Herrera Teehankee & Cabrera Law Offices

June 15, 2020BIR RULING NO. OT-319-20Sec. 24 (C), 1997 Tax Code, as amended; BIR Ruling No. 31-99Herrera Teehankee & Cabrera Law Offices5/F SGV II Building, 6758 Ayala AvenueMakati City 1200Attention: AAAandBBBGentlemen :This refers to your letter dated July 23, 2019 requesting on behalf of your client, CCC (the "Trustee/Assignor" or "CCC") for confirmation of your opinion that the transfer and/or assignment of Rubiyat Holdings Corporation (the "Corporation") shares of stocks ("Rubiyat shares") held by him, as Trustee, in favor of the real beneficial owner thereof, DDD (the "Trustor/Assignee" or DDD) is not subject to (1) income and capital gains taxes; (2) donor's tax; and (3) documentary stamp tax under the 1997 Tax Code, as amended.Background:1. On February 21, 2014, CCC, the registered owner of Eight Hundred Ninety-Nine Thousand Nine Hundred Ninety-Nine (899,999) common shares of the Corporation executed a "Declaration of Trust" in favor or DDD, who is the beneficial owner of the Rubiyat shares. HTcADC2. Under the Declaration of Trust, CCC acknowledged and confirmed that:a) The funds used to pay for the Rubiyat shares...