Invoicing requirement for zero-rated sale of service

A taxpayer whose claim for refund or issuance of tax credit is based on the existence of zero-rated sales must comply with the invoicing requirements on the documents supporting the sale of goods and services.

Under Section 113 of the Tax Code, a VAT-registered taxpayer is required to issue a VAT invoice for every sale, barter or exchange of goods or properties, while a VAT official receipt must be issued for every lease of goods or properties and for every sale, barter or exchange of services.

To prove compliance with substantiation and invoicing requirements, the taxpayer refund claimant presented the intercompany invoices it issued to its foreign affiliate clients. However, considering that the taxpayer is engaged in the sale of services, its transactions should be properly supported by VAT official receipts as required under Section 113 of the Tax Code.

The CTA held that the invoicing requirement is mandatory in nature and, consequently, for failure to present the proper documents to prove the existence of its zero-rated sales, its claim for refund of its unutilized or excess of input taxes on its alleged zero-rated sales was denied.

(Galileo Asia, LLC-Philippines v. Commissioner of Internal Revenue, CTA Case No. 8134, August 22, 2012)

Tax Brief – September 2012

Punongbayan and Araullo

Proof of doing business outside the Philippines

For the supply of services to a foreign corporation to qualify for zero-percent VAT under Section 108(B) of the Tax Code, the VAT-registered taxpayer that performed the service/s must prove that:

(a) the service is other than processing, manufacturing or repacking of goods; (b) payment for such services is in acceptable foreign currency accounted for in accordance with the Bangko Sentral ng Pilipinas (BSP) rules and regulations; and (c) recipient of such services is doing business outside the Philippines.

In order to establish that the foreign corporation is doing business outside the Philippines, the taxpayer-refund claimant presented the official receipts issued to its foreign clients, intercompany payment request, billing statements, memo invoices-receivable, memo-invoices payable, and bank statements. According to the Court of Tax Appeals (CTA), the evidence presented by the taxpayer merely substantiated the existence of sales, receipts of foreign currency payments, and inward remittance proceeds of the sales duly accounted for in accordance with the BSP rules. The documents failed to prove the fact that the foreign clients to whom the taxpayers rendered its services were clients doing business outside the Philippines.

For failure to establish that its clients are doing business outside the Philippines, the taxpayer cannot claim its sale of service as VAT zero-rated; hence, its claim for refund of its excess input VAT was denied.

(Accenture, Inc. v. Commissioner of Internal Revenue, GR 190102, July 11, 2012)

Tax Brief – September 2012

Punongbayan and Araullo

VAT audit program for Large Taxpayers

The BIR prescribed the following policies and guidelines on the audit/investigation of VAT returns of large taxpayers.

Coverage

For purposes of the audit and investigation of VAT returns of taxpayers under jurisdiction of the Large Taxpayers Service (LTS), such taxpayers shall be classified into two categories, as follows:

1. High-risk taxpayers - These include large taxpayers with characteristics or risk factors resulting in underreporting or non-remittance of VAT collections. This group includes the following taxpayers:

a. Taxpayers with significant increase in exempt or zero-rated sales

b. Taxpayers with VAT returns that reflect substantial input taxes and those with a history of declaring excess input tax carry overc. Taxpayers with history of declaring excess input tax carry over

2. Medium-risk taxpayers - These are large taxpayers with business issues, complex structures, or those applying for changes in tax status or business registration. This group includes:

a. taxpayers with complex corporate structures, including mergers/consolidations/split-up or down/spin-offs and other types of corporate reorganizations

b. taxpayers with application for cessation/retirement of business

c. taxpayers with multiple branches/outlets all over the Philippines but reported low sales

d. taxpayers with sale or transfer of business

e. taxpayers with multiple lines of business with different basis for computation of VAT liabilities

Audit policies and procedures

A VAT Audit Team composed of two VAT audit Team Heads and five audit groups shall be created to investigate the VAT returns of LTS and prepare the list of taxpayers that will be recommended for audit based on the VAT audit selection criteria for large taxpayers.

The VAT audit team shall recommend the issuance of one Letter of Authority (LA) by the BIR for each taxable quarter or semester. In case an electronic LA (eLA) has already been issued under the VAT audit program and the taxpayer becomes concerned division based on the selection criteria under the annual audit program, the request for eLA shall not include the VAT liability of the taxpayer.

On the other hand, if the taxpayer has already been issued an eLA for all internal revenue taxes for a particular period and significant findings on VAT were uncovered, the findings should be communicated to the VAT Audit Team for possible risk identification in the current period under audit.

In the audit of VAT returns, the basic audit procedures prescribed in Revenue Audit Memorandum Order (RAMO) 1-99 shall be observed. Assignment of cases shall be done by the VAT Audit Team Heads for their respective groups/members in accordance with existing regulations, with the initial workload of each revenue officer (RO) under the program at 20 cases subject to replenishment after every submission of report/s of investigation of closed case/s. The issuance of a Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN) for deficiency VAT liability as a result of the audit shall be in accordance with existing rules and regulations/issuances.

The group supervisors of VAT Audit Teams shall submit Monthly Report of All Cases Acted Upon and Pending Cases to their VAT Audit Team Heads, who will submit Consolidated Monthly Reports to the Associate Commissioner of Internal Revenue (ACIR), LTS. The ACIR-LTS, in turn, shall submit to the Management Committee a quarterly report on the results of audit with the appropriate recommended action/s.

(Revenue Memorandum Order No. 19-2012, August 31, 2012)

Tax Brief – September 2012

Punongbayan and Araullo

Irrevocability rule applies only on the option to carry over

Under Section 76 of the Tax Code, a corporate taxpayer whose total excess quarterly income tax payments in a given taxable year exceeds its total income tax due is given two options: first, to carry-over such excess credits and, second, to claim for a refund of the same or issuance of a tax credit in the amount of the excess credit. Once the option to carry over and apply the excess tax credit against income tax due for the succeeding taxable years has been made, such option shall be considered irrevocable for that taxable period and no application for cash refund or issuance of TCC shall be allowed.

The CTA maintained that the irrevocability rule under Section 76 of the Tax Code applies only to the option to carry over the excess income tax, and not to the claim for refund or issuance of TCC. Thus, based on this interpretation, a taxpayer who initially opted to claim for refund or issuance of its unutilized tax credits in its income tax return may amend its return and change its option to carry over its excess tax credit. However, once the option to carry over excess income tax is made, it shall become irrevocable.

The CTA explained that the Supreme Court (SC) ruling in the case of Commissioner of Internal Revenue v. McGeorge Food Industries, Inc. (GR 174157, October 20, 2010) where the irrevocability rule was applied to both the option to carry over and the option to refund, being an obiter dictum, i.e., said in passing, should not be given weight. It held that in the long line of cases promulgated after the McGeorge Case, the SC has consistently held that the irrevocability rule applies solely to the option to carry over. Hence, such ruling in the more recent decisions is reflective of the SC’s sentiments regarding the issue.

Applying this rule in the instant case, although the taxpayer made the initial choice to claim a refund of its excess creditable tax payments when it marked the option to be issued a TCC in its first and second amended income tax returns, its choice was negated when it actually exercised its option to carry over its excess credits in the subsequent quarters.

Considering that the taxpayer actually carried over its excess tax credit, it can no longer turn back on its later choice and revert to its first option, i.e., to claim for refund of its excess tax credit following the irrevocability rule under Section 76 of the Tax Code.

(United Coconut Planters Bank v. Commissioner of Internal Revenue, CTA EB Case No. 725, August 23, 2012)

Tax Brief – September 2012

Punongbayan and Araullo

Reckoning of two-year period for VAT refund due to cancellation of business

In the case of claims for refund of unutilized VAT on account of cessation of business, the two-year period shall commence from the date of cancellation of registration of the taxpayer, and not from the close of the taxable quarter when the sales were made.

Under Section 112(B) of the Tax Code, a taxpayer whose registration has been cancelled due to, among others, cessation of business, may, within two years from the date of cancellation of its registration, apply for the issuance of TCC for any unused input tax, which may be used to pay for other internal revenue taxes. Where the taxpayer has no internal revenue tax liabilities, it shall be entitled to refund in accordance with Section 204 of the Tax Code.

As provided under Section 236(F)(1) and (2) of the Tax Code, as amended, the registration of a taxpayer who ceases to be liable to a tax type shall be cancelled upon filing with the RDO where he is registered, an Application for Registration Information Update (BIR Form 1905), while the cancellation of the taxpayer’s registration will be effective from the first day of the following month

In the instant case, the taxpayer-refund claimant filed its Application for Registration Information Update (BIR Form 1905) on July 1, 2008 with the BIR. Accordingly, the cancellation of the taxpayer’s registration as a VAT-registered taxpayer took effect on the first day of the following month, which fell on August 1, 2008. However, considering that the taxpayer filed its administrative claim for refund as early as July 7, 2008, its claim for refund was deemed premature considering that the two-year  prescriptive period had yet to commence on August 1, 2008, the date of effectivity of the cancellation of its registration.

(Associated Swedish Steels Phils., Inc., v. Commissioner of Internal Revenue, CTA EB 854, re CTA Case No. 7850, August 23, 2012)

Tax Brief - September 2012

Punongbayan and Araullo

Clarifications on the tax privileges of senior citizens

This Circular was issued to clarify the issues commonly asked by senior citizens and business establishments regarding the implementation of tax privileges of senior citizens under Republic Act No. (RA) 9994, otherwise known as the Expanded Senior Citizens Act of 2010.

