June 7, 1996
DAR OPINION NO. 42-96
Mr. Meynardo P. Abutar
Provincial Assessor
Calapan, Oriental Mindoro
Dear Mr. Abutar:
This has reference to the letter of one of our CLOA beneficiaries, Mr. LIBORIO JABAT, subject of our reply to CARPO Leonora Caoli dated 1 August 1994 and your 4th Indorsement dated 24 July 1995.
As gleaned from said communications as well as the attachments thereto, the issue raised is whether Mr. Jabat is liable for the payment of the P500.00 fine imposed on late declarants of newly-acquired properties under paragraph 3 sub-paragraph (a) in relation to sub-paragraph (d) of Section 2A-08 of the Administrative Provisions, Revenue Code of Oriental Mindoro, to wit:
"(3) Duty of a person acquiring real property or making improvements thereon.
(a) It shall be the duty of any person, or his authorized representative acquiring at any time real property situated in any municipality or making any improvement on real property, to prepare, or cause to be prepared, and file with the Provincial/Municipal Assessor a sworn statement declaring the true acquisition cost or fair market value (FMV) of subject property, within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement whichever comes earlier.
(b) Property owners or administrators and other persons acting in their behalf who fail to comply with the above provision shall be subject to a fine of FIVE HUNDRED PESOS (P500.00)."
You contend that since Mr. Jabat failed to declare his property within the period provided under the Revenue Code, he must pay the P500.00 fine. Mr. Jabat, however, explains that the day after he received his CLOA (that is, on January 24, 1995) he went to the Office of the Municipal Assessor to declare the same, only to be informed that he should first pay the P500.00 fine because the transfer of the property had been registered by the Register of Deeds as early as April 21, 1994.
It is submitted that Mr. Liborio Jabat has the legal right under Section 66 of RA No. 6657 (the Comprehensive Agrarian Reform Law or CARL) to have the farmlot declared in his name, without having to pay for the P500.00 fine. Said Section 66 provides:
"Exemptions from Taxes and Fees of Land Transfers. — Transactions under this Act involving a transfer of ownership, whether from natural or juridical persons, shall be exempted from taxes arising from capital gains. These transactions shall also be exempted from the payment of registration fees, and all other taxes and fees for the conveyance or transfer thereof; Provided, That all arrearages in real property taxes, without penalty or interest, shall be deductible from the compensation to which the owner may be entitled."
The subject fine imposed under Revenue Code of Oriental Mindoro squarely falls within the phrase "all other taxes and fees for the conveyance or transfer thereof" found in the aforeqouted provision. The evident intent of the law in providing for said exemption is to free the beneficiaries of CARL from the burden of paying the same prior to the transfer of their awarded lots in their names. Imposing said fine as a condition for the declaration of the awarded lot in Mr. Jabat's name would be in contravention of Section 66 of CARL.
We hope that with the foregoing clarification, the declaration of the farmholding in Mr. Jabat's name would now be effected.
Thank you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
The Regional Director
DAR Region IV
Pasig, Metro Manila
PARO Cynthia T. Cardenas
DAR Provincial Office
Calapan, Oriental Mindoro
MARO Flor R. Lizen
Ilaya, Calapan
Oriental Mindoro
CARPO Leonora B. Caoli
DAR Provincial Office
Calapan, Oriental Mindoro
Mr. Liborio Jabat
Palhi, Calapan
Oriental Mindoro