2017 (Taxation) Bar Exam Questions: Question 19

[Answer/discuss the question below, or see 2017 bar exam Taxation Instructions; 2016 Taxation Questions: 1234567891011121314151617, and 18; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]

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CMI School, Inc., a non-stock, non-profit corporation, donated its three parcels of idle land situated in the Municipality of Cuyapo, Nueva Ecija to SLC University, another non-stock, non-profit corporation, in recognition of the latter’s contribution to and participation in the spiritual and educational development of the former.

(a) Is CMI School, Inc. liable for the payment of donor’s tax? Explain your answer. (2.5%)

(b) If SLC University later sells the three parcels of idle land to Puregold Supermarket, Inc., a stock corporation, will SLC University be liable for capital gains tax? Explain your answer. (3%)

(c) If SLC University donates the three parcels of idle land in favor of the Municipality of Cuyapo, Nueva Ecija, will SLC University be liable for donor’s tax? Explain your answer. (2.5%)

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