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2017 BAR EXAMINATIONS - Taxation Law PDF
2017 BAR EXAMINATIONS - Taxation Law PDF
TAXATION
INSTRUCTIONS
1. This Questionnaire contains ten (10) pages. Check and make sure
that your Questionnaire has the correct number of pages. You may
write on your Questionnaire as you answer the questions.
Read each question very carefully and write your answers in your
Bar Examination Notebook in the same order of the questions.
Answer the essay questions legibly, clearly, and concisely. Write
your answers only on the front of every page of your Notebook. If
the front pages are not sufficient, continue at the back of the first
page and so on. Start every number on a separate page, but an
answer to a sub-question under the same number may be written
continuously on the same page and on the immediately succeeding
pages until the answer is complete. Follow the numbering sequence
of the Questionnaire in your answers.
Good luck!
I.
II.
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TAXATION 3
Ill.
Vanderful, lnc.'s income tax return for taxable year 2015 showed an
overpayment due to excess creditable withholding taxes in the
amount of P750,000.00. The company opted to carry over the
excess income tax credits as tax credit against its quarterly income
tax liabilities for the next succeeding years. For taxable year 2016,
the company's income tax return showed an overpayment due to
excess creditable withholding taxes in the amount of P1,100,000.00,
which included the carry-over from year 2015 in the amount of
P750,000.00 because its operations resulted in a net loss; hence,
there was no application for any tax liability. This time, the company
opted and marked the box "To be refunded' in respect of the total
amount of P1,100,000.00.
Vanderful, Inc. now files in the BIR a claim for refund of unutilized
overpayments of P1,100,00.00. Is the claim meritorious? (4%)
IV.
v.
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TAXATION 4
·-··
2"d Quarter of 2014 June 30, 2016
3rd and 4th Quarter of August 12, 2016
2014
VI.
A group of private vehicle owners sue on the ground that the law is
unconstitutional for contravening the Equal Protection Clause of
the Constitution.
VII.
SJ
TAXATION 5
VIII.
A month after her resignation, Daryl put up her own studio and
started producing short films. She was able to earn a meager
income from her short films but did not keep record of her
production expenses.
IX.
Alfredo contends that the 20% final tax on the interest income
constituted double taxation because his salary had been already
subjected to withholding tax.
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TAXATION 6
x.
(b) Has the right of the Government to assess and collect deficiency
taxes from Vantage Point, Inc. for the year 2012 prescribed? Explain
your answer. (3%)
XI.
Rule on the taxability of the separation pay and indemnity that will
be received by the affected employees as the result of their
separation from service. Explain your answer. (3%)
'
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TAXATION 7
XII.
(b) Would your answer be the same if the property was sold by a
bank in a foreclosure sale? Explain your answer. (3°k)
XIII.
XIV.
'
JI,
TAXATION 8
xv.
(b) May the heirs of Casimira file the estate tax return and pay the
corresponding estate tax beyond December 19, 2017 without
incurring interest and surcharge? Explain your answer.(3%)
XVI.
The BIR assessed the Babuyan Water District (BWD) with deficiency
income taxes amounting to P8.5 million, inclusive of interest and
surcharge. The BWD disputed the assessment, and argued that it
was a wholly-owned government entity performing essential
government functions. However, the BIR denied the protest.
The BWD filed a petition for arbitration in the Office of the Secretary
of Justice pursuant to Sections 66 to 71, Chapter 14, Book IV of the
Administrative Code of 1987 to assail the denial of its protest, and
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TAXATION 9
XVII.
In 2017, San Juan University earned income from tuition fees and
from leasing a portion of its premises to various concessionaires of
food, books, and school supplies.
(a) Can the City Treasurer of Caloocan City collect real property
taxes on the land and building of San Juan University? Explain your
answer. (5°/o)
(b) Is the income earned by San Juan University for the year 2017
subject to income tax? Explain your answer. (5%)
XVIII.
"
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TAXATION 10
XIX.
(a) Is CMI School, Inc. liable for the payment of donor's tax? Explain
your answer. (2.5%)
(b) If SLC University later sells the three parcels of idle land to
Puregold Supermarket, Inc., a stock corporation, will SLC University
be liable for capital gains tax? Explain your answer. (3%)
(c) If SLC University donates the three parcels of idle land in favor
of the Municipality of Cuyapo, Nueva Ecija, will SLC University be
liable for donor's tax? Explain your answer. (2.5%)
-NOTHING FOLLOWS-
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