November 23, 2009
BIR RULING [SH-(114) 727-09]
Sec. 32, RA 7279; RMC 42-01
Edgewater Realty Development, Inc.
No. 26 Van Buren, North Greenhills
San Juan City
Attention: Mr. Francisco J. Joaquin, Jr.
President
Gentlemen :
This refers to your letters dated August 4, 2009 and October 7, 2009 requesting exemption from the payment of capital gains tax on the sale by Edgewater Realty Development, Inc. ("ERDI") of its real property to the actual occupants thereof who are informal settlers pursuant to Revenue Memorandum Circular (RMC) No. 42-01, implementing R.A. No. 7279, otherwise known as the "Urban Development and Housing Act of 1992".
Documents submitted disclose that parts and parcels of ERDI's property located in Tumana, Marikina City were occupied by informal settlers after the EDSA Revolution in 1986; that as a result, EDRI * filed ejectment cases against several homeowners/neighborhood associations occupying its above property; that as it would be legally and physically impossible for EDRI * to pursue its real estate business operations/transactions within the vicinity due to the existence of ghettos and slums, EDRI * acceded to the requests of the various...
