Transitional Procedures Guide for Processing Capital Gains Tax Returns

August 5, 1996 REVENUE MEMORANDUM ORDER NO. 22-96 TO : All Revenue Officials and Others Concerned SUBJECT : Transitional Procedures Guide for Processing Capital Gains Tax Returns A . Purpose The purpose of this Revenue Memorandum Order is to provide transitional guidelines for processing capital gains tax returns and issuance of capital gains clearance certificate (or TCL2 previously referred to as Certificate Authorizing Registration the procedures for which are not prescribed in the Manual Procedures Guides. B . Procedure The following procedures are hereby prescribed for processing capital gains tax and issuance of the corresponding tax clearance: Scenario 1 . If the taxpayer is registered with and the property is located in the same Pilot District, Pilot RDO issues the TCL2 (Tax Clearance Certificate). Scenario 2 . If the taxpayer is registered in one Pilot RDO and the property is located in another Pilot RDO, the Pilot RDO where the property is located issues the TCL2. Scenario 3 . If the taxpayer is registered with a non-pilot RDO and the property if located in the Pilot RDO: In the Pilot RDO : 1. Convert taxpayer's record to ITS. 2. Register address with non-pilot RDO and Pilot. Tag pilot address as "R". 3. Register capital gains tax and documentary stamp tax only as the taxpayer's tax types. 4. Instruct to proceed to his AAB to file his capital gains tax returns, together with required attachments, and pay the capital gains tax documentary stamp taxes. 5. Process/issue TCL2. 6. Advise the taxpayer to continue transacting official business with his non-pilot RDO using his mold TIN. In the non-pilot RDO During conversion of the non-pilot RDO, update his record which will include registration of tax types, non-pilot address will be tagged as "R" (registered) and the records with the pilot district will be uploaded at the National Office then downloaded to the respective RDC. Scenario 4 . If the property is located in a non-Pilot RDO and the taxpayer is registered with a pilot RDO, the non-pilot RDO where the property is located issues CAR. Scenario 5 . If the taxpayer is registered with a non-pilot RDO and the property is located in a non-pilot RDO, the non-Pilot RDO (where the property is located) issues the CAR. If, any of Scenarios 1, 2 and 3, the buyer of the property has an invalid TIN, register him as new taxpayer with miscellaneous tax type in pilot-RDO where the property is located. Tag pilot RDO address as "R". C. Effectivity This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner