BIR Ruling No. 579-12

September 19, 2012 BIR RULING NO. 579-12 Section 2 (r) of Revenue Bulletin 01-03; BIR Ruling No. 301-11 Alunan Realty Co., Inc. Unit 4, Ralph Townhouse, Burgos Ext. Street, Bacolod City Attention: Arcline J. Alcobilla President Gentlemen : This refers to your letter dated 29 March 2012 requesting exemption from taxes and penalties imposed against your company by BIR Revenue District Office No. 7, Bacolod City. DTSIEc The facts as represented are as follows: Alunan Realty Co., Inc. (ARC) was granted by the Board of Investments an Income Tax Holiday (ITH) for four (4) years. ARC was also granted by Pag-IBIG or HDMF with a Funding Commitment Line under the "Buy-Back Guaranty Window". Under the "Buy-Back Guaranty Window", ARC is obliged to buy back the unit sold to the borrower through Pag-IBIG after three (3) consecutive months if borrower is unable to continue paying its account within the first 24 months of borrower's term loan. ARC executed a Contract to Sell in favor of the client and a Deed of Assignment in favor of HDMF. The purpose for executing the aforementioned Deed is for its annotation in the title and to enable the client to secure the housing loan with HDMF. In reply, please be informed that this Office cannot issue a determinative ruling on the above matter considering that the issue is now subject to an on-going audit, which is considered as a "No-Ruling Area" pursuant to Section 2 (r) of Revenue Bulletin 01-03. Section 2 (r) of Revenue Bulletin 01-03 provides: "SEC. 2. List of No-Ruling Areas. The following shall hereby be construed and identified as "No-Ruling Areas": r) Issue/s or transactions involving directly or indirectly the same taxpayer/s which is/are the subject of an investigation, on-going audit, administrative protest, claim for refund or issuance of tax credit certificate, collection proceedings, or a judicial appeal subject to Section 3 hereunder. Accordingly, the taxpayer must submit and include the following statement in the request for ruling: "The issue/s or transaction subject of the request is not under investigation, on-going audit, administrative protest, claim for refund or issuance of a tax credit certificate, collection proceedings, or a judicial appeal of the taxpayer/s involved." (BIR Ruling No. 301-11 dated August 11, 2011) Please be guided accordingly. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue