The Anomaly of Two Deeds of Sale

QUESTION: Sir John, I am a licensed Real Estate Broker. The buyer and seller agreed to a purchase price of P10Million. The Zonal value is only P4Million. Is it okay to have two Deed of Sale, one is for the purpose of payment of conveyance, and other one is for submission to the BIR to reduce the Capital Gains Tax?

ANSWER: Definitely NOT OKAY.

Section 3 (d) of the Code of Ethics in Real Estate Service is about our right conduct in relation to government. The Code says: "He should not encourage, abet, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees, dues, levies or charges that may be imposed by the government."

No comments: