Scribd Logo
Upload

Welcome to Scribd!

  • BIR Ruling 479-11

    Uploaded by

    RB Balanay
    138 views2 pages
    The Bureau of Internal Revenue (BIR) denied a request from Aguirre Pawnshop Company, Inc. (APC) for a Certificate Authorizing Registration to transfer land and improvements to shareholder Marmitz, Inc. (MI) as a liquidating dividend. APC argued that under BIR Ruling No. 039-02, it would not owe income tax on the transfer and MI would realize a capital gain or loss. However, the BIR Commissioner ruled that the request could not be granted due to lack of legal basis in the National Internal Revenue Code. BIR Ruling No. 039-02 cited in the request was also reversed and set aside.

    Original Description:

    bir ruling

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Bureau of Internal Revenue (BIR) denied a request from Aguirre Pawnshop Company, Inc. (APC) for a Certificate Authorizing Registration to transfer land and improvements to shareholder Marmitz, Inc. (MI) as a liquidating dividend. APC argued that under BIR Ruling No. 039-02, it would not owe income tax on the transfer and MI would realize a capital gain or loss. However, the BIR Commissioner ruled that the request could not be granted due to lack of legal basis in the National Internal Revenue Code. BIR Ruling No. 039-02 cited in the request was also reversed and set aside.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    138 views2 pages

    BIR Ruling 479-11

    Uploaded by

    RB Balanay
    The Bureau of Internal Revenue (BIR) denied a request from Aguirre Pawnshop Company, Inc. (APC) for a Certificate Authorizing Registration to transfer land and improvements to shareholder Marmitz, Inc. (MI) as a liquidating dividend. APC argued that under BIR Ruling No. 039-02, it would not owe income tax on the transfer and MI would realize a capital gain or loss. However, the BIR Commissioner ruled that the request could not be granted due to lack of legal basis in the National Internal Revenue Code. BIR Ruling No. 039-02 cited in the request was also reversed and set aside.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    December 5, 2011

    BIR RULING NO. 479-11


    000-00
    Aguirre Pawnshop Company, Inc.
    135 Dela Rosa St., Legaspi Village
    Makati City
    Attention: Michelina A. Olondriz
    Director/Trustee
    Gentlemen :
    This refers to your letter dated 18 August 2010 requesting for the issuance
    of a Certificate Authorizing Registration to allow for the transfer and registration
    of a parcel of land in the City of Manila with Transfer Certificate of Title No.
    46557, together with the improvements thereon from your corporation to
    shareholder Marmitz, Inc. (MI).
    It is represented that Aguirre Pawnshop Co. (APC), with Tax Identification
    Number 000-431-934, is a corporation duly registered with the Securities and
    Exchange Corporation on 15 December 1956; that on 14 December 2006, the
    corporate term of APC expired and accordingly, APC ceased to exist as a
    corporate entity and was dissolved ipso facto; that on 1 December 2009 a majority
    of the members of the Board of Directors of APC in their capacity as Trustees of
    the corporate assets, approved and adopted a resolution ordering the distribution of
    the remaining assets of APC to its stockholders by way of liquidating dividend.
    It is requested that a confirmation of your opinion be made as to the
    following issues: (1) APC is not liable for income tax either on its transfer of the
    properties to MI as liquidating dividend or in its receipt of the surrendered shares
    of MI, citing BIR Ruling No. 039-02 dated 11 November 2002; (2) No
    documentary stamp tax (DST) is due on the surrender and cancellation of APC
    shares; (3) No DST is due on the transfer of the properties from APC to MI; (4) MI
    shall realize capital gain or loss from the transfer of properties by way of
    liquidating dividends.
    In reply, please be informed that it is the position of this Office that your
    request cannot be granted for lack of legal basis under the National Internal
    Copyright 2014

    CD Technologies Asia, Inc. and Accesslaw, Inc.

    Philippine Taxation Encyclopedia 2013

    Revenue Code of 1997, as amended. Consequently, the previously issued BIR


    Ruling No. 039-02 cited in your letter and the BIR Rulings cited in the said ruling
    are reversed and set aside.
    ACTIHa

    Very truly yours,

    (SGD.) KIM S. JACINTO-HENARES


    Commissioner of Internal Revenue

    Copyright 2014

    CD Technologies Asia, Inc. and Accesslaw, Inc.

    Philippine Taxation Encyclopedia 2013

    You might also like