May 9, 2009
BIR RULING [SH-(038) 309-09]
RA 7279; S20-074-2007
Pena Development Company, Inc.
23 Dragonfly, Valle Verde 6, Pasig City
Attention: Teodoro Q. Pena
Chairman of the Board
Gentlemen :
This refers to your letter dated January 16, 2009 requesting for a ruling that the sale by Pena Development Company, Inc. ("PEDECOM" for brevity) of a parcel of land located at Barangay Sicsican, Puerto Princesa City, Palawan, to the City Government of Puerto Princesa, Palawan, as represented by the City Mayor Hon. Edward S. Hagedorn, is exempt from capital gains tax pursuant to R.A. No. 7279, otherwise known as the Urban Development and Housing Act of 1992.
It is represented that PEDECOM is a domestic family-owned corporation that owns several parcels of raw and undeveloped lands in Barangay Sicsican, Puerto Princesa City, Palawan. When Barangay Bagong Pag-asa of Puerto Princesa City, Palawan was totally burned, the victims were initially sheltered at the City Coliseum. Not finding a suitable relocation area, the City Mayor offered to buy one of the undeveloped parcels of PEDECOM in Barangay Sicsican covered by TCT No. 155035 issued...
