UNIVERSIDAD DE MANILA

COLLEGE OF LAW

TAXATION LAW II
ATTY. CARLO JOHN R. PASCUAL
(Wednesday and Thursday, 8:30PM-10:00PM)

1. Mar, a resident Filipino citizen, died in February 2018. Mar's only assets consist of
a house and lot in Alabang, where his heirs currently reside, as well as a house in
Los Angeles, California, USA. In computing Mar's taxable net estate, his heirs only
deducted:

 PHP 10,000,000.00 constituting the value of their house in Alabang as their

family home; and

 PHP 200,000.00 in funeral expenses because no other expenses could be

substantiated.

a) Are both deductions claimed by Mar’s heirs, correct? Explain. (3pts.)

b) May a standard deduction be claimed by Mar's heirs? If so, how much and
what proof needs to be presented for the same to be validly made? (3 pts.)

c) In determining the gross estate of Mar, should the heirs include A's house in
Los Angeles, California, USA? Explain. (3 pts.)

2. What are the conditions for payment of the total estate tax due by cash
installments? (3 pts.)

3. When is the due date for filing and payment of the applicable tax return and estate
tax? Are these dates extendible? If so, under what conditions or requirements? (3
pts.)

4. What are the requisites before vanishing deduction may be claimed? (5 pts.)

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