BIR Ruling No. 130-15

April 30, 2015 BIR RULING NO. 130-15 Sections 24 (D) (1), 188 and 196 of the Tax Code of 1997, as amended; BIR Ruling No. 466-11 Josefina Tizon Barrientos c/o Arvin Atienza 2373-A G. del Pilar Street, Singalong, Manila Madam : This refers to your undated letter requesting in behalf of Antonio G. Tizon, for an exemption from the payment of capital gains tax relative to the transfer of title of real property is by virtue of a court decision. Documents disclosed that Antonio Gamboa Tizon is the registered owner of a parcel of land, identified as Lot No. 28, Block No. 18, of the subdn. Plan Psd-13288, being a portion of Lot No. 1-C of plan Psd-12222, G.L.R.O. Rec. No. 2029 covered by Transfer Certificate of Title (TCT) No. 143151 issued by the Registry of Deeds for Makati Metro Manila, with an area of Two Hundred Fifty square meters (250 sq.m.), more or less. On June 4, 2003, TCT No. 143151 was cancelled pursuant to a Deed of Donation purportedly executed on August 12, 2002 by Antonio Gamboa Tizon and his deceased wife, Corazon S. Tizon, and as a consequence, a new title was issued in the name of Arlene S. Tizon. On April 21, 2006, Antonio Gamboa Tizon filed a "Complaint for Recovery of Ownership and Possession of Real Property now under TCT No. 219031 of the Registry of Deeds of Makati City and/or interest thereon and for Reconveyance of Title in favor of Plaintiff and the Nullification of the Title in the name of Defendant'' against Arlene S. Tizon to Regional Trial Court of Makati, Branch 58, Makati City with Civil Case No. 06-318 entitled " Antonio G. Tizon represented by Attorney-in-fact, Manuel Guevara vs. Arlene S. Tizon ". AScHCD In a Decision dated April 24, 2007, the trial court ordered the cancellation of TCT No. 219031 that was issued in the name of Arlene S. Tizon and the reconveyance of subject property to Antonio Gamboa Tizon. It was ruled also that the Deed of Donation was void due to lack of consent which is an essential requisite of a valid donation. The decision was affirmed by the Court of Appeals (CA), Eight Division on April 15, 2011 in CA-G.R. CV No. 91382 and on November 28, 2011, the Supreme Court, Second Division issued a Resolution in G.R. No. 198363 which denied Arlene S. Tizon's Petition for Review on Certiorari and issued an Entry of Judgment which shows that the Resolution issued by the Supreme Court (SC), Second Division, on November 28, 2011 has, on April 19, 2012 become final and executory. In reply, please be informed that since the reconveyance of subject property was pursuant to the Order of the Regional Trial Court which was affirmed by the CA and SC and the reconveyance was in order to return the property covered by TCT No. 219031 to the legal owner, the transfer of TCT No. 219031 in favor of Antonio Gamboa Tizon is not subject to the capital gains tax imposed under Section 24 (D) (1) of the Tax Code of 1997, as amended. Likewise, it is not subject to the documentary stamp tax (DST) imposed under Section 196 of the Tax Code of 1997 but only to the DST imposed under Sec. 188 of the same Code. (BIR Ruling No. 466-11 dated November 24, 2011) 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.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue