Patacsil Twins Law Office

July 30, 2008 BIR RULING [DA-(S40-006) 084-08] Patacsil Twins Law Office Advocates Inn 117 Malumanay Street Teacher's Village, Quezon City Attention: Atty. Pareto B. Patacsil Gentlemen : This refers to your letter dated July 9, 2007 stating that on February 5, 2007, this Office issued Certification with SN 040-2007 in favor of your clients, Silvina C. Laya, Jaime C. Laya, Eleanor L. de Gracia, Susana L. Mysen and Trinidad L. Sensenig, as Transferee, in a tax free exchange transaction under Section 40 (C) (2) of the Tax Code of 1997 with Silvina C. Laya Realty Corporation, as the Transferor; that in the said Certification, the BIR stated the amount of P59,144,000.00 as the tax base or with a zonal value of P40,000.00 per square meter of a property covered by TCT No. N-268071 located at Paligsahan, Panay Avenue, Quezon City, instead of the zonal value of P15,000.00 per square meter with an aggregate value of P22,179,000.00; that because of this Certification, the Quezon City Assessor's Office based the transfer tax for the properties on the zonal value of P40,000.00, instead of the correct zonal valuation of P15,000.00 per square meter. In connection therewith, you now request for an amendment or correction of the tax base as stated in Certification bearing SN 040-2007 dated February 5, 2007 to reflect the correct zonal valuation of the property, subject of the tax free exchange transaction, which is P15,000.00 per square meter. In reply thereto, please be informed that after careful review of the aforesaid Certification together with the relevant documents attached thereto, this Office hereby amends Certification SN 040-2007 dated February 5, 2007 to the effect that the correct tax base of P15,000.00 or with an aggregate value of P22,179,000.00 should be stated therein. SUCH BEING THE CASE, this Office holds that the Quezon City Assessor should base the transfer tax for the property subject of the tax free exchange on the zonal value of P15,000.00 per square meter, instead of the zonal valuation of P40,000.00 per square meter. 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. cAHITS Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service