Ayuste Businesstaxation

CHAPTER 9 INPUT
TRUE OR FALSE 1
1. True
2. True
3. True
4. False - Only VAT registered person may claim input VAT
5. True
6. False - The option to credit or refund inout VAT only exists in law on zero - rated sales
7. True
8. False - They can not claim input VAT but they are subject to VAT
9. False - 12% of selling price
10. True
11. True
12. True
13. False - Input taxes on personal consumption are not creditable against output VAT
14. True
15. True
TRUE OR FALSE 2
1. False - Incomplete 2% of vatable beginning inventory or actual VAT on beginning inventory, whichever is higher
2. True
3. False - Input VAT on goods is creditable or deductible, as the case may be upon purchase
4. False - Input VAT on services is claimable as credit in the month of payment
5. True
6. True
7. False - It depends upon the monthly aggregate acquisition
8. False - Over a period of 60 months or actual useful life
9. True
10. False - Purchases of primary agricultural inputs only
11. False - Only manufacturers or processors can claim presumptive input VAT
12. False - The standard input VAT is 7% of sales to the government or GOCC
13. False - the standard input VAT is 7% os sales to the government or GOCC
14. True
15. True
16. True
17. True
18. True
19. False - There is no such rule. This is not MCIT tax credit
20. True
21. False - The input VAT carry - over in the second month of a quarter is not deductible to the third month of the qua
MULTIPLE CHOICE - PROBLEMS PART 1
1. A ₱ 0
Input VAT on purchases made not in the course of business is non - creditable
2. A ₱ 0
Purchases from non - VAT taxpayer has no claimable input VAT. The seller passes on tax rath
3. C ₱18,000
As a rule, importation is subject to VAT. This applies without regard to whether or not the sell
enagaged in business
Landed Cost ₱150,000
Multiply by: VAT 12%
Claimable Input VAT ₱18,000
4. A ₱ 0
Non - VAT taxpayers cannot claim credit for input VAT
5. D ₱ 162,000
Consultancy Fees ₱700,000
Purchase of Supplies 250,000
Purchase of Equipment 400,000
Total Vatable Purchase ₱1,350,000
Multiply by: VAT 12%
Creditable Input VAT ₱ 162, 000
6. C ₱ 23,571
Invoice Price ₱220,000
Multiply by: 12/112
Creditable Input VAT ₱23,571
7. C ₱ 13,320
Purchases of goods, exclusive of VAT (₱ 50,000 x 12%)
Purchases of goods, inclusive of VAT (₱ 44,800 x 12/112)
Purchases of services, inclusive of VAT (₱ 23,520 x 12/112)
Total input VAT
8. A ₱ 0
There is no indication in the problem that the taxpayer is also a VAT taxpayer. As a rule, perce
are non - VAT taxpayers. Hence, cannot claim input VAT
9. C ₱ 72,000
The taxable quarter of business taxpayer is aligned with his or its accounting period . The calen
in the absence of an indication that a fiscal year is being used. The third calendar quarter ends
2020 August ₱32,000
2020 September 40,000
Claimable input VAT ₱72,000
10. C ₱ 4,286
Vatable Goods ₱40,000
Multiply by: 12/112
Input VAT ₱4,286.11
11. C ₱ 30,000
Purchases from VAT taxpayers ₱250,000
Multiply by: 12%
Input Vat ₱30,000
12. C ₱ 26,786
Purchases from VAT taxpayers ₱250,000
Multiply by: 12/112
Input VAT ₱26,786
13. B ₱ 6,000
Purchase of goods in January but were paid in February
Multiply by:
Creditable Input VAT
14. A ₱ 9,600
Purchase of services rendered in January but was paid in February
Multiply by:
Creditable input VAT
15. D ₱ 45,600
January input VAT ₱6,000
February input VAT 9,600
March input VAT (₱ 250,000 x 12%) 30,000
Total 1st quarter claimable input VAT ₱45,600
16. C ₱ 0 ; ₱ 20,000
Mr. Sikorsky is a non - VAT taxpayer so he cannot claim input VAT
Mr. Sikorsky input VAT on purchase of goods
Mr. Sikorsky input VAT on purchase of services
17. B ₱ 324,000
Input VAT on regular sale ₱174,000
Input VAT on export sales 150,000
Total input VAT ₱324,000
1. B ₱ 4,600
Purchases from non - VAT suppliers
Purchases from VAT suppliers, inclusive of VAT (₱ 22,400/112%)
Total vatable goods in beg. Inventory
Multiply by:
2% Transitional input VAT
Actual VAT in beginning inventory (₱ 22,400 x 12/112)
Transitional input VAT (higher)
2. C ₱ 7,600
Inventory of processed goods ₱170,000
Inventory of non - food goods 210,000
Total vatable goods in beg. Inventory ₱380,000
Multiply by: 2%
Transitional input VAT ₱7,600
3. C ₱ 26,400
2% Transitional input VAT (₱ 250,000 x 2%)
Actual VAT in beginning inventory (₱ 220,000 x 12%)
4. A ₱ 1,928.57
2% Transitional input VAT (₱ 18,000 x 2%)
Actual VAT in beginning inventory (₱ 18,000 x 12/112)
5. B ₱ 224,000
Raw land contributed by shareholders ₱11,200,000
Multiply by: 2%
Transitional input VAT ₱ 224,00
6. C ₱ 120,000 ; ₱ 0
The input VAT on the depreciable equipment is claimable in the month of purchase because th
purchase price in that month did not exceed ₱ 1M
7. A ₱ 180,000
The input VAT on the goods is claimable in the month of purchase. The input VAT on the pur
capital goods shall likewise be claimable in the month of purchase because the aggregate acqu
capital goods in the month did not exceed ₱ 1M
₱ 1,500,00
x 12%
₱180,000
8. A ₱ 192,000
The amortization of input VAT applies only to depreciable capital goods. The input VAT on n
capital goods may be claimed in the month of purchase.
Since the aggregate acquisition cost of purchases of depreciable capital goods did not exceed ₱
no amortization shall be made for the month
₱1,600,000
x 12%
₱192,000
9. A ₱ 0 ; ₱ 0
Only input VAT incurred or paid in the course of business can be claimed
10. D ₱ 9,600
Purchases from non - VAT supplier has no input VAT. The question here is whether or not to
purchase of depreciable capital goods from non - VAT supplier to the monthly aggregate acqu
Since the law did not expressly distinguish, the proper interpretation shall be to include the sam
aggregate acquisition cost (MAAC)
The ₱ 1M MAAC exceeds ₱ 1M, the input VAT on purchases of depreciable capital goods mu
₱800,000
x 12%
₱9,600
11. C ₱ 3,200
November ₱1,600
December 1,600
Total ₱3,200
12. C ₱ 2,650
The input VAT shall be amortized over 60 months or actual useful life in months, whichever is
Input VAT on truck (₱ 700,000 x 12% / 60 months)
Input VAT on equipment (₱ 500,000 x 12% / 48 months)
Total claimable amortization of deferred input VAT in June
13. C ₱ 2,650
The input VAT shall be amortized over 60 months or actual useful life in months, whichever is
Input VAT on truck (₱ 700,000 x 12% / 60 months)
Input VAT on equipment (₱ 500,000 x 12% / 48 months)
Total claimable amortization of deferred input VAT in June
14. A ₱ 79,950
Claimable input VAT in June (amortization of deferred VAT)
Claimable input VAT in July (amortization of deferred VAT)
Claimable input VAT in August Amortization of deferred VAT
from purchased in prior months
VAT on purchase of depreciable goods
Total claimable input VAT for the fiscal quarter ending August 2015
15. B ₱ 3,000
An individual taxpayer is allowed to use only the calendar year.
The MAAC exceeds 1M, hence, any input VAT on depreciable capital goods must be amortize
Input VAT in July (₱ 1,680,000 x 12/112)
Divided by:
16. C ₱ 5,750
The MAAC exceeds 1M. The input VAT in August (₱ 1,232,000 x 12/112) = ₱ 132,000 shall
over 48 months (4 years x 12). Hence, ₱ 132,000 / 48 months = ₱ 2,750
Amortization of deferred VAT from July
Amortization of deferred VAT from August
Total claimable input VAT
17. C ₱ 14,500
Amortization of deferred VAT from July
Amortization of deferred VAT from August
Amortization of deferred VAT from September
Total claimable input VAT for the quarter
18. C ₱ 24,000 ; ₱ 48,000
₱24,000
24,000
₱48,000
19. C ₱ 2,400
The April input VAT shall be amortized
Machineries, April ₱1,200,000
Multiply by: 12%
Total ₱144,000
Divided by: 60 months
Creditable input VAT ₱2,400
20. B ₱ 122,400
The input VAT on the May purchase of capital goods shall not be amortized
Equipment ₱400,000
Machieries 600,000
Total ₱1,000,000
Multiply by: 12%
Total ₱240,000
Creditable input VAT in April 2,400
Creditable input VAT in May ₱122,400
21. A ₱ 151,200
Claimable input VAT in April
Claimable input VAT in May
Claimable input VAT in June (₱ 2,400 + 200,000 x 12%)
22. B ₱ 116,000
Input VAT ₱240,000
Multiply by: (60-31) 29
Total ₱6,960,000
Divided by: 60 months
Claimable input VAT in May ₱116,000
23. A ₱ 120,000
April ₱4,000
May 116,000
Claimable input VAT for 2nd quarter ₱120,000
24. C ₱ 120,000 ; ₱ 102,000
The claimable input VAT for January shall be ₱ 1,120,000 x 12/112
The claimable input VAT for February shall be ₱ 952,000 x 12/112
25. C ₱ 366,000
Claimable input VAT for January
Claimable input VAT for February
Claimable input VAT for March (₱ 1,344,000 x 12/112)
1. B ₱ 6,000
Only purchases of agricultural inputs is allowed the presumptive input VAT
Purchases of tomatoes ₱150,000
Multiply by: 4%
Presumptive input VAT ₱6,000
2. D ₱ 18,000
Input VAT on tin cans (₱ 80,000 x 12%) ₱9,600
Input VAT on tin cans (₱ 80,000 x 12%) 2,400
Presumptive input VAT on tomatoes 6,000
Total creditable input VAT ₱18,000
3. D ₱ 0
Only manufacturers and processors are allowed the presumptive input VAT
4. C ₱ 20,000
Purchases of Sugar cane ₱500,000
Multiply by: 4%
Presumptive Input VAT ₱20,000
5. A ₱ 0
The processor of sugar for others is not allowed to claim a presumptive input VAT. Only man
processors of Sa MaMi Co PaRe for their own account are allowed to presumptive input VAT
6. C ₱ 30,000
Raw coconut (to be processed into copra) ₱300,000
Copra from farmers 450,000
Total agricultural inputs purchased ₱750,000
Multiply by: 4%
Presumptive Input VAT ₱30,000
7. B ₱ 800
Purchases of Egg ₱20,000
Multiply by: 4%
Presumptive Input VAT ₱800
8. C ₱ 34,400
Input VAT on purchase of flour (₱ 200,000 x 12%)
Coconut oil (₱ 40,000 x 12%)
Other seasonings (₱ 40,000 x 12%)
Presumptive input VAT on eggs
Total creditable input VAT
9. A ₱ 38,500
Purchases ₱550,000
Multiply by: 7%
Standard input VAT ₱38,500
10. D ₱ 9,500 loss or expense
Actual input VAT (2% x P400K) ₱48,000
Standard input VAT (7% x P550K) 38,500
Loss or an item of deduction ₱9,500
11. A ₱ 300,000
Construction Supplies ₱2,500,000
Multiply by: 12%
Actual Input VAT ₱300,000
12. C ₱ 200,000
Abenson billing to the government ₱4,000,000
Multiply by: 5%
Final Withholding VAT ₱200,000
13. C ₱280,000
Abenson billing to the government ₱4,000,000
Multiply by: 7%
Standard Input VAT ₱280,000
14. No answer
Output VAT (12% x ₱ 4M) ₱480,000
Loss ₱20,000
Actual Input VAT ₱300,000
Final withheld VAT ₱200,000
15. C ₱ 60,000
1st Quarter April
Output VAT ₱200,000 ₱300,000
Input VAT 240,000 320,000
Carry- over ₱40,000 ₱20,000
16. A ₱ 360,000
Carry-over from 1st quarter ₱40,000
Input VAT in April 320,000
₱360,000
17. C ₱ 40,000
June is the end of the quarter so the input VAT carry over must be those from the 1st quarter, ₱
18. D ₱ 60,000
Output VAT ₱280,000
Less: Creditable input VAT
Input VAT carry-over, prior quarter 20,000
Input VAT during the quarter 310,000
VAT payable -50,000
Less: VAT paid during the quarter 10,000
Input VAT carry-over -60,000
19. A ₱ 30,000
Input VAT on zero-rate sales ₱120,000
Input VAT claimed as tax refund -50,000
₱70,000
Input VAT on regular sales 300,000
₱370,000
Output VAT -340,000
Input VAT carry-over ₱30,000
APTER 9 INPUT VAT
MULTIPLE CHOICE - THEORY PART 1
1. D
2. C
3. A
4. D
5. C
6. D
7. B
8. C
9. B
10. C
11. D
12. C
13. D
14. A
15. A
nventory, whichever is higher 1. B
2. B
3. B
4. B
5. D
6. A
7. B
8. A
9. A
10. B
11. C
12. C
13. D
le to the third month of the quarter
on - creditable
T. The seller passes on tax rather than an output VAT
gard to whether or not the seller is engaged or not
₱6,000
4,800
2,520
₱ 13, 320
VAT taxpayer. As a rule, percentage taxpayers
s accounting period . The calendar year is presumed

he third calendar quarter ends in September.
₱50,000
12%
₱6,000
₱80,000
12%
₱9,600
₱0
₱12,000
8,000
₱20,000
₱210,000
20,000
₱230,000
2%
₱4,600
₱2,400
₱4,600
₱5,000
₱26,400
₱26,400
₱360
₱1,928.57
₱1,928.57
month of purchase because the aggregate
ase. The input VAT on the purchase of depreciable

se because the aggregate acquisition costs of
al goods. The input VAT on non - depreciable
capital goods did not exceed ₱ 1M,
stion here is whether or not to include the

to the monthly aggregate acquisition cost.
tion shall be to include the same in the monthly
f depreciable capital goods must be amortized.
ul life in months, whichever is SHORTER

₱1,400
1,250
₱2,650
ul life in months, whichever is SHORTER

₱1,400
1,250
₱2,650
₱2,650
2,650
2,650
72,000
₱79,950
capital goods must be amortized.

₱180,000
60 months
₱3,000
0 x 12/112) = ₱ 132,000 shall be amortized
₱3,000
2,750
₱5,750
₱3,000
5,750
5,750
₱14,500
e amortized
₱2,400
122,400
26,400
₱ 151, 200
₱120,000
₱102,000
₱120,000
102,000
144,000
₱366,000
input VAT
input VAT
mptive input VAT. Only manufacturers or
wed to presumptive input VAT
₱24,000
4,800
4,800
800
₱34,400
May
₱250,000
240,000
₱10,000
be those from the 1st quarter, ₱ 40,000

HEORY PART 1
HEORY PART 2
CHAPTER 10 VAT STILL DUE AND MISCELLANE
TRUE OR FALSE 1
1. False -
2. False - Agricultural product in original state
3. True
4. True
5. True
6. False
7. True
8. True
9. True
10. False - Generally, there is no such remedy under the law. Exceptionally, refund
can be made only in the case of input VAT on zero-rated sales and when the taxpayer
retired or ceased business
11. False - The term "only" made this statement false. In exceptional case of retirement
or cessation from business, this may be refunded.
12. True
13. True
14. False - Advance VAT in not as input VAT
15. False - within 25 days
1. B ₱ 288,000
Total landed cost 3,000,000
Multiplied by: 105%
Total 3,150,000
Multiplied by: 75%
Advanced VAT base 2,362,500
Multiplied by: 12%
Advanced VAT 283,500 nearest answer: 288,000
2. D ₱ 336,000
Price/ per bags 1,400
Multiplied by: 2,000 bags
Total 2,800,000
Multiplied by: 12%
Advanced VAT 336,000
3. C ₱ 456,000
Advanced VAT
Add:
Presumptive VAT (1,800,000 x 4%) 72,000
Regular input VAT:
Other supplies, excluding VAT (300,000 x 12%) 36,000
Other expenses, including VAT (112,000 x 12/112) 12,000
Total Credit against Output VAT
4. B ₱ 40,000
VAT paid in the prior months 40,000
5. A ₱ 84,000
Sales to non-VAT registered person, VAT exclusive (400,000 x 12%)
Sales to VAT registered person, VAT exclusive (500,000 x 12%)
Total Output VAT
Input VAT:
Purchases from VAT registered persons, VAT exclusive (200,000 x 12%)
Output VAT 108,000
Less: Input VAT 24,000
VAT payable 84,000
6. D ₱ 18,000
Output VAT:
Sale of Vatable goods (400,000 x 12%)
Input VAT:
Purchase of Vatable goods (250,000 x 12%)
Output VAT 48,000
VAT payable 18,000
7. B ₱ 116,000
Sales of gift shop items
Rental of vacant premises
Total
Multiplied by:
Output VAT
Less: Input VAT
Related to shop and rental operations
VAT payable
8. C ₱ 24,000
Total sales, exclusive of VAT
Multiplied by
Output VAT
Purchase of goods, VAT inclusive (448,000 x 12/112)
Purchase of equipment, VAT inclusive (1,008,000 x 12/112)
Input VAT
Output VAT 180,000
VAT payable 24,000
9. C ₱ 30,600
Output VAT:
Gross Income (40% of Sales) 360,000
Divided by: 40%
Sales 900,000
Multiplied by: 12%
Output VAT 108,000
Input VAT:
Expenses 120,000
Multiplied by: 37.50%
Expenses from VAT suppliers 45,000
Multiplied by: 12%
Total 5,400
Add: Inventories 72,000
Total Input VAT 77,400
Output VAT 108,000
VAT payable 30,600
10. C ₱ 213,600
Output VAT:
Collection from contract (2,240,000 x 12/112)
Input VAT:
Supplies expense (134,000 x 12/112)
Utilities expense
Total Input VAT
Output VAT 240,000
VAT payable 213,600
11. D ₱ 26,400
Sales 800,000
Less: Sales Return and Allowances 20,000
Net Sales 780,000
Multiplied by: 12%
Output VAT 93,600
Purchases 600,000
Less Purchase Return and Allowances 40,000
Net Purchases 560,000
Multiplied by: 12%
Input VAT 67,200
Output VAT 93,600
VAT payable 26,400
12. A ₱ 0
Mrs. Baniaga sales are exempt goods and no output VAT will result to negative amount hence, 0.
13. A ₱ 24,000
Output VAT:
Domestic Sales (1,200,000 x 12%) 144,000
Input VAT:
Purchases (1,000,000 x 12%) 120,000
Output VAT 144,000
VAT payable 24,000
14. C ₱ 60,000
Output VAT:
Domestic Sales (1,500,000 x 12%) 180,000
Input VAT:
Purchases (1,200,000 x 12%) 144,000
Output VAT 180,000
VAT payable 36,000
Add:
VAT paid 2 prior months ( 12,000 x 2) 24,000
VAT still due and payable 60,000
1. C ₱ 297,500
Unit 142- C 3,500,000
Multiplied by: 12%
Output VAT 420,000
Unit 142-C 3,500,000
Divided by: 6,000,000
Proportion to total 58.33%
Multiplied by:
Input VAT during the month 210,000
Input VAT 122,500
Output VAT 420,000
VAT payable 297,500
2. D ₱ 72,000
Receipts from food served 600,000
Receipts from soft drinks 200,000
Total 800,000
Multiplied by: 12%
Output VAT 96,000
Purchase of soft drinks 120,000
Purchase of food condiments 80,000
Total 200,000
Multiplied by: 12%
Input VAT 24,000
Output VAT 96,000
VAT payable 72,000
3. D ₱ 654,000
Receipts from clients 5,000,000
Receipts from clients 1,000,000
Total 6,000,000
Multiplied by: 12%
Output VAT 720,000
Office supplies expense 500,000
Utilities expense 50,000
Total 550,000
Multiplied by: 12%
Input VAT 66,000
Output VAT 720,000
VAT payable 654,000
4. D 0
Output VAT (1,000,000 x 12%) 120,000
Less: Input VAT:
Traceable to PEZA clients 100,000
Traceable to non PEZA locators 50,000
General Operations 60,000 210,000
VAT payable (90,000) or 0
5. A 0
The annual receipts of DZQC, a radio broadcasting company did not exceed 10,000,000. Hence, ex
6. B ₱ 100,000
Output VAT (3,000,000 x 12%) 360,000
Less: Input VAT
Regular Sales 240,000
Export Sales (100,000- 80,000) 20,000 20,000 260,000
VAT payable 100,000
7. D ₱ 195,000
Output VAT (2,500,000 x 12%) 300,000
Less: Input VAT
Traceable Non-life 80,000
Allocated [70,000 x (2.5M x 7M)] 25,000 105,000
(4.5M + 2.5M = 7M)
VAT payable 195,000
8. B ₱ 270,000
Output VAT (3,000,000 x 12%) 360,000
VAT payable 270,000
9. B ₱ 192,000
Domestic Operation:
Transport of passengers 4,000,000
Transport of cargoes, mails,
Excess baggage 1,500,000
Total 5,500,000
Multiplied by: 12%
Output VAT 660,000
VAT payable 192,000
10. C ₱ 48,800
Sales of processed agricultural products 300,000
Sales of non- food products 500,000
Total 800,000
Multiplied by: 12%
Output VAT 96,000
Sales of unprocessed agricultural products 200,000
Divided by: total sales 1,000,000
Proportion/Percentage 20%
Multiplied by: purchase of equipment 24,000
Equals 4,800
Purchase of goods and supplies 28,000
Purchase of equipment 24,000
Total 52,000
Less: 4,800
Input VAT 47,200
Output VAT 96,000
VAT payable 48,800
1. B ₱ 64,000
Sale of vatable goods 3,000,000
Output VAT 12% 360,000
Input VAT carry- over 60,000
Input VAT on purchase of goods 150,000
Input VAT on building 180,000
Divided by: 12%
Aggregate Cost of building 1,500,000
Since the aggregate cost exceeds 1M, the 180,000 input VAT should be amortized by 60 months
180,000 ÷ 60 = 3,000 Monthly amortization
Multiply by : 2 6,000
VAT paid in prior months 80,000
Total allowable input VAT 296,000
VAT payable (360,000 - 296,000) 64,000
2. B ₱ 27,400
Output VAT (300,000 x 12%) 36,000
Less: Prorated Input VAT
Gasoline 50,000
Bus insurance and repairs 60,000
Purchase of new bus 6,000
Total 86,000
Multiplied by: (300,000/
3,000,000) 10% 8,600
VAT payable 27,400
3. A ₱ 120,000
Receipts from passengers 2,400,000
Receipts from cargoes 600,000
Total vatable receipts 3,000,000
Input VAT for the month 240,000
VAT payable 120,000
4. C ₱ 68,571
Collections and advances 1,200,000
Output VAT 12/112 128,571
Purchase to VAT-suppliers 560,000
Input VAT 12/112 60,000
VAT payable 68,571
5. C ₱ 78,120
Sale of school supplies 700,000
Input VAT on rental expense
(56,000 x 12/112) 6,000
Input VAT on utilities expense
(20,000 × 12%) 2,400
Total input VAT 8,400
Allocation of claimable input 0.07
Claimable input VAT 5,880
VAT payable 78,120
6. D ₱ 180,000
Sales of bread 4,000,000
Sales of cakes 500,000
Total sales 4,500,000
Input VAT on purchases 240,000
Input VAT on other expenses 120,000
VAT payable 180,000
7. D ₱ 32,000
Domestic sale of refined sugar 3,000,000
Presumptive Input VAT:
Purchase of sugar cane
Multiply by: 40,000
Input VAT on purchases
(448,000 × 12/112) 48,000
Advance input VAT paid 240,000
VAT payable 32,000
8. B ₱ 360,000
Sale of medicines 4,000,000
Input VAT on hospital drugstore 120,000
VAT payable 360,000
9. C ₱ 92,000
Tuition fee 800,000
Miscellaneous fees 100,000
Sale of snacks 150,000
Total vatable sale 1,050,000
Input VAT on purchase of supplies
(150,000 x 12%) 18,000
Input VAT on other expenses 16,000
VAT payable 92,000
10. A 0
Educational institutions are exempted from VAT
Hence, VAT payable is zero.
11. A ₱ 71,000
Sale to government 1,000,000
Sale to others 4,000,000
Total vatable sales 5,000,000
Standard input VAT
(1,000,000 × 7%) 70,000
Regular input VAT
(4,200,000 x 12%) 504,000
Less: Claimed as tax credit 45,000 459,000
VAT payable 71,000
12. C ₱ 56,500
Sale to governement 250,000
Sale to non-profit institutions 350,000
Sale to other persons 1,200,000
Total vatable sales 1,800,000
Input VAT on purchases
(1,512,000 x 12/112) 162,000
Less: Input VAT traceable to gov 20,000
Regular Input VAT 142,000
Standard input VAT
(250,000 x 7%) 17,500
VAT payable 56,500
ISCELLANEOUS REQUIREMENTS
MULTIPLE CHOICE - THEORY
1. A
2. C
3. D
4. A
5. A
6. C
7. C
8. D
9. C
10. C
336,000
120,000
456,000
48,000
60,000
108,000
24,000
48,000
30,000
900,000
1,000,000
1,900,000
12%
228,000
112,000
116,000
1,500,000
12%
180,000
48,000
108,000
156,000
240,000
14,400
12,000
26,400
ative amount hence, 0.

d 10,000,000. Hence, exempt from VAT
ortized by 60 months
CHAPT
TRUE OR FALSE 1
1. False - Generally, excise tax are payable at the point of production
2. False - Generally, imported excisable goods are payable at the point of importation
3. False - Excise tax are pre-consumption technically
4. False - Excise tax is an indirect tax
5. True
6. False - Generally, NOT subject to excise tax
7. True
8. False - Excise tax is independent from other taxes
9. False - Heavier tax rates
10. False - Inflation are already reflected on the value in ad valorem taxes
11. False - Excise tax; point of production Business tax; point of sale
12. True
13. False - Mineral products and non- essential services are taxable at point of sale
14. False - Mineral products are exempted to this rule
15. False - Only specific SIN taxes
TRUE OR FALSE 2
1. False - Not all specific excise taxes; only specific sin taxes
2. False - Locally produced coal and coke are subject to specific taxes
3. False - Domestic wholesale price
4. True
5. True
6. False - Excise tax should be paid at the point of importation
7. True
8. True
9. False - Generally payable at point of production/importation
10. True
11. False - Point of importation
12. False - Excise tax is levied on the wholesale price
13. False - There are imported goods subject to ad valorem tax
14. False - Even if in original state
15. True
16. False - should be HIGHER between retail price, price limit and cost plus limit
17. False - on the value determined by BOC
18. False - Coal and coke are subject to specific taxes
19. False - Cigars are subject to ad valorem tax
20. True
21. True
MULTIPLE CHOICE - PROBLEMS
1. D ₱ 1,320,000
Production Costs
Transport and other expenses of sale
Total cost
Mark-up rate
Cost plus limit
Final selling price to customer
Basis of ad valorem tax (HIGHER)
2. C ₱ 4,350,000
Cars imported - selling price
Cars produced - selling price
Basis for excise tax
Excise tax at 10%
3. A ₱ 3,000,000
Wholesale price of the cars
Ad Valorem tax at 50%
4. A ₱ 1,500,000
Wholesale price of the cars (hybrid)
Ad Valorem tax (50%/2)
5. D ₱ 0
If the cars are purely electric vehicles, it shall be exempt from excise tax. Hence, tax is zero.
6. B ₱ 300,000
Raymond Hybrid SUV
Excise tax (20%/2)
7. C ₱ 100,000
Payment before taxes
Multiply by:
Excise tax
8. C ₱ 252,000
Payment before taxes
Excise tax
Amount subject to VAT
VAT 12%
9. B ₱ 200,000
Gross receipts
Multiply by:
Excise Tax
10. B ₱ 20,000
Gold Price
Multiply by:
Excise Tax
11. C ₱ 53,571
Fee, inclusive of VAT
Divided by:
Fee, before any taxes
Excise tax at 5%
12. D ₱ 51,020
Cosmetic Surgery Fee, inclusive of VAT and excise tax
Multiply by:
Gross Receipt, net of VAT but inclusive of excise tax
Divided by:
Gross Receipt, net of VAT and Excise Tax
Multiply by:
Excise Tax
CHAPTER 11 EXCISE TAX
1. B
2. A
3. A
4. A
5. A
6. D
7. C
8. B
9. C
10. A
11. D
12. C
13. D
14. A
15. C
16. C
17. B
18. B
19. D
20. D
1,000,000
200,000
1,200,000
110%
1,320,000
1,100,000
1,320,000
12,500,000
31,000,000
43,500,000
4,350,000
6,000,000
3,000,000
6,000,000
1,500,000
from excise tax. Hence, tax is zero.
3,000,000
300,000
2,000,000
5%
100,000
2,000,000
100,000
2,100,000
252,000
2,000,000
10%
200,000
500, 000
4%
20,000
1,200,000
112%
1,071,429
53,571.45
1,200,000
12/112
1,071,428.57
105%
1,020,408.16
5%
51,020
1. B
2. A
3. C
4. B
5. A
6. D
7. C
8. C
9. D
10. A
11. D
12. A
13. D
14. C
15. B
16. D
17. D
18. C
19. D
20. B
21. D
22. D
23. D
24. A
25. C
26. C
27. D
28. B
29. D
30. B
31. D
32. B
33. A
34. D
CHAPTER 12 INTRODUCTION TO T
TRUE OR FALSE 1
1. True
2. True
3. True
4. False - Sales and barters are bilateral transfers
5. False - Inheritance and donations are unilateral transfers
6. False - Inter-vivos is subject to donor's tax
7. False - Mortis causa is subject to estate tax
8. True
9. True
10. True
11. False - Transferee in mortis causa is the heir.
12. True
13. True
14. False - Only the transfer element (gratuitous) is subject to transfer tax
15. True
TRUE OR FALSE 2
1. False - Transfer tax is intended to recoup reduction in income taxes
2. True
3. False - Benefit received theory
r. True
5. True
6. False - ad valorem tax
7. False - Direct tax
8. True
9. False - Two groups: Residents or citizens AND non- residents
10. True
11. True
12. False - Non-resident alien
13. True
14. False - Non-resident citizens are taxed on global transfers.
15. True
TRUE OR FALSE 3
1. False - Only to intangible properties
2. False - Only to NON-RESIDENT alien
3. True
4. True
5. False - If 85% of its business is situated in PH, it shall be considered located in PH
6. True
7. True
8. False - For transfer tax purposes, shares and bonds are intagibles.
9. False - Inter-vivos is a transfer from a living donor to another
10. True
11. True
12. True
13. True
14. False - Depends on the motive; if it is in contemplation of death, such is classified as mortis causa
15. True
16. True
17. True
18. True
19. True
20. True
1. C ₱ 1,000,000
Basis for donation inter-vivos is the value of property at the date of transfer of donor.
2. D ₱ 1,200,000
Basis for donation mortis causa is the value of property at the date of the death of decedent
3. A
The property is subject to donor’s tax at P1,000,000. The transfer was completed when the don
living, hence, it is a donation inter - vivos
4. C
The property is subject to estate tax at P800,000. Since the transfer was not completed, the pro
should be at the point of death of decedent.
5. C ₱ 6,900,000
House and Lot - FV 4,000,000
Car - FV 800,000
Agricultural Land - FV 2,100,000
Total amount of donation 6,900,000
6. D ₱ 4,400,000
Cash 400,000
Land 1,000,000
Car 3,000,000
7. D ₱ 4,400,000
Same procedures with no. 6
8. D ₱ 4,400,000
Same procedures with no. 6
9. B ₱ 1,400,000
Cash 400,000
Land 1,000,000
10. A ₱ 1,000,000
Cash is considered intangible for transfer tax purposes
1. D ₱ 7,500,000
Investment in stocks 500,000
House and Lot 4,000,000
Residential Lot 3,000,000
2. C ₱ 3,500,000
Investment in stocks 500,000
Residential Lot 3,000,000
3. B ₱ 3,000,000
Tangible properties donated located only in the Philippines
4. D ₱ 2,000,000
Selling price 4,500,000
Cost 2,500,000
Amount subject to income tax 2,000,000
5. B ₱ 1,000,000
Fair market value 5,500,000
Amount subject to transfer tax 1,000,000
6. B ₱ 1,500,000 ; 0
Fair market value 4,000,000
Cost 2,500,000
Amount subject to income tax 1,500,000
Selling price is higher than fair market value.
Meaning, there is no gratuitous transfer.
7. B ₱ 1,100,000 ; donor's tax
It is revocable trasnfer which was completed by waiver of right to revoke. Thus, the fair value
August 2020 of the date of completion
8. D ₱ 1,600,000 ; estate tax
Here, it becomes a donation mortis causa. The incomplete trasnfer was pre-terminated by death
9. D None ; None
The condition was not fulfilled.
10. A ₱ 0
Transfer of properties between husband and wife is considered void.; except for small gifts
which is not the case.
1. A ₱ 880,000
Car - FV 500,000
Motorcycle - FV 300,000
Laptop - FV 80,000
Total fair value of properties 880,000
2. C ₱ 2,500,000 ; donor's tax
Fair value at date of sale 4,000,000
Amount subject to donor’s tax 2,500,000
3. D ₱ 3,500,000 ; estate tax
Fair value at death of seller 5,000,000
Amount subject to estate tax 3,500,000
4. A ₱ 0
Selling price is higher thanthe fair value at the date of sale. Hence, no gratuitous transfer.
5. A ₱ 0
The tranfer is still revocable and can only be completed when the right to revoke is waive or w
itself pre - terminated death.
6. B Donor's Tax
7. D The donation shall neither be subject to donor's tax nor estate tax
8. D The donation is void and is not subject to transfer tax
Donation between spouses is prohibited by law with the exception of small gifts
9. D Stocks of foreign corporation with 75% business in the Philippines
The tax law requires atleast 85%
10. A ₱ 0 ; None
The transfer was paid for adequate consideration considering that the selling price approximate
value at the DATE OF DELIVERY. The transfer is considered a bona fide SALE not a gratuit
11. A ₱ 1,050,000 ; Donor's Tax
The acceptance of Mary constitutes the perfection of contract. The fair value at that time shoul
12. D Exempt from transfer tax
This case QUASI - TRANSFER. The transfer of the trustee to the real owner is not an act of tr
13. C Exempt from transfer tax
It is obvious that there was no intention to donate since the difference between the loan and the
is the cost of borrowing.
DUCTION TO TRANSFER TAXATION
1. D
2. C
3. B
4. B
5. A
6. C
7. A
8. B
9. A
10. A
11. D
12. B
13. C
14. C
15. A
16. A
17. C
18. A
19. D
20. A
21. A
22. B

1. A
2. C
3. D
4. C
5. C
6. B
7. C
8. B
9. D
10. C
11. D
12. B
13. B
14. D
15. A
16. B
17. A
18. D
19. C
20. C
21. C
22. D
23. C.
mortis causa
transfer of donor.
of the death of decedent
was completed when the donor was
was not completed, the proper fair value

evoke. Thus, the fair value should be
was pre-terminated by death.
d.; except for small gifts

no gratuitous transfer.
ght to revoke is waive or when right
of small gifts
he selling price approximates the fair

ona fide SALE not a gratuitous transfer.
fair value at that time should be the basis
eal owner is not an act of transfer of ownership
ce between the loan and the service

CHAPTER 13 THE CONCEPT OF SUCCESION AN
TRUE OR FALSE 1 TRUE OR FALSE 2
1. True 1. False – No debt can be inherited b
2. True 2. False – Both testamentary ang inte
3. True 3. True
4. False – Decedent with last will and testament is called testate. 4. True
5. True 5. False – It subject to limitations on
6. False – A person who dies with last will is called testator. 6. False – In testamentary disposition
7. True 7. False – The secondary compulsory
8. True 8. True
9. False – The will may only be prepared by the decedent. 9. False – Only in default of compuls
10. False – The will may only be prepared by the decedent during his lifetime. 10. False – In default of compulsory
11. False – Testator cannot designate any heirs in violation to his legitime.
12. True
13. True
MULTIPLE CHOICE THEORY PART 1 MULTIPLE CHOICE THEORY P

1. B 1. C
2. B 2. D
3. A 3. D
4. B 4. A
5. B 5. B
6. C 6. A
7. A 7. B
8. B 8. B
9. A 9. C
10. A 10. B
11. B 11. B
12. C 12. A
13. D 13. B
14. A 14. B
15. C 15. D
16. C
Heirs
One (Legitimate)
Two (Legitimate)
Tree (Legitimate)
Four (Legitimate)
Five (Illegitimate)
Six (Illegitimate)
Total
17. B
Exclusive properties of decedent
Share in net common properties (₱ 6
Distributable estate
Heirs
Surviving Spouse
One (Legitimate)
Two (Legitimate)
Tree (Legitimate)
Five (Illegitimate)
Total
18. B
Share in net common properties (₱ 6
Share in the distributanle estate
Total properties
UCCESION AND ESTATE TAX
OR FALSE 2
– No debt can be inherited by heirs.
– Both testamentary ang intestate succession is subject to estate tax.
– It subject to limitations on legitime requirements.

– In testamentary disposition, non-relatives may be included.
– The secondary compulsory heris shall inherit only in default of primary heirs.
– Only in default of compulsory heirs (primary or secondary), the relatives in the collateral line up to the fifth degree shall inheri
– In default of compulsory heirs and relatives within the fifth degree, the government shall inehrit the estate of the decedent.
PLE CHOICE THEORY PART 2
Share Partition Inheritance

1 1/5 x ₱ 1 000 000 ₱ 200 000
1 1/5 x ₱ 1 000 000 ₱ 200 000
1 1/5 x ₱ 1 000 000 ₱ 200 000
1 1/5 x ₱ 1 000 000 ₱ 200 000
0.5 0.5/5 x ₱ 1 000 000 ₱ 200 000
0.5 0.5/5 x ₱ 1 000 000 ₱ 200 000
5 ₱ 1 000 000
e properties of decedent ₱ 1 000 000
net common properties (₱ 6 000 000/2) 3 000 000
₱ 4 000 000
Share Partition Inheritance

1 1/4.5 x ₱ 4 500 000 ₱ 1 000 000
1 1/4.5 x ₱ 4 500 000 ₱ 1 000 000
1 1/4.5 x ₱ 4 500 000 ₱ 1 000 000
1 1/4.5 x ₱ 4 500 000 ₱ 1 000 000
0.5 0.5/4.5 x ₱ 4 500 000 ₱ 500 000
4.5 ₱ 4 500 000
net common properties (₱ 6 000 000/2) ₱ 3 000 000

the distributanle estate 1 000 000
₱ 4 000 000
the fifth degree shall inherit.
e estate of the decedent.
CHA
TRUE OR FALSE 1
1. True
2. False – All personal properties: Tangible or Intangible
3. False – Including Tangible and Intangible properties
4. False
5. False
6. False – It may be established at a later date.
7. False – They are removed outright from the amount of gross estate
8. False – Never
9. True
10. True
11. False – At Fair Value
12. True
13. True
14. False – Fair Value
15. True
TRUE OR FALSE 2
1. False – It depends upon the motive of the transfer
2. False – These are not yet present properties at the point of death
3. True
4. True
5. True
6. False
7. True
8. False – As a rule, it is excluded.
9. False
10. True
11. True
12. True
13. True
14. True
15. False – Separate of the decedent and common properties
16. False
17. True
18. True
19. True
20. True
21. True
22. True
23. False
24. True
25. True

1. B ₱ 7,300,000
Fair Value
Less: Income received
Net expenses
Gross Estate
2. C ₱ 5,750, 000
Car, registered in his name
Family Home
Other Properties
Gross Estate
3. B ₱ 1,050,000
Motorcycle
Residential Lot
Other Personal Properties
Gross Estate
4. D ₱ 12,000,000
5. B ₱ 12,000,000
6. C ₱ 4,400,000
Cash, proceeds of his bank loan
A ranch, acquired for P 1,000,000 in 1990
Cattles
House and Lot
Gross Estate
7. C ₱ 2,600,000
Properties, inherited from his father
Properties donated by brother
Cash, from his salary savings
Cash, Income of properties before death
Gross Estate
8. D ₱ 5,300,000
A house and lot in Japan
Bank deposit, in the Philippines
A car in the Philippines
A residential lot in the USA
Total Amount
9. C ₱ 1,200,000
Cash in Philippine banks
Investment in bonds of domestic corporations
Gross Estate
10. D ₱ 24,000,000
An agricultural in land in Korea
A house and lot in Korea
A condominium unit in the Philippines
A business interest in the Philippines
Car in the Philippines
Cash in Japanese banks
Total Amount
11. D ₱ 14,000,000
Shares of domestic corporations
Cash in US Banks
Car in the US
House and lot in the Philippines
Total Amount
12. B ₱ 6,000,000
Shares of stocks in a domestic corporation
Interest in a Philippine-based business
Total Amount
13. A ₱ 0
The 6 million properties are intangible personal properties.
14. C ₱ 2,000,000
Shares of a foreign corporation traded in the
Philippines Stock Exchange
Claims from resident debtors
Total Amount
15. C ₱ 14,000,000
16. D ₱ 1,000,000
9-Jan-19
10-Jan-20
Required exclusion in gross estate
17. C ₱ 16,600,000
Globe preferred stocks
Multiply by: PSE closing price at date of death
Total
San Miguel common shares
Multiply by: PSE closing price at date of death
Total
Stocks of Carmen corporation
Multiply by: Book Value
Total
Total amount to include in Gross Estate
18. D ₱ 7,900,000
Newly purchased Jeepney
Ford Expedition
Land (Zonal Value)
Pure gold (500 x P 1, 800)
Total Amount
19. C ₱ 4,280,000
Capital 10,000,000
Multiply by: 40%
Total 4,000,000
Accrued Profits 1,000,000
Multiply by: 70%
700,000
Multiply by: 40%
Total 280,000
Total Value
20. D ₱ 200,000
Owned Stocks
Divide by: Retained Earnings
Total
Multiply by: Total shareholder’s Equity
Total Value
21. B ₱ 4,250,000
Cash
Less: Hospital expenses
Total
Multiply by: Exchange Rate (April 12, 2020)
Total Amount
MULTIPLE CHOICE - PROBLEM PART 2
1. D ₱ 5,200,000
Cash
Agricultural land
Family home
Gross Estate
2. C ₱ 6,000,000
House and lot, to his adopted son and only heir
Land to a public school
Gross Estate
3. C ₱ 800,000
Insurance A – designated to wife
as revocable beneficiary
Insurance D – designated to executor
as irrevocable beneficiary
Insurance proceeds included in Gross Estate
4. D The property shall be included in the gross estate of Anton and Bentong.
5. C The land shall be valued at ₱ 2,000,000 in the gross estate of F.
6. B The transfer from X to Z is subject to estate tax, not donor's tax.
7. A The transfer from Mr. Curandang to Matito is subject to estate tax.
8. B Proceeds from Mr. Cabayo's car insurance.
9. D The building and commercial lot shall be excluded in the gross estate of Mrs. Malou Phet
10. C ₱ 4,500,000
Interest in a joint venture business
Proceeds of insurance, revocably designated to wife
Total Amount
11. D ₱ 11,000,000
Separate property of Mrs. Taray
Value of family business
Other properties owned jointly by Mr. and Mrs. Taray
Gross Estate
12. C ₱ 11,000,000
Separate properties of Pogi
Common properties of the spouses
Gross Estate
13. D ₱ 11,200,000
Separate properties of Maganda
Share in the net distributive estate of Mr. Nalang
Share in the net conjugal properties with Mr. Nalang
Gross Estate
14. C ₱ 12,000,000
Residential lot
Business interest
Total Amount
15. A ₱ 0
The 2 million car is no longer owned, the intangible assets are exempt under r
16. B ₱ 2,144,000
Stocks invested in ABC corporation
Divide by: Price per share
Total decedent number of shares
Multiply by: Selling price at the date of the decedent's death
Total Value included in Gross Estate
17. A ₱ 26,800,000
Outstanding shares
Multiply by: Book value per share
Total
Fair value
Divide by: Outstanding shares
Total
Total amount per share
Multiply by:
Total Amount
18. B No. The assessment of the CIR is incorrect. The assessement should have been based on the fair market value a
of death which is ₱2,000,000
CHAPTER 13 - A ESTATE TAX : GROSS ESTATE
7,000,000
300,000
6,700,000
600,000
7,300,000
400,000
5,000,000
350,000
5,750,000
80,000
900,000
70,000
1,050,000
500,000
2,500,000
600,000
800,000
4,400,000
1,200,000
800,000
400,000
200,000
2,600,000
2,000,000
800,000
1,000,000
1,500,000
5,300,000
800,000
500,000
1,200,000
12,000,000
4,000,000
2,000,000
3,000,000
1,200,000
1,800,000
24,000,000
2,000,000
5,000,000
3,000,000
4,000,000
14,000,000
4,000,000
2,000,000
6,000,000
800,000
1,200,000
2,000,000
500,000
500,000
1,000,000
₱1,000
1,000
₱1,000,000
₱40,000
300
₱12,000,000
₱80,000
45
₱3,600,000
₱16,600,000
1,200,000
1,800,000
4,000,000
900,000
7,900,000
4,000,000
280,000
4,280,000
25,000
1,000,000
0.025
8,000,000
200,000
$124,000.00
$24,000.00
$100,000.00
₱42.50
4,250,000
200,000
3,000,000
2,000,000
5,200,000
5,000,000
1,000,000
6,000,000
400,000
400,000
800,000
3,000,000
1,500,000
4,500,000
6,000,000
2,000,000
3,000,000
11,000,000
3,000,000
8,000,000
11,000,000
5,000,000
2,500,000
3,700,000
11,200,000
3,000,000
9,000,000
12,000,000
le assets are exempt under reciprocity.
2,000,000
125
16,000
134
2,144,000
1,000,000
120
120,000,000
14,000,000
1,000,000
14
134,000,000
20%
26,800,000
d on the fair market value at the time
S ESTATE
1. D
2. B
3. A
4. C
5. B
6. B
7. A
8. C
9. A
10. D
11. C
12. D
13. D
14. A
15. C
16. B
17. D
18. B
19. D
20. C
21. A
22. C
23. C
24. D
25. A
26. A
27 . A

1. D
2. C
3. A
4. A
5. C
6. A
7. D
8. D
9. C
10. D
11. D
12. D
13. B
14. B ₱ 9,640,000
Shares of Saint Peter Corporation
Multiply by: Closing price (Date of death)
15. C ₱ 85,000
Cash
Multiply by:
200,000
48.2
9,640,000
$2,000.00
₱42.50
₱85,000.00
CHAPTER 13 - B ESTATE TAX : Gro
TRUE OR FALSE 1
1. True
2. False - Must be agreed upon before the marriage
3. False - It depends upon the date or marriage
4. False - it depends upon the property regime agreed upon by the spouses
5. False - ACP operates retrospectively and prospectively
6. False - ACP operates retrospectively and prospectively
7. True
8. False - it depends upon the property regime agreed upon by the spouses
9. True
10. True
11. False - under CGP, fruits before marriage are separate properties
12. False - under ACP, fruits follow principal
13. False - real properties that were inherited are separate properties
14. False - not all personal properties are considered properties
15. False - it depends upon the property regime agreed upon
TRUE OR FALSE 2
1. False - under ACP, properties received by way of inheritance before marriage are common properties
2. True
3. False - ACP is retrospective
4. False - it depends on the date it was received
5. True
6. False - under CGP, fruits are common
7. False - fruits of labor are common properties
8. True
9. True
10. True
11. True
12. True
13. False - only the gain
14. True
15. True
16. True
17. True
18. False - only conjugal properties
1. B ₱ 800,000
1,800,000
-1,000,000
800,000
2. D ₱ 1,800,000
3. A ₱ 0
4. A ₱ 0
5. D ₱ 4,780,000
Salary savings before marriage
Mr. Boneti 2,000,000
Mrs. Boneti 1,500,000
Income from savings
Mr. Boneti 200,000
Mrs. Boneti 180,000
Earnings from separate industries
Mr. Boneti 400,000
Mrs. Boneti 500,000
Common property of spouses 4,780,000
6. C ₱ 4,780,00
Exclusive property of Mr. Boneti 0
Common property of the spouses 4,780,000
Gross Estate 4,780,000
7. C ₱ 2,000,000
Salary savings before marriage 2,000,000
2,000,000
8. C ₱ 1,500,000
Salary savings before marriage 1,500,000
1,500,000
9. B ₱ 1,280,000
Savings during marriage (Mr. Boneti)
Savings during marriage (Mrs. Boneti)
Earnings from separate industries (Mr. Boneti)
Earnings from separate industries (Mrs. Boneti)
10. A ₱ 3,280,000
Exclusive property of Mr. Boneti 2,000,000
Common Property of the spouses 1,280,000
3,280,000
11. C ₱ 850,000
Before marriage
Total properties
During marriage
Inheritance and donation received
Separate properties
12. B ₱ 4,500,000
Before marriage
Total properties
During marriage
Inheritance and donation received
Separate properties
13. B ₱ 2,980,000
During marriage Lovely
Income from separate industry 200,000
Income of properties brought to the marriage 80,000
14. C ₱ 3,830,000
Exclusive properties of Lovely 850,000
Common properties of the spouses 2,980,000
15. B ₱ 450,000
During marriage
Inheritance and donations received
16. D ₱ 5,200,000
Before marriage
Total Properties
During marriage
Income of properties brought to the marriage
Inheritance and donations received
17. A ₱ 2,680,000
Before marriage Lovely
Total Properties 400,000
During marriage
Income from separate industry 200,000
Income of properties brought to the marriage 80,000
18. A ₱ 3,130,000
Exclusive properties of Lovely 450,000
19. D ₱ 700,000
Before marriage
Total properties 300,000
During marriage
Inherited properties 400,000
700,000
20. C ₱ 800,000
Before marriage
Total properties 500,000
During marriage
Donated properties 300,000
800,000
21. A ₱ 1,000,000
During marriage
Properites for exclusive personal use
Properties from own industry
Fruit of donated/inherited property
22. B ₱ 1,700,000
Exclusive properties of Mr. Cornelius 700,000
23. C ₱ 530,000
Before marriage
Properties for exlusive personal use
During marriage
Inherited properties
Fruit of inherited properties
Separate property of Mr. Cornelius
24. B ₱ 430,000
Before marriage
During marriage
Donated properties
Fruit of donated properties
Separate property of Mrs. Cornelius
25. C ₱ 1,540,000
Total
Before marriage
Other properties acquires 750,000
During marriage
Properties from own industry 790,000
26. C ₱ 2,070,000
Exclusive properties of Mr. Cornelius 530,000
1. C ₱ 1,200,00
Car, donated to Mr. Jose in June 14, 2015 1,200,000
1,200,000
2. B ₱ 2,000,000
Investment - inherited by Josephine
on Feb. 4, 1995 when its value was 2M
3. C ₱ 7,200,000
Exclusive properties of Josephine 2,000,000
4. B ₱ 1,930,000
Exclusive properties of Mr. A 0
5. A ₱ 1,650,000
Proceeds of group insurance
House and lot
Car, registered in his name
50% of original investment in a business partnership
Gross Estate
6. C ₱ 3,680,000
Receivable from the car insurance 800,000
Benefits (receivable) from GSIS 1,000,000
Family home 2,000,000
Jeepney 700,000
Wedding gift, received by the spouses 120,000
Common properties 4,620,000
Less: Exempt properties (Benefit from GSIS 1,000,000
Taxable common properties 3,620,000
Exclusive properties of Mrs. Enriquez 60,000
7. C ₱ 5,120,000
Exclusive properties of Mr. X 0
8. No answer - ₱ 83,000,000
9. C P 8,000,000
Exclusive properties of Mrs. Vincent 0
10. C ₱ 23,800,000
Lot 2, with small building 800,000
Business Interest 1,200,000
Trasfered inheritance (4M - 1M) 3,000,000
11. C ₱ 9,000,000
Exclusive properties of Mrs. Henlin 0
12. A ₱ 10,500,000
Exclusive properties of Mrs. Chipboy 2,000,000
13. A ₱ 3,650,000
Family house, from salary of Mr. and Mrs Malinao
Investment in bonds, from salary of Mr. and Mrs Malinao
Interest income on investments in bonds
Common property to be reflected in gross estate
14. C ₱ 6,050,000
Common stock 1,000,000
Cash divided income 50,000
House and lot 4,000,000
Agricultural land 1,000,000
Exclusive properties of Mr. Liwanag 0
15. C ₱ 3,870,000
Exclusive properties of Mrs. Young 270,000
16. A ₱ 1,800,000
Commercial lot, purchased from Mr. Y's GSIS benefit
House and lot
Common properties
Less: Exempt properties
Taxable common properties
Exclusive properties of Mr. Y
Gross Estate
17. C ₱ 4,000,000
Stocks investment in the Philippines - intangible
Gross Estate
18. A ₱ 0
19. B ₱ 7,000,000
Common property in the Philippines 7,000,000
20. D ₱ 51,000,000
Common properties in the Philippines 7,000,000
Common properties in the America 24,000,000
Exclusive properties of Mr. Andersen 20,000,000
ATE TAX : Gross Estate of Married Decedents
1. A
2. B
3. D
4. C
5. B
6. B
7. D
8. C
9. A
10. D
11. A
12. B
13. A
14. D
15. D
on properties 1. D
2. D
3. D
4. C
5. C
6. D
7. B
8. A
9. B
10. C
11. C
12. A
13. D
14. A
15. A
200,000
180,000
400,000
500,000
1,280,000
400,000
450,000
850,000
4,000,000
500,000
4,500,000
Andy Total
2,000,000 2,200,000
700,000 780,000
2,980,000
450,000
450,000
4,000,000
700,000
500,000
5,200,000
Andy Total
400,000
2,000,000 2,200,000
80,000
2,860,000
70,000
790,000
140,000
1,000,000
20,000
30,000
400,000
80,000
530,000
30,000
40,000
300,000
60,000
430,000
2,000,000
2,000,000
150,000
1,000,000
400,000
100,000
1,650,000
1,500,000
2,000,000
150,000
3,650,000
1,000,000
1,800,000
2,800,000
1,000,000
1,800,000
0
1,800,000
1,800,000
4,000,000
4,000,000
RY PART 1
RY PART 2
CHAPTER 14 ESTATE TAX : DEDUCTIONS FR
TRUE OR FALSE 1
1. True
2. True
3. True
4. True
5. False - ordinary deduction
6. False - net conjugal or community properties of spouses
7. True
8. True
9. True
10. False
11. False - non - deductible
12. True
13. True
14. True
15. False - from the date of the death of the prior decedent or date of gift
TRUE OR FALSE 2
2. True
3. False - can claim
4. False - at the point of death
5. True
6. True
7. True
8. False - up tp ₱ 10,000,000
9. False - up to ₱ 5,000,000
10. True
12. True
13. False - except transfer for public purposes
14. True
15. True
1. C ₱ 510,000
Income tax 110,000
Estimated estate tax 400,000
Deductible taxes 510,000
2. C ₱ 90,000
Reported losses
Losses incurred within 6 months since death
Losses incurred beyond 6 months since death
Deductible amount of losses
3. C ₱ 100,000
Losses of separate properties of Mr. Undoy
Losses of common properties
Deductible Losses
4. A ₱ 60,000 ; ₱ 40,000
5. B ₱ 300,000
Inventory stolen the decedent’s business office
Deductible amount of loss against gross income
6. A ₱ 300,000; ₱ 0
7. D ₱ 1,600,000
Fair value of the lot 1,600,000
Deductible amount 1,600,000
8. C ₱ 800,000
EXCLUSIVE
Gross estate 1,000,000
Less:
Indebtedness and taxes
Losses
Net estate before special deductions
Divide by:
Share of surviving spouse
1. D ₱ 650,000
COMMON
Less:
Funeral expense 200,000
Judicial expense 100,000
Indebtedness and taxes 250,000
Losses 150,000
Net estate before special deductions 1,300,000
Divide by: 2
Share of the surviving spouse 650,000
2. C ₱ 1,275,000
SEPARATE
Less:
Indebtedness and taxes
Losses
Divide by:
Share of the surviving spouse
3. C ₱ 9,000,000
Multiply by: (% owned) 50%
Decedent’s interest 9,000,000
Limit 10,000,000
Family home deduction 9,000,000
4. D ₱ 10,000,000
Multiply by: (% owned) 50%
Limit 10,000,000
Family deduction 10,000,000
5. C ₱ 7,500,000
GROSS ESTAT% OWNED
House- CP 15,000,000 50%
Lot- SP 0 0%
Decedent’s interest
Limit
Deductible family home
6. C ₱ 9,000,000
GROSS ESTAT% OWNED
Lot- SP descendants 3,000,000 100%
House- CP 12,000,000 6%
Limit
Deductible family home
7. C ₱ 80,000
Benefit under RA 4917 80,000
8. B ₱ 0 ; ₱ 80,000
9. C ₱ 500,000
Standard deduction for non-resident alien
10. A ₱ 1,000,000
Philippine Gross Estate = 4,000,000 = 40%
World Gross Estate 10,000,000
Obligations (500,000×40%) 200,000
Losses of properties (1M×40%) 400,000
Transfer of property for public use 400,000
Deductions allowable 1,000,000
11. A ₱ 1,400,000
Philippine Gross Estate = 3,000,000 = 30%
World Gross Estate 10,000,000
Losses and indebtedness(3M×30%) 900,000
Transfer for public use 500,000
Deductions allowable 1,400,000
12. C ₱ 5,000,000
Standard deduction for residents 5,000,000
13. D ₱ 302,400
Initial Value
Less: Mortgage paid
Initial basis
Less: Prorated deductions (700K/7.5M×2.1M)
Final basis
Multiply by: Vanishing %
Vanishing deductions
14. C ₱ 117,000
Initial Value
Less: Mortgage paid
Initial basis
Less: Prorated deductions (250K/2M(300K+140K)
Final basis
Multiply by: Vanishing %
Vanishing deductions
DUCTIONS FROM GROSS ESTATE
1. A
2. A
3. C
4. C
5. D
6. C
7. C
8. C
9. A
10. D

1. D
2. C
3. A
4. B
5. B
6. A
7. D
8. D
9. C
10. A
11. C
12. D
13. D
14. C
15. A
60,000
30,000
90,000
60,000
40,000
100,000
300,000
300,000
COMMON
2,000,000
150,000
250,000
1,600,000
2
800,000
COMMON
3,000,000
300,000
150,000
2,250,000
2
1,275,000
FAMILY HOME
7,500,000
0
7,500,000
10,000,000
7,500,000
FAMILY HOME
3,000,000
6,000,000
9,000,000
10,000,000
9,000,000
500,000
1,000,000
300,000
700,000
196,000
504,000
60%
302,400
800,000
550,000
250,000
55,000
195,000
60%
117,000
CHAPTER 15 ESTATE TAX PAYABLE
1. D
2. D
3. D
4. C
5. A
6. D
7. C
8. C
9. D
10. D
11. C
12. C
13. C
14. B
15. D
16. D
17. B
18. B
1. A ₱ 12,200,000
Gross Estate
Less: Ordinary Deductions
Claims against the estate
Unpaid Taxes
Net estate before share of surviving spouse
Less: Share of the surviving spouse
Less: Special deductions
Family home
Standard deduction
Net taxable estate
2. B ₱ 26,300,000
Family Home
Agricultural Land
Cash and other personal properties
Total Assets
Funeral expenses
Medical expenses
Judicial expenses
Unpaid taxes
Less: Total Liabilities
3. B ₱ 12,200,000
Gross Estate
Family home
Standard deduction
Net taxable estate
4. C ₱ 1,800,000
Gross Estate
Family home
Standard deduction
Net taxable estate
5. C ₱ 3,500,000
Family Home
Other Properties
Gross Estate
Family home
Standard deduction
Net taxable estate
6. C ₱ 17,400,000
Family Home
Other properties
Total Assets
Funeral expenses
Judicial expenses
Unpaid medical expenses
7. A ₱ 7,200,000
Net distributable property
Add: Funeral expenses
Judicial expenses
Net taxable estate
8. A ₱ 10,000,000
Gross Estate
Standard deduction
Net taxable estate
9. C ₱ 13,900,000
Separate property of Mr. Y
Share in communal property
Total Assets
Funeral expenses
Ordinary deductions in communal property
Ordinary deductions – exclusive to Mr. Y
Distributable Estate
Less: Estate tax
Net Distributable estate
*Estate tax = 10,000,000.00 x 6% = 600,000.00
10. C ₱ 17,000,000
Gross Estate
Family home
Standard deduction
Net taxable estate
11. A ₱ 26,980,000
Separate property of Mrs. Y
Share in communal property
Total Assets
Funeral expenses
Ordinary deductions in communal property
Ordinary deductions – exclusive to Mr. Y
Less: Estate tax
*Estate tax = 17,000,000.00 x 6% = 1,020,000.00
12. D ₱ 9,300,000
Net Estate
Add: Judicial and Funeral Expenses
Total
Less: Standard Deduction
Family Home
Net Taxable Estate
1. B ₱ 6,575,000
Gross Estate
Obligations
Family home
Standard deduction
Net taxable estate
2. D ₱ 16,980,500 (closest answer)
Separate properties of the decedent
Share in common property
Total Assets
Funeral expenses
Judicial expenses
Obligations - common property
Obligations – exclusive
Less: Estate tax
Estate tax = 6,575,000.00 x 6% = 394,500.00
3. C ₱ 3,640,000
Tangible properties in the Philippines

Intangible properties in the Philippines
Gross Estate
Obligations
Losses
Transfer for Public Use
Standard deduction
Net taxable estate
4. C ₱ 3,140,000
Gross Estate
Obligations
Losses
Standard deduction
Net taxable estate
5. ?????
6. A ₱ 22,500,000
Gross Estate
Family home
Standard deduction
Net taxable estate
7. C ₱ 22,875,000
8. C ₱ 16,125,000
Gross Estate
Family home
Standard deduction
Net taxable estate
Standard Deduction:
*Philippines = 50,000,000.00 / 80,000,000.00 = 0.625 x 5,000,000.00 = 3,125,000.00
**Japan = 30,000,000.00 / 80,000,000.00 = 0.375 x 5,000,000.00 = 1,875,000.00
9. C ₱ 3,450,000 ; ₱ 1,400,000 ; ₱ 2,700,000
Gross Estate
Obligations
Losses
Standard deduction
Net taxable estate
Standard Deduction:
*Philippines = 7,500,000.00/15,000,000.00 = 50% x 5,000,000.00 = 2,500,000.00
**China = 3,000,000.00/15,000,000.00 = 20% x 5,000,000.00 = 1,000,000.00
***Taiwan = 4,500,000.00/15,000,000.00 = 30% x 5,000,000.00 = 1,500,000.00
10. A ₱ 207,000
Net Taxable Estate

Multiply by:
Net taxable estate
1. B ₱ 2,200,000
Loan
Multiply by:
Interest
Loan
Interest
Total Deductible Indebtedness
2. D ₱ 210,000
Real Property Tax
Multiply by:
Unpaid real property tax
Unpaid bank load at death
Deductible indebtedness
3. A ₱
Because it does not have the requisites for vanishing deduction.
2. C ₱ 420,000

Net taxable estate
Multiply by:
Estate tax due
3. A ₱ 258,000
Net estate
Multiply by:
Net Estate in the Philippines
Net taxable estate
Multiply by:
Estate tax due
4. B ₱ 7,050,000
Gross Estate
Total allowable for LIT - common
Vanishing Deductions
Standard deduction
Net taxable estate
5. C ₱ 7,900,000
Less: Total allowable deduction for LIT
Death and estate administration costs
Total
Multiply to:
Actual Share of surviving spouse
6. C ₱ 12,327,000 (closest answer)
Exclusive properties of the decedent
Share in common property
Total Assets
Allowable Deduction for LIT
Transfer for Public use
Distributive Estate
7. B ₱ 14,550,000
Gross Estate
Total allowable for LIT
Family Home
Standard Deduction
Net Taxable Estate
Multiply by:
Estate tax
Total Assets
Total allowable deduction for LIT
Transfer for public use
Funeral and Estate Administration Costs
Less: Estate tax
8. D ₱ 12,549,000
Initial Value of Commercial Building
Less: Mortgage assumed and paid
Total
Less: (23,500,000 / 50,000,000 x 5,500,000)
Final basis
Multiply by: Vanishing percentage
Vanishing deduction
9. D ₱ 1,628,040 (closest answer)
Gross Estate
Vanishing Deductions
Unpaid Mortgages
Standard deduction
Net taxable estate
Multiply by:
Estate tax due
10. A ₱ 210,000
Net properties in the Philippines
Less: Standard Deduction
Net Taxable Estate
Multiply by:
Tax due
11. B ₱ 21,950,000
Bank Deposit
Business Interest
Commercial Building
Family Home
Gross Estate
Interest
Unpaid Mortgages
Family home
Standard deduction
Net taxable estate
TAX PAYABLE
SEPARATE COMMON TOTAL

28,000,000 - 28,000,000
500,000 - 500,000
300,000 - 300,000
27,200,000 - 27,200,000
0
27,200,000
10,000,000
5,000,000
12,200,000
14,000,000
6,000,000.00
8,000,000.00
28,000,000
400,000
200,000
300,000
300,000
500,000
1,700,000
26,300,000

30,000,000 0
2,800,000 -
27,200,000 0 27,200,000
0
27,200,000
10,000,000
5,000,000
12,200,000

28,000,000
2,400,000
25,600,000 25,600,000
÷2 12,800,000
12,800,000
6,000,000
5,000,000
1,800,000

12,000,000 -
8,000,000
20,000,000 - 20,000,000
1,500,000 - 1,500,000
18,500,000
0
18,500,000
10,000,000
5,000,000
3,500,000
12,000,000
8,000,000
20,000,000
300,000
200,000
600,000
1,500,000
2,600,000
17,400,000
6,800,000
250,000
150,000
7,200,000

10,000,000 26,000,000 36,000,000
4,000,000 8,000,000 12,000,000
6,000,000 18,000,000 24,000,000
÷2 9,000,000
15,000,000
5,000,000
10,000,000
10,000,000
13,000,000
23,000,000
500,000
4,000,000
4,000,000
8,500,000
14,500,000
600000*
13,900,000

24,000,000 26,000,000 ₱50,000,000
5,000,000 8,000,000 13,000,000
19,000,000 18,000,000 37,000,000
÷2 9,000,000
28,000,000
6,000,000
5,000,000
17,000,000
24,000,000
13,000,000
37,000,000
500,000
4,000,000
5,000,000
9,500,000
27,500,000
1020000*
26,980,000
23,750,000
550,000
24,300,000
5,000,000
10,000,000
9,300,000

12,400,000 15,600,000 28,000,000
450,000 1,350,000 1,800,000

11,950,000 14,250,000 26,200,000
÷2 7,125,000
19,075,000
7,500,000
5,000,000
6,575,000
12,400,000
7,800,000
20,200,000
480,000
220,000
675,000
450,000
1,825,000
18,375,000
394,500
17,980,500

4,500,000 - 4,500,000
500,000 - 500,000
5,000,000 - 5,000,000
100,000 - 100,000
260,000 - 260,000
500,000 - 500,000
4,140,000
0
4,140,000
500,000
3,640,000

4,500,000 - 4,500,000
100,000 - 100,000
260,000 - 260,000
500,000 - 500,000
3,640,000
0
3,640,000
500,000
3,140,000

39,500,000 - 39,500,000
2,000,000 - 2,000,000
37,500,000
0
37,500,000
10,000,000
5,000,000
22,500,000
Philippines Japan Total

50,000,000 30,000,000 80,000,000
16,000,000 12,000,000 28,000,000
34,000,000 ₱18,000,000.00 52,000,000
0 0 0
34,000,000 18,000,000 52,000,000
8,000,000 - 8,000,000
3125000* 1875000** 5,000,000
22,875,000 16,125,000 39,000,000
000,000.00 = 3,125,000.00
000.00 = 1,875,000.00
Philippines China Taiwan Total

7,500,000 3,000,000 4,500,000 15,000,000
1,250,000 450,000 200,000 1,900,000

300,000 150,000 100,000 550,000
5,950,000 2,400,000 4,200,000 12,550,000
0 0 0 0
5,950,000 2,400,000 4,200,000 12,550,000
2500000* 1000000** 1500000*** 5,000,000

3,450,000 1,400,000 2,700,000 7,550,000
,000.00 = 2,500,000.00
.00 = 1,000,000.00
000.00 = 1,500,000.00
Philippines China Taiwan Total

3,450,000 1,400,000 2,700,000 7,550,000
0 0 0 0
207,000 84,000 162,000 453,000
2,000,000
0
200,000
2,000,000
200,000
2,200,000
80,000
3/4
60,000
150,000
210,000
Total
12,000,000
5,000,000
7,000,000
6%
420,000
Total
12,000,000
40%
4,800,000
500,000
4,300,000
6%
258,000

5,000,000 20,000,000 25,000,000
- 3,800,000 3,800,000
800,000 - 800,000
- 500,000 500,000
4,200,000 15,700,000 19,900,000
÷2 7,850,000
12,050,000
5,000,000
7,050,000
20,000,000
3,800,000
400,000
15,800,000
50%
7,900,000
5,000,000
10,000,000
15,000,000
1,900,000
800,000
2,700,000
12,300,000

17,000,000 - 17,000,000
1,800,000 - 1,800,000
200,000 - 200,000
15,000,000 - 15,000,000
-
15,000,000
4,500,000
5,000,000
5,500,000
6%
330,000
17,000,000
1,800,000
200,000
120,000
2,120,000
14,880,000
330,000
14,550,000
30,000,000
6,500,000
23,500,000
2,585,000
20,915,000
60%
12,549,000

50,000,000 - 50,000,000
12,549,000 - 12,549,000
5,500,000 - 5,500,000
31,951,000
0
31,951,000
5,000,000
26,951,000
6%
1,617,000
4,000,000
500,000
3,500,000
6%
210,000

6,000,000 6,000,000
12,000,000 12,000,000
19,000,000 19,000,000
12,000,000 12,000,000
19,000,000 30,000,000 49,000,000
100,000 100,000
2,000,000 2,000,000
19,000,000 27,900,000 46,900,000
÷2 13,950,000
32,950,000
6,000,000
5,000,000
21,950,000
CHAPTER 16 INTRODUCTION T
EXERCISE DRILLS : IDENTIFICATION OF TRANSFER OR EXCHANGE
1. INTER-VIVOS
2. INTER-VIVOS
3. MORTIS CAUSA
4. INTER-VIVOS
5. INTER-VIVOS
6. INTER-VIVOS
7. INTER-VIVOS
8. INTER-VIVOS
9. SALE-PERSONAL PROPERTY
10. INTER-VIVOS
11. SALE-PERSONAL PROPERTY
12. -
13. -
14. SALE
15. SALE-REAL PROPERTIES
16
17. MORTIS CAUSA
18. INTER-VIVOS
19. SALE
20. SALE
21. -
22. -
23. -
24. -
25. SALE
TRUE OR FALSE 1
1. True
2. False- the donor's tax is not a property tax but is a tax imposed on the transfer of property by way of gift inter-vivo
3. False- donor has the primary obligation to pay the donor's tax.
4. True
5. True
6. True
7. False - estate tax and income tax only.
8. True
9. False- The donation must be intentional or voluntary, there is no such thing as an implied donation.
10. False - valid donation are only subject to tax.
11. True
12. False - the acceptance of the donees perfects the contract of donation.
13. False - In transfers for insufficient consideration the acceptance by the donee is not a condition to taxation.
14. True
15. False - Amount exceeding ₱ 5,000 should be written.
16. True
17. False - amount not exceeding ₱ 5,000 may be made orally.
18. True
19. True
20. False/ True
TRUE OR FALSE 2
1. True
2. True
3. True
4. True
5. False - NRA w/ reciprocity exempts donation.
6. True
7. False - Donation to relatives are subject to progressive tax.
8. False - Donor's tax is a national tax.
9. True
10. False
1. C ₱ 800,000
Fair value 2,000,000
Less: Selling price 1,200,000
Donor's Tax 800,000
2. B ₱ 500,000
Donor's Tax 500,000
3. B
DI SURE TO
4. A ₱ 0
It is revocable which means that the donation is not completed and it is not ta
5. RAWR
DI ALAM SAGOT
6. C ₱ 3,000,000
Donor's Tax 3,000,000
7. B ₱ 2,000,000
Donor's Tax 2,000,000
8. D The gratuity portion is a gift subject to a proportional donor's tax.
9. D ₱ 1,500,000
Share from communal properties 1,200,000
Share in the net distributable estate 300,000
Donor's tax 1,500,000
10. C ₱ 1,200,000
If Mrs. Anderson renounces her shares in net distributable asset in favor of al
tax while the share of Mrs. Anderson from the communal properties is taxable
renunciation is specific or general.
1. D ₱ 2,200,000
Car, in Somalia 600,000
Business interest in the USA 400,000
Cash, in the Philippines 300,000
Land, in the Philippines 900,000
Total 2,200,000
2. C ₱ 1,200,000
Cash, in the Philippines 300,000
Land, in the Philippines 900,000
Total 1,200,000
3. A ₱ 0
Both the cash and land are tangible. Only intangible personal property are sub
4. D ₱ 900,000
PROPERTY DONEE
Car Resident citizen
Cash Non - resident citizen
Stocks Non - resident alien
Land Resident alien
Total
5. C ₱ 500,000
PROPERTY DONEE
Car Resident citizen
Cash Non - resident citizen
Total
6. C ₱ 8,000,000
Deposit in Philippine Banks 5,000,000
Business interest in the Philippines 3,000,000
Total 8,000,000
7. A / C
DI SURE TO HEHE
8. B The donation is exempt because it did not exceed ₱ 250,000
This was only the donation of Anjo in 2020. Hence, the donation is exempt.
9. C ₱ 8,000,000
A commercial land in russia, to a Filipino citizen
A sports car to his Filipina girlfriens
Total
10. D ₱ 3,000,000
Cash, to his brother - in - law
Shares of stocks in Canada to his brother in Canada
Total
11. B ₱ 1,700,000
Donation in irrevocable trust 1,200,000
Direct donation to sister 500,000
Total 1,700,000
12. C The donation is exempt from donor's tax.
NTRODUCTION TO DONOR'S TAX
1. D
2. D
3. A
4. A
5. D
6. B
7. A
8. B
9. B
10. D
11. C
12. C
13. B
14. D

1. A
2. D
3. C
4. A
5. B
6. B
7. B
8. D
9. D
10. D
11. D
12. D
property by way of gift inter-vivos. 13. C
14. B
15. B
16. C
17. D
18. D
implied donation.
not a condition to taxation.

n is not completed and it is not taxable.
et distributable asset in favor of all the heirs, it is exempt from donor's
he communal properties is taxable regardless of whether the
tangible personal property are subject to reciprocity rule.
LOCATION VALUE
Philippines 300,000
Philippines 200,000
Abroad 150,000
Abroad 250,000
900,000
LOCATION VALUE
Philippines 300,000
Philippines 200,000
500,000
. Hence, the donation is exempt.
3,000,000
5,000,000
8,000,000
1,000,000
2,000,000
3,000,000
CHAPTER 17 DONOR'S
TRUE OR FALSE 1
1. False – not only applicable to relatives
2. True
3. False – are qualified provided that their it net gift exceeds P 250,000
4. False – measured at higher zonal value or fair value per assessor office
5. False – at average high and low price
6. False – if the net gift exceeds P 250,000
7. False – they are qualified if their net gift exceeds P 250,000
8. False – it depends, if the donation is in the Philippines, then they will not be exempt
9. False – if their net gift exceeds P 250,000, then they will not be subject to donor's tax
10. False – are not exempt since it is not situated in the Philippines
11. True
12. True
13. True
14. True
15. True
16. True
TRUE OR FALSE 2
1. True
2. True
3. False – transfer mortis causa is subject to estate tax not to donor’s tax
4. True
5. False – at the point of completion
6. True
7. True
8. True
9. False – it is assumed by the donee
10. True
11. True
12. True
13. True

1. A– Only Mr. Gaspar shall file the donor's tax return
2. B – Exempt because the donee is an accredited charitable institution
3. B – James shall report the ₱ 500,000 in his donor's tax
4. B – The donation is exempt from donor’s tax
5. A – The donation is exempt from donor’s tax
6. A – The entire ₱ 1,000,000 donation is exempt from donor's tax because the donee is an accredited charitable instit
7. C – The donation is subject ₱ 825,000 donor’s tax
Net gift 14,000,000
Less: Exempt to donation 250,000
Net gift subject to tax 13,750,000
Multiply by: 6%
Donor’s tax 825,000
8. A – The transfer is subject to VAT
9. D – Both Mr. And Mrs. Aguinaldo shall report a net gift of ₱ 50,000
10. B – ₱ 750,000
Net gift 1,000,000
Net gift subject to tax 750,000
11. C - Mr. Teban ₱ 150,000 ; Mrs. Teban ₱ 150,000
Mr. Teban
Net gift 400,000
12. B – ₱ 550,000
Net gift 1,000,000
Consideration of land 200,000
13. D – Both spouses shall file separate donor's tax return
14. B – both spouses shall file a separate donor's tax return
15. C – Mr. Jerry ₱ 100,000 ; Mrs. Jerry ₱ 100,000
Mr. Jerry
Net gift 350,000
1. C – ₱ 6,000,000
Brewery 24,000,000
Less: Mortgage on property 18,000,000
Net gift 6,000,000
2. C – ₱ 600,000
Commercial lot 1,000,000
Less: Mortgage 400,000
Net gift 600,000
3. A – ₱ 0 , a lot donated to government is exempt from donor's tax
4. A – Mr. Carrion shall report a ₱ 900,000 net gift
Son’s dowry, July 1,2020 600,000
Daughter’s dowry, April 30,2020 300,000
Net gift 900,000
5. D – ₱ 640,000
Shareholder’s equity 2,000,000
Add: Certain assets 1,200,000
Residual equity 3,200,000
Divided by: outstanding common stocks 100,000
Book value per share 32
Multiply by: common stocks 20,000
Net gift 640,000
6. D – ₱ 408,000
Total asset at fair value 4,000,000
Less: Total liabilities 600,000
Residual equity 3,400,000
Divided by: Outstanding common stocks 1,000,000
Book value per share 3.4
Multiply by: Common stocks 120,000
Net gift 408,000
7. A – ₱ 0; ; ₱ 0
Mr. Julio
Net gift 200,000
Less: exempt to donation 250,000
Net gift subject to tax -50,000
8. C – ₱ 400,000 ; ₱ 400,000
Mr. Julio
Cash to daughter 200,000
Land to son 300,000
Car to Horace 150,000
Net gift 650,000
9. C – ₱ 1,250,000
Domestic stock 500,000
Car 1,000,000
Net gift 1,500,000
10. ??
11. B – ₱ 6,750,000
Agricultural lot 3,000,000
Building 4,000,000
Net gift 7,000,000
12. C ₱ 11,750,000
Agricultural lot 3,000,000
Building 4,000,000
Cash 5,000,000
Net gift 12,000,000
13. D ₱ 150,000
Car 400,000
1. C ₱ 12,000
Net gift 450,000
Multiply by: 6%
Donor’s tax 12,000
2. C ₱ 9,000
Net gift 400,000
Multiply by: 6%
Donor’s tax 9,000
3. C ₱ 17,400
Net gift to strangers 340,000
Net gift to relatives 200,000
Net gift 540,000
Multiply by : 6%
Donor’s tax due 17,400
4. A ₱ 1,200
Total donation 350,000
Less: Donation to government 80,000
Exempt to donation 250,000
Multiply by: 6%
Donor’s tax 1,200
5. A ₱ 0
Cash, to half sister 200,000
Net gift subject to tax -50,000
6. C ₱ 45,000
Cash, to half sister 200,000
Car, to girlfriend 800,000
Net gift 1,000,000
Multiply by: 6%
Donor's tax 450,000
7. A ₱ 9,000
Stocks, to granddaughter 400,000
Multiply by: 6%
Donor’s tax 9,000
8. C ₱ 3,000
Car 500,000
Multiply by: 6%
Total donor’s tax due 15,000
Less: foreign tax credit 12,000
Donor’s tax still due 3,000
9. D ₱ 0, Mr. Kinoto is a non resident alien he become taxable only if it is in Philippine donation
10. D ₱ 11,000 ; ₱ 54,000
Cash , July 1,2020 600,000
Multiply by: 6%
Less: foreign tax credit 10,000
Donor’s tax still due, July 11,000
Cash , August 28, 2020 900,000
Multiply by: 6%
11. ??
12. B ₱ 4,500
Net gift in the Philippines 700,000
Net gift abroad 300,000
Total global donatio 1,000,000
Multiply by: 6%
Total donor’ tax due 45,000
Actual foreign donor’s tax paid 14,000
Limit: (300,000/1,000,000)(45,000) 13,500
Foreign tax credit – lower 13,500
Less: Foreign tax credit 13,500
Philippine tax paid 27,000 40,500
13. B ₱ 5,000
Net gift abroad 500,000
Multiply by: 6%
Less: gift tax paid abroad 10,000
14. C ₱ 30,625 payable
Finland 2,000,000
Philippines 1,500,000
Norway 500,000
Total global donation 4,000,000
Multiply by: 6%
Actual foreign donor’s tax paid, Finland
Limit: ( 2,000,000/4,000,000)(225,000)
Foreign tax credit – lower, Finland
Actual foreign donor’s tax paid, Norway
Limit: (1,500,000/4,000,000)(225,000)
Foreign tax credit – lower, Norway
Total of tax creditable allowance per country
World tax credit limit
[ (2,000,000+ 1,500,000)/4,000,000] (225,000)
Foreign income tax credit – lower
Less: Foreign tax credit 194,375
15. B ₱ 15,000
Net gift, Philippines 500,000
Multiply by : 6%
Donor’s tax due 15,000
7 DONOR'S TAX
1. C
2. D
3. B
4. B
5. A
6. A
7. A
8. B
9. B
10. C
11. D
12. C
13. C

1. C
2. A
3. C
4. B
5. C
6. B
7. B
8. D
9. C
10. B
11. A
12. D
13. D
14. D
15. D
16. C
17. B
18. D
edited charitable institution

Mrs. Teban
400,000
250,000
150,000
Mrs. Jerry
350,000
250,000
100,000
Mrs. Julio
200,000
250,000
-50,000
Mrs. Julio
200,000
300,000
150,000
650,000
250,000
400,000
110,000
112,500
110,000
120,000
84,375
84,375
194,375
196,875
194,375
CHAPTER 18 DOCUMENTARY STA
TRUE OR FALSE
1. False - Excise tax
2. False - It does not regard
3. True
4. False - Within 10 days
5. False - Single transaction, single tax
6. True
7. True
8. False - It does not invalidate contract
9. True
10. True
MULTIPLE CHOICE - COMPUTATIONAL

1. B ₱ 67,500
Selling Price 4,500,000
Multiplied by: 15/1,000 1.50%
Documentary Stamp Tax 67,500
2. B ₱ 67,500
Selling Price 4,500,000
3. D ₱ 7,500
Donor’s Tax 30,000
Divided by: 6%
Amount 500,000
4. B ₱ 100,000
Total Subscription (1,000,000 x 10) 10,000,000
Multiplied by: 2/200 1%
5. B ₱ 9,000
Par Value of Stocks (120,000 x 10) 1,200,000
Multiplied by: 1.50/200 0.75%
6. A ₱ 13,120
Mortgage 3,272,000 DST
Less: 5,000 40
Excess: 2,367,000
Divided by: 5,000
Total 653
Multiplied by: 20
Total DST P 13,108 nearest answ
7. A ₱ 0
Initial Public Offering is exempt from documentary stamp tax. SMB is a listed c
8. C ₱ 7,500
Loan Principal 1,000,000
9. C ₱ 3,000
Multiplied by: prorated term 146/365
Documentary Stamp Tax due 3,000
10. A ₱ 0
The stocks were issued by a foreign corporation outside the Philippines
11. D ₱ 20,000
Par Value of Stocks 2,000,000
Multiplied by: 2/200 1%
12. A ₱ 0
Bonds issued by a foreign corporation are exempt from Documentary Stamp Ta
13. C ₱ 15,000
Par Value of Stocks 2,000,000
14. B ₱ 37,500
15. C ₱ 16,020
Mortgage 4,000,000 DST
Less: 5,000 40
Excess: 3,995,000
Divided by: 5,000
Total 799
Multiplied by: 20
Total DST 16,020
16. B ₱ 30,000
Mortgage 4,000,000
17. A ₱ 0
18. B ₱ 20
The value of the goods > 1,000
19. C ₱ 30
DST per warehouse receipt
20. D ₱ 1,650
Face Amount 550,000
Divided by: 200
Total 2,750
Multiply by: 0.6
Documentary stamp tax 1,650
21. B ₱ 3
DST for checks
22. C ₱ 4,002
Annual Rentals 400,000
Multiplied by: Number of years 5
Total Rentals 2,000,000 DST
Less: 2,000 6
Excess: 1,998,000
Divided by: 1,000
1,998
Multiplied by: 2
Total DST 4,002
ENTARY STAMP TAX
1. D
2. D
3. B
4. C
5. C
6. C
7. C
8. B
9. B
10. B
11. A
12. A
13. C
14. D
15. D
16. D
17. B
18. D
19. A
20. A
21. D
P 13,108 nearest answer: P 13,120
p tax. SMB is a listed corporation, exempt.
he Philippines
ocumentary Stamp Tax

CHAPTER 19 TA
TRUE OR FALSE 1
1. True
2. False – Taxpayer's approval is not necessary for the assessment
3. True
4. True
5. True
6. False – Taxpayer's remedies include disputing an assessment and recovery of erroneously paid taxes
7. True
8. False – The CIR can inquire into the balances of book of accounts of the taxpayers to determine the correct tax.
9. True
10. False – Unpaid taxes must be collected by the government within three (3) years from filing of tax return or the de
11. True
12. False – It may be extended by the Waiver of the Statutes of Limitation by taxpayer.
13. False – Taxpayer who did not file a return is still subjected to an Assessment.
14. True
15. False – It may be modified, changed or amended within 3 years from date of filing
TRUE OR FALSE 2
1. True
2. True
3. False – Revenue officer cannot issue a Letter of Authority (LA)
4. False – Business operations who did not comply with basic tax rules and regulations may be temporarily suspended
5. True
6. True
7. False – Manual LA is no longer allowed
8. True
9. False – Letter Notice is to authorized the examination of book of accounts and other accounting records.
10. True
11. True
12. False – The examination of Pre-audit tax returns shall be generally conducted in BIR office
13. False – Taxpayer may be subject to audit examination only once a year
14. True
15. False – Revenue officer must recommend the issuance of an assessment to the taxpayer.
TRUE OR FALSE 3
1. False – PAN is not required in some instances
2. True
3. True
4. True
5. False – A waiver of statutes of limitation is required for a request for reinvestigation.
6. True
7. True
8. True
9. True
10. True
11. False – CTA is authorized to suspend collection of taxes if it may jeopardized the interest of the government or ta
12. True
13. True
14. True
15. True
TRUE OR FALSE 4
1. True
2. True
3. True
4. True
5. True
6. True
7. True
8. True
9. False – It must be filed within 2 years from the date of payment.
10. True
11. True
12. False – Taxpayer must pay at least 40% of the basic assessed tax in case of financial capacity.
13. True
14. True
15. True
HAPTER 19 TAX REMEDIES
MULTIPLE CHOICE THEORY P
1. D
2. A
3. C
4. D
5. C
sly paid taxes 6. B
7. C
determine the correct tax. 8. D
9. D
m filing of tax return or the deadline for such filing whichever is later. 10. B
11. C
12. A
13. C
14. A
15. A

1. B
2. C
3. D
ay be temporarily suspended and closed. 4. B
5. C
6. A
7. B
8. B
counting records. 9. B
10. B
11. A
12. C
13. B
14. A
15. A

1. A
2. C
3. D
4. D
5. C
6. C
7. C
8. B
9. C
10. B
rest of the government or taxpayer. 11. D
12. B
13. B
14. A
15. C
16. D
17. B
MULTIPLE CHOICE APPLICAT

1. C
2. C
3. D
4. C
5. B
6. D
7. B
8. B
MULTIPLE CHOICE APPLICAT

1. C
2. A
3. D
4. C
5. D
6. C
7. D
8. A
9. C
10. B

PLE CHOICE APPLICATION 1
PLE CHOICE APPLICATION 2

Ayuste Businesstaxation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ayuste Businesstaxation

Uploaded by

Copyright:

Available Formats

CHAPTER 9 INPUT

le to the third month of the quarter

gard to whether or not the seller is engaged or not

VAT taxpayer. As a rule, percentage taxpayers

s accounting period . The calendar year is presumed

month of purchase because the aggregate

ase. The input VAT on the purchase of depreciable

al goods. The input VAT on non - depreciable

capital goods did not exceed ₱ 1M,

stion here is whether or not to include the

f depreciable capital goods must be amortized.

ul life in months, whichever is SHORTER

ul life in months, whichever is SHORTER

capital goods must be amortized.

0 x 12/112) = ₱ 132,000 shall be amortized

be those from the 1st quarter, ₱ 40,000

ative amount hence, 0.

from excise tax. Hence, tax is zero.

MULTIPLE CHOICE - THEORY PART 2

of the death of decedent

was completed when the donor was

was not completed, the proper fair value

was pre-terminated by death.

d.; except for small gifts

ght to revoke is waive or when right

he selling price approximates the fair

fair value at that time should be the basis

eal owner is not an act of transfer of ownership

ce between the loan and the service

MULTIPLE CHOICE THEORY PART 1 MULTIPLE CHOICE THEORY P

– It subject to limitations on legitime requirements.

PLE CHOICE THEORY PART 2

Share Partition Inheritance

Share Partition Inheritance

net common properties (₱ 6 000 000/2) ₱ 3 000 000

MULTIPLE CHOICE - PROBLEMS PART 1

le assets are exempt under reciprocity.

MULTIPLE CHOICE - THEORY PART 2

MULTIPLE CHOICE - THEORY PART 2

Tangible properties in the Philippines

Net Taxable Estate

Net estate before special deductions

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

450,000 1,350,000 1,800,000

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

Philippines Japan Total

Philippines China Taiwan Total

1,250,000 450,000 200,000 1,900,000

2500000* 1000000** 1500000*** 5,000,000

Philippines China Taiwan Total

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

SEPARATE COMMON TOTAL

MULTIPLE CHOICE - THEORY PART 2

2500000* 1000000 1500000* 5,000,000