BIR Ruling No. 183-83

October 17, 1983 BIR RULING NO. 183-83 Gentlemen : This refers to your letter dated June 22, 1983 requesting for the correct interpretation of Revenue Memorandum Order No. 33-81 issued on November 19, 1981. It is represented that your bank acquired at public auction sale the extra judicially foreclosed mortgaged properties of its delinquent borrower; that your bank cannot consolidate its ownership over said properties after the lapse of the reglementary period of redemption since the Revenue Districts Officer of the Bureau of Internal Revenue in Cabanatuan City is requiring your bank to pay the amount of P1,642.00 before issuing the corresponding BIR Certification needed to consolidate the bank's ownership over said foreclosed properties. In reply, I have the honor to inform you that Revenue Memorandum Order No. 33-81 provides that banks shall, within 30 days after the foreclosure sale, apply for the issuance of the certification required by Section 34(h) of the Tax Code with the Revenue Districts Officer of the place where the debtor-mortgagor has his legal residence or principal place of business. This is in consonance with the said provision requiring the presentation of the certification in question before registration of any document transferring real property is effected by the Register of Deeds. However, since the purpose of Revenue Memorandum Order No. 33-81 is to allow banks to consolidate its title to the foreclosed property, said application may be filed within 30 days after the expiration of the redemption period of one year and issuance of the certificate of final sale. Upon receipt of the application containing the required information, the Revenue Districts Officer shall issue the certification authorizing transfer of title to the bank in the form prescribed by Revenue Memorandum Order No. 33-81. Thereafter, the Revenue District Officer shall conduct the necessary investigation to ascertain the capital gains tax due from the debtor-mortgagor. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue