Request for Tax Exemption of the Transfer of Certificate of Title in the Name of National Children's Hospital

December 3, 1998 BIR RULING NO. 171-98 C.A. 466-000-00-171-98 National Children's Hospital 266 E. Rodriguez Sr. Blvd. Quezon City Attention: Ms . Ma . Isabelita S . Vital-Gozon , M . D ., F . P . P . S . Medical Center Chief II Gentlemen : This refers to your letter dated February 20, 1998 requesting that the transfer of Certificate of Title No. 34079 [now TCT No. RT-111305 (34079) registered under the name of Mori Bicycle Store] in the name of the National Children's Hospital be exempt from the payment of taxes pursuant to Proclamation No. 439 dated December 23 1953 by then President Elpidio Quirino. It is represented that in Special Proceedings entitled "In the Matter of Reconstitution of the Original Copy of Original/Transfer Certificate of Title No. 34079 Issued by the Register of Deeds of Quezon City" filed by the National Children's Hospital as the petitioner docketed as LRC Case No. Q-7143(95), the Court ruled that the said Transfer Certificate of Title registered in the name of Mori Bicycle Store be reconstituted in the name of the National Children's Hospital pursuant to the testimonial and documentary evidence presented in said petition; that Rizalina Dizon Pangan Administrative Officer of the National Children's Hospital, when presented as witness testified, among others, that she is in-charge of the records of the hospital including the Transfer Certificates of Title of real properties owned by the Hospital; that the subject lot which was formerly owned and registered in the name of Mori Bicycle Store, an alien corporation, was awarded to the National Children's Hospital by virtue of Proclamation No. 439; that TCT No. 34079 was among those burned during the fire that razed the Quezon City building on June 11 1988; that in a certification dated June 5, 1996 of Regional Trial Court, National Capital Judicial Region Branch 81 Quezon City, it was certified that the said Decision of the Court dated March 2, 1996 has become final and executory as of May 2 1996; that Proclamation No. 439 dated December 23 1953 signed by then President Elpidio Quirino mandates that withdrawal from the sale or settlement of the subject land belonging to the private domain of the government and reserve for hospital site purposes under the administration of Bureau of Hospitals; and that the Bureau of Licensing and Regulations under the Department of Health has certified that the National Children's Hospital with Business No. 15-5-250-042-97-6 is duly registered and licensed by the Department of Health. In reply, please be informed that under then Section 112(3) of Commonwealth Act No. 466, gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the government shall be exempt from gift or donor's tax and donee's tax. Such being the case, the transfer of Title in favor of the National Children's Hospital of TCT No. RT-111305(34079) pursuant to Proclamation No. 439 dated December 23, 1953 by then President Elpidio Quirino is therefore exempt from the donor's and donee's tax pursuant to then Section 112(3) of Commonwealth Act No. 466. 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