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Commissioner of Internal Revenue vs Filinvest Development Corporation [CONCURRING OPINION, LEONARDO DE CASTRO, J.]

COMMISSIONER OF INTERNAL REVENUE, Petitioner, vs. FILINVEST DEVELOPMENT CORPORATION, Respondent. COMMISSIONER OF INTERNAL REVENUE, Petitioner, vs. FILINVEST DEVELOPMENT CORPORATION, Respondent.

G.R. No. 163653 and G.R. No. 167689 | 2011-07-19

CONCURRING OPINION

 
LEONARDO-DE CASTRO, J.:

I concur that the property-for-shares exchange between Filinvest Development Corporation (FDC) and Filinvest Alabang, Inc. (FAI), on one hand, and Filinvest Land, Inc. (FLI), on the other, was tax-free under Section 34(C)(2) of the National Internal Revenue Code (NIRC) of 1993.

Section 34(C)(2) of the NIRC of 1993 provided:

 
Sec. 34.  Determination of amount of and recognition of gain or loss. -

x x x x

(c)  Exchange of property. -

x x x x

(2)  Exception. - No gain or loss shall be recognized if in pursuance of a plan of merger or consolidation
 
(a) a corporation which is a...