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A taxpayer inquires whether the change of ownership of a car from his wife to his name, acquired with community property funds, is taxable. The DGT responds that there is no taxation because the vehicle continues to belong to the marital community property.
Question posed: Taxation of the change of ownership.
The operation is not subject to the ITPAJD because there is no transfer of assets, it is not a corporate operation, nor is it a documented legal act, as the vehicle maintains its belonging to the marital community property. It is also not subject to Inheritance and Gift Tax as there is no transfer or increase in assets for the inquirer.
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