Grant of Request to Lift Notice of Tax Lien

August 17, 1999 BIR RULING NO. 127-99 P.D. 1740-000-00-127-99 Ms. Fe L. Concepcion 369 Marikit St., Lena Subdivision Veintereales, Valenzuela, M.M. M a d a m : This refers to your letter dated September 27, 1997 requesting on behalf of your client, Atty. Henry P. Tuason, for the issuance of a notice lifting the Notice of Tax Lien to the Register of Deeds of Camarines Sur for purposes of cancellation of annotation of Notice of Tax Lien and a certification to the effect that the Warrant of Distraint has been rendered functus officio and of no further force and effect. It is represented that Atty. Henry P. Tuason is a resident of 4608 Valenzuela St., Sta. Mesa, Manila; that he is under obligation to pay to the Government of the Republic of the Philippines deficiency income tax in the amount of P20,484.92, for taxable year 1976 under Assessment No. 24-3-04A-068818-76 dated March 11, 1982; that on November 28, 1981 he availed of the Government's Tax Amnesty pursuant to Presidential Decree No. 1840, covering taxable years 1974 to 1980; that this is evidenced by the Tax Amnesty Return (Form 1745-11) and the corresponding Revenue Tax Receipt in the amount of P31,900; that on February 4, 1984 he received a letter from the Register of Deeds of Camarines Sur requesting him to present his owner's duplicate copy of Transfer Certificate Title (TCT) No. RT-5782 (16486) for annotation of a Notice of Tax Lien for income tax deficiency for the year 1976, which request was prompted by the letter from this Office dated December 16, 1983; that a Warrant of Distraint of personal property dated January 23, 1986 pertaining to the same income tax deficiency was received by him; that copies of the Tax Amnesty Return, BIR Revenue Tax Receipt and Central Bank Confirmation Receipt were submitted by him to this Office in his letter which was received on March 5, 1987 and; that no Notice to Lift the Notice of Tax Lien was issued and that the lien continues to be annotated on Atty. Tuason's title. In reply, please be informed that Presidential Decree No. 1740 dated September 17, 1980 and as amended by Executive Order No. 695 dated May 27, 1981, allowed a taxpayer who failed to file a return for taxable years 1974 to 1979, to file a return and accurately declare therein the true and correct income, deductions and exemptions and pay the income tax due per return. The same law likewise allowed a taxpayer who filed a false or fraudulent return for any taxable year in the period mentioned to amend his return and pay the correct amount of tax due after deducting the taxes already paid, if any, in the original declaration. Upon voluntary disclosure of undeclared income, the taxpayer is granted immunity from the penalties, civil or criminal, imposed under the National Internal Revenue Code of 1977. Having availed of the Government's tax amnesty pursuant to P.D. 1740 as amended by E.O. 695, Atty. Tuason is immune from civil or criminal penalties, hence, rendering the Warrant of Distraint of personal property dated December 16, 1983 pertaining to his income tax deficiency for taxable year 1976 without effect. This serves as an authority to the Register of Deeds of Camarines Sur (Naga) to cause the lifting of Notice of Tax Lien by cancelling the annotation of the same on Transfer Certificate of Title (TCT) No. RT-5782 (16486) covering the properties of the abovenamed taxpayer. 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 null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue