Final Examination

Business & Transfer Taxes

Answer the following, show your solution:

1. In April 20, 2018, Mr. Antonio Diaz, a resident citizen died leaving behind the
following properties to his only son, Thony, who is still a bachelor:
 Land with a fair market value of P 4, 500, 000
 House and lot with fair market value of P 8, 200, 000
 Jewelries with fair market value of P 3, 800, 000
 Mango farm with fair market value of P 4, 600, 000
 Van with fair market value of P 900, 000.
Pertinent taxes were paid for these properties. The House and Lot has an
unpaid mortgage of P 850, 000 at the time of death of Mr. Antonio Diaz when Thony
died in October 10, 2020 the total mortgage paid on these properties is P 600, 000. His
gross estate including the properties inherited from his father were declared at
P 30 Million while deductions (for claims against the estate, claims against insolvent
person, unpaid mortgages, and transfers for public purpose) amounted to P 6.2 Million.
Other information are as follows:
Fair market value at the
Property time of death of Thony
Land P 5, 900, 000
House and lot 9, 300, 000
Jewelries 5, 100, 000
Mango farm 5, 700, 000
Van 550, 000
Required: 1. Compute for vanishing deductions.
2. Compute the estate tax payable of Thony.

2. The following are the quarterly sales and purchases of Arlyn Supermarket, a VAT-
registered entity for 2020:
Month Purchases Sales
April P 40, 850, 000 P 32, 700, 000
May 30, 400, 000 45, 600, 000
June 42, 500, 000 63, 500, 000
July 75, 200, 000 95, 300,000
August 61, 300, 000 82, 400, 000
September 70, 300, 000 65, 800, 000
October 80, 250, 000 74, 500, 000
November 40, 600, 000 76, 300, 000
December 50, 700, 000 90, 500, 000

Determine:
a Monthly VAT payable (Excess VAT)
b. Quarterly VAT payable (Excess VAT)
3. DGG General Services, a non-VAT entity has the following data for tax purposes for
the first quarter of 2021:
Month Receipts Expenses
January P 1, 260, 000 P 1, 050, 000
February 1, 300, 000 800, 000
March 700, 000 800, 800

Determine the percentage tax payable.