BIR Ruling No. 265-15

July 30, 2015 BIR RULING NO. 265-15 Sec. 24 (D) (1) 1997 Tax Code; BIR Ruling No. 491-2012 Marivi Cantimbuhan Dilinila Antonio St., B-6, Ramos Compound Vergonville Subd., Pulanglupa Las Pias City Madam : This refers to your letter dated October 17, 2011 requesting exemption from the payment of capital gains tax (CGT) as well as documentary stamp tax (DST) on the exchange of real properties to correct a mistake and without any consideration. It is represented that Ruben Cantimbuhan was the owner of two (2) parcels of land covered by separate Transfer Certificates of Title (TCTs); that on September 17, 2007, Ruben Cantimbuhan and Marivi Dilinila executed a Deed of Sale whereby the former sold to the latter one of the aforesaid parcels of land; that the parties later discovered that Ruben Cantimbuhan had mistakenly given the TCT covering the property that was supposed to be left for him instead of the TCT covering the lot that was sold to Marivi Dilinila; and that to rectify the alleged mistake, a Deed of Exchange was executed by the parties without any consideration involved. In reply, please be informed that the Deed of Exchange dated August 26, 2011 which was executed by the parties to correct the alleged mistake did not mention any mistake or error committed by the parties in causing the transfer of titles over the subject properties in their respective names. Moreover, a careful perusal of the Deed of Sale dated September 13, 2007 reveals no error or mistake because the parcel of land that was being sold in the said Deed is Lot 5-B-6-B-5-A of the Subdivision Plan Psd-00-056404, as in fact, Marivi Dilinila was issued TCT No. T-108155 for the same Lot 5-B-6-B-5-A. TCAScE In view of the foregoing, this Office hereby denies your request for exemption from the payment of CGT and DST for lack of factual and legal basis. Please be guided accordingly. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue