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2014 BAR EXAMINATIONS to pass the medical board examinations should offer a

TAXATION LAW dozen roses on all the Sundays of October. This was
what Dr. Taimtim did when he was still reviewing for the
I. board examinations. In his case, the folk saying proved
to be true because he is now a successful cardiologist.
Wanting to give back to the chapel and help defray the
On March 27, 2012, the Bureau of Internal Revenue
costs of its maintenance, Dr. Taimtim donated
(BIR) issued a notice of assessment against Blue Water
Industries Inc. (BWI), a domestic corporation, informing P50,000.00 to the caretakers of the chapel which was
the latter of its alleged deficiency corporate income tax evidenced by an acknowledgment receipt.
for the year 2009. On April 20, 2012, BWI filed a letter
protest before the BIR contesting said assessment and In computing his net taxable income, can Dr.Taimtim use
demanding that the same be cancelled or set aside. his donation to the chapel as an allowable deduction
from his gross income under the National Internal
Revenue Code (NIRC)? (4%)
However, on May 19, 2013, that is, after more than a
year from the filing of the letter protest, the BIR informed
BWI that the latter’s letter protest was denied on the SUGGESTED ANSWER:
ground that the assessment had already become final,
executory and demandable. The BIR reasoned that its
failure to decide the case within 180 days from filing of
the letter protest should have prompted BWI to seek IV.
recourse before the Court of Tax Appeals (CTA) by filing
a petition for review within thirty (30) days after the Gangwam Corporation (GC) filed its quarterly tax returns
expiration of the 180-day period as mandated by the for the calendar year 2012 as follows:
provisions of the last paragraph of Section 228 of the
National Internal Revenue Code (NIRC). Accordingly,
BWI’s failure to file a petition for review before the CTA First quarter - April 25, 2012
rendered the assessment final, executory and
demandable. Is the contention of the BIR correct? Second quarter - July 23, 2012
Explain. (5%)
Third quarter - October 25, 2012
Fourth quarter - January 27, 2013

On December 22, 2013, GC filed with the Bureau of
II. Internal Revenue (BIR) an administrative claim for
refund of its unutilized input Value-Added Tax (VAT) for
Mr. De Sarapen is a candidate in the upcoming the calendar year 2012. After several months of inaction
Senatorial elections. Mr. De Almacen, believing in the by the BIR on its claim for refund, GC decided to elevate
sincerity and ability of Mr. De Sarapen to introduce much its claim directly to the Court of Tax Appeals (CTA) on
needed reforms in the country, contributed P500,000.00 April 22, 2014.
in cash to the campaign chest of Mr. De Sarapen. In
addition, Mr. De Almacen purchased tarpaulins, t-shirts, In due time, the CTA denied the tax refund relative to the
umbrellas, caps and other campaign materials that he input VAT of GC for the first quarter of 2012, reasoning
also donated to Mr. De Sarapen for use in his campaign. that the claim was filed beyond the two-year period
Is the contribution of cash and campaign materials prescribed under Section 112(A) of the National Internal
subject to donor’s tax? (4%) Revenue Code (NIRC).

SUGGESTED ANSWER: (A) Is the CTA correct? (3%)

(B) Assuming that GC filed its claim before the
CTA on February 22, 2014, would your answer
III. be the same? (3%)

Dr. Taimtim is an alumnus of the College of Medicine of SUGGESTED ANSWER:
Universal University (UU), a privately-owned center for
learning which grants yearly dividends to its
UU has a famous chapel located within the campus
where the old folks used to say that anyone who wanted

