Part I.

1. Non Resident Citizen (NRC)

2. Non Resident Citizen (NRC)
3. Non Resident Citizen (NRC)
4. Non Resident Alien Not Engaged in Trade or Business (NRANETB)
5. Non Resident Alien Not Engaged in Trade or Business (NRANETB)

Part II.
1. Fiscal Adequacy – Enough to meet public expenses & neither excess nor deficient
Administrative Feasibility – Capable of being effectively administered with least convenient
Theoretical Justice – Fair & Equal, Considers taxpayer’s ability to pay

2. Power of Eminent Domain – Power to take private property for public use upon payment
Police Power – Power to enact laws for public safety and order
Taxation Power – Government can ask contributions from people for government expenditures

3. Income Tax – Annual tax on the income from business

Estate Tax – Transfer of net estate of decedent
Donor’s Tax – Imposed on donations/ gifts to another who accepts the same
Value Added Tax – Imposed to any person who is included in exchange/purchase

Part III.

1. Capital Gains Tax: Gross Selling Price or Fair Market Value (Whichever is higher) X 6%

Gross Selling Price: Cost P2,000,000 + Gain on sale P500,000 = P2,500,000

Fair Market Value / Zonal Value: 2,200,000

Capital Gains Tax: Gross Selling Price X 6%

P2,500,000 x 6%

P2,500,000 x 0.06 = P150,000