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Reseasrch CGT Reckoning Point

The document discusses the reckoning date of a sale for taxation purposes according to Article 1475 of the Civil Code. It states that a sale is perfected when the parties agree on the object and price, even if delivery has not occurred. For the case in question, the sales between the seller QCDFC and buyers were already perfected contracts when the deeds of absolute sale were executed, even though delivery had not yet occurred. Therefore, the reckoning date of the sales for taxation is the date of execution of the deeds of absolute sale, and these sales are governed by the laws in place at that time.

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Carla Carmela Villanueva-Cruz
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29 views

Reseasrch CGT Reckoning Point

The document discusses the reckoning date of a sale for taxation purposes according to Article 1475 of the Civil Code. It states that a sale is perfected when the parties agree on the object and price, even if delivery has not occurred. For the case in question, the sales between the seller QCDFC and buyers were already perfected contracts when the deeds of absolute sale were executed, even though delivery had not yet occurred. Therefore, the reckoning date of the sales for taxation is the date of execution of the deeds of absolute sale, and these sales are governed by the laws in place at that time.

Uploaded by

Carla Carmela Villanueva-Cruz
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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RECKONING OF DATE OF SALE FOR PURPOSES OF TAXATION - Article 1475 of the Civil Code

provides that a contract of purchase and sale is perfected from the moment the parties have agreed
upon a determinate thing i.e., the object of the contract and a price certain therefor even if neither is
delivered. Thus, the delivery of the thing sold is not necessary for the perfection of the contract. In
the case at bar, there is indeed a perfected sale as the seller QCDFC has agreed to sell and had
actually sold the above-mentioned lots to the respective buyers while the latter had agreed to pay
the contract price therefor, although delivery had not been effected until no less the Supreme Court
has resolved the case in favor of QCDFC, but from that time on, the vendees/buyers are given the
right to compel the vendor/seller QCDFC to deliver the lots sold where it not for the inhibition filed by
the government that the properties sold are for use as road.

Since the Deeds of Absolute Sale executed by QCDFC and its buyers involving the above-
mentioned lots are in itself perfected contracts, the reckoning date of the sale for purposes of
taxation is the date of the execution of the aforementioned Deeds of Absolute Sale. Accordingly, the
said deeds are governed by the laws, rules and regulations prevailing at the time of its
execution. (BIR Ruling No. 180-99 dated November 24, 1999)

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