Taxation, 2012 Bar — Question 26

MULTIPLE CHOICE

Sale of residential house and lot by an official of a domestic corporation to another official in the same corporation for a consideration of P2.5 Million in 2011 is: a) Exempt from VAT because the gross sales do not exceed P2.5 Million; b) Exempt from VAT because the property sold is a capital asset, regardless of the gross selling price; c) Exempt from VAT because the seller is not a person engaged in real estate business; d) Taxable at 12% VAT output tax on the gross selling price of P2.5 Million.

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