BIR Ruling No. OT-053-2023

May 19, 2023 BIR RULING NO. OT-053-2023 RMO No. 15-2003; BIR Ruling No. OT-165-2021 AAA _______________ _______________ _______________ Sir : This refers to your request for a ruling for the cancellation of the electronic Certificate Authorizing Registration (eCAR) with serial number C-2021-106-006571-M ("subject eCAR") issued by Revenue District Office (RDO) No. 106, Tandag City ("RDO Tandag City") in favor of BBB ("BBB"). ETHIDa It appears from the records that the controversy began with the Special Power of Attorney (SPA) executed by CCC ("CCC") authorizing DDD ("DDD") to, among other things, cause the preparation and signing on the Deed of Absolute Sale/Deed of Donation, or to dispose by way of Sale/Donation CCC's paraphernal/exclusive properties located at Tandag City, Surigao del Sur; and sign, execute, deliver and process whatever documents/instruments necessary to carry into effect the transfer of ownership of CCC's properties from her name to that of the Buyer's/Donee's thereof. By virtue of the said SPA, four Deeds of Absolute Sale were executed bearing the following dates: May 26, 2020; May 29, 2020 and September 7, 2020. It was only on January 7, 2021 that DDD presented the four Deeds of Absolute Sale to RDO Tandag City for the processing of the eCARs. Unknown to DDD, CCC executed a revocation of Special Power of Attorney with Irrevocable Instructions to Convey Documents to AAA dated May 27, 2020 which was presented to OIC Revenue District Officer Lisa Tomaneng to stop the processing of the eCAR. OIC Revenue District Officer Tomaneng requested for a legal opinion from Revenue Region (RR) No. 17, Butuan City ("RR Butuan City") on the validity of sale of parcels of land which was made by DDD. The Legal Division of RR Butuan City then issued a Memorandum dated January 11, 2021 which contained the following pronouncement: "This Office believes that there is a valid revocation of the Special Power of Attorney given to DDD. The revocation was authenticated by an Apostile in Florida, USA and as such, it can be used here in the Philippines since our country is a member of Apostille Convention." TIADCc We must emphasize that an eCAR is merely a certification that the appropriate taxes on a transaction have been duly paid as required under Section 56 (A) (3) of the National Internal Revenue Code (Tax Code) of 1997, as amended. It cannot be the sole basis for the transfer of title as there may be other issues that need to be resolved by the RD. As an agency that enforces one of the inherent powers of the State, it cannot be burdened with academic questions to satisfy scholarly interest. Based on the foregoing, we thus regret our inability to grant your request as it painstakingly lacks merit. This Office believes that this particular issue needs to be ventilated before the proper courts of law. Please be guided accordingly. Very truly yours, (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue