Request for Release/Issuance of a CAR/TCL Withheld by Revenue District Officer

August 08, 2001 BIR RULING NO. 034-01 Sec. 2, 11 NIRC '97 000-00 Gancayco, Nibungco & Balasbas Law Offices Seventh Floor, 1000 A. Mabini corner T.M. Kalaw Streets, Ermita Manila Attention: Atty . Michaelina Ramos Balasbas Gentlemen : This refers to your letter dated November 19, 1997 requesting for a ruling on the release/issuance of a CAR/TCL allegedly being withheld by Revenue District Officer Erlinda F. Adriatico-Amino of Catarman, Northern Samar, coupled with a request for administrative complaint against the said RDO. It is represented and as shown in the Deed of Waiver/Quitclaim executed on September 11, 1989, Maria Adriatico Gealogo, for valuable consideration, waived, transferred and ceded by way of quitclaim all her rights, ownership and interests over two (2) parcels of land left by a certain Ana A. Balasbas, including those which were acquired by way of transfer from other co-heirs, in favor of another co-heir, C. Fortunato R Balasbas; that on April 2, 1997, you personally went to the Revenue District Office in Catarman, to pay the revenue taxes due on the aforesaid Deed; that Revenue District Officer Erlinda Adriatico-Arnio issued the ATAPs and ORs of the taxes paid; that you were instructed to return the following day to get the Certificate of Registration; that on the next day the said RDO refused to issue the certificates merely on the basis of a letter filed by Maria Adriatico-Gealogo opposing the transfer of the property, and instead informed the latter that she will forward the papers to the Regional Office; that Maria Adriatico-Gealogo happens to be a cousin of RDO Erlinda Adriatico-Arnio; that despite personal follow-ups by your friends, as well as telephone calls and telegrams which you made, you have not received an answer from the said RDO; and that it is your opinion that since the waiver is a public document, with the corresponding revenue taxes on the subject properties already paid, it is ministerial upon the RDO to issue the Certificate Authorizing the Registration. In reply, please be informed that pursuant to Section 2 of the Tax Code of 1997 (then Section 3 of 1977 Tax Code, as amended), which reads: "SEC. 2. Powers and Duties of the Bureau of Internal Revenue . The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau shall give effect to and administer the supervisory and police powers conferred to it by this Code or other laws." Thus, it is the prime concern of the Bureau of Internal Revenue to collect taxes. Since the taxpayer, through Atty. Michaelina Ramos Balasbas, had already paid the corresponding taxes on the transfer of the said properties as evidenced by ATAP Nos. 2563259 and 2563260 and Revenue Official Receipt Nos. 8728342 M and 8728343 M , it is incumbent upon this Office through the Revenue District Officer concerned to issue the certificate authorizing the registration/tax clearance certificate (CAR/TCL) of the subject properties. cEHSIC However, as alleged by herein taxpayer, the concerned RDO refused and is refusing to issue the said CAR on the basis of the letter opposing the transfer filed by Maria Adriatico Gealogo. At this point, this Office would like to remind the concerned Revenue District Officer and every other Revenue District Officer of their specific duties, as provided for in Section 11 of the same Code (then Section 10 of 1977 Tax Code, as amended), viz: "SEC. 11. Duties of Revenue District Officers and Other Internal Revenue Officers . It shall be the duty of every Revenue District Officer or other internal revenue officers and employees to ensure that all laws, and rule and regulations affecting national internal revenue are faithfully executed and complied with, and to aid in the prevention, detection and punishment of frauds or delinquencies in connection therewith. "It shall be the duty of every Revenue District Officer to examine the efficiency of all officers and employees of the Bureau of Internal Revenue under his supervision, and to report in writing to the Commissioner, through the Regional Director, any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal revenue officer of which he may obtain knowledge, with a statement of all the facts and any evidence sustaining each case." Thus, the Revenue District Officer's duties are limited to what is clearly defined in the above-quoted section of the Tax Code. This Office having performed its duty as mandated by law, i.e., the collection of taxes [as when taxpayer duly paid taxes due on said transfer], the concerned Revenue District Officer must likewise perform its defined duty. Hence, since the Deed executed by said Maria A. Gealogo, is in all aspects a taxable document, and which taxes due thereon duly paid, the concerned RDO has no discretion to further withhold the release of the CAR/TCL solely on the basis of a letter sent by Maria A. Gealogo opposing the transfer of the said property. Moreover, if Maria A. Gealogo feels that she is being aggrieved or was defrauded in the said transaction, then she must file the complaint in the proper forum. Meanwhile, since the documents submitted to this Office clearly show that a taxable transaction has occurred, then it was ministerial upon this Office through the concerned Revenue District Officer to receive the taxes being paid and which she did and thereafter to issue the CAR/TCL, but which this Office regrets, she failed to do. On the basis of the above, this Office hereby directs the Revenue Districts Officer of Catarman, Northern Samar to issue the TCL for the subject property in the name of C. Fortunato R. Balasbas, if the capital gains and documentary stamp taxes due on the said transaction were already fully paid. This ruling is being issued on the basis of the foregoing facts as represented. If upon investigation, it will be disclosed that the facts as represented are different, then this ruling shall be rendered null and void. Very truly yours, (SGD.) REN G. BAEZ Commissioner of Internal Revenue