Validity of BIR Ruling No. S-40-108-2000

October 22, 2001 BIR RULING NO. 048-01 40 (C) (2) 000-00 Jacinto & Jacinto, CPAs 3/F, Lauremar Building 1458 Newton St., Brgy. San Isidro Makati City Attention: Ms. Thelma P. Amis Gentlemen : This refers to your letter dated July 21, 2000 requesting for a confirmation of your opinion that BIR Ruling No. S-40-108-2000 remains valid despite the subsequent events which transpired after the issuance of the said ruling. Documents submitted show that on May 9, 2000, this Office issued BIR Ruling No. S-40-108-2000 that no gain or loss is recognized on the transfer of the properties of your clients, Trinidad C. Cuyegkeng, Antonio C. Cuyegkeng, Francisco C. Cuyegkeng, Ma. Victoria C. Huang and Christopher C. Cuyegkeng, in exchange for shares of stock of Trinidad Holdings, Inc. (THI) with office address located at 3/F, Lauremar Building, 1458 Newton St., Brgy. San Isidro, Makati City; that thereafter, Thomas C. Cuyegkeng transferred his properties covered by Transfer Certificates of Title No. 242932 and 242933, together with the improvements thereon, situated at 1107-1111 A. Mabini corner U.N. Avenue, Ermita, Manila in exchange for 6,650 shares of stock of THI with an aggregate par value of P665,000.00; that as a result of the exchange, he owns 4.1562% of the total voting stocks of THI; that he paid the corresponding capital gains and documentary stamp taxes on the said transfer in the amount of P81,435.87 and P20,358.96 respectively; and that this is evidenced by photocopies of Development Bank of the Philippines Official Receipts No. 282193900 and 282193800. In reply, please be informed that for as long as your clients, Trinidad C. Cuyegkeng, Antonio C. Cuyegkeng, Francisco C. Cuyegkeng, Ma. Victoria C. Huang and Christopher C. Cuyegkeng gained control over the total voting stocks of THI at the time of the exchange, then BIR Ruling No. S-40-108-2000 remains valid and effective despite the subsequent events which transpired after the issuance of the said ruling. 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 as null and void. Very truly yours, (SGD.) RENE G. BAEZ Commissioner of Internal Revenue