(original web post 09/25/12) (BIR Media Release)
http://www.mb.com.ph/node/249943/bir-revoke
BIR revokes ruling on build-your-own
scheme
By CHINO S. LEYCO
March 28, 2010,
10:59am
The Bureau of Internal Revenue (BIR) has revoked its earlier
ruling regarding the build-to-own (BTO), build-your-own (BYO) and similar
schemes that resulted in non-payment of taxes due to government.
Under
the revenue memorandum circular 20-2010, the country's tax collection agency has
ordered the revocation of BIR ruling DA-245-2005.
The ruling was nullified upon
the instance of RDO Gerry O. Dumayas and ARDO Christina C. Barroga of RDO
44-Taguig throught Makati Regional Director Alfredo Misajon based on their
verification of the joint venture transactions between Meridien East Realty and
Development Corporation (Meridien) and Century Properties, Inc. (CPI) last April
2009.
It was originally represented in the ruling that Meridien and CPI
only manage the construction of the condominium project, and that the funds as
contributed by the individual investors or co-developers are pooled in a bank
with the developer, as project manager, receiving only a project management
fee.
Moreover, the assignment and delivery of the developed units to a
joint owner, is claimed non-taxable being merely a transaction to effect the
return of capital contribution. This resulted in the non-payment of income taxes
and value-added tax by Meridien and CPI on the gross project
amount.
However, upon RDO 44’s investigation of the facts presented. They
found out that Meridien and CPI misrepresented said transactions, which
nullified the said ruling.
The scheme is contrary to the policy behind presidential decree 957, otherwise known as the "The Subdivision and Condominium Buyer’s Protective Decree," according to the House and Land Use Regulatory Board
(HLURB).
Commissioner Joel Tan-Torres encouraged all the BIR offices
concerned to report similar schemes for appropriate investigation and to prevent
further erosion of tax collection running into hundreds of millions of pesos.
We are Unit Owners at Soho Central Condominium Corporation's building, a project of Century Properties Inc. from a joint venture of Meridien Development and Greenfield Development. This blog will teach and consolidate information regarding our building. Please submit comments; and if anyone would like to meet for tea/coffee to discuss the building, please send us an email. Unit Owners have been unable to witness decisions being made with our money at private board meetings.
Plan, plan and plan some more
The Fantasy Vision
Does everyone remember this among the wonderful ads and brochures and how about the salespeople and what they told us. I hear such fantasies continue. So after watching and remembering, cry and then laugh at the truth that is being exposed.
Many posts are still issues and need to be read once again. At this main hub of postings watch for new posts and updates. Please get involved by spreading the word as to the issues here. We must document all that is taking place. Many documents need retrieval and assistance is needed in getting them scanned and posted.
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