Scribd Logo
Upload

Welcome to Scribd!

  • Income Taxation Part 6 12 10 2022 11 02 24

    Uploaded by

    Gibbs Acedo delos Santos
    10 views25 pages

    Original Title

    Income-Taxation-Part-6-12-10-2022-11-02-24

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    10 views25 pages

    Income Taxation Part 6 12 10 2022 11 02 24

    Uploaded by

    Gibbs Acedo delos Santos

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 25
    ax wave LESS TAXING: at A REVIEWER WITH “CODALS AND CASES Corporate returns ES Sec. 52. Corporation Returns. in pager form ore wien ither principal officer, shall be sworr eure or asisane ensure, an rate profile and information; (2) Gross sales, receipts or income from services rendered, or Conduct of trade or business, except income subject to final tax as provided under this Code; (3) Allowable deductions under this Code; (4) Taxable income as defined in Section 31 of this Code; and (5) Income tax due and payable, Provided, That the foregoing provisions shall_not affect the Implementation of Republi Act No. 10708 or TIMTA. (As amended by TRAIN) (8) Taxable Year of Corporation. — A cor tether calendar year of fisal year as a basis Income tax return: Provided, That the corporat ot change {he accounting period employed without por approval from the ‘Commissioner in accordance with the provisions of Section 47 ofthis (©) Return of Reorganization, Erry crcoemelateg Dissolution of Corporation of'a resolution oF plan the liquidation of the whole or any or forthe lnuidation of the whole or any part The dissolving or reorganizing corporation sh ete tn onto, ns prescribed by the Secretary of Finance, uPO? eee | INCOME Tax emcee es eer ee {Clearance from the Bureau of Internal Revenue wnicsceruneateohoy courte taster oman ntetneh (p) Return on Capital Gains Realized from Shares (0 ett. a ls Red on St of Se foreign corporations not engaged in (because they are subject to final re required to jeturn, on a cumulative basis for the withholding tax alreat © Quarterly income receding quarter (© Afinal or adjustment return, on or before April 15 poration may use elther calendar year or fiscal year basis for Quarterly income tax return ‘Sec, 75, Declaration of Quarterly Corporate Income Tax. = Every corporation shall le in duplicate a quarterly summary declaration ofits gross income and deductions on a cumulative basis for the precet he income tx, 3 ‘he ays rom te year whether calendar or fiscal year. later than sixty ( ‘uarters ofthe taxable year, wh * A-corporation must fle tax return for preceding quarter within 60 days following the close of each quarter 6 sax wae LES TAKIN = AREVIEWER WITH ‘CODALS AND CASES Final adjustment return oration is entitled to 2 tax ed income taxes paid, the excess + A corporation must file the final return covering the preceding fiscal or calendar yea If the sum of the qua due, the corporation s © Pay the balance; © Carry over the excess credit perpetually; or © Be credited or refunded with the excess amount. * But the corporation can choose only one option and i is irrevocable, even if you didn’t get the benefit of the ‘overpayment. + See comments in the section on remedies (refunds). ly returns is not equal to the total tax either Where and when to fle ‘Sec. 77. Place and Time of Filing Corporate Income Tax, = "lind and Payment of Quarterly ~ Except as the Commissioner otherwise ly Income tax declaration required in Section 73 tment return required in Section 76 shall be fies 1 Final adjust INCOME Tax. 267 (th) month folowing the dese (C) Time of Payment of t ‘on the corporate quarterly tax returns computed in a be paid at the time the de prescribed by the Commissioner Where to file: same as individuals When to file: (© For quarterly declarations: within 60 days following the close of the quarter © For final: on or before Apri the 15th day of the 4th ‘month following the close of the fiscal year When to pay: same as individuals 4) Differentiate between a calendar year anda cal yer. ») When is the deadline for the fing of a corporation's final Adjustment return fora clendar year? How about for 2 sca yer? (2019 Bar Exam) Suggested answer: 2) A calendar year means an accountng perod of 12 months Which ends an the lst cay of December. A fiscal year means an {ccounting period of 12 months ending on the ast day of any ‘month other than December. 2) The deadine for the fing of 2 corporation’ fin! adjustment return for 2 calendar year on Apr 15, The deaaie for those following a fiscal year's onthe 15% dy ofthe 4 month flowing the close ofthe fica! yer. ANG pe nADe LESS TAXING! 