Ms. Belen L. Umayan

December 14, 2009 BIR RULING [DA-(I-038) 773-09] 24 (D) (1), 196, 188; 179-98 Ms. Belen L. Umayan Blk. 12 Lot 11, Job St., Emily Homes Cabantian, Buhangin, Davao City Madam : This refers to your letter dated January 23, 2008, as indorsed by the Regional Director, Revenue Region No. 19, Davao City requesting for an exemption from the payment of taxes on the transfer of a parcel of land as a result of a Court Order rendered on November 23, 2005. Documents submitted show that Alfonso L. Angliongto, married to Felicitas Y. Angliongto is the owner of a parcel of land described as Lot 1226-E-2-C and covered by Transfer Certificate of Title (TCT) No. T-48271 located in Davao City. A Deed of Conveyance without consideration transferring and conveying said property in favor of Filomena G. Pizarro, et al., plaintiffs in Civil Case No. 29, 194-02 was executed by Sheriff IV Fernando Plata in compliance with the Order of Judge Jaime V. Quitain, Regional Trial Court, Branch 10, 11th Judicial Region, Davao City dated January 18, 2006 and in conformity with the above parties Amicable Settlement earlier filed with said court. The same is likewise in accord with the Writ of Execution thereafter issued on November 29, 2006, which has the following directive and tenor: "2. That accordingly, the afore-named defendants shall be divested of their title upon Lot 1226-E-2-C covered by Transfer Certificate of Title No. T-48271 registered in the name of Alfonso L. Angliongto married to Felicitas Angliongto with an area of 1,093 sq.m. and that said title be vested in the plaintiffs and their co-heirs Alicia P. Ladisla and Lydia P. Gudani; and hence they further pray the Honorable Court to issue an order directing the Register of Deed(s) for the City of Davao to transfer the certificate of title over the lot aforesaid in the names of the plaintiffs and their said co-heirs;" In reply thereto, please be informed that since the Court of Appeals ordered the sale of the property to Alfonso Angliongco on November 6, 1995, the conveyance of the property back to the original owners is without monetary consideration and was merely made to give effect to that judicial decree, the transfer of the subject property in favor of Delia Thelma Pizarro-Dillera, Rosalinda Pizarro-Ingles, Jose Elvin G. Pizarro, Rogelio G. Pizarro, Virgilio G. Pizarro, Luzminda G. Pizarro, Lydia Pizarro-Gudani, Maria Evelyn Pizarro-Sulit, the Heirs of Alicia Pizarro-Ladisla, namely: Belen L. Umayan, Alexis P. Ladisla, Antonio P. Ladisla, Benjamin P. Ladisla, Ramonito P. Ladisla, Flordeliza L. Bontia, Lourinda L. de Jesus, Maria Placida L. Alolod, Josephine L. Aleguiojo, Cecilia L. Aguirre, Raymond P. Ladisla, Caroline L. Adtoon and Armando P. Ladisla is not subject to the capital gains tax imposed in Section 24 (D) (1) of the Tax Code of 1997 nor to the creditable withholding tax prescribed in Revenue Regulations No. 2-98, as amended, implementing Sec. 57 (B) of the said Code. Furthermore, the deed of conveyance executed is likewise not subject to the documentary stamp tax (DST) imposed in Section 196 of the Tax Code of 1997 but only to the DST imposed under Section 188 of the same Tax Code, as amended. ADTCaI This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service