BIR Ruling No. 371-2020

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

Section 24D)1) of the NIRC of 1997,as amended BIR Ruling No. 351-2013 0-037102020 JUL 0 3 2020

Osmena Blvd., Cebu City CORDERO BAEL ACUNA & SEPULVEDA (CBASE)LAW OFFICES 3/F C.A.O Mercado Bldg.

Attention: ATTY. JOSE RAY T. BAEL

Gentlemen:

2017, requesting in behalf of your client, Sally May Mamites Lillejord,"for a BIR ruling payment of tax. exempting the reconveyance of a property by the Heirs of the late Prescilla O. Abines and Crisologo A. Abines in favor of Sally May Mamites Lillejord pursuant to the Order of the Regional Trial Court (RTC), Branch 62, Oslob, Cebu, in Civil Case No. OS-14-192, from the This refers to your letters dated January 15, 2016, August 2, 2016, and January 11.

Background:

Mamites Lilleiord became the owner of a parcel of land located at Thousand Nine Hundred Fifty-Nine By way of purchase from Spouses Arlinda A. Busmion and Cesar Busmion. Sally May known as Lot No. Cad ) square meters, more or less. Module 4, containing an area of Three

lot is a residential house owned by Sally May Mamites Lillejord. occupation and possession of Lot Since year 2003 and up to present, Sally May Mamites Lillejord has been in actual and religiously paid its real property taxes. On the said

late Prescilla O. Abines erroneously and inadvertently filed an Application for Free Patent for Office (CENRO) of the Department of Environment and Natural Resources (DENR) based in Argao, Cebu. The said application was approved per Order: Approval of Application and Issuance of Patent, issued by Community Environment and Natural Resources Officer Illuminado C. Lucas dated July 7, 1997. Lot No. Way back in the year 1997, however, unknown to Sally May Mamites Lillejord. the Cad Module with the Community Environment and Natural Resources

Canlamucad, Santander, Cebu. Prescilla O. Abines will show that the supporting Deed of Absolute Sale and Declaration of] Real Property of the parcel of land they sought to be titled pertain to a totally different lot in However, records of the application for free patent for Lot filed by the late

Crisologo A. Abines on June 17, 1998 covering Lot No. at Canlumacad, Santander, Cebu. December 2, 1997 requesting for the withdrawal or cancellation of her Free Patent Application No. Blg. . Cad To avoid controversy in the future and admitting that she is not the owner of Lot. No. was already issued in the name of the late spouses Priscilla O. Abines and .Nonetheless, the request came in late as the Katibayan ng Orihinal na Titulo Module 4, the late Priscilla O. Abines sent a letter to the CENRO dated Cad Module 4 located

AD

SALY MAY MAMITES LILLEJORD OT-0371-2020 JUL 0 3 2020

Mamites Lillejord and Heirs of Priscilla and Crisologo Abines entered into a compromise agreement wherein the latter admitted the true ownership of Sally May Mamites Lillejord over Abines, docketed as Civil Case No. the subject property. A case for Reconveyance was then filed against the Heirs of Priscilla and Crisologo In the pre-trial stage of the case, Sally May

Himalaloan issued a Judgment (on Compromise Agreement), wherein he ordered the Register of Deeds of the Province of Cebu to cancel the Katibayan ng Orihinal na Titulo Blg. Certificate of Title in the name of Sally May Mamites Lillejord. in the name of Spouses Priscilla O. Abines and Crisologo A. Abines and issue a Transfer Upon signing of the Compromise Agreement, Judge James Stewart Ramon E.

involving the subject parcel of land in favor of Sally May Mamites Lillejord. Hence, this request. Thus, the heirs of Priscilla and Crisologo Abines executed a Deed of Reconveyance

order to return the property to the legal owner, the transfer of Katibayan ng Orihinal na Titulo (CGT) imposed under Section 24 (D) (1) of the National Internal Revenue Code of 1997, as subject to the P15.00' DST on the notarial acknowledgement as imposed under Section 188 of pursuance to the Decision of the RTC is without consideration and the reconveyance was in amended. Likewise, the Deed of Reconveyance is not subject to the documentary stamp (DST) imposed under Section 196 of the National Internal Revenue Code of 1997, as amended, but is Blg. the same Code. In reply, please be informed that since the reconveyance of the subject property in in favor of Sally May Mamites Lillejord is not subject to the capital gains tax

Very truly yours.

Axiarta

K-1-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 035466

Old DST rate is used since the Deed of Reconveyance was executed prior to the effectivity of Republic Act (RA) No. 10963 (TRAIN Law).

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