7 ‘A REVIEWER WITH CODALS AND C/ fF stock ring of return covering capital gains from Shares of S10 ee —— «For sale or exchange of stock not traded through local For sale or oimin a0 gays after each transaction and a crag return of All transactions during the year ‘Retum of corporations contemplating dissolution/reorganization ‘Commissioner, verifed under cath, setting forth the terms of such resolution or plan and such other Information as the Secretary of Finance, upon recommendation of the commissioner, shall, by rules {and regulations, prescribe. The dissolving or reorganizing corporation shall, prior to the ‘ssuance by the Securties and Exchange Commission of ‘the Certincate of Dissolution or Reorganization, as may be defined by ‘ules and regulations prescnbed by the Secretary of Finance, upon ‘recommendation of the Commissioner, secure a certificate of tax Clearance from the Bureau of Internal Revenue which certihicate shall INCOME Tax, 269 0 Balance sheet at the date of dss statement covering the beginning epee the income dissolution F to the date of © Names and addresses of the shareholders and their h (© Value and a description of the assets rece weer cieSet ele pete rma Return of General Professional Partnershios 1 Partnerships. — Every, le, in du be submitted to the Securities and Exchange Commission. + After the corporation adopts a 't must submit © Acopy of the resolution ‘exempt corporations are STILL REQUIRED which should specity income, (© The deductions allowed, and (© The names, TIN, addresses and shares of each partner, ‘Spouses Pablo Gonzales and Teresita Gonzales, bothresigent citizens, ‘acquire during thelr marriage a residential house and fot located in ‘Mr. Pablo Gonzales is the President of PG Corporation Gonzales was settied extra-judicial 2) 1s Mr. Pablo Gonzales require to fle Income tax or 2010? If so, ‘how much income must he declare forthe year? How much personal ‘answer. (2012 Bar Exam) q “TAX MADE LESS TAXING: [A REVIEWER WITH CODALS AND CASES. Sore re np rom 2010 oy gon we ee Te oh Sn cen a Se ea ares eo eran tn ie at Ie noon ea an Bt et mined te Camis bcee i area ee Ce a eee os for their dependent. sicomanmm psorlerepeen of P5000; but nt the 25,005 rei nas previously Came oy her husband ©) The esate i Mewise required fo fle an income tax return Soup return wt over FS00,G00 which wl cover Mr Gonaes rare ofthe vert nce om etme he passed aay un he Sern yu Pe te rot ca any anon bea empton hes ben epeled by TRAIN. (Anaver me ret eet AN ovr ESTATE TAX - rane Hse ” (A REVIEWER WITH ‘CODALS AND (2) The le market vaiue as determined by the Commissioner, or (2) The fair market value as shown int by the Provincial and City ASSeS80rS. he schedule of values Fixed “The properties comprising te gross estate shall be valued based on the FMV as of the time of death. In case of real property, the fair market value shall be: (0 The FMV as determined by the Commissioner; or 0 The FMV as shown in the schedule of values fixed by the Provincial and City Assessors Whichever is HIGHER 1n case of persanal oraperty recently acquired by the decedent, the purchase price may indicate the FMV. © In case of personal property nat recently acquired, there should be some evidence of the FMV. For shares of stock, the FMV shall depend on whether the shares are listed or unlisted in the stock exchange. © Hunlsted ‘Common shares — based on their book value Preferred shares — based on their par value 0 Iflisted + The mean between the highest ana the date of desthe ighest and lowest quotation 01 If none, then the date nearest the death. For useofusutuc, there sal be taken i ; en ito account the probable lef the beneficiary in acordance withthe atest base sands table, tobe approved by the Secretary of Finance, Gross Estate See. 85. Gross Estate. — The val eden hal be determined by inca ha ‘death of all property, real, "eal oF personal, tangible Stusted: Provided, however, That in the case of» sonreigent (F description in respect of int Citizens of the Philippines not residing in that foreign country For estate tax purposes, residence refers to the domicile of the Person. (CIR v. de Lara, G.R. No, L-9456, January 6, 1958) For residents and citizens, gross estate includes ALL properties, ‘eal or personal, tangible or intangible, WHEREVER situated. ns, gross estate includes only properties es. For nonresident situated in the Phil © Except with respect to INTANGIBLE personal property (IPP), {ts inclusion to the gross estate is subject to the rule of Tecipracity. + If the foreign count impose a transfer tax of any character on Filipinos not residents of that foreign country; or of the nonresident alien does not a PP of 24 ‘TAX MADE LESS TAXING: [REVIEWER WITH CODALS AND CASES ae so ‘owned by Filipinos not residents Cte ae . city must be any of the two states op recat wate, Ste enxracter, reciprocity does not apply. (CIR V. Fisher, GR. No. L-11622, January 28, 1961) Ht ar eae te recat m xan es se, er eee ae + Gross estate includes any interest or right in the nature of property, but less than title, having value or capable of having value, like ‘© Dividends declared, but paid after the death (© Partnership profits © Right of usufruct ‘+The following, among others, are intangible personal properties located in the Philippines: (© Franchise which must be exercised in the Philippines ‘© Shares, obligations or bonds issued by any corporation or ‘sociedad anonima organized or constituted in the Philippines in accordance with its laws (9 Shares, obligations or bonds issued by any foreign corporation 85% of the business of which is located in the Philippines ifferent from the 50% requirement in the /idends issued by a foreign corporation , Obligations or bonds issued by ay foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines, and © Shares or rights in any partners : : athe Prnippiraet® & BY Partnership, business or industry Karissa isthe registered owner of a beachfront, In Kawayar Quezon which she acuired 2015 Union fo any, Kara te property in trust for a rich politician who happened to be her lover. Jt was the politician who paid for the full purchase ESTATE Tax 275 price of the Kawayan property. ho decimert Showing tht ran was on faye a a trust for the plan was erie bee aNd 8 rope Karissa died single on May 1, 2017 due os Sie let behing 2 number 6 personal orgies ook erties, incl wayan ys Keren, took charge of registering Nore ge and reporting, for income tax and VAT pane eeered by the estate Pom ear ose, he October 1, 2017 when Karon manasea ts one her sisters estate. ‘Should the beachfront property be included in Kar oe luded i Karssa’s gross estate? es im he cee ve gen there ode fa Sd Be port of the gross extate ashe ad on tre oe hte property atthe tne far doth Properties not in the estate ime of the decedent's re transferred by him Transfers in contemplation of death; Revocable transfers; Transfers under a general power of appointment; and Transfers for an insufficient consideration. ‘The values of hese properties willbe included in the determination of the gross estate for estate t2x purposes As such, the gross estate, for purposes Hi is assets at the time of his death as it includes the value of transfers of property by him during his lifetime that partake ofthe nature of testamentary cispostions, ‘These kinds of transfers have the following in common: © They are ostensible transfers, usually with the purpose to evade the estate tax; the estate tax, may 276 ape 158 TAXING: ane nee nit CODALS AND CASES jon of interests; and 1 @ bona fide consideration, t ar the transfers ae in fat for 2 Bond TES Sacto ten im part all te provisions regarding these transfers) ii ynt. As long as the transfers were for a bons 0 They are extensi ‘Transfers in contemplation of death ere eam te propery, oF (2) he Hg, ether alone Baht tee nea any persone Gesighate the person wo shat Sao nance ne property othe Income therefrom’ except raster Scone nce ste for an adequate and ful consideration In money ot moneys wort ‘A transfer in contemplation of death is a transfer motivated by the thought of death, although death may not be imminent. ‘The following are examples of circumstances which may be taken Into consideration in determining whether the transfer was made in contemplation of death: (© We can look at the age and state of health of the decedent at the time of the transfer (Is he terminally il?) © Length of time between the transfer and the date of the eath. © Concurrent making of a will or making of a wil time after the transfer. ithin a short ‘The following are transfers in contemplation of death ‘© Transfers, by trust or otherwise, in contemplation or intended to take effect (in possession or enjoyment) at or after death, © Transfers, by trust or otherwise, under which the decedent has retained for his life (or for any period which does not i fact end before his death) the possession or enjoyment of Or the right to the income from the property, or the right ‘© ESTATE Tax. 27 designate the person who ar the income therefrom. * "3! PESSSSorenoy the property Bar Exam) Suggested answer: Yes, the donations trenser under ihas retained for ise tne possession or enormenecr he pee This i considered a tronsler in contemplnon of dean en should form part of his gross estate. ss wee ‘Mr. Agustin, 75 years old and suffering from an incurable disease, decided to Sell for valuable and sufficient consideration a house and Tot to his son. He died one year later. In the settlement of Mr. Agustin’s estate, hhouse and lot were transferred in conte therefore form part ofthe gross estate for Is the BIR correct? (2013 Bar Exam) Suggested answer: The BIR Is once again wrong. The sale ofthe house ‘and lotto his son was made for valuable and sufficient consideration, {and hence is not deemed a transfer in contemplation of death. The Tax Code explicitly states that transfers for a valuable and sufficient consideration are not considered transfers in contemplation of death. Revocable transfers (©) Revocable Transfer. — (2) To the extent of any interest there 0 If the transfe ‘Transfers in contemplation of death possess or enjoy ase of @ bona fide ‘money oF money's worth. NG: TAX MADE LESS TISIAND CASES A REVIEWER WITH CODALS ;; and son of interests: 2 aah ct for a bona fide consideration, then betengen estate (this provi the gross ts i the "esos regarding these transfers) were for ‘long as the transfers were for a bong a san, then Jou don’t have to add it anymore Fe conning tne ars est jt form part

    You might also like