Measures Governing Disposition of Private Lands Owned by Caltex (Philippines) Inc.
Letter of Instructions No. 277, issued on May 9, 1975, directs the Secretary of Finance and the Board of Investments to facilitate the land transactions of Caltex (Philippines) Inc. following the termination of the Laurel-Langley Agreement. It confirms that the exchange of lands for shares with the National Development Company complies with tax provisions, thus exempting any capital gains from taxation. The letter also mandates the Board of Investments to approve Caltex's investment in the Batangas Land Company, which is not registered under the Investment Incentives Act. Similar land transactions by other U.S. citizens will be treated in the same manner. Compliance with these directives is required immediately.
May 9, 1975
LETTER OF INSTRUCTIONS NO. 277
| TO | : | The Secretary of Finance |
| Department of Finance | ||
| The Chairman | ||
| The Board of Governors | ||
| Board of Investments |
Gentlemen:
In order to facilitate the disposition of private lands owned by Caltex (Philippines) Inc. and affected by the termination of the Laurel-Langley Agreement, you are hereby directed to undertake the following actions and issue orders/rulings therefor:
1. to confirm in an appropriate ruling that the simultaneous exchange by Caltex (Philippines) Inc. and the National Development Company of their lands for shares of stock in the Batangas Land Company, a realty corporation, is a transaction that fully complies with the provisions of Section 35 (c) (2) of the National Internal Revenue Code as amended by R.A. No. 4522 and therefore, any capital gains arising therefrom shall not be recognized and subjected to tax.
2. the immediate approval by the Board of Investments, pursuant to Republic Act No. 5455, as amended, of the investment by Caltex (Philippines) Inc., a non-Philippine national, in the Batangas Land Company, a realty company not registered under the Investment Incentives Act.
3. the issuance by the Board of Investments to Batangas Land Company of the written certificate as provided in Section 4 of Republic Act No. 5455, as amended.
Dispositions of private lands in the Philippines by other citizens of the United States similar to the mode adopted by Caltex (Philippines) Inc. shall be treated in the same manner as described above.
For immediate compliance.
Manila, May 9, 1975