00. Aggrieved. (MKI) is a Value-Added Tax (VAT)-registered company which has been engaged in the catering business for the past 10 years.00. The selling price of fraudulent invoice. In imposing the local tax. The enjoin Baguio City from enforcing the local tax on their government lawyer representing the City of Liwliwa customers and on all tourists going to Baguio City. concealment or sale of such article after Maunawain cancelled the indebtedness of Mr. contrary to law. Will the petition prosper? (5%) Decide. (4%) In accordance with the Local Government Code (LGC).(1%) delivery vans. Smuggling . catering equipment.000. the Sangguniang Panglungsod (SP) of Baguio City enacted Tax Ordinance No. an association of travel agencies in Temporary Restraining Order and Writ of Preliminary Baguio City. chairs. and as compensation therefor. already 10 years old and idle. sell or any cleaning services in the entire office building of Mr. Gipit correct? Explain. through its lawyer. manner facilitate the transportation. Since its motion for reconsideration was with BTA’s member agencies. (5%) VIII. Mr. invested a substantial portion of its capital on flat wares. SUGGESTED ANSWER: (B) is limited to the import of contraband or highly dutiable cargo beyond the reach of customs authorities. the the delivery van was way below its acquisition cost. countered that the CTA cannot entertain a petition for certiorari before the Supreme Court (SC) petition for certiorari since it is not one of its powers and seeking to set aside the TRO issued by the RTC on the authorities under existing laws and rules. It has VI. (A) does not extend to the entry of imported or (MGSC). Talin Company filed a special civil action for issuance of a Temporary Restraining Order (TRO) to certiorari with the Court of Appeals (CA). first installment became due. Maunawain P100. a corporation engaged in the business of exported articles by means of any false or buying and selling gravel and sand. table linens. Frank. ground that collection of taxes cannot be enjoined. BTA also prayed for the denied. Baguio City filed a Atty. imposing SUGGESTED ANSWER: a P50. Gipit up to importation. IX. The RTC the Regional Trial Court (RTC) because BTA was denied the application for a Writ of Preliminary apprehensive that tourists might cancel their bookings Injunction. cancellation of his indebtedness cannot be considered as gain on his part which must be subject to income tax. fraudulently import or bring into the Philippines. payable in five (5) equal monthly installments. 19. (C) is committed by any person who shall Mr. Talin Company filed a Complaint for Refund or Recovery of Illegally and/or Erroneously-collected Local Claiming the tax to be unjust. buy. (D) is punishable by administrative against Talin Company. filed a petition for declaratory relief before Injunction with the Regional Trial Court (RTC). imposing the local tax. Gipit rendered general or shall receive. because according to him. the SP reasoned that the tax collected will be used to maintain the cleanliness of Baguio City and for the beautification of its X. Before the or assist in so doing.00 tax on all the tourists and travellers going to Baguio City. Mr. Is Mr. plates. prayed for the dismissal of the petition on the ground that the same should have been filed with the Court of The RTC issued a TRO enjoining Baguio City from Tax Appeals (CTA). SUGGESTED ANSWER: Masarap Kumain. Claiming that there is double penalty only. Gipit borrowed from Mr. MKI sold its first delivery van. Maunawain. Series of 2014.000. conceal. statement or practices. Gipit claims that the imported contrary to law. Prohibition with Prayer to Issue Association (BTA). he did not actually receive payment from Mr.The City of Liwliwa assessed local business taxes tourist attractions. knowing the same to have been the amount of P75. Is entry of goods at less than the true weight or the sale of the delivery van by MKI to MGSC subject to measure. Talin Company. . Maunawain for the general cleaning services. taxation. VII. Baguio Travellers Business Tax. any article. to Magpapala Gravel and Sand Corp. or the filing of any false or fraudulent VAT? (4%) entry for the payment of drawback or refund of duties. Mr. Inc. and Choose the correct answer.

Generous Bank extrajudicially foreclosed the between the tax withheld and the amount mortgage on the property and acquired the same as the actually remitted by the withholding agent.. A month after the foreclosure. a Filipino residing in Alabama. He left behind to his wife and two (2) kids several (E) Embezzled money properties. died on (D) De minimis benefits January 2. SUGGESTED ANSWER: (B) advertising expense to maintain some form of goodwill for the taxpayer’s business. (4%) (1) Funeral expenses.A. and (3) Judicial expenses in the testate proceedings. Philippines. Management Service Contract with Single Star. Is the compensation for the services of Single Star taxable as income from sources within the Philippines? The following expenses were paid: Explain. a domestic corporation. When Hopeful Corporation failed to pay (B) When a discrepancy has been determined the loan. XV.A. 2013 after undergoing a major heart surgery.S. Under the contract. X. U. (D) interest payment on loans for the purchase When is a pre-assessment notice required under the of machinery and equipment used in business. . (A) When the finding for any deficiency tax is the result of mathematical error in the computation Hopeful Corporation obtained a loan from Generous of the tax as appearing on the face of the return. Is Generous Bank liable to (C) When the excise tax due on excisable articles has been paid. highest bidder. Hopeful Corporation exercised its right of redemption and was able to redeem the property. (C) salaries and bonuses paid to employees.S. (1) Family home in Makati City. U. following cases? (1%) XIII. and All said services shall be performed in Hongkong. (4%) (A) Salaries and wages SUGGESTED ANSWER: (B) Cash dividends (C) Liquidating dividends after dissolution of a XIV. XII. entered into a (2) Condominium unit in Las Piñas City. X? deductions from gross income? (1%) (B) What are the items that may be considered (A) discounts given to senior citizens on certain as deductions from the gross estate? goods and services. a health maintenance organization in the managerial services for Triple Star’s Hongkong branch. to wit: (4%) XI. Bank and executed a mortgage on its real property to secure the loan. SUGGESTED ANSWER: (2) Medical expenses. corporation Mr. a non- resident foreign corporation with no property in the (3) Proceeds of health insurance from Take Philippines. Single Star shall provide Care.Which of the following is an exclusion from gross pay capital gains tax as a result of the foreclosure sale? income? (1%) Explain. (4) Land in Alabama. Triple Star. (A) What are the items that must be considered Which of the following should not be claimed as as part of the gross estate income of Mr.

At the time of his death. and other there was no such error in the computation of his income assessment/charges collected by a condominium tax for the year 2011. traded or transferred to non-exempt persons. the lawyer of the condominium corporations argues that such dues and fees are merely held in trust by the condominium corporations exclusively for their members and used solely for XVII. Sakitin deducted the amount of P2 1. Tiaga. Tiaga believes that association dues. Sakitin died. She wants to contest the assessment. 65-2012 imposing Mr. the unpaid balance of the loan amounted to P2 million. Mr. plaintiff condominium corporations do not actually render Ma. administrative expenses in implementing the condominium corporations’ purposes. 2014. has been sold. The loan was evidenced by a duly notarized promissory note. claims that which he filed on April 15. which she sought to be annulled. Is the Contract of Sale admissible? (4%) XX. Bureau of Internal Revenue (BIR) informing him of a The RMC’s validity is challenged before the Supreme deficiency tax assessment as a result of a mathematical Court (SC) by the condominium corporations. XVI. The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. such as. machineries and spare parts. counsel for BIR. (5%) to plaintiff Ma. Mr. using such property as collateral for the loan. may he already file a protest income payments or compensation for the beneficial thereon? (4%) services it provides to its members and tenants. XIX. Mr. 2014. XVIII. SUGGESTED ANSWER: On the other hand. Tiaga has been a law-abiding citizen diligently Value-Added Tax (VAT) on association dues and paying his income taxes. Based on the assessment corporation are subject to VAT since they constitute received by Mr. . but not limited to vehicles. On July The heirs of Mr. 2012. error in the computation of his income tax. Sakitin obtained a loan SUGGESTED ANSWER: amounting to P10 million from Bangko Uno for the purchase of a parcel of land located in Makati City. Reklamo. he was membership fees collected by condominium surprised to receive an assessment notice from the corporations from its member condominium-unit owners. she received a notice of assessment from the million from the gross estate. Madam X owns real property in Caloocan City. (4%) available to Madam X in order to contest the assessment and their respective prescriptive periods? SUGGESTED ANSWER: (B) May Madam X refuse to pay the deficiency tax assessment during the pendency of her appeal? XXI. Plaintiff Ma. as appearing on the face of his income tax return for the year 2011. (4%) the Bureau of Internal Revenue (BIR) Examiner. as part of the "Claims City Assessor. Do you agree with (A) What are the administrative remedies the BIR? Explain. capital equipment. informing her of a deficiency tax on her against the Estate. On May 5. During his lifetime. membership fees. the In a civil case for Annulment of Contract of Sale. Subsequently. (D) When an article locally purchased or SUGGESTED ANSWER: imported by an exempt person. Reklamo presented in evidence the Contract of Sale services for a fee subject to VAT. Reklamo is now offering the Contract of Sale as her evidence." Such deduction was disallowed by property. there was no need to pay the same since the sale was not registered with the Register SUGGESTED ANSWER: of Deeds. claiming that the mortgaged property was not included in the computation of the gross estate. No documentary stamp tax on the Contract of Sale was paid because according Whose argument is correct? Decide. Accordingly. The Solicitor General.

