Major Superior of the Rogationist Fathers, Inc.

March 14, 2014 BIR RULING NO. 094-14 1987 Constitution; 000-00 Major Superior of the Rogationist Fathers, Inc. 24 Calcutta St., Merville Park Paraaque City Attention: Fr. Herman G. Abcede, RCJ Major Superior Gentlemen : This refers to your letter dated February 15, 2012, duly indorsed by Revenue Region 2-Baguio City, requesting for exemption from the payment of donor's tax on the donation of land by Gualberto B. Lumauig. It is represented that Gualberto B. Lumauig is the owner of a parcel of land located at Barangay Viewpoint, Banaue, Ifugao covered by Tax Declaration (TD) No. 2009-050018-0058 issued by the Office of the Municipal Assessor of Lagawe, Ifugao, particularly described as follows: NORTH : PUBLIC LAND SOUTH : PUBLIC LAND EAST : NATIONAL ROAD WEST : DALMACIO CO AREA : 31.5 HAS. that on the other hand, Major Superior of the Rogationist Fathers, Inc., 1 (formerly: The Rogationist Fathers, Inc., Rogationist Fathers, Inc. 2 and Local Superior of the Rogationist Fathers, Inc.) 3 with Tax Identification Number 001-567-785-000 is a religious corporation duly organized and existing under the laws of the Philippines and registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 76034; and that on December 30, 2010, a Deed of Donation was executed whereby Gualberto B. Lumauig transferred and conveyed Eight Hectares (8 has.) to the Major Superior of the Rogationist Fathers, Inc. Moreover, Department of Environment and Natural Resources (DENR), Cordillera Administrative Region (CAR), issued a Certification dated 19th September 2012, certifying that the above-mentioned property falls within the proclaimed forest reserve under Proclamation No. 573 dated June 26, 1969, thus cannot issue a title. DHCcST In reply thereto, please be informed that both the 1973 and present Constitutions do not include timber or forest lands as alienable. Thus, Section 8, Article XIV of 1973 Constitution states that ' with the exception of agricultural, industrial or commercial, residential and resettlement lands of the public domain, natural resources shall not be alienated. ' The New Constitution, in its Article XII, Section 2, also expressly states that ' with the exception of agricultural lands, all other natural resources shall not be alienated. ' No public land can be acquired by private persons without any grant, express or implied from the government; it is indispensable that there be a showing of the title from the state. 4 It is elementary in the law governing natural resources that forest land cannot be owned by private persons. It is not registrable and possession thereof, no matter how lengthy, cannot convert into private property, unless such lands are reclassified and considered disposable and alienable. 5 Thus there is no question that the subject land is not an alienable land of the public domain. Since it was certified by the DENR-CAR that it falls within the proclaimed forest reserve under Proclamation No. 573 dated June 26, 1969. Finally, the conversion of a forest reserve as proclaimed under Proclamation No. 573 into public alienable land, requires no less than a categorical act of declassification by the President, upon the recommendation of the proper department head who has the authority to classify the lands of the public domain into alienable or disposable, timber and mineral lands. 6 In view of the foregoing, the land covered by TD No. 2009-050018-0058 is a proclaimed forest reserve, which cannot be alienated or disposed of, such as donating it to Major Superior of the Rogationist Fathers, Inc. Your request for exemption from the payment of donor's tax on the donation of land by Gualberto B. Lumauig, is hereby denied for lack of legal basis. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue Footnotes 1. Amended on June 6, 1991. 2. Amended on May 11, 1989. 3. Amended on June 5, 1989. 4. Lee Hong Hok v. David , 48 SCRA 372, 379 [1972]. 5. G.R. No. 65608, Jan. 21, 1997, 334. 6. Director of Lands v. Aquino , 192 SCRA 296, 302 (1990).