Zonal Valuation by BIR Based on Valid & Legal Grounds

December 27, 1993 BIR RULING NO. 523-93 ZONAL VALUATION BY BIR BASED ON VALID & LEGAL GROUNDS 16 (e) 000-00 523-93 Hon. Ismael A. Mathay, Jr. City Mayor Quezon City This refers to your letter dated June 22, 1993 requesting for opinion on the complaint of MR. REYNALDO MAGTIBAY of Batangas City which questions the validity of the zonal valuation of real properties in Quezon City. cdt In reply thereto, please be informed that the zonal valuation of real properties prescribed by the Commissioner of Internal Revenue is arrived at upon consultation with competent appraisers both from private and public sectors in accordance with the provision of Section 16(e) of the Tax Code, as amended, viz. : "16 (e). Authority of the Commissioner to prescribe real property values . The Commissioner is hereby authorized to divide the Philippines into different zones or areas and shall, upon consultation with competent appraisers both from private and public sectors, determine the fair market value of real properties located in each zone or area. For purposes of computing any internal revenue tax, the value of the property shall be whichever is the higher of: (1) The fair market value as determined by the Commissioner; or (2) The fair market value as shown in the schedule of values of the Provincial and City Assessors." In view thereof, contrary to Mr. Reynaldo Magtibay's contention, the zonal valuation prescribed by this Office on real properties in Quezon City and in fact all over the country, is not just a mere scheme of the Government in order to raise its revenue collection because said zonal valuation is based upon the aforestated valid and legal grounds. prcd LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue