2016 (Taxation) Bar Exam Questions: Question 4

[Answer/discuss the question below, or see 2016 bar exam Taxation Instructions; 2016 Taxation Questions:   1235678910111213141516171819, and 20;  See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]


The City of Maharlika passed an ordinance imposing a tax on any sale or transfer ofreal property located within the city at a rate offifty percent (50%) ofone percent (1%) of the total consideration of the transaction. Jose sold a parcel of land in the city, which he inherited from his deceased parents, and refused to pay the aforesaid tax. He instead filed a case asking that the ordinance be declared null and void since the tax it imposed can only be collected by the national government, as in fact he has paid the Bureau of Internal Revenue (BIR) the required capital gains tax. Ifyou were the City Legal Officer of Maharlika, what defenses would you raise to sustain the validity ofthe ordinance? (5%)

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