Bureau of Local Government Finance Opinion

May 11, 2010 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Atty. Eligio P. Mallari Penthouse E, Vernida I 120 Amorsolo St., Legaspi Village Makati City Sir : This refers to your letter dated April 28, 2010, with reference to your request for an order/directive ordering/directing the OIC-City Treasurer of San Fernando City (Pampanga) to accept the payment of the transfer taxes amounting to P55,211.67 involved in two (2) lots Lot Nos. 3664 and 3834 of the San Fernando Cadastre, Pampanga, covered by TCT Nos. 15416-R and 154515-R of the Registry of Deeds of Pampanga. The above request was prompted by the submission that the Certificate Authorizing the Registration of said lots had long been issued by the Bureau of Internal Revenue (BIR) of San Fernando City thus, it is requested that the issue be acted upon and given due course. Please be informed that Director OSCAR H. MICLA, Bureau of Local Government Finance, Region III, San Fernando City, submitted a query to this Office bearing on the same issue under an indorsement dated March 26, 2010 relative to the request of Ms. MARY ANN P. BAUTISTA, ICO-City Treasurer, same city, seeking an opinion on the propriety of accommodation of transfer tax payment when there is no final deed of absolute sale on real properties. Attached for your information and guidance is a copy of our 2nd Indorsement addressed to Director Micla, the dispositive portions of which quoted as follows: "Moreover, it may be argued that in the said Order of March 2, 2010, there was no express or explicit order directing the ICO-City Treasurer of San Fernando to accept the payment of transfer tax for properties subject of the Court proceedings, however, we reiterate our view that the Order is final and executor and unless the defendant-bank can secure a temporary restraining order (TRO) or a writ of preliminary injunction from the Court, the ICO-City Treasurer of San Fernando has no other recourse but to accept the payment offered by Atty. Mallari covered by BPI Manager's Check No. 04591 dated 10 March 2010 amounting to P55,211.67 for the transfer tax due on the properties, Lot Nos. 3664 and 3843 of the San Fernando Cadastre, Pampanga, covered by T.C.T. Nos. 154516-R and 154515-R of the Registry of Deeds of Pampanga, without prejudice to any adjustment on the amount of transfer tax paid in case the total consideration stipulated in the Court Order will be found out later to be insufficient. IDcAHT Viewed in the light of all the foregoing, this Bureau therefore directs the ICO-City Treasurer of San Fernando City (Pampanga) to accept the payment being offered by Atty. Mallari amounting to P55,211.67 for the transfer tax due on the properties, Lot Nos. 3664 and 3843 of the San Fernando Cadastre, Pampanga, covered by T.C.T. Nos. 154516-R and 154515-R of the Registry of Deeds of Pampanga." We hope that this will help clarify matters. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director