REVENUE MEMORANDUM CIRCULAR NO. 45-2002, OCTOBER 14, 2002

: RR No. 14-2000 requires the execution of an Escrow Agreement involving the Revenue District Officer (RDO), the Authorized Agent Bank (ABB), and the seller/transferor covering the amount of capital gains tax involved in the sale of the principal residence.
: No, according to Section 1 of the Circular, the tax exemption ruling referred to in the earlier RMCs is no longer necessary for issuance of the Certificate Authorizing Registration and/or Tax Clearance Certificate.
: The RDO must initiate assessment of deficiency capital gains tax and apply the escrowed bank deposit against the deficiency following the guidelines under Section 3(7) of RR 13-99 as amended by RR 14-2000.
: The seller has an 18-month period from acquisition or construction during which the proceeds must be used to acquire or construct a new principal residence.
: The deficiency capital gains tax will be assessed and the escrowed amount held in the bank will be applied to cover the tax deficiency.
: The parties are the Revenue District Officer (RDO), the Authorized Agent Bank (ABB), and the seller/transferor of the principal residence.
: Section 24(D)(2) of the Tax Code of 1997.
: Yes, Section 3 provides that all internal revenue issuances inconsistent with this Circular are repealed, modified, or amended accordingly.
: The Circular took effect immediately upon approval on October 14, 2002.