BIR Ruling No. 402-12

June 13, 2012 BIR RULING NO. 402-12 RA 7279; Section 27 (D) (5) of the 1997 Tax Code, as amended; BIR Ruling No. 396-2011 United Residents of Balagbag Abandoned Line Homeowners Association, Inc. (UROBAL) Bagong Tanyag, Taguig, Metro Manila Attention: Mr. Danton C. Cantuba President Gentlemen : This refers to your letter dated October 29, 2010 requesting on behalf of your association, United Residents of Balagbag Abandoned Line Homeowners Association, Inc. (hereinafter referred to as UROBAL, for brevity) for exemption from the payment of capital gains tax as beneficiaries of a socialized housing program of the government, under Republic Act (RA) No. 7279, otherwise known as the "Urban Development and Housing Act of 1992", as implemented by RR No. 9-93, as amended by RR No. 11-97, in relation to Executive Order (EO) No. 48, dated 26 October 2001. As represented, UROBAL is a community organization duly organized and registered with the Home Insurance and Guaranty Corporation, (HIGC) with Registration No. 04-1678, with principal address at Bagong Tanyag, Taguig, Metro Manila. Documents submitted disclose that Philippine National Railways (PNR) is the absolute owner of a parcel of land (Lot 5, Plan PSU-551374) covered by TCT No. (4406) 233 located at Culi-Culi/Balabag Taguig, and Paraaque, Metro Manila, Philippines, containing a total area of thirty-nine thousand two hundred fourteen (39,214) square meters more or less. UROBAL, on behalf of its members and officers is desirous of acquiring the said property; thus, PNR expressed its willingness to sell, transfer and convey the said property at the price of One Thousand One Hundred Pesos (P1,100.00) per square meter through a Direct Purchase Scheme through a Board Resolution dated August 11, 2003, pursuant to Republic Act (RA) No. 7279, otherwise known as the "Urban Development and Housing Act of 1992", as implemented by RR No. 9-93, as amended by RR No. 11-97, in relation to Executive Order (EO) No. 48, dated 26 October 2001. The resultant titles of the above-stated parcel of land with TCT No. (4406) 233 are the following: TCT No. Description/Location Area 2451 LOT #1/BAGONG TANYAG 56 2452 LOT #2/BAGONG TANYAG 31 2454 LOT #4/BAGONG TANYAG 59 2455 LOT #5/BAGONG TANYAG 49 2456 LOT #6/BAGONG TANYAG 47 2457 LOT #7/BAGONG TANYAG 64 2458 LOT #8/BAGONG TANYAG 25 2459 LOT #9/BAGONG TANYAG 58 2460 LOT #10/BAGONG TANYAG 29 2461 LOT #11/BAGONG TANYAG 45 2462 LOT #12/BAGONG TANYAG 51 2463 LOT #13/BAGONG TANYAG 133 2464 LOT #14/BAGONG TANYAG 182 2465 LOT #15/BAGONG TANYAG 57 2466 LOT #16/BAGONG TANYAG 255 2467 LOT #17/BAGONG TANYAG 121 2468 LOT #18/BAGONG TANYAG 99 2469 LOT #19/BAGONG TANYAG 93 2470 LOT #20/BAGONG TANYAG 86 2471 LOT #21/BAGONG TANYAG 35 2472 LOT #22/BAGONG TANYAG 47 2473 LOT #23/BAGONG TANYAG 39 2474 LOT #24/BAGONG TANYAG 101 2475 LOT #25/BAGONG TANYAG 122 2476 LOT #26/BAGONG TANYAG 78 2477 LOT #27/BAGONG TANYAG 76 2479 LOT #29/BAGONG TANYAG 45 2480 LOT #30/BAGONG TANYAG 104 2481 LOT #31/BAGONG TANYAG 17 2482 LOT #32/BAGONG TANYAG 16 2483 LOT #33/BAGONG TANYAG 49 2484 LOT #34/BAGONG TANYAG 39 2485 LOT #35/BAGONG TANYAG 70 2486 LOT #36/BAGONG TANYAG 45 2487 LOT #37/BAGONG TANYAG 73 2488 LOT #38/BAGONG TANYAG 121 2489 LOT #39/BAGONG TANYAG 76 2490 LOT #40/BAGONG TANYAG 111 2491 LOT #41/BAGONG TANYAG 61 2492 LOT #42/BAGONG TANYAG 67 2493 LOT #43/BAGONG TANYAG 84 2494 LOT #44/BAGONG TANYAG 81 2495 LOT #45/BAGONG TANYAG 88 2496 LOT #46/BAGONG TANYAG 91 2497 LOT #47/BAGONG TANYAG 48 2498 LOT #48/BAGONG TANYAG 50 2499 LOT #49/BAGONG TANYAG 125 2500 LOT #50/BAGONG TANYAG 104 2501 LOT #51/BAGONG TANYAG 53 2502 LOT #52/BAGONG TANYAG 57 2503 LOT #53/BAGONG TANYAG 28 2504 LOT #54/BAGONG TANYAG 34 2505 LOT #55/BAGONG TANYAG 67 2506 LOT #56/BAGONG TANYAG 48 2507 LOT #57/BAGONG TANYAG 87 2508 LOT #58/BAGONG TANYAG 120 2509 LOT #59/BAGONG TANYAG 46 2510 LOT #60/BAGONG TANYAG 111 2511 LOT #61/BAGONG TANYAG 45 2512 LOT #62/BAGONG TANYAG 55 2513 LOT #63/BAGONG TANYAG 137 2514 LOT #64/BAGONG TANYAG 78 2515 LOT #65/BAGONG TANYAG 230 2517 LOT #67/BAGONG TANYAG 63 2518 LOT #68/BAGONG TANYAG 55 2519 LOT #69/BAGONG TANYAG 52 2520 LOT #70/BAGONG TANYAG 38 2521 LOT #71/BAGONG TANYAG 50 2522 LOT #72/BAGONG TANYAG 71 2523 LOT #73/BAGONG TANYAG 40 2524 LOT #74/BAGONG TANYAG 43 2525 LOT #75/BAGONG TANYAG 45 2526 LOT #76/BAGONG TANYAG 40 2527 LOT #77/BAGONG TANYAG 127 2529 LOT #79/BAGONG TANYAG 45 2530 LOT #80/BAGONG TANYAG 59 2534 LOT #84/BAGONG TANYAG 82 2535 LOT #85/BAGONG TANYAG 85 2536 LOT #86/BAGONG TANYAG 24 2540 LOT #90/BAGONG TANYAG 219 2541 LOT #91/BAGONG TANYAG 85 2543 LOT #93/BAGONG TANYAG 87 2544 LOT #94/BAGONG TANYAG 83 2545 LOT #95/BAGONG TANYAG 65 2546 LOT #96/BAGONG TANYAG 128 2548 LOT #98/BAGONG TANYAG 143 2550 LOT #100/BAGONG TANYAG 90 2551 LOT #101/BAGONG TANYAG 117 2552 LOT #102/BAGONG TANYAG 102 2553 LOT #103/BAGONG TANYAG 94 2555 LOT #105/BAGONG TANYAG 105 4247 LOT #106/BAGONG TANYAG 107 2557 LOT #107/BAGONG TANYAG 41 2558 LOT #108/BAGONG TANYAG 169 2560 LOT #109/BAGONG TANYAG 64 2561 LOT #110/BAGONG TANYAG 72 2562 LOT #111/BAGONG TANYAG 30 2563 LOT #112/BAGONG TANYAG 292 2564 LOT #113/BAGONG TANYAG 21 2566 LOT #115/BAGONG TANYAG 16 2568 LOT #117/BAGONG TANYAG 19 2569 LOT #118/BAGONG TANYAG 18 2570 LOT #119/BAGONG TANYAG 92 2572 LOT #121/BAGONG TANYAG 51 2573 LOT #122/BAGONG TANYAG 105 2574 LOT #123/BAGONG TANYAG 131 2575 LOT #124/BAGONG TANYAG 116 2576 LOT #125/BAGONG TANYAG 130 2577 LOT #126/BAGONG TANYAG 109 2578 LOT #127/BAGONG TANYAG 57 2580 LOT #129/BAGONG TANYAG 152 2581 LOT #130/BAGONG TANYAG 92 2582 LOT #131/BAGONG TANYAG 112 2583 LOT #132/BAGONG TANYAG 95 2584 LOT #133/BAGONG TANYAG 102 2585 LOT #134/BAGONG TANYAG 52 2586 LOT #135/BAGONG TANYAG 55 2587 LOT #136/BAGONG TANYAG 60 2588 LOT #137/BAGONG TANYAG 120 2589 LOT #138/BAGONG TANYAG 106 2590 LOT #139/BAGONG TANYAG 71 2591 LOT #140/BAGONG TANYAG 108 2592 LOT #141/BAGONG TANYAG 187 2594 LOT #143/BAGONG TANYAG 59 2595 LOT #144/BAGONG TANYAG 66 2596 LOT #145/BAGONG TANYAG 37 2598 LOT #147/BAGONG TANYAG 103 2599 LOT #148/BAGONG TANYAG 42 2600 LOT #149/BAGONG TANYAG 63 2601 LOT #150/BAGONG TANYAG 141 2602 LOT #151/BAGONG TANYAG 153 2603 LOT #152/BAGONG TANYAG 123 2604 LOT #153/BAGONG TANYAG 96 2605 LOT #154/BAGONG TANYAG 82 2606 LOT #155/BAGONG TANYAG 142 2607 LOT #156/BAGONG TANYAG 59 2609 LOT #158/BAGONG TANYAG 152 2610 LOT #159/BAGONG TANYAG 138 2611 LOT #160/BAGONG TANYAG 46 2612 LOT #161/BAGONG TANYAG 103 2613 LOT #162/BAGONG TANYAG 148 2614 LOT #163/BAGONG TANYAG 92 2615 LOT #164/BAGONG TANYAG 73 2616 LOT #165/BAGONG TANYAG 118 2617 LOT #166/BAGONG TANYAG 81 2618 LOT #167/BAGONG TANYAG 110 2619 LOT #168/BAGONG TANYAG 119 2620 LOT #169/BAGONG TANYAG 127 2621 LOT #170/BAGONG TANYAG 62 2622 LOT #171/BAGONG TANYAG 23 2623 LOT #172/BAGONG TANYAG 140 2624 LOT #173/ BAGONG TANYAG 32 2625 LOT #174/BAGONG TANYAG 28 2627 LOT #177/BAGONG TANYAG 21 2631 LOT #181/BAGONG TANYAG 70 2632 LOT #182/BAGONG TANYAG 75 2634 LOT #184/BAGONG TANYAG 72 2635 LOT #185/BAGONG TANYAG 49 2636 LOT #186/BAGONG TANYAG 11 2637 LOT #187/BAGONG TANYAG 29 2638 LOT #188/BAGONG TANYAG 41 2639 LOT #189/BAGONG TANYAG 36 2640 LOT #190/BAGONG TANYAG 23 2641 LOT #191/BAGONG TANYAG 69 2642 LOT #192/BAGONG TANYAG 81 2643 LOT #193/BAGONG TANYAG 112 2644 LOT #194/BAGONG TANYAG 39 2645 LOT #195/BAGONG TANYAG 111 2646 LOT #196/BAGONG TANYAG 81 2647 LOT #197/BAGONG TANYAG 96 2648 LOT #198/BAGONG TANYAG 93 2649 LOT #199/BAGONG TANYAG 95 2650 LOT #200/BAGONG TANYAG 95 2651 LOT #201/BAGONG TANYAG 101 2652 LOT #202/BAGONG TANYAG 80 2653 LOT #203/BAGONG TANYAG 83 2654 LOT #204/BAGONG TANYAG 42 2655 LOT #205/BAGONG TANYAG 20 2656 LOT #206/BAGONG TANYAG 67 2657 LOT #207/BAGONG TANYAG 18 2658 LOT #208/BAGONG TANYAG 16 2659 LOT #209/BAGONG TANYAG 14 2660 LOT #210/BAGONG TANYAG 36 2661 LOT #211/BAGONG TANYAG 13 2662 LOT #212/BAGONG TANYAG 6 2663 LOT #213/BAGONG TANYAG 10 2664 LOT #214/BAGONG TANYAG 19 2665 LOT #215/BAGONG TANYAG 2 2666 LOT #216/BAGONG TANYAG 3 2667 LOT #217/BAGONG TANYAG 10 2668 LOT #218/BAGONG TANYAG 10 2669 LOT #219/BAGONG TANYAG 14 2670 LOT #220/BAGONG TANYAG 20 2671 LOT #221/BAGONG TANYAG 21 2672 LOT #222/BAGONG TANYAG 53 2673 LOT #223/BAGONG TANYAG 79 2674 LOT #224/BAGONG TANYAG 81 2675 LOT #225/BAGONG TANYAG 84 2676 LOT #226/BAGONG TANYAG 72 2678 LOT #227/BAGONG TANYAG 50 2679 LOT #228/BAGONG TANYAG 32 2680 LOT #229/BAGONG TANYAG 37 2681 LOT #230/BAGONG TANYAG 28 2682 LOT #231/BAGONG TANYAG 44 2683 LOT #232/BAGONG TANYAG 84 2684 LOT #233/BAGONG TANYAG 84 2685 LOT #234/BAGONG TANYAG 93 2687 LOT #236/BAGONG TANYAG 72 2688 LOT #237/BAGONG TANYAG 43 2689 LOT #238/BAGONG TANYAG 21 2690 LOT #239/BAGONG TANYAG 65 2691 LOT #240/BAGONG TANYAG 36 2692 LOT #241/BAGONG TANYAG 32 2693 LOT #242/BAGONG TANYAG 49 2694 LOT #243/BAGONG TANYAG 102 2696 LOT #245/BAGONG TANYAG 30 2697 LOT #246/BAGONG TANYAG 87 2698 LOT #247/BAGONG TANYAG 