Taxation, 2015 Bar — Question XVII

QUESTION

Mr. L owned several parcels of land and he donated a parcel each to his two children. Mr. L acquired both parcels of land in 1975 for P200,000.00. At the time of donation, the fair market value of the two parcels of land, as determined by the CIR, was P2,300,000.00; while the fair market value of the same properties as shown in the schedule of values prepared by the City Assessors was P2,500,000.00. What is the proper valuation of Mr. L's gifts to his children for purposes of computing donor's tax? (3%)

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