Commissioner of Internal Revenue versus

Jerry Ocier G.R. No. 197192, June 4, 2014

First Division, Bersamin, J.

Facts: Jerry Ocier received an assessment notice from the Bureau of Internal
Revenue (BIR) showing deficiencies in the Capital Gains Tax (CGT) and
Documentary Stamp Taxes (DST). Such arose from his sale of shares of stock
of Best World Resources Corporation (BW Resources) thru over the counter
transactions. He was served notices of assessment, to which he filed a
protest, this denied by BIR, he was given notice of preliminary collection of
deficiency assessments.

Issue(s): Whether the cancellation of Assessment Notices of Deficiency was

proper.

Decision: No. The CGT is imposed on the net capital gains realized during
the taxable year from the sale, barter, exchange or other disposition of shares
of stock in a domestic corporation, except shares sold, or disposed of through
the stock exchange. The term disposition, being neither defined nor qualified
in Section 24(C), is accorded its ordinary meaning, that is, any act of
disposing, transferring to the care or possession of another, or the parting
with, alienation of, or giving up of property. With Ocier himself not disputing
(but actually admitting) the transfer of the 4.9 million shares of BW Resources
to Tan, such manner of disposition of the shares was definitely within the
contemplation of Section 24(C) of the NIRC.