Request for a Certificate Authorizing Registration (CAR) Without Payment of Capital Gains Tax and Documentary Stamp Tax Considering That They Have Already Been Paid on the Certificate of Sale

March 31, 1997 BIR RULING NO. 028-97 21 (e) 000-00 28-97 Development Bank of the Philippines Balanga Branch, Balanga, Bataan Attention: Mr . Albino L . Baluyot Branch Head, BCG Gentlemen : This refers to your letter dated May 14, 1996 stating that you were the sole and winning bidder in an extra-judicial foreclosure sale of two (2) properties, viz: (1) a parcel of land located in Subic, Zambales covered by TCT No. T-41734 of the Registry of Deeds of Iba, Zambales; and (2) a commercial lot and building located in Baguio City covered by TCT No. T-29016 of the Registry of Deeds of Baguio City; that the two properties were used by spouses Paulino & Estela Parungao et. al. as collaterals on a loan secured from you on August 26, 1982 in the amount of P2,373,000; that the loan agreement is a single account and not two accounts and/or two separate loans; that when you consolidated your ownership over the property in Baguio City, you paid the capital gains tax and the documentary stamp tax in the amount of P138,655.00 on June 28, 1994 based on the amount of P2,122,349.84 which was the bid price in the foreclosure sale of said properties; that an examination of the Certificate of Sale issued by the City Sheriff of Baguio City and Provincial Sheriff of Zambales disclosed that the bid price of P2,122,349.84 appears on both Certificates of Sale; that the pro-rated value and correct amounts that should have been stated in the Certificates of Sale for the Baguio City and Subic, Zambales properties should be P1,090,463.35 and P1,030,886.46 respectively. In connection therewith, you are requesting that a Certificate Authorizing Registration (CAR) for the Zambales property covered by TCT No. T-41734 of the Registry of Iba, Zambales be issued by the Revenue District Officer of Olongapo City without the payment of the capital gains tax and documentary stamp tax considering that you have already paid the capital gains tax and documentary stamp tax on the Certificate of Sale involving the Baguio City property based on the bid price of P2,122,349.84. In reply thereto, considering that in the Mortgage Contract entered into by the Spouses Paulino & Estela Parungao et. al. and you on August 26, 1982 it is stated that the aforementioned properties were mortgaged to you to secure the payment of a loan of P2,373,000, your payment of the capital gains tax and the documentary stamp tax based on the bid price of P2,122,349.84 in the foreclosure sale of said properties when you consolidated your ownership over the Baguio City property includes the property located in Subic, Zambales covered by TCT No. T-41734 of the Registry of Deeds of Iba, Zambales. This will authorize the Revenue District Officer of Olongapo City to issue the Certificate Authorizing Registration (CAR) covering the property located in Subic, Zambales covered by TCT No. T-41734 of the Registry of Deeds of Iba, Zambales since you have already paid the capital gains tax and the documentary stamp tax on the bid price of P2,122,349.84 in the foreclosure sale of the aforesaid properties so that the ownership of said property can be consolidated in your favor. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue