Exemption from Taxation

91. No law granting any tax exemption shall be passed without the concurrence of -
a. Majority of all members of Congress
b. 2/3 vote of all members of Congress
3
c. /4 vote of all members of Congress
d. Unanimous vote of all members of Congress

❖ Answer: A
£□ “B” is incorrect. It is used to override the veto power of the President. CJ If the tax
statute is not pertaining to tax exemption, the required vote is majority of the
quorum/present.

92. Mapagbigay School, a non-stock non-profit educational institution, bought from Pedro, a resident
citizen, his residential house and lot. Pedro would be using the proceeds of the sale to buy his new
residential house and lot. On the other hand, the school will use the parcel of land to construct a new
building for its dormitory for its medical students. Which of the following statements regarding liability
for the payment of capital gains tax is correct?
I. Pedro is liable to capital gains tax. However, if what was sold was his principal residence, he

may apply for tax exemption, provided that he complies with the requirements laid down in

the Tax Code.

II. Pedro is not liable to to capital gains tax because the sale was made in favor of a non-stock,

non-profit educational institution and that the property will be used for educationally-related

functions.

HI- Pedro is liable to capital gains tax because the tax is imposed on the seller; thus, notwithstanding

any exemption enjoyed by the buyer, the tax shall still be imposed. a- ' on|y c. I and II only
b
- 11 on|y d. I and III only

*♦* Answer: D