39 2699 LOT #248/BAGONG TANYAG 42 2700 LOT #249/BAGONG TANYAG 79 2701 LOT #250/BAGONG TANYAG 84 2702 LOT #251/BAGONG TANYAG 93 2703 LOT #252/BAGONG TANYAG 106 2704 LOT #253/BAGONG TANYAG 106 2706 LOT #255/BAGONG TANYAG 38 2708 LOT #257/BAGONG TANYAG 95 2709 LOT #258/BAGONG TANYAG 18 2710 LOT #259/BAGONG TANYAG 8 2711 LOT #260/BAGONG TANYAG 108 2712 LOT #261/BAGONG TANYAG 56 2713 LOT #262/BAGONG TANYAG 51 2714 LOT #263/BAGONG TANYAG 100 2716 LOT #265/BAGONG TANYAG 119 2717 LOT #266/BAGONG TANYAG 92 2718 LOT #267/BAGONG TANYAG 128 2720 LOT #269/BAGONG TANYAG 40 2721 LOT #270/BAGONG TANYAG 75 2722 LOT #271/BAGONG TANYAG 127 2723 LOT #272/BAGONG TANYAG 123 2724 LOT #273/BAGONG TANYAG 75 2725 LOT #274/BAGONG TANYAG 80 2726 LOT #275/BAGONG TANYAG 94 2727 LOT #276/BAGONG TANYAG 108 2728 LOT #278/BAGONG TANYAG 41 2729 LOT #279/BAGONG TANYAG 41 2730 LOT #280/BAGONG TANYAG 102 2731 LOT #281/BAGONG TANYAG 89 2732 LOT #282/BAGONG TANYAG 56 2733 LOT #283/BAGONG TANYAG 11 2734 LOT #284/BAGONG TANYAG 120 2735 LOT #285/BAGONG TANYAG 30 2737 LOT #287/BAGONG TANYAG 135 2738 LOT #288/BAGONG TANYAG 69 2739 LOT #289/BAGONG TANYAG 52 2740 LOT #290/BAGONG TANYAG 124 2741 LOT #291/BAGONG TANYAG 63 2742 LOT #292/BAGONG TANYAG 92 2743 LOT #293/BAGONG TANYAG 73 2744 LOT #294/BAGONG TANYAG 47 2745 LOT #295/BAGONG TANYAG 73 2746 LOT #296/BAGONG TANYAG 57 2747 LOT #297/BAGONG TANYAG 101 2748 LOT #298/BAGONG TANYAG 49 2749 LOT #299/BAGONG TANYAG 94 2750 LOT #300/BAGONG TANYAG 50 2751 LOT #301/BAGONG TANYAG 50 2752 LOT #302/BAGONG TANYAG 241 2753 LOT #303/BAGONG TANYAG 208 2756 LOT #306/BAGONG TANYAG 11 2757 LOT #307/BAGONG TANYAG 18 2758 LOT #308/BAGONG TANYAG 90 2759 LOT #309/BAGONG TANYAG 32 2761 LOT #310/BAGONG TANYAG 18 2762 LOT #311/BAGONG TANYAG 178 2763 LOT #312/BAGONG TANYAG 96 2764 LOT #313/BAGONG TANYAG 156 2765 LOT #314/BAGONG TANYAG 134 2766 LOT #315/BAGONG TANYAG 135 2767 LOT #316/BAGONG TANYAG 24 2768 LOT #317/BAGONG TANYAG 10 2769 LOT #318/BAGONG TANYAG 10 2770 LOT #319/BAGONG TANYAG 17 2771 LOT #320/BAGONG TANYAG 80 2772 LOT #321/BAGONG TANYAG 72 2775 LOT #324/BAGONG TANYAG 153 2776 LOT #325/BAGONG TANYAG 103 2778 LOT #327/BAGONG TANYAG 27 2779 LOT #328/BAGONG TANYAG 141 2780 LOT #329/BAGONG TANYAG 150 2781 LOT #330/BAGONG TANYAG 149 2782 LOT #331/BAGONG TANYAG 39 2783 LOT #332/BAGONG TANYAG 129 2784 LOT #333/BAGONG TANYAG 125 2786 LOT #335/BAGONG TANYAG 69 2788 LOT #337/BAGONG TANYAG 75 2789 LOT #338/BAGONG TANYAG 40 2790 LOT #339/BAGONG TANYAG 116 2791 LOT #340/BAGONG TANYAG 147 2792 LOT #341/BAGONG TANYAG 51 2796 LOT #344/BAGONG TANYAG 82 2797 LOT #346/BAGONG TANYAG 72 2798 LOT #347/BAGONG TANYAG 103 2800 LOT #349/BAGONG TANYAG 49 2802 LOT #351/BAGONG TANYAG 14 2804 LOT #353/BAGONG TANYAG 141 2805 LOT #354/BAGONG TANYAG 135 2806 LOT #355/BAGONG TANYAG 82 2808 LOT #357/BAGONG TANYAG 113 2809 LOT #358/BAGONG TANYAG 86 2810 LOT #359/BAGONG TANYAG 117 2811 LOT #360/BAGONG TANYAG 107 2812 LOT #361/BAGONG TANYAG 96 2813 