2017 (Taxation) Bar Exam Questions: Question 12

[Answer/discuss the question below, or see 2017 bar exam Taxation Instructions; 2016 Taxation Questions: 1234567891011131415161718, and 19; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]


On September 17, 2015, Data Realty, Inc., a real-estate corporation duly organized and existing under Philippine law, sold to Jenny Vera a condominium unit at Freedom Residences in Malabon City with an area of 32.31 square meters for a contract price of P4,213,000.00. The condominium unit had a zonal value amounting to P.2,877,000.00 and fair market value amounting to P550,000.00.

(a) Is the transaction subject to value-added tax and documentary stamp tax? Explain your answer. (3%)

(b) Would your answer be the same if the property was sold by a bank in a foreclosure sale? Explain your answer. (3%)

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