unit is not yet finished and that the buyer be occupying the said unit in the first quarter of 2008; and that Mariquita Corazon Montelibano requested the release of the deposit in escrow with PNB after complying with the provisions in Revenue Regulations No. 14-2000. aScITE In reply thereto, please be informed that Section 3 (4) of Revenue Regulations No. 13-1999, as amended by Revenue Regulations No. 14-2000, provides that "(4) Release from the Escrow Agreement. Upon a showing, based on the foregoing documents, that the proceeds of sale, exchange or disposition of his old principal residence have already been fully utilized in the acquisition or construction of his new principal residence, the concerned Revenue District Officer shall, within fifteen (15) days from date of submission by the Seller/Transferor of the foregoing documents, release the Escrow on the aforesaid bank deposit in favor of the Seller/Transferor." Considering that as of November 27, 2007 based on the Certification of Ceasar D. Buenaventura, Finance and Admin. Manager of Ortigas & Company, Limited Partnership, the developer, disclosed that Mariquita Corazon Montelibano indeed has purchased Block 2 Unit D, Model Classic-Middle of Luntala Valle Verde Townhouse Project at Valle Verde 6A Subdivision with a total contract of price of P9,955,000.00 payable within two (2) years commencing on August 29, 2006. SUCH BEING THE CASE, this Office holds that since Mariquita Corazon Montelibano has complied with the conditions in Revenue Regulations No. 14-2000, she is hereby authorized to withdraw the amount of P677,424.00 deposited in escrow from the PNB. 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service