LOT #362/BAGONG TANYAG 97 2814 LOT #363/BAGONG TANYAG 109 2815 LOT #364/BAGONG TANYAG 43 2816 LOT #365/BAGONG TANYAG 52 2817 LOT #366/BAGONG TANYAG 57 2818 LOT #367/BAGONG TANYAG 46 2819 LOT #368/BAGONG TANYAG 16 2820 LOT #369/BAGONG TANYAG 151 2821 LOT #370/BAGONG TANYAG 56 2822 LOT #371/BAGONG TANYAG 56 2823 LOT #372/BAGONG TANYAG 47 2824 LOT #373/BAGONG TANYAG 44 2825 LOT #374/BAGONG TANYAG 58 2826 LOT #375/BAGONG TANYAG 89 2827 LOT #376/BAGONG TANYAG 82 2828 LOT #377/BAGONG TANYAG 107 2829 LOT #378/BAGONG TANYAG 122 2830 LOT #379/BAGONG TANYAG 105 2832 LOT #381/BAGONG TANYAG 41 2833 LOT #382/BAGONG TANYAG 79 2834 LOT #383/BAGONG TANYAG 37 2835 LOT #384/BAGONG TANYAG 46 2836 LOT #385/BAGONG TANYAG 28 2837 LOT #386/BAGONG TANYAG 51 2838 LOT #387/BAGONG TANYAG 107 2839 LOT #388/BAGONG TANYAG 69 2840 LOT #389/BAGONG TANYAG 61 2842 LOT #391/BAGONG TANYAG 51 2843 LOT #392/BAGONG TANYAG 28 2844 LOT #393/BAGONG TANYAG 72 2845 LOT #394/BAGONG TANYAG 60 2846 LOT #395/BAGONG TANYAG 52 2847 LOT #396/BAGONG TANYAG 28 2848 LOT #397/BAGONG TANYAG 57 2849 LOT #398/BAGONG TANYAG 36 2850 LOT #399/BAGONG TANYAG 26 2851 LOT #400/BAGONG TANYAG 22 2852 LOT #401/BAGONG TANYAG 19 2853 LOT #402/BAGONG TANYAG 12 2854 LOT #403/BAGONG TANYAG 30 2855 LOT #404/BAGONG TANYAG 50 2860 LOT #405/BAGONG TANYAG 49 2856 LOT #406/BAGONG TANYAG 54 2857 LOT #407/BAGONG TANYAG 52 2858 LOT #408/BAGONG TANYAG 40 In support of your application for tax exemption you submitted the following documents: 1. Letter request for exemption; 2. Copy of the Memorandum of Agreement (MOA) between Philippine Railways (PNR) and UROBAL; 3. Certified true copy of the title of the subject property under the name of PNR; 4. Certified true copy of the corresponding Tax Declaration; 5. Certification from the Housing and Urban Development Coordinating Council (HUDCC) of its disposition of the PNR property to its bonafide occupants; 6. Copy of EO No. 48 signed by Pres. Gloria Macapagal-Arroyo; and 7. Other pertinent documents. TCEaDI In reply, please be informed that Sections 19 and 20 of Republic Act (RA) No. 7279, otherwise known as the Urban Development and Housing Act of 1992 provides as follows: "Sec. 19. Incentives for the National Housing Authority. The National Housing Authority, being the primary government agency in charge of providing housing for the underprivileged and homeless, shall be exempted from the payment of all fees and charges of any kind, whether local or national, such as income and realty taxes. All documents or contracts executed by and in favor of the National Housing Authority shall also be exempt from the payment of documentary stamp tax and registration fees, including fees required for the issuance of transfer certificates of title." "Sec. 20. Incentives for Private Sector Participating in Socialized Housing. To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sectors: xxx xxx xxx In this case, the sale of lots by PNR to UROBAL, although certified by the Housing and Urban Development Coordinating Council as intended for the development of socialized housing project, PNR is nevertheless not among those institution or private sector participating in socialized housing that are entitled to the tax incentives under R.A. 7279. It should be remembered that laws and statutes granting tax exemptions are strictly construed against the taxpayer. Exemptions are never presumed and the burden is upon the taxpayer to establish his right to exemption beyond reasonable doubt. 1 In the case of Mactan Cebu International Airport Authority v. Marcos, 2 the Supreme Court held: "Accordingly, tax statutes must be construed strictly against the government and liberally in favor of the taxpayer. But since taxes are what we pay for civilized society, or are the lifeblood of the nation, the law frowns against exemptions from taxation and statutes granting the exemptions are thus construed strictissimi juris against the taxpayer and liberally in favor of the taxing authority. A claim of exemption from tax payments must be clearly shown and based on language in the law too plain to be mistaken. Elsewise stated, taxation is the rule, exemption therefrom is the exception." Moreover, under Section 27 (D) (5) of the 1997 Tax Code, as amended, it is provided that in the case of sale, exchange, or other disposition of lands and/or buildings which are not actually used in business and are treated as capital assets by domestic corporations, a final tax of six percent (6%) based on the gross selling price or current fair market value as determined in accordance with Section 6 (E) of the Tax Code, whichever is higher, is imposed upon capital gains presumed to have been realized therefrom. It must be noted that the capital gains tax mentioned under the aforementioned provision is an income tax, the burden of which rests upon the seller which, in this case, is the PNR. It is noteworthy to mention that PNR is subject to the capital gains tax of 6% imposed on its capital gains presumed to have been realized from the sale of the said parcel of land in spite of its being a government agency. This is in accordance with Sec. 32 (B) (7) (b) of the Tax Code of 1997 which provides that only the income derived by the government agency from the exercise of its essential governmental function shall be excluded from its gross income. ( BIR Ruling No. 396-2011 dated October 25, 2011 ) cDTHIE Furthermore, the Memorandum of Agreement is subject to the documentary stamp tax based on the actual consideration of the property sold pursuant to Sec. 196 of the Tax Code of 1997. In view of the foregoing, this Office regrets to deny your request for exemption from capital gains tax for lack of legal basis. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue Footnotes 1. Dimaampao, Japar B.,Tax Principles and Remedies, Second Edition (2005). 2. G.R. No. 120082, 11 September 1996, 261 SCRA 667.