BIR Ruling [UN-429-95]

December 5, 1995 BIR RULING [UN-429-95] National Home Mortgage Finance Corporation 8th & 10 Floors, Allied Bank Center Ayala Avenue, Makati City Attention: Mr . Manuel Eduardo B . Lunas President Gentlemen : This refers to your request to pay, without surcharge, the capital gains tax and documentary stamp tax on the numerous Certificates of Sale of foreclosed housing units in order that you can register the same with the Register of Deeds concerned in your name. cdtech It is represented that as the government corporation mandated to be the major home-mortgage financing institution and as administrator of the Unified Home Lending Program granting home loans not exceeding P375,000 to low and medium-income borrowers, NHMFC has chalked up a total of 2,500 Certificates of Sale, more or less, of foreclosed housing units nationwide; that up to now you have not yet registered with the Register of Deeds the said Certificates of Sale due to the large amount of taxes and surcharges NHMFC has to pay; that your corporate budget for the foreclosure program did not include the amount for the payment of surcharges; hence, you are constrained to request for the condonation of the 25% surcharge arising from the delayed payment of the capital gains tax and documentary stamp tax on the more or less existing 2,500 Certificates of Sale in order not to unduly burden your corporate budget and ultimately the low income borrowers who would redeem or purchase the real properties when you dispose of them. In reply, please be informed that in view of the above justifiable reason, this Office has decided to forego the imposition of the 25% surcharge provided by Section 248(a)(3) of the Tax Code, as amended, for late payment of capital gains tax and documentary stamp tax on the existing 2,500 Certificates of Sale but not the 20% interest imposed by Section 249 of the same Code. To facilitate the immediate payment of said taxes and interest, you are required to submit to the Revenue District Officer of the place where the property is located, the Certificate of Sale showing the bid price in the foreclosure sale and the date of sale which should be the basis in computing the capital gains tax and documentary stamp tax due thereon. Only upon full payment of said taxes will the Certificate Authorizing Registration (CAR) should be issued by the Revenue District Officer concerned which will enable you to register the Certificate of Sale in the name of NHMFC. cdta Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue