BIR Ruling No. 020-12

January 11, 2012 BIR RULING NO. 020-12 Sections 24 (D) and 196 of the Tax Code of 1997; BIR Ruling No. 191-2011 dated June 23, 2011 Mr. Policarpio L. Espenesin 5 Telstar Street Village East Cainta, Rizal Sir : This refers to your letter dated 24 June 2011 requesting reconsideration of BIR Ruling No. 191-2011 dated June 23, 2011, denying your request for exemption from the payment of capital gains and documentary stamp taxes on the transfer of title of a real property by Spouses Asterio Picardal and Nelita Picardal in your favor as a consequence of a termination of a trust. In the above mentioned ruling, this Office denied your request for tax exemption on the ground that you failed to establish the due execution and genuineness of the alleged Deed of Trust Agreement. In order to settle this issue, once and for all, we inquired with the Office of the Clerk of Court of Pasig City on the existence of the alleged document in its records. Pablita M. Mirio, the Clerk of Court of Pasig City, in her Certification dated November 24, 2011, certified that Atty. Pablo M. Martin, who allegedly notarized the Deed of Trust Agreement on April 13, 2005, was not among the Notaries Public appointed in Pasig City by the Regional Trial Court of Pasig City for the year 2005. The said Certification raised serious doubts on the authenticity of the alleged Trust Agreement and simply corroborated our finding that the said document was not duly executed. In view hereof, this Office hereby denies your request for reconsideration and reiterates its previous position in BIR Ruling No. 191-2011 denying your request for tax exemption for lack of factual and legal basis. Consider this ruling as final adjudication on the matter. TIcEDC Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue