Law Summary
Introduction
This Memorandum Order issued by President Gloria Macapagal-Arroyo mandates the Land Registration Authority (LRA) to implement additional annotation requirements in the Transfer Certificate of Title (TCT) to enhance tax collection related to the transfer of real property.
Legal Basis and Purpose
- Legal Framework: The order is grounded in the Tax Reform Act of 1997 and Presidential Decree No. 1529, which govern the registration and taxation processes of real property.
- Purpose: To ensure compliance with tax obligations prior to the issuance of TCT by mandating the annotation of specific tax-related information.
Additional Annotation Requirement
Description: The LRA, via the concerned Register of Deeds, is directed to annotate the following details in the Transfer Certificates of Title:
- Serial number of the Certificate Authorizing Registration (CAR) issued by the Bureau of Internal Revenue (BIR)
- Date of issuance of the CAR
- Revenue District Office Number of the BIR office that issued the CAR
- Name of the Revenue District Officer who signed the CAR
- Taxes paid
Key Points:
- This annotation is a prerequisite for the issuance of a TCT by the Register of Deeds.
Objectives
Verification: The main goal of the additional annotation is to allow for the verification and back-checking of tax payments, ensuring that transfer taxes are paid before the issuance of a title.
Key Points:
- Promotes accountability in tax payments related to property transfers.
Scope of Application
Coverage: The annotation requirements apply to:
- Transfers of Original Certificates of Title
- Condominium Certificates of Title
- Transfer Certificates of Title of real properties
Key Points:
- Ensures all types of property transfers are subject to the same tax verification requirements.
Repealing Clause
- Modification of Previous Issuances: Any executive issuances, rules, or regulations inconsistent with this Memorandum Order are repealed or modified accordingly.
Effectivity
- Publication Requirement: The order will take effect fifteen (15) days after its publication in a national newspaper of general circulation.
Key Takeaways
- This Memorandum Order establishes a mandatory requirement for tax-related annotations on TCTs to enhance tax compliance and verification.
- It underscores the importance of tax payment in the property transfer process, as mandated by existing tax and property registration laws.
- The effective implementation of the order is contingent upon its publication, with a 15-day grace period prior to enforcement.