100%(1)1 out of 1 people found this document helpful
This preview shows page 28 - 30 out of 57 pages.
VIWhile driving his car to Baquio last month, Pedro Asuncion, together with his wifeAssunta, and only son Jaime, met an accident that caused the instantaneous death of Jaime. The following day, Assunta also died in the hospital. The spousesand their son had the following assets and liabilities at the time of death :AssuntaExclusiveConjugalJaimeExclusiveCashP10,000,000.00P1,200,00.00CarsP2,000,000.00500,000.00Land5,000,000.002,000,000.00Residential House4,000,000.00Mortgage Payable2,500,000.00Funeral Expenses300,000.00a.Is the Estate of Jaime Asuncion liable for estate tax? Explain. ( 4% )b.Is vanishing deduction applicable to the Estate of Assunta Asuncion? Explain ( 4% )VIIAfter examining the books and records of EDS Corporation, the 2004 final assessment notice, showing basic tax of P1,000,000 deficiency interest of P400,000 and due date for payment of April 30, 2007, but without the demand letter, was mailed and released by the BIR on April 15, 2007. The registered letter, containing the tax assessment, was received by the EDS Corporation on April 25, 2007a.What is an assessment notice? What are the requisites of a valid assessment? Explain ( 3% )b.As tax lawyer of EDS Corporation, what legal defense(s) would you raisedagainst the assessment? Explain. ( 3% ).VIIIThe City of Manila enacted an ordinance, imposing a 5% tax on gross receipts onrentals of space in privately-owned public markets. BAT Corporation questioned the validity of the ordinance, stating that the tax is an income tax, which cannot be imposed by the city government.
Do you agree with the position of BAT Corporation? Explain. ( 5% )IXWilliam Antonio imported into the Philippines a luxury car worth US$100,00. This car was, however, declared only for US$20,000 and corresponding customs duties and taxes were paid thereon. Subsequently, the Collector of Customs discovered the underdeclaration and he initiated forfeiture proceedings of the imported car.a.may the Collector of Customs declare the imported car forfeited in favor ofthe government? Explain. ( 3% )b.Are forfeiture proceedings of goods illegally imported criminal in nature? Explain ( 3% )XJohn McDonald, a U.S. Citizen residing in Makati City, bought shares of stock of a domestic corporation whose shares are listed and traded in the Philippine Stock Exchange at the price of P2 million Yesterday, he sold the shares of stock through his favorite Makati stockbroker at a gain of P200,000.a.Is John McDonald subject to Philippine Income Tax on the sale of his shares through his stockbroker? Is he liable for any other tax? Explain. ( 3% )b.If John McDonald deriectly sold the shares to his best friend, who is another U.S. Citizen residing in Makati, at a gain of P200,000. Is he liable for Philippine Income Tax? If so, what is the ntax base and rate? ( 3% )XIPedro Manalo, A Filipino citizen residing in Makati City, owns a vacation house and lot in San Francisco, California, U.S.A, which he acquired in 2000 for P15 million. On January 10, 2006 he sold said real property to Juan Mayaman, another Filipino citizen residing in Quezon City, for P20 million. On February 9, 2006 Manalo filed the capital gains tax return and paid P1.2 million representing 6% capital gain tax. Since Manalo did not derive any ordinary income, no income