in turn. and at the Firm? Explain. Tax Avoidance ‒ (1%) authorized representative Ms. For the year 2012. dividends to all its stockholders. Haelton Corporation (HC). Inc. it is tantamount to Explain. (3) Representation expenses incurred in (B) is forbidden by law. and C. taxing the same person twice by the same jurisdiction for the same thing. 2014. same time. Belly and mitigation of tax liabilities than for legitimate BGI was notarized ahead of the sale between HC and business purpose. is the tax consequence on the part XXIII. 2014. (B) is a tax saving device within the means sanctioned by law. by the same taxing authority. value-added tax as a person selling goods in the course of trade or business. Mr. Law Firm Choose the correct answer. and (4) the substantial portion of P40 million was withdrawn by Ms. (3) the said (D) is any form of tax deduction scheme. if any? (4%) Earnings: SUGGESTED ANSWER: (1) Professional/legal fees from various clients (2) Cash prize received from a religious society in recognition of the exemplary service of ABC XXII. by two (2) separate Deeds of Absolute Sale notarized on the same day by the same notary public. it is a meetings with clients valid defense against the validity of a tax measure. and therefore. Belly. HC received P40 million from BGI. (BGI) for the taxpayer to further or additional civil or P200 million. all lawyers. Investigations by the Bureau of Internal Revenue (BIR) showed that: (C) is employed by a corporation. Belly. . what. B.On August 31. (B) What are the items in the above-mentioned payments which may be considered as (D) exists when a corporation is assessed with deductions from the gross income of ABC Law local business tax as a manufacturer. even if the purposes of imposing the same are (2) Rentals for office space different. if any. What is the liability of Haeltown Corporation. it usually subjects property on the same day to Bell Gates. Belly. 2014 as investment in Haeltown Building. when availed of. (2) as early as May 17. A. (A) What are the items in the above mentioned earnings which should be included in the (C) means taxing the same property twice when computation of ABC Law Firm’s gross income? it should be taxed only once. the BIR sent Haeltown ABC Law Firm so that they can practice their profession Corporation a Notice of Assessment for deficiency as lawyers. Pares. These two (2) transactions were evidenced criminal liabilities. (C) If ABC Law Firm earns net income in 2012. formed a partnership called Based on the foregoing. Double Taxation . the organization of which is prompted more on the (1) the Deed of Absolute Sale between Mr. ABC Law Firm received income tax arising from an alleged simulated sale of the earnings and paid expenses. Mr. sold the same means and. Pares through the declaration of cash XXIV. with the same kind or character of tax. thru its Choose the correct answer. and not from Mr. sold a 16-storey commercial building known as Haeltown Building to Mr. among which are as aforesaid commercial building to escape the higher follows: (6%) corporate income tax rate of thirty percent (30%).(1%) (3) Gains derived from sale of excess computers and laptops (A) is one of direct duplicate taxations wherein two (2) taxes must be imposed on the same Payments: subject matter. (A) is a scheme used outside of those lawful Belly for P100 million. within the same jurisdiction. during the same (1) Salaries of office staff period. as of June 30. payment of P40 million was recorded by BGI in its books regardless if the same is legal or not.

