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DA-087-08 - No CAR For Any Personal Properties
DA-087-08 - No CAR For Any Personal Properties
Gentlemen :
This refers to your letters dated October 2, 2006 and August 21, 2007
requesting confirmation of your opinion that Asian Development Bank (ADB) is an
international organization exempt from any and all taxes imposed by the Philippine
government and its political subdivisions, such that, as a purchaser of movable
properties (consisting of machinery and equipment), which properties were
subsequently transferred to another purchaser, the tax declarations over said property
need not be transferred to ADB, but instead, may be transferred directly from ADB's
seller to ADB's purchaser.
Primo failed to repay its loans to the Lenders that led to the institution of a
foreclosure proceeding over the machinery and equipment, among others. On March
31, 2003, the properties covered by the JMI were sold at a public auction. At said
auction sale, ADB purchased the subject machinery and equipment. However, from
the time of ADB's purchase until the time of its sale of the machinery and equipment,
ADB failed to secure the transfer of the tax declarations over the machinery and
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equipment to its name. cITCAa
With the subsequent sale of the machinery and equipment to another purchaser,
the latter requested that the Provincial Treasurer of Camarines Norte transfer the tax
declarations over the machinery and equipment which are currently under the name of
Primo, directly to its name, without said tax declarations being transferred to ADB, on
the ground that there is no need to transfer the same to ADB's name considering that
ADB is tax-exempt. The Provincial Treasurer, however, refused to transfer said tax
declarations to ADB's purchaser on the ground that ADB should first pay the taxes
due on said machinery and equipment. Hence, this request for confirmation of the
tax-exempt status of ADB.
Thus, in relation to your request, this Office does not see the need to confirm
the tax-exempt status of ADB for purposes of transferring the subject tax declarations
to the purchaser. For the said purpose, however, it is advised that you direct your
concern to the Bureau of Local Government Finance (BLGF) which has jurisdiction
over matters relative to the taxability of transfers of tax declarations. Said office is in
a better position to render an opinion on issues involving local taxation.
Copyright 2016 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2015 2