PWH v.

SORIANO
- Petitioner filed a complaint for expropriation against Soriano, the registered owner of a
parcel of land, situated in Valenzuela City
- The land will be used in implementing the construction of NLEX
- PET deposited to Acting Branch Clerk of Court P420,000 (or P2100 per sqm) the
amount representing 100% of the zonal value of the property
-RTC ordered the issuance of Write of Possession and Write of Expropriation for
failure of respondent to appear despite notice during hearing
-RTC said that the evidence adduced by PET showed that the amount deposited is just,
fair and equitable and that the value of property is actually at a lower rate of P400 per
sqm; said other disadvantages to the land
-RTC considered respondent to have waived her right to adduce evidence and to object
evidence submitted
-RTC: plaintiff has lawful right to acquire possession of land and ordered the plaintiff to
pay P420,000 with 12% interest p.a. and to pay consequential damages which shall
include value of tax necessary to transfer property
-PET filed MR: pursuant to BSP Circular, that interest rae should be 6% per annum,
which was granted by the RTC on the basis of NPC case
-On appeal, PET posits tht since it was able to deposit ith the court the zonal value of
the property before its taking, there can be no interest due on payment of just
compensation and that transfer taxes (in the nature of CGT and DST) should be paid by
the RES not PET
ISSUE:
W/N transfer taxes CGT and DST be paid by PET.
RATIO:
CGT
-> it is a passive income, it is the seller or respondent that should shoulder the tax
-> NIRC stated that CGT due on the sale of real property is a liability of the seller
subject to a final tax of 6% based on gross selling price or current fair market value
DST
-> Plaintiffs liable because in a Citizen's Charter, in expropriation cases, the DPWH
shall shoulder payment of DST