EXECUTIVE ORDER NO. 891
EXECUTIVE ORDER NO. 891 -
PRESCRIBING THE MANNER OF IMPLEMENTATION OF THE TERMS AND CONDITIONS OF
THE TERMS AND CONDITIONS OF THE DONATIONS TO THE REPUBLIC OF THE
PHILIPPINES BY EDUARDO M. COJUANGCO, JR.
WHEREAS, the Government encourages private
sector to give donations to the Government or any of its agencies or
instrumentalities to finance, provide for, or be used in undertaking
its government purposes, projects, and priority activities;
WHEREAS, various properties were donated to the Republic of the
Philippines (the “Republic”) for the use of the Ministry of Human
Settlements, Board of Investments, Armed Forces of the Philippines,
Philippine Air Force and Philippine Coconut Authority to assist them in
attaining their respective purposes, projects and priority activities
under the terms of the Deed of Donation dated 1983 executed by and
between the Republic and Eduardo M. Cojuangco, Jr. (the “Deed of
Donation”);
WHEREAS, it is necessary to ensure the immediate implementation of the
donation and compliance with the undertakings of the Republic in said
deed;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by law, do hereby direct and order
as follows:
1.
The donation of the properties specified in the Deed of Donation under
the terms thereof is hereby accepted on behalf of the Republic of the
Philippines and the respective Government agencies and
instrumentalities designated as donee beneficiaries. The terms and
conditions of the Deed of Donation are hereby incorporated by way of
reference and made integral part of this Executive Order.
2. Pursuant to
the provisions of Sec. 30 (h) (2) (A) and Section 123 (a) (2) of the
National Internal Revenue Code, all donations under the Deed of
Donation are hereby ordered deductible in full for income tax purposes
and fully exempt from the donor’s tax. The priority programs, projects
and activities for which the donations are to be utilized by the
Ministry of Human Settlements, Board of Investments, Armed Forces of
the Philippines, Philippine Air Force, and Philippine Coconut Authority
are hereby declared to be part of, and in accord with, the National
Priority Plan of NEDA, and such government agencies are hereby declared
and deemed included in the list of qualified donee institutions to
receive such donations.
3. The cash
donations and condonations referred to in the Deed of Donation shall be
fully deductible for income tax purposes to the extent of the values of
the properties as specified in the Deed of Donation, which values shall
be conclusive and binding for such purposes. The condonations shall be
included in the gross income of the donors pursuant to Sec. 50 of
Revenue Regulations No. 2, and the cash donations and condonations
shall be deducted from the donors’ taxable income in the year in which
such donations or condonations are made. The donors, in claiming
deduction for their donations or condonations under the Deed of
Donation, must submit to the Bureau of Internal Revenue, a copy each of
the certificate issued by the escrow bank specified in the Deed of
Donation, and this Executive Order, which submissions shall be in lieu
of the verification and substantiation requirements of the BIR/NEDA
Regulations.
4. The
importation of the properties purchased from foreign entities that are,
in turn, donated under the Deed of Donation are hereby declared fully
exempt from all customs duties and taxes, otherwise assumed by the
donee beneficiaries under said Deed, which customs duties and taxes are
hereby waived pursuant to Section 105 of the Tariff and Customs Code,
Sec. 5 of PD No. 1352, as amended, and other laws. The Central bank
shall approve the applications of the escrow bank under the Deed of
Donation to purchase foreign exchange and make available the requisite
foreign exchange to enable the escrow bank to remit the same for
payment to the foreign entities concerned in accordance with the terms
and conditions of the purchase contracts and the Deed of
Donation.
5. All
Government agencies, such as the Civil Aeronautics Board and the
appropriate Register of Deeds, shall expeditiously effect the transfer
of title in the respective names of the donee beneficiaries and extend
all necessary and immediate assistance for such transfer.
Notwithstanding any term or condition in the Deed of Donation, the
Register of Deeds shall immediately cancel the titles in the name of
the present registered title holders concerned and in lieu thereof,
issue new Torrens titles directly in the respective names of the
donee-beneficiaries. All Government fees and taxes including
documentary taxes as may otherwise be required for effecting the
registration shall be waived, the same being for the account of the
Republic.
6. This
Executive Order shall take effect immediately.
Done in the City of Manila,
this 11th day of April in the year of Our Lord, nineteen hundred and
eighty-three.
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