Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
The Commissioner of Internal Revenue has been given the broad powers under the
Tax Code in order to effectively enforce tax laws and collect the needed revenues.
These powers include:
To clarify the basis for the imposition of tax on sale, exchange or other disposition of
real property, whether classified as capital asset or ordinary asset the BIR
issued Revenue Memorandum Circular No. 27-2017 (RMC 27-2017) which is a
substantial reproduction of Section 6 (E) of the Tax Code.
Accordingly, RMC 27-2017 applies to Section 24 (D)(1) and 27 (D)(5) of the Tax
Code.
~0~
Discussion:
Section 6(E) only mentions fair market value as determined by the Commissioner or
fair market value as shown in the schedule of values of the Provincial and City
Assessors, whichever is higher. On the other hand, Section 24(D)(1) and Section
27(D)(5) mention gross selling price or current fair market value as determined in
accordance with Section 6(E). To harmonize, we have to construe these three
provisions together. In imposing the tax on the sale, exchange or other disposition
of real property, we have three values to consider:
1. Gross Selling Price (which is total amount of money or its equivalent which the
purchaser pays or is obligated to pay to the seller in consideration of the sale, barter
or exchange of the goods or properties);