The highlights of some of the issues and clarifications discussed in the Circular are s follows:

On the coverage of 20% discount to senior citizens

1. If a group composed of senior citizens and non-seniors dines in a restaurant, the 20% discount and exemption from value-added tax (VAT) shall be computed as follows:

Total billings (exclusive of VAT)/ No. of customers less 12% VAT x 20% = senior citizen discount

The formula will apply if no “individualized” food item can be ordered or if the transaction with the senior citizen is not processed

separately.

2. Condiments and side products purchased by senior citizens from restaurants are covered by the senior citizen discount and VAT exemption.

3. The discount granted to senior citizens should not be less than 20%. No fixed, maximum amount or cap that will limit the discount below the rate of 20% may be granted to senior citizens. The 20% discount shall be given to goods purchased by senior citizens based on the selling price exclusive of VAT.

4. The 20% discount and VAT exemption shall apply to set meals limited to single service meal with beverage. In case the set meal is not limited to a single-serving meal and is shared with non-senior citizens, the value of the food purchase attributable to the senior citizen may be computed in accordance with the above formula.

5. The 20% discount shall apply to dine-in, take-out and take-home orders (excluding bulk orders) as long as it is the senior citizen himself/herself who is present and personally ordering and can show a valid senior citizen ID card.

6. For a group of diners composed of senior citizens ordering group meals or food items for sharing, each senior citizen with valid senior citizen’s ID is entitled to the 20% discount and VAT exemption. In case not all senior citizens have valid senior citizen’s ID, the value of food purchase attributable to senior citizens with senior citizen’s ID card shall be computed in accordance with the above formula. Bulk orders or pre-contracted or pre-arranged group meals or packages including set orders primarily marketed for children are not entitled to 20% discount and VAT exemption.

7. Pasalubong food items that are single-serving/solo meal for the personal and exclusive consumption of senior citizens are entitled to the 20% discount and VAT exemption. However, other pasalubong food items (e.g., box of biscocho, bottles or jars of ginamos, etc.) not for personal use and exclusive consumption of senior citizens are not entitled to 20% discount.

8. Called-in or phoned-in orders are entitled to 20% discount and VAT exemption subject to condition that the senior citizen ID card number must be given while making the order over the telephone and presented upon delivery for verification. In case of called-in or phoned-in orders of group meals, the food establishment must determine the number of senior citizens in the group and the 20% discount shall be computed based on the value of the food attributable to the qualified senior citizens.

9. Purchase of cigars and cigarettes is not entitled to 20% discount. Alcoholic beverages are not subject to 20% discount and VAT exemption if purchased in bulk, in buckets or in cases. However, if served as a single serving drink, its purchase by the senior citizen is entitled to 20% discount and VAT exemption.

10.The exemption of senior citizens does not cover other indirect taxes. Thus, in case of business establishments that are not subject to VAT but to percentage tax, they are not exempt from paying the percentage tax on their purchase of goods or services, which are otherwise exempt from VAT. In such a case, the discount must be on the total cost of the goods or services charged by the seller of the tax.

On entitlement to 5% special discount of senior citizens on their purchase of prime commodities and basic necessities

Senior citizens’ purchases of basic necessities and prime commodities for their personal and exclusive consumption and/or enjoyment are entitled to 5% discount subject to the P1,300 maximum purchase per week. The 5% special discount covers powdered, liquid, bar laundry and detergent soap but excludes toiletries such as toothpaste, bath soap and tissue paper.

On the tax treatment of senior citizen’s discount and VAT exemption by establishments

Establishments using point-of-sale/cash register machine (POS/CRM) are not required to apply for new accreditation if the system will be changed to comply with the Bureau of Internal Revenue (BIR) requirements on the grant of 20% discount and VAT exemption of senior citizens.

In the machine tape to be generated by the POS or CRM, the exempt sale to senior citizens should be segregated from the taxable sale. If the POS or CRM is incapable of segregation, they should be re-programmed to comply with the requirement. In the meantime, a manual invoice/receipt shall be issued. The seller of qualified goods or services may opt to issue a separate invoice/receipt on its sale to senior citizens. The separate invoice/ receipt will reflect the amount of discount and the total amount payable.

The word “VAT Exempt Sale” must be written or printed prominently on the face of the invoice/receipt. If the merchandise/service sold under a single transaction comprises of a sale to a senior citizen and a sale to a non-senior citizen, the seller may issue one invoice/receipt for the entire transaction providing for a proper breakdown of the exempt sale and the taxable sale. The invoice must properly reflect the discount on the exempt sale. The VAT due on the taxable sale must be separately billed in the invoice/receipt.

The income statement of the seller must reflect the discount not as a reduction of sales to arrive at net sales, but as a deduction from its gross income. Thus, the 20% senior citizen discount shall be treated as a necessary and ordinary expense duly deductible from the gross income, provided that the seller does not opt for optional standard deduction during the taxable quarter/year.

As a VAT-exempt transaction, the input tax attributable to the exempt sale to senior citizens shall not be allowed as an input tax credit but must be treated as a cost or an expense account by the seller.

Moreover, the business establishment giving sales discounts to qualified senior citizens is required to keep a separate and accurate record of sales, which shall include the name of the senior citizen-purchaser, Office of Senior Citizens (OSCA) ID, gross sales/receipts, sales discounts granted, dates of transactions and invoice/OR number for every sale transaction to senior citizens.

(Revenue Memorandum Circular No. 38-2012, August 3, 2012)

Tax Brief - September 2012

Punongbayan and Araullo

How to Solve your Personal Problems through Prayer

“Call upon me in the day of trouble: I will deliver thee, and thou shalt glorify me.” (Psalm 50:15)

God always has a way out of your personal problem.  And if there’s no way, God can make a way.  And God’s way are better than the best plan of the wisest men.

For “the foolishness of God is wiser than men.”

A worried woman was facing a legal problem.  One of her relatives was contesting a Will, and her relative was lying.

Having learned that worrying would only make the problem worse, she turned over her problem to God.  She daily prayed.

After a few days, her relative dropped the case.

“I sought the Lord, and He heard me, and delivered me from all my fears.”  So it was said.

No matter what your problem is, God can help you solve it.  Pray for God’s Wisdom, guidance, and help.  Even for seemingly simple things.

A medical doctor wanted an information for the book he was writing.  But, he didn’t know where to find the data.

He prayed, affirming, “God knows the answer and gives me the information I need.”

That night, he dreamt himself in a downtown bookstore.

When he woke up the following morning, he went to that bookstore and found the information he wanted in the first book he laid his hands on!

How can you explain that?  Truly, God’s ways are wondrous.  And God never fails.  For God knows the answer to all questions, the solution to all problems.

A woman’s former friend was spreading gossips about her with the intention of having her lose her job.

Instead of getting emotionally upset and hating her oldtime friend, she prayed and let God handle her problem, affirming:

“God’s Love is at work in this situation.  And all is well.”

A few days later, the gossip stopped, and her former friend even sent her a gift!

God can really work out perfect solutions, sometimes even without lifting a finger.

1.      STOP THINKING AND WORRYING ABOUT YOUR PROBLEM.

The more you worry about your problem, the worse it will become, for you multiply in your experience that which you often give your attention to.

2.      THINK AND SEE THE PERFECT SOLUTION.

See in your imagination the perfect solution to your problem, not the problem.  Think of what you want to happen, not what you don’t like.

3.      PRAY AND BLESS YOUR PROBLEM.

Affirm this prayer several times each day, as you visualize or imagine your problem solved.

“GOD IS NOW TAKING CARE OF THIS PROBLEM, MAKING ALL THINGS RIGHT.  I BLESS THIS SITUATION AND EVERYONE INVOLVED.  GOD IS IN CONTROL.  AND THE PERFECT SOLUTION NOW APPEARS IN DIVINE ORDER.  I THANK GOD – IN JESUS CHRIST’S NAME.”

20 Ways to Use the Power of Prayer for Love, Health, Happiness, Good Luck, Protection, Success and Wealth

By Rodolfo C. Torres

How to Attract Good Luck through Prayer

One man tells this story:

When I was about 4 years old, my father often asked me to point at some numbers on the calendar.

And frequently, there was much rejoicing sometime later.

“You won! You won! I would hear members of the family told me.  I didn’t know what it was, but I often saw them counting money during such occasions.

When I grew a little older, 5 or 6 years old, my mother used to take me to the carnival, and she would ask me to give one number.

She would then give some money to someone and get a piece of paper containing the number I said.  Then dices were rolled and small wooden figures of horses were moved forward.  I was told then that the game was called “jumping horse.”

When one of the wooden horse reached the end of a board, somebody would get some prizes, like plates, glasses, and other kitchen utensils.

Again and again, my mother would shout nervously but with joy waving her winning ticket.  We usually brought home one or two big boxes containing the prizes we won.

These were repeated again and again in other carnivals in other towns, especially during town fiestas.

A father said in his letter that his son had been asking him for a bicycle.  But, he couldn’t afford it then.

Never mind, just wait and you will have a motor bike instead,” he told hi son.

He prayed and two weeks later, he won a motor bike in a raffle.

But, good luck isn’t only in winning games like that.  Good luck can be other blessings in life that come through honest efforts and divine grace.

And I believe that the secret of good luck is contained in the Holy Bible which says:

“Blessed is the man who trusts in the Lord, and whose hope the Lord is.” (Jeremiah 17:7)

“For the man who trusts in the Lord “shall not what any good thing.” (Psalm 34:10)

“And whatsoever he does shall prosper.” (Psalm 1:3)

For as the Holy Bible says, “All things work for good to them that love God.”

You can be one of the luckiest person on earth through prayer.

One man prayed and, in spite of his poverty, he claimed the riches of God for himself and others.

Things began to happen, He became so wealthy he even bought two private planes!

Here’s how you can pray and attract good luck:

1.      Affirm this prayer several times a day, especially before you sleep at night and when you wake up in the morning:

EACH DAY GOD IS PROSPERING ME IN ALL MY WAYS AND IN ALL AREAS OF MY LIFE.  AND EVERY OTHER MAN IS BLESSED AND PROSPERED IN DIVINE ORDER.  MIRACLES NOW FOLLOW MIRACLES, GOD’S BLESSINGS NOW APPEAR AND MANIFEST CEASELESSLY AND WITHOUT END.  I EXPECT ONLY THE BEST AND ONLY THE BEST COME TO ME UNDER GRACE.  I THANK GOD THAT THIS IS SO IN JESUS CHRIST’S NAME.

2.      Imagine God’s blessings raining into your life, more than you can hold and contain.  And imagine yourself sharing them with your loved ones, friends, and other needy persons.

20 Ways to Use the Power of Prayer for Love, Health, Happiness, Good Luck, Protection, Success and Wealth

By Rodolfo C. Torres

Effective Transfer of Ownership

Ang mag asawang Mang Felimon at Aling Marta ay nagkaroon ng sampu anak sa kanilang pagsasama bilang mag asawa noong sila’y nabubuhay pa, limang babae at limang lalake at may pag aari sila mag asawa ng lupa na pang sakahan na may kabuang sukat na humigit kumulang 1.5 ektarya noong sila ay nabubuhay pa.

Si Aling Marta ay namatay noong 1996 Samantalang si Mang Felimon ay namatay noong 2011 lamang at naiwan sa mga anak nila ang lupa na 1.5 ektarya na pang sakahan.

Si Mang Casio ay nakababatang kapatid ni Mang Felimon na bumili ng lupa na pang sakahan kay Mang Felimon.

Si Mang Felimon ay hindi pumirma sa Deed of Sale at ang mga anak niya apat na magkakapatid ay hindi rin pumirma sa Deed of Sale at mga pumirma sa Deed of Sale ay pinuntahan isa isa ni Mang Casio upang papirmahin sa Deed of Sale pero hindi sila humarap sa notaryo publiko.

1)    Noong 2002 si Mang Felimon ay isinananla ang kanyang lupa pang sakahan na may sukat na humigit kumulang na 1.5 na ektarya na lupang pang sakahan sa local o pribadong nagpapautang sa halagang limang daang libong piso lamang (Php500,000.00)

2)    Sa mga huling buwan ng taon na iyon pinuntahan ni Mang Casio si Mang Felimon at nag alok ng tulong upang tubusin ang kanyang titulo ng lupa para maka tipid sa pagbabayad ng interest kaysa sa kanyang inasahang dapat babayaran kung patatagalin pa ang pagbabayad.

3)    Dahil sa interes pa lamang ay hirap ng mabayaran hindi pa kasama dito ang principal na interes sa utang tinangap ni Mang Felimon ang inialok na tulong ng kanyang kapatid na si Mang Casio at tinubos ang titulo ng lupa sa pinag sanlaan ni Mang Felimon.

4)    Sa mga nakalipas na mga araw bumalik si Mang Casio kay Mang Felimon at nag alok na bibilhin niya ang lupa sa ngalan ng kanyang anak na si Rosie na nagtatrabaho sa bansang Japan.  Una, nag alok ng halagang Php 800,000 pero ibabawas sa Php 500,000 na unang ibinayad niya sa pinagka utangan ni mang Felimon.  Sinabi ni Mang Casio na ang perang ibinayad noong una na pinagtubos ng titulo ng lupa ay galing sa kanyang anak na si Rosie na nagtatrabaho sa Japan, ang natitira pa mga perang pambabayad sa lupa ay kay Rosie pa rin.  Tumangi si Mang Felimon sa inialok ni Mang Casio.

5)    Mga ilang lingo ang nakalipas bumalik ulit si Mang Casio at itinaas sa halagang isang milyon Php 1,000,000.00 ang kanyang alok, muli tumangi si Mang Felimon.  Nag pupumilit si Mang Casio halos lagi na sa pamamahay ni Mang Felimon na  walang pakundangang pinipilit niya tungkol sa bilihan ng lupa.  Ang sinabi niya na ang anak niyang si Rosie ay gustong mag invest para  sa lupa, kung hindi ibebenta sa kanila ang nasabing lupain mapipilitan silang ibenta sa iba pero sisingilin ang halagang Php 500,000 upang gagamitin sa pa unang bayad sa bibilhin nilang ibang lupain.

6)    Nalagay sa kagipitan at alanganin si Mang Felimon at iniisip ang halagang Php 500,000 kung pipilitan siyang magbayad kung saan niya kukunin o hahanapin ang halaga ng pera na kanyang ibabayad, kung isasanla naman ulit ang lupa ay masyadong malaki sa interes pa lamang ,hangang napilitan at pumayag sa pag pupumilit ni Mang Casio sa walang tigil niyang pakikipag usap kay Mang Felimon ay pumayag din pero sa kondisyon na ang 1,875 sq mtrs ay napagkasunduang hihiwalay at matitira para kay Mang Felimon sa kabuang sukat ng lupain.

7)    Ang sinabi ni Mang Casio ay isasanguni muna niya sa anak niyang si Rosie na nasa Japan.

8)    Sumunod na mga araw si Mang Casio ay bumalik at sinabi pumapayag si Rosie sa kundisyon na napag kasunduan na matitira ang 1,875 sq. m. at naka handa na silang magbabayad para sa kaganapan nagkahalaga ng Php 500,000.

9)    Lima sa sampung anak ni Mang Felimon ay pumapayag sa kondisyon na hiwalay ang 1,875 sq m o sinabi nila kay Mang Casio hihingin muna nila ang kapahintulutan ng mga apat na pa mga kapatid.

10)     Ang sinabi ni Mang Casio ay siya na ang kakausap sa apat na magkakapatid .  Lumipas ang mga araw kinausap ni Mang Casio ang pinaka bunso sa sampo magkakapatid kasama si Mang Felimon sa bahay nila sinabi ni Mang Casio na handa na niya ihiwalay ang sukat na 1,875 sq m pagkatapos ng anihan sa panahon na iyon na isang buwan na lamang ang hihintayin ay anihan na sa nakatanim na palay.

11)     Sumunod na mga araw lingid sa kaalaman ng mga magkakapatid bumalik si Mang Casio Kay Mang Felimon para hiramin ang titulo ng lupa upang ipa photo copy daw para maipakita daw niya sa anak niyang si Rosie na nasa Japan, dahil sa pagtitiwala ni Mang Felimon, dahil kapatid niya si Mang Casio ipinahiram niya ang titulo ng lupa pero hindi na ibinalik muli ni Mang Casio.

12)     Lumipas ang mga araw, pagkatapos hiramin ni Mang Casio ang titulo ng lupa ay binayaran ng halagang Php 500,000 bilang kaganapan sa paunang Php 500,00.00 si Mang Felimon ang bayaran ay ginawa sa harapan at nasaksihan ng isa sa mga sampung magkakapatid.

13)     Sumunod na mga araw pinuntuhan ng  bawat isa ni Mang Casio para papirmahin sa Deed of Sale ang anim sa mga sampung magkakapatid sa pagtitiwala ay pumirma dahil sa kaalaman nila, ayon sa verbal na kasunduan na may natitirang 1,875.  Iyan ay hindi hiningi kundi pinag kasunduan.

14)     Pero hindi tumupad sa napag kasunduan si Mang Casio.

15)     Apat sa sampung magkakapatid ay hindi pumirma sa Deed of Sale.  Sa katunayan ang isa sa sampu magkakapatid ay wala man pangalan sa pinapapirmang Deed of Sale.  At ang dalawa sa sampung magkakapatid ay hindi pinuntahan ni Mang Casio para papirmahin sa nasabing Deed of Sale.

16)     Lumipas ang mga ilang araw pa ulit ulit na pinupuntahan ni Mang Casio sa pamamahay ang hindi pumirma sa nasabing Deed of Sale. Patuloy at mariing tumanggi pumirma ang apat sa mga magkakapatid sa dahilang hindi tumupad sa kasunduan si Mang Casio.

17)     Si Mang Felimon kinukulit ni Mang Casio na pinapapirma rin ang Deed of Sale pero patuloy siya tumanging pumirma dahil hindi pagsunod sa usapan o kasunduan si Mang Casio na  hihiwalay ang sukat na 1,875 sq m.

18)     Isang araw pumunta ang bunsong anak ni Mang Felimon sa Assesor sa Munisipyo sa kanilang bayan upang magbayad ng buwis pero hindi na tinggap ng Assessor ang ibibayad dahil nakalipat na sa bagong pangalan ang titulo pag mamay ari ni Mang Felimon.

19)     Kinuha ng bunsong anak ni Mang Felimon TCT number ng bagong titulo at nag beripika sa RD at natuklasan na ang orihinal na tutulo na naka pangalan kay Mang Felimon ay malinis at hindi na kansela.

20)     Bumalik sa Assesor sa Munisipyo sa kanilang bayan ang bunso anak ni Mang Felimon upang bayaran ang buwis ngunit tumanggi ang assessor at pinipilit na na kansela na ang titulo naka pangalan kay Mang Felimon pero sa totoo hindi na kansela sa RD.  Korte lamang daw ang maka pag bigay ng hatol para malaman kung na kansela o hindi ang titulo ni Mang Felimon.

Mga tanong at mga sagot:

1.   Kinikilala ba ng batas ang Deed of Sale na hindi notaryado at hindi humarap sa notary publiko ang mga pumirma mga saksi sa Deed of Sale?

Sagot:

Ang Deed of Sale an hindi notaryado ay kontrata sa pagitan ng Seller at Buyer.  Ang kontrata ay batas sa pagitan ng mga partido ng bentahan.  Ang pagpapa notaryo ay para ang dokumento ay maging public instrument.  Kapag ang dokumento ay naging public instrument na, ito ay binding kahit sa third persons.

Ang hindi pagharap ng mga partido at mga witness sa Deed of Sale sa Notario Publico ay paglabag sa Notarial Law.  Ang kaparusahan sa paglabag sa Notarial Law ay pagtanggal sa lisensya ng abogado.

2.   Kung ang titulo ng lupa na pang sakahan ay EP puwede ba ibenta ni Mang Felimon sa anak ni Mang Casio na si Rosie?

Sagot:

Ang emancipation patent (EP) ay hindi puwedeng ibenta ni Mang Felimon kay Rosie kung wala pang sampung taon mula ng ibigay ng gobyerno kay Mang Felimon ang emancipation patent.

3.   Papaano kaya nailipat sa pangalan ni Rosie ang titulo ng lupa samantalang walang pirma si Mang Felimon at apat pa mga anak at hindi notaryado ang Deed of Sale at Hindi naman na kansela ng RD ang titulo naka pangalan kay Mang Felimon?

Sagot:

Kung nasa pangalan pa ni Mang Felimon ang titulo ng 1.5 hectates na sakahan, ibig sabihin ay ang nailipat kay Rosie ay Tax Declaration pa lamang.  Maaari nating hulaan na pinalabas ni Rosie sa Deed of Sale na pumirma si Mang Felimon at ang kanyang sampung anak.  Maaari din nating sabihin na hindi baka hindi nasunod ng Notario Publico ang kanyang tungkulin sa pagnotaryo sa Deed of Sale.  Pero kung sinusunod ng Municipal Assessor ang batas sa paglilipat ng pangalan sa Tax Declaration, hahanapin niya iyong Certificate of Authority to Register na galing sa BIR at iyong Certificate of Registration na galing sa Register of Deeds. 

4.   Si Aling Marta ay namatay noong 1996 at nagkaroon ng bilihan ng lupa ay 2002 sa makatwid kung sa partihan ng lupa sa kalahati sa kabuang sukat ng lupa sa pamagitan ng Extra Judicial Settlement tama bang partihan ang sampo mgkakapatid sa parte ni Aling Marta at may parte ba si Mang Felimon sa parte ni Aling Marta? Sa makatwid pang labing isa sa partihan si Mang Felimon sa sampo magkakapatid?

Sagot:

Noong namatay si Aling Marta noong 1996, dapat gumawa ng Extrajudicial Settlement of Estate ang kanyang mga herederong sina Mang Felimon at ang kanyang sampung anak.  Si Mang Felimon ay may-ari ng kalahati bilang conjugal share at may pang labin-isang parte doon sa kalahati ng yumaong si Aling Marta.  Samakatuwid si Mang Felimon ay may-ari ng 8,181.82 square meters at ang sampung ay may-ari ng 681.82 square meters bawat isa.

5.   Ang anim sa sampung magkakapatid na pumirma sa Deed of Sale kapalit ng halagang Isang Milyong Piso P1,000,000.00 kabayaran ng lupa ay naibenta na kay Rosie kung kikilanin ng batas ang Deed of Sale na hindi notaryado?

Sagot:

Malinaw na sa Tax Declaration sa pangalan ni Rosie na buong 1.5 hectares ang inilipat ng Municipal Assessor sa pangalan niya.  Ito ang dahilan siguro kung bakit ayaw tanggapin ng Municipal Assessor ang bayad ng anak ni Mang Felimon na bayad sa buwis.  At saka ipipagpipilitang ng Municipal Assessor na kanselahin ang titulo sa pangalan ni Mang Felimon.

Kung Deed of Sale ang ipina-pirma sa anim na anak ni Mang Felimon at Aling Marta, hindi ito maililipat ang Tax Declaration sa pangalan ni Rosie dahil walang pa silang kapatang magbenta dahil ang lupa ay nakatitulo pa kay Mang Felimon at wala pa sa kanilang pangalan.

Ang kalahati ni Aling Marta ay hindi maibenta ng kanyang mga anak hanggat walang Extrajudicial Settlement of Estate na ginawa para sa iniwang kayamanan ni Aling Marta.

6.   Si Mang Felimon ay namatay noong 2011 na hindi pumirma sa Deed of Sale ay buo pa ang share sa natitira kalahati sa kabuuan ng lupa ng sampung mga nabubuhay na mga anak.

Sagot:

Hindi batid ng karamihang na ang mga heredero ay may obligasyong abisuhan ang Bureau of Internal Revenue (BIR) sa loob ng dalawang buwan mula sa pagkamatay ng yumao.  Lalong hindi batid ang obligasyon ng mga heredero na i-settle ang estate ng yumao o ilipat ang mga titulo ng mga lupa mula sa patay papunta sa mga buhay.

Dahil ang titulo ay nasa pangalan ng Mang Felimon noong siya ay namatay noong 2011, ibig sabihin ang titulo ay para pa rin sa buong 1.5 hectares.

Ang gagawing Extrajudicial Settlement of Estate ay para kay Aling Marta na namatay noong 1996 at para kay Mang Felimon na namatay noong 2011.

Hanggat walang Extrajudicial Settlement of Estate para kay Aling Marta at Mang Felimon walang sinuman ang maaaring makinabang sa sakahang iniwan nila.  Lahat ng dokumentong nagawa para dito ay walang bisa dahil sa kawalan ng karapatan nino man na ilipat ang pagmamamay-ari sa alin mang bahagi ng nasabing lupain.

7.   Base sa kuwento kaya nagkaroon ng problema sa usapin ng dahil sa hindi pagtupad ni Mang Casio sa kasunduan na may matitira 1,875 sq mtrs.  Kaya hindi pumirma si Mang Felimon hangang sumakabilang buhay pati apat niyang mga anak sa sampung magkakapatid.  Sa mga pangyayari tama ba ang partition sa lupa? Lumilitaw ang naibenta ng mga 6 na magkakapatid ay ang parte lamang sa nanay nila at buo pa ang parte nila sa kanilang tatay?

Sagot:

Ayon sa ipinakitang hatian sa Tanong 4, ang parte ni Mang Felimon ay 8,181.82 square meters at 681.82 square meters bawat isa sa sampung anak.

Kung nasunod ang tamang hatian at tamang proseso ng paglilipat ng pangalan sa lupain, ang parteng nabili ni Rosie ay 4,090.91 square meters lang mula sa anim (6 anak x 681.82 bawat isa) na pumirma sa Deed of Sale.

Nais nating igiit na noong pinirmahan ng anim na anak ni Mang Felimon ang Deed of Sale, wala pa silang karapatang magbenta ng kahit anong bahagi ng lupa dahil kahit namatay na si Aling Marta hindi automatikong lilipat ang mga mana sa mga anak at tagapagmana.  Para mailipat ang naiwang kayamanan ng yumao, ang mga tagapagmana ay kailangan gumawa ng Extrajudicial Settlement of Estate.

8.   May nakikita ako aral dito sa kuwento ang panloloko ay hindi magbubunga ng mabuti. Bumaligtad sa kasunduan si Mang Casio at nagkainterest sa kabuan na sukat ng lupa kaya hindi ibinigay ang 1,875 sq mtrs. Dito nagsimula ang kanilang gusot. Kung tama ang partition ang matitira na lang kay Mang Casio ay ang share sa nanay na ibinenta ng anim na magkakapatid, tama ba?

Sagot:

Tulad ng sagot sa Tanong 7, kung nasunod ang lahat ng proseso, ang nabili ni Rosie ay 4,090.91 square meters lamang.  Ito lamang ang parte ng mga anak ni Mang Felimon na pumirma sa Deed of Sale.

9.   Sa aking obserbasyon tila nagkaroon ng sabwatan ang RD at si Rosie na anak ni Mang Casio? Baka gumawa ng peke Deed of Sale pero papaano kaya sa BIR? Hindi ma rerehistro sa RD ang paglilipat ng titulo kung wala ang CAR.

Sagot:

Tulad ng sagot sa Tanong 3 at Tanong 6, dahil nasa pangalan pa ni Mang Felimon ang titulo ng lupa, ang nailipat lang kay Rosie ay Tax Declaration lamang.  Ang hinala ko, hindi tinupad ng Municipal Assessor ang batas sa pagbibigay ng Tax Declaration.  Malamang na ang palsipikadong Deed of Sale lamang ang pinagbasehan ng Municipal Assessor para magbigay ng Tax Declaration kay Rosie hindi na niya hinanap ang Certificate of Authority to Register na galing sa BIR at Certificate of Registration naman ng bigay ng Register of Deeds.

10.   Simula noong 2002 ang nagsasaka sa lupa ay si Mang Casio.

Kumentaryo:

Ang pagsasaka ni Mang Casio sa lupain sa maling paniniwalang nabili na nila lupain ay hindi maging dahilan na maging sila na ang may-ari sa lupa.

Kung magmamatigas si Mang Casio, kailangan nang kumuha ng abogado ang mga anak ni Mang Felimon na hindi pumirma sa Deed of Sale para mabawi ang possession at pagmamamay-ari sa kanilang lupain.

Sana malinawagan mo ako sa masalimuot na kuwento na ito para sa aking karagdagang kaalaman.

Ang mga sagot dito ay ayon sa pagkaintindi ko sa tanong at marahil may mga detalya na hindi nabigay sa kuwento na makakatulong sa tumpak na solusyon sa problema.