In re: Tax Implication of the Sale of Hilaga Property, the proceeds of which

are held in trust by in favor of the Tourism Promotions Trust

This pertains to the sale of the Hilaga Property, a previously operating entity
of. The said sale was subjected to Value Added Tax pursuant to Revenue
Regulation No. 4-07. However, although this was subjected to VAT, did not
consider the same as income, instead recognizing the sale as a liability. This
is pursuant to Section 54 of Republic Act No. 9593:

xxx SECTION 54. – Within one hundred and twenty

(120) days from the effectivity of this Act, an audit
shall be conducted by the Commission on Audit to
determine the true value of the assets and
liabilities of the PTA. After such audit, the and the
Department, in coordination with the Privatization
Council, shall determine which assets shall be put
up for sale or lease; xxx

The Tourism Promotions Trust (TPT) shall hereby

be established from the proceeds of the sale or
lease of the assets of the. The Trust shall be
managed by a government-owned bank or
financial institution selected by the Tourism
Board. Said bank or institution shall report the status
and profitability of the trust on a quarterly basis to the
Tourism Board, the Secretary and the Joint
Congressional Tourism Oversight Committee created
under this Act .xxx

1. Implied trust was created when sold the Hilaga Property and held
the proceeds in trust for the Tourism Promotions Trust (TPT).

Article 1453 of the Civil Code defines implied trust in the following
manner, among others:

xxx Article 1453. When property is conveyed to a

person in reliance upon his declared intention to
hold it for, or transfer it to another or the grantor,
there is an implied trust in favor of the person
whose benefit is contemplated. xxx