BIR Ruling No. 253-82

October 8, 1982 BIR RULING NO. 253-82 34-g 196-82 253-82 James Uy Incorporated R 402 First National City Bank Bldg. 120 Juan Luna, Manila Attention: Mr . Eligio Teehankee, Jr . President & General Manager Gentlemen : This refers to your letter dated August 20, 1982 requesting this Office to allow Far East Bank and Trust Company to effect the transfer of the certificate of stock in the name of the buyer who has already paid the purchase price of said shares, even before the seller pays the capital gains tax due from said transaction. In this case, it appears that the subject shares were sold prior to the effectivity of BP Blg. 221 but registration of said shares in the name of the transferee is being sought after the effectivity of the aforesaid law. In reply, please be informed that your request cannot be granted because no sale, exchange, transfer or similar transaction intended to convey ownership of, or title to any share of stock shall be registered in the books of the corporation unless the receipt of payment of the corresponding tax imposed on such safe or transfer is filed with and recorded by the stock transfer agent or secretary of the corporation. It shall be the duty of the aforesaid persons to inform the Bureau of Internal Revenue in case of non-payment of the tax. (Sec. 8, Revenue Regulations No. 2-82, implementing BP Blg. 221) Such being the case, while Revenue Regulations No. 14-80 as amended by Revenue Regulations No. 4-81 implementing Section 34(g) (before amendment by BP Blg. 221) of the Tax Code as amended by P.D. 1739 provides for the payment of the final capital gains tax on the net capital gains derived during the taxable year from the sales, exchanges and transfers of shares of stock classified as capital assets upon the filing of the return on or before the fifteenth day of the fourth month following the close of the taxable year, the transferee of shares of stock who wants the immediate transfer in his name of such shares, should require the seller to pay the capital gains tax even before the end of the taxable year so that proof of payment can be presented to the corporate secretary for purposes of the issuance of the certificate of stock in the name of the transferee-purchaser, as prescribed under the present regulations. Very truly yours, RUBEN B. ANCHETA Acting Commissioner