5.

1
a. Net estate before special deduction, Phil 12,000,000
Net estate, France 3,000,000
Total net estate before special deduction 15,000,000
Special deduction Standard deduction - 5,000,000
Net estate 10,000,000
Tax rate 6%
Estate tax due 600,000
Tax Credit - 180,000
Estate tax payable 420,000

b.
Net estate before special deduction, Phil 12,000,000
Net estate, France 3,000,000
Total net estate before special deduction 15,000,000
Special deduction Standard deduction - 500,000
Net estate 14,500,000
Tax rate 6%
Estate tax due 870,000
Tax Credit - 180,000
Estate tax payable 690,000

5.2
Net taxable estate, Phil 10,000,000
Net taxable estate, Canada 8,000,000
Net taxable estate, USA 2,000,000
Total net estate before special deduction 20,000,000
Tax rate 6%
Estate tax due 1,200,000
Tax Credit - 570,000
Estate tax payable 630,000

5.3 Net taxable estate, Phil 10,000,000

Net taxable estate, Singapore 5,000,000
Net taxable estate, China 3,000,000
Net taxable estate, Japan 2,000,000
Total net estate before special deduction 20,000,000
Tax rate 6%
Estate tax due 1,200,000
Tax Credit - 300,000
Estate tax payable 900,000
Actual 200,000
Limit 1 180,000 180,000

Actual 200,000
Limit 1 180,000 180,000

Actual
Limit 1 Canada 480,000 520,000 480,000
USA 120,000 90,000 90,000
570,000

Limit 2 World 600,000 610,000 600,000

570,000

Actual
Limit 1 Singapore 300,000 200,000 200,000
China 180,000 - -
Japan 120,000 100,000 100,000
300,000

Limit 2 World 600,000 300,000 300,000

300,000
5.4
House and Lot 8,000,000
Investment stock 800,000
Parcel land 1,000,000
Investment bonds, foreign corp 700,000
Cash in bank, USA 650,000
Cash in bank, Phil 450,000
Accounts receivable 200,000
Car, USA 2,000,000
Car, Phil 800,000
TFPU 1,400,000
Gross Estate 16,000,000
Deductions
Ordinary Deductions
Claims againts the estate 940,000
Loss 180,000
Claims againts insolvent person 200,000
Unpaid tax 320,000
Donation to the Phil Gov't 1,400,000
Vanishing deduction 486,000 - 3,526,000
Special Deduction
Standard Deduction 5,000,000
Family Home - 5,000,000
Net Taxable Estate 7,474,000
Tax rate 6%
Estate Tax due 448,440

Gross Estate 16,000,000

Deductions
Actual funeral Expenses - 480,000
Judicial expenses - 300,000
Claims againts the estate - 940,000
Unpaid tax - 320,000
Loss - 180,000
Claims againts insolvent person - 200,000
Donation to the Phil Gov't - 1,400,000
Vanishing deduction -
Standard Deduction -
Estate Tax due - 448,440
Net Taxable Estate 11,731,560
House and Lot:
Value to take 1,000,000
1st Deduction: Mortgage Paid -
Initial basis 1,000,000
2nd Deduction: Proportional
(1,000,000/16,000,000)*3,040,000 - 190,000
810,000
Vanishing Rate (2 1/2 years) 60%
Vanishing Deduction 486,000
NUMBER ANSWER
1 C
2 C
3 D
4 C
5 B
6 C
7 B

5
Net taxable estate, Phil 3,000,000
Net estate, Korea 1,000,000
Net estate 4,000,000
Tax rate 6%
Estate tax due 240,000
Tax Credit - 60,000
Estate tax payable 180,000

6 Net taxable estate, Phil 6,000,000

Net taxable estate, Qatar 3,000,000
Net taxable estate, Dubai 1,000,000
Total net estate before special deduction 10,000,000
Tax rate 6%
Estate tax due 600,000
Tax Credit -
Estate tax payable 600,000

7
Net estate before special deduction, Phil 14,000,000
Net estate, France 6,000,000
Total net estate before special deduction 20,000,000
Deductions - 5,000,000
Standard Deduction - 5,000,000
SSS - 4,500,000
Family home - 4,000,000 - 18,500,000
Net estate 1,500,000
Tax rate 6%
Estate tax due 90,000
Tax Credit - 30,000
Estate tax payable 60,000
Actual 80,000
Limit 1 60,000 60,000

Actual
Limit 1 Qatar 180,000 - -
Dubai 60,000 - -
-

Limit 2 World 240,000 - -

-

Actual 30,000
Limit 1 360,000 30,000