BIR Ruling No. 354-2022

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Tax Code of 1997 as amended; RMC Sec. 205(a) of the No. 41-2019 O-S 000-00 354: 2 02 2 Person to'Contact: Chief, Law & Legislative Division Tel. Nos. 926-55-36/927-09-63

Date:_JUL 2 6 2022

MIMOSA E. LOPEZ

Madam:

previous owner. and Declaration of Forfeitur:of Real Proper:n Transfer (rtificate of Title (TCT) No. This refers to your request for the liftinof the Notic e of Tax Lien, Notice of Levy . which were annot :..:His Bureau, purposely to secure the tax liability of the

agreed upon that Mr. Herrera would be the one to facili. te the transf. ing -.f the said TCT in your name. TCT No. sq. m.) parcel of land from Mr. :. . . Based from the documents :mitted.u bought a I 'iv:+undre:: :;quare Meter (500 which is located in G I.. on Aus T.He. I nes. ' (Mr. Heire: 5, 2004 he lar: is res:istered under MiguBul.in. J: was verbally for a c .nsideration of

the said parcel of land purportedly to lessen the amount of capital gains t (CGT) and documentary stamp tax (DST). Without your knowledge, Mr. Herrera executed a subsci" ent dee.-f s solute sale on

Tax Lien, date of inscription -- May 3, 2005; Notice of Levy, date of inscri n -- March 17, 2006; Declaration of Forfeiture of Real Property, date of inscription Bulacan in your name but with annotations of the following encumbratices, v. 2006 On October 9, 2006, TCT No. T- Was issued by the Pegist y : October 10. "Notice of Deeda ..

secure the Certificate Authorizing Registration (CAR), the Deed oi documents, you likewise discovered the fictitious deed of sale Mr. He -- -ra ! .d executed in order to lessen the amount of taxes he should had p. 1. learned of the tax liabilities of Mr. Herrera. You were then requested documents Mr. Herrera had submitted to the Registry of Deeds. Afte"o. You then inquired before the Bureau of Internal Revenue about : il: and other ining the said the Bureau to t otations and

Mimosa E. Lopez QT=354-20Z2 JUL 2 6 2022

Viz: Code (Tax Code) of 1997, as amended provides fo1 civil remedies for collection of taxes, transaction throuoh Imnroved Voluntary Assessment Program (IVAP) by paying In reply, please be informed that Section 205(a) of the National Internal Revenue Consequently, you assumed the payment of the deficiency taxes on the subiect (P( ) representing CGT and DST deficiency. (8 I and

charges, and any increment thereto resulting from delinquency shall be: civil remedies for the collection of internal revenue taxes, fees, or "SEC. 205. Remedies for the Collection of Delinquent Taxes. -- The

rights to real property; (Emphasis supplied) personal property, and by levy upon real property and interest in or securities, debts, credits, bank accounts, and interest in and rights to property of whatever character, including stocks and other (a) By distraint of goods, chattels, or effects, and other personal

registered owner. Property are encumbrances in favor of the government securing the tax liability of the The Notice of Tax Lien, Notice of Levy and the Declaration of Forfeiture of Real XXX XX XXx *

parted with his ownership thereof. cannot be made applicable to cases when : ownership in a particular property con: However, the encumbra: "p, effec. -vith the delinquent taxpayer. The tax lien/levy t:nquent taxpay only to cases wherein the right of ad sold the property and

June 4, 2019 provides that: Moreover Section 3.1(i) of Revenue Memorandum -ter (RMO) No 4 : -2019 dated

"III. GENERAL PROVISIONS

following instances: 3.1 The issue Warrant of Garntshment (W@), Notice of 7T Lien (NTL), Notice of Tax Levy (NOL), and Notice "of Encumbrance (NOE) may be extinguished under any of the

XXX xxxXxx i. The seized property is no longer owned by the delinquent taxpayer due to disposal prior to its seizure/lien/issuance of NOE.

XXX XXX XXX

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OTE' 3 5 4 - 2 0 2 2 Mimosa E. Lopez JUL 2 6 202

Accordingly, the Registry of Deeds is given authority to lift the said encumbrances in your favor. encumbrances, the annotations therefore in your title are void and without any legal effect. Since Mr. Herrera had sold the subject property to you prior to the inscription of the

However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours,

- K- Commissioner of Internal Revenue LILIA.CATRIS GUILLERMO halGui 000T76

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