Practice question
A property transaction has P5 million actual stated consideration and P6 million value under the approved SMV. Assume the approved-SMV Section 18(a)(3) rule applies with no transition issue. Which valuation figure must the CIR use under that rule?
- P5 million because lower is always chosen
- P6 million, the higher figure
- Zero
- P11 million
- Only the owner’s acquisition cost
Legal references
- RA 12001, Sections 3-4, 14-19 and 29: https://lawphil.net/statutes/repacts/ra2024/ra_12001_2024.html
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