Bureau of Local Government Finance Opinion

May 2, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the ICO-City Assessor and City Treasurer. both of Taguig City, for comment and/or appropriate action, the within letter dated April 23, 2012 of Mr Jeremy Philip Gould, Unit Owner, 18-A, Fort Palm Spring Condominium, Global City, seeking assistance from this Bureau for the issuance of tax declaration covering the property he acquired from the First Global Byo Corporation (formerly Fort Palm Spring Condominium), same city. Mr. Gould allegedly made several attempts to secure said tax declaration from the City Assessor thereat, however he was required to pay first the Transfer Tax and City Tax in compliance with the requirements in the issuance of tax declaration, which the developer (First Global Byo Corporation) allegedly failed to comply. CIAHDT It may be recalled that this Bureau, under its 1st Indorsement dated May 4, 2011, copy enclosed, has directed that Office in a case similarly situated in the name of certain HASSAN NAGUIB, likewise a unit owner of First Global Byo Corp., the dispositive portion of which provides, viz. : "xxx xxx xxx, ". . . Article 224, in relation to Article 237, both of the Implementing Rules and Regulations, implementing Sections 135 and 151, respectively, of the Local Government Code (LGC) of 1991, is quoted in part as follows: 'Article 224. Tax on Transfer of Real Property Ownership . (a) The province may impose a tax on the sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of not more than fifty percent (50%) of one percent (1%) of the total consideration involved in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The sale, transfer or other disposition of real property pursuant to R.A. 6657 shall be exempt from this tax. 'The fair market value as used herein shall be that reflected in the prevailing schedule of fair market values enacted by the sanggunian concerned. '(b) . . . . 'It shall be the duty of the seller, donor, transferor, executor or administrator to pay the tax herein imposed within sixty (60) days from the date of the execution of the deed or from the date of the property owner's death.' (Emphasis supplied) "Clear is the language of the law abovequoted and which needs no further interpretation that the seller/transferor of the subject condominium unit, in this case, First Global BYO Corporation (formerly Fort Palm Spring Condominium), shall be liable to pay the transfer tax within sixty (60) days from the date of the execution of the deed and not Mr. Hassan Naguib . "xxx xxx xxx." In view hereof, and considering that the condominium being referred to by Mr. Gould is the same condominium developer cited under our 1st Indorsement dated May 4, 2011, the instruction contained under our abovementioned Indorsement is hereby reiterated, that is, the First Global Byo Corporation should be liable to the payment of transfer tax. Advice of the action taken hereon is requested within ten (10) days from receipt hereof. DIECTc (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director