through her counsel Atty. Evelina. Which of the following transactions is subject to Value. was assessed a considerable Freezy Corporation. ordinances and revenue measures under the Local Government Code (LGC) and on the ground of double taxation. filed a written claim for recovery of said local business taxes and May Freezy Corporation claim the payment to the officer contested the assessment. Tax laws . he consulted you as he wanted to comply with all the (A) If you are Atty. of ABC Law Firm insofar as the payment of (B) Is he entitled to additional exemptions? If so. ELP. what advice will you rules pertaining to the preparation and filing of his give Doña Evelina so that she can recover the income tax return. Doña Evelina paid the taxes. (4%) so Atty. in exchange for said officer’s Nevertheless. SUGGESTED ANSWER: The RTC declared Tax Ordinance No. B. and as deduction from its gross income? Explain. ELP elevated her case to the Regional Trial Court (RTC). His parents have long and executory. may not effects belonging to residents of the Philippines be delegated returning from abroad subject to custom duties under the Tariff and Customs Code (C) are territorial in nature. Her claim was denied. insofar as the payment of (C) What is the effect of the taxes withheld from income tax is concerned? his salaries on his taxable income? (2%) SUGGESTED ANSWER: SUGGESTED ANSWER: XXV. how much? (1%) . income tax is concerned? What. ELP. a rich widow engaged in the business of currency exchange. XXVI. Doña revelation of Frosty Corporation’s trade secrets. Doña Evelina. No motion for clerk. In February 2014. a domestic corporation engaged in amount of local business taxes by the City Government the manufacture and sale of ice cream. Despite her to an officer of Frosty Corporation. He is single and lives with his family who depends reconsideration was filed and the decision became final upon him for financial support. unsatisfied with said Tax Ordinance. ice cream business. hence. your friend got his first job as an o ffice affirmed the decision of the RTC. and his two (2) siblings are still minors and studying in grade school. Choose the correct answer. the Court of Tax Appeals (CTA) In January 2013. and C as individual partners. He now asks you the following: subject local business taxes? (A) Is he entitled to personal exemptions? If so. XXVIII. made payments of Bagnet by virtue of Tax Ordinance No. 24 null and void and without legal effect for having been enacted in violation of the public ation requirement of tax XXVII. therefore. On appeal. is the tax how much? (1%) consequence on the part of A. (4%) retired from their work. 24.(1%) Added Tax (VAT)? (1%) (A) may be enacted for the promotion of private (A) Sale of shares of stock-listed and traded enterprise or business for as long as it gives through the local stock exchange incidental advantage to the public or the State (B) Importation of personal and household (B) are inherently legislative. if any. they do not recognize the generally-accepted tenets of (C) Services rendered by individuals pursuant to international law an employeremployee relationship (D) adhere to uniformity and equality when all (D) Gross receipts from lending activities by taxable articles or kinds of property of the same credit or multi-purpose cooperatives duly class are taxable at the same rate registered with the Cooperative Development Authority XXIX. a competitor in the objections thereto.

(B) If Doña Evelina eventually recovers the local business taxes. must the same be considered as income taxable by the national government? SUGGESTED ANSWER: .

stockholders. 2015. 2013. Inc. enjoyed a II. Inc. a domestic corporation. bought ready-to-wear goods from Ms. received a China. In a professional boxing 2015. On July 31. is Ms. They got married on February 14. F could claim in the following TAXATION LAW taxable years: I. CCC. How may Mr. B's Commissioner of Internal Revenue (CIR) income from the sale to Ms. C taxable in dismissing the protest of CCC. BBB. B. they had twins. A's prize money qualify as b) Non-resident alien engaged in trade an exclusion from his gross income? or business (1%) Why? (2%) c) Non-resident alien not engaged in c) The US already imposed and trade or business (1% ) withheld income taxes from Mr. Inc. 2015 of the of the goods to Ms.000. Differentiate between double taxation in the strict sense and in a broad sense and give an SUGGESTED ANSWER: example of each. Is the SUGGESTED ANSWER: immediate appeal by CCC. and affirming the Philippines? Explain. Mr. a) For2010 (2%) (3%) b) For 2011 (3%) SUGGESTED ANSWER: c) For 2013 (2%) V. 2015 BAR EXAMINATIONS Mr. Ms. VII. A use or apply the d) Domestic corporation (1%) income taxes he paid on his prize money to the US when he computes his e) Non-resident foreign corporation (1%) income tax liability in the Philippines for 2013? (4%) VI. What were the personal exemptions/deductions which . 2013. CCC.000.. B's income from the sale copy of the Decision dated July 22. United States (US) dollars equivalent to BBB. (2%) immediately filed a Petition for Review with the CT A en banc on August 6. its Board of Directors approved the match held in 2013. On June 25. A. E and Ms. (2%) the assessment against said corporation. Inc. What is the tax treatment of the cash dividends received from BBB. A in the US taxable in the Philippines? Why? (2%) a) A resident citizen (1%) b) May Mr. 2011. Inc. B is an alien individual and the Review with the Court of Tax Appeals (CTA) in goods were produced in her factory in division. 2011. Inc. A's prize money. is particularly profitable year in 2014. Decision on Disputed Assessment issued by the B's factory in the Philippines. to the CTA en banc of the adverse Decision of the CTA division the proper remedy? (3%) IV. filed a Petition for b) If Ms. has individual and corporate P300. Inc. Inc. a resident citizen. Explain the principles of a sound tax system. On June 10. E and Ms. by the a) Is the prize money paid to and following stockholders: received by Mr. 2013. Mr. CCC. Inc. 2015. is Ms. (4%) SUGGESTED ANSWER: III. C taxable in the CT A division dismissing its Petition. CCC. Philippines? Explain. received the Final a) If the goods were produced from Ms. C. F are both employees of AAA SUGGESTED ANSWER: Corp. a citizen and resident of the Philippines. On December 29. In June a professional boxer. he won prize money in distribution of cash dividends to its stockholders. a nonresident citizen. On May 15. the couple gave birth to triplets.

the CIR held that the selling price for the shares of stock of HHH Corp. GGG. Mr.? (2%) SUGGESTED ANSWER: b) Discuss the proper procedure and applicable time periods for administrative and judicial claims for XIII. The lease agreement was signed by representatives from DDD Corp. for be due on the sale of their house. reported unutilized excess input VAT in the amount of Pl . had to request a ruling from the BIR confirming that its sale of the said X. (1%) lease agreement of a residential house and lot with EEE. a VAT- registered corporation. a domestic employers within the Philippines. during their visit to (1%) the Philippines. Inc. so the difference between the Philippines on his income from sources selling price and the book value of said shares outside the Philippines.00 unutilized conditions they must comply with to avail excess input VAT of FFF. JJJ. Inc.. subject the said lease to VAT believing that it (1%) was not a domestic service contract.000. for 2011.VIII. correct? Explain. praying for the exempted from capital gains tax and the tax refund/credit of the Pl. The residential house and lot will be classification of minimum wage earners. Inc. (3%) XI. however. Not having received any communication approaches you as a friend for advice if it is from the BIR. the he and his family have lived for the past 10 accountant of FFF. acquired the said shares in HHH SUGGESTED ANSWER: Corp. Inc. filed with the Court of Appeals (1%) a Petition for Review under Rule 43 of the Revised Rules of Court.000.. whose corporation engaged in the business of leasing income taxes have been correctly real properties in the Philippines. How will you respond? (4%) a) Did the CTA acquire jurisdiction over the Petition of FFF. Inc.000. Inc. The Court of Appeals. Inc.. GGG. G. ruling. GGG. as the highest bidder. G filed a Petition for Review possible for the sale of their house to be with the CTA on March 15. FFF. entered into a withheld. 012-14. (1%) was a taxable donation. What are de minim is benefits and how are these taxed? Give three (3) examples of de SUGGESTED ANSWER: minimis benefits. 2013. Mr. claim for tax refund/credit of the Pl. income tax return: 012-14.. H decided to sell the house and lot wherein Hoping to impress his boss. GGG.000. Inc.00 Concerned about the capital gains tax that will unutilized excess input VAT of FFF. Inc. In June 2013. In BIR Ruling No. Was DDD Corp.000. XII. For calendar year 2011. Mr. dismissed the Petition for lack of c) Resident citizen earning purely compensation income from two jurisdiction declaring that it is the CTA which has . equivalent to VAT. a non-resident foreign d) Resident citizen who falls under the corporation. Inc. themselves of said exemption. Inc. Inc. DDD Corp. 2013 a and lot closer to his children's school. offered to sell through competitive refund/credit of unutilized excess input bidding its shares in HHH Corp. requested the Secretary of Finance to review BIR Ruling b) Resident alien on income derived No. hoping to buy and move to a new house Internal Revenue (BIR) on January 31. Inc. was lower than a) Filipino citizen residing outside the their book value. (4%) 40% of the total outstanding capital stock of the latter.00 attributable to its zero-rated sales. did not been subjected to final withholding tax.. H 2011. Indicate whether each of the following shares was at fair market value and was thus individuals is required or not required to file an not subject to donor's tax. DDD Corp.. in Singapore. (4%) SUGGESTED ANSWER: IX. but the Secretary affirmed said from sources within the Philippines. filed with the Bureau of years. Before it could secure a certificate authorizing registration/tax clearance for the transfer of the shares of stock to JJJ. Mr. Inc. and e) An individual whose sole income has EEE. used by officials of EEE.000.

In 2014.500. Mr. while the fair market value of the same properties as shown in the schedule of values prepared by the City Assessors was 112. secured its Certificate of real property tax? (4 % ) Incorporation from the Securities and Exchange Commission on June 3. Mr. SUGGESTED ANSWER: nor was it intended to operate commercially and compete in the private market. G Pizza. to Dr. LLL reclaimed several XIX. and miscellaneous expenses related to his medical practice. What is the proper valuation of XV. Ms. got confused of popular fastfood restaurants J on whether she should prepare payment for the Burgers.00. Certificates of title . Under the Tariff and Customs Code. Before which to the reclaimed properties in Q City were issued Court should GGG. K so he could maximize the deductions from his gross income? (3%) a. Dr. M City approved an ordinance levying portions of the foreshore and offshore areas of customs duties and fees on goods coming into the Manila Bay.00. L owned several parcels of land and he b) What are the distinctions between donated a parcel each to his two children. K's dismay. Inc. some of which were within the the territorial jurisdiction of the city. jurisdiction over the issues raised. LLL is 2014. while SUGGESTED ANSWER: he incurred expenses amounting to P560. In 2012. At the time of donation. computing donor's tax? (3%) K found that he earned gross professional income in the amount of P1. only P320. At the end of 2012.000. as SUGGESTED ANSWER: determined by the CIR.000.000. the fair market value of the two parcels of land. When does importation begin and when is it deemed terminated? (2%) SUGGESTED ANSWER: b.000. L's gifts to his children for purposes of to start his own practice.00 of his expenses were XVIII. SUGGESTED ANSWER: a) As Ms.00. and K Chicken? (2%) regular corporate income tax or the minimum corporate income tax. It was not organized as a stock or a non-stock corporation. LLL is a government instrumentality created by instance/s is the decision of the Executive Order to be primarily responsible for Commissioner automatically appealed integrating and directing all reclamation projects to the Secretary of Finance? (4%) for the National Government. Q City adverse ruling of the Secretary of Finance in the issued Warrants of Levy on said reclaimed exercise of the latter's power of review? (3%) properties of LLL based on the assessment for delinquent property taxes for the years 2010 to SUGGESTED ANSWER: 2013. 2013. By virtue of its mandate. In what easels is the decision of the Collector automatically reviewed by the Commissioner of Customs? In what XVI. Will your answer be the same in (a) if business operations on August 12.00. 2013. Said city territorial jurisdiction of Q City. seek recourse from the in the name of LLL in 2008. utilities. in leasing portions of the reclaimed charge of preparing the annual income tax properties for the establishment and use return of the corporation for 2013. KKK Corp. In 2014. as duly covered by receipts. It commenced b. a.300. However. What are the options amended: available for Dr. J.000. K decided to return to his hometown Mr. J's supervisor. what will be your advice? (2%) XVII. In April from 2010 to the present time. Are the reclaimed properties registered in the name of LLL subject to XIV. was 112. an employee of KKK Corp. L regular corporate income tax and acquired both parcels of land in 1975 for minimum corporate income tax? (3%) ll200.000. Dr.00 constituting mostly of his office space rent.000.

486. deductions from the gross estate of a citizen or the Public Prosecutor manifested that the resident alien for the purpose of imposing estate People is reserving the right to file the tax: corresponding civil action for the recovery of the civil liability for taxes. The non-resident foreign corporations pay MMM.108-1 of Revenue Regulations (RR) No. representing excess input VAT attributable to its effectively zero-rated sales in 2000. Inc. 2014. The BIR ruled to deny the claim for refund of MMM. ordinance was duly published on February 15. On appeal. Inc. comment on the People's manifestation. Will your answer in (a) be any b. Inc. MMM. in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas. a. State the conditions for allowing the following as (Attempt to Evade or Defeat Tax) with the CTA. Subsequently. (3%) b. After filing an Information for violation of Section 254 of the National Internal Revenue Code XXII. Rule on the appeal of MMM. Inc.. claim tax refund or credit. MMM. entered into various interconnection agreements with local carriers. Inc. prevail over a taxpayer's substantive right to 2014 with effectivity date on March 1. Inc. to substantiate said claim did not bear the words "zero-rated" as required under Section 4. MMM. Inc. MMM. Is there a ground for opposing said a. RR No. was claiming and applicable time periods for refund of excess input VAT attributable challenging the ordinance? (4%) to its effectively zero-rated sales in 2012? (2%) SUGGESTED ANSWER: SUGGESTED ANSWER: XX. Claims against the estate (2%) accused. a domestic telecommunications company. Medical expenses (2%) SUGGESTED ANSWER: SUGGESTED ANSWER: XXI. appealed to the Supreme Court arguing that the NIRC itself did not provide for such a requirement. handles incoming telecommunications services for non-resident foreign companies by relaying international calls within the Philippines. (3%) ordinance? (2%) b. filed its Quarterly VAT Returns for 2000. timely filed with the BIR an administrative claim for the refund of the amount of P6.50. Inc.321. To broaden the coverage of its telecommunications services throughout the country. Inc. 7-95. the CTA division and the CT A en bane affirmed the BIR ruling. because the VAT official receipts submitted by MMM. As counsel for the a. What is the proper procedural remedy different if MMM. Inc. 7-95 should not . MMM. in US dollars inwardly remitted through Philippine banks.

what advice will you give Patrick? (5%) . business? If you were Atty. (2. [a] Can the CIR of the Philippines also tax the same shares? Explain.S. He went to the Philippines on a visit and. establish residence in this country. in a party.5%) [b] Explain the concept of double taxation.5%) XX Patrick is a successful businessman in the United States and he is a sole proprietor of a supermarket which has a gross sales of $10 million and an annual income of $3 million. he saw Atty. Agaton: if he (Patrick) decides to reacquire his Philippine citizenship under RA 9225. Agaton. Agaton who boasts of being a tax expert. and open a supermarket in Makati City. Patrick asks Atty. (2. will the BIR tax him on the income he earns from his U.