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Tax 08
Tax 08
TAXATION
INSTRUCTIONS
GOOD LUCK!
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DANTE O. TINGA
CHAIRPERSON
2008 BAR EXAMINATIONS COMMITTEE
TAXATION Page 1 of 8
TAXATION Page 2 of 8
II
The Administrator of the Estate of Jose Cernan filed the estate tax
return on January 9, 2008, by including in the gross estate the real
property at P2 million. After 9 months, the BIR issued deficiency estate
tax assessment, by valuing the real property at P40 million.
b) If you disagree, what is the correct value to use for estate tax
purposes? Explain. (3%)
III
a) As a BIR lawyer handling the case, would you raise the defense
of prescription in your answer to the claim for tax credit? Explain. (4%)
b) Can the BIR lawyer raise the defense that DEF Corporation is
not the proper party to file such claim for tax credit? Explain. (3%)
IV
b) If they are taxable, when must the duties and taxes be paid?
What are the bases for and purposes of computing customs duties and
VAT? To whom must the duties and VAT be paid? Explain. (3%)
TAXATION Page 4 of 8
VI
Assunta Jaime
Exclusive Conjugal Exclusive
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VII
VIII
IX
b) If John McDonald directly sold the shares to his best friend, who
is another U.S. citizen residing in Makati, at a gain of P200,000, is he
liable for Philippine income tax? If so, what is the tax base and rate?
(3%)
XI
XII
XIII
XIV
Spouses Jose San Pedro and Clara San Pedro, both Filipino
citizens, are the owners of a residential house and lot in Quezon City.
After the recent wedding of their son, Mario, to Maria, the spouses
donated said real property to them. At the time of donation, the real
property has a fair market value of P2 million.
a) Are Mario and Maria subject to income tax for the value of the
real property donated to them? Explain. (4%)
b) Are Jose and Clara subject to donor’s tax? If so, how much is
the taxable gift of each spouse and what rate shall be applied to the gift?
Explain. (4%)
XV
In 2007, spouses Renato and Judy Garcia opened peso and dollar
deposits at the Philippine branch of the Hong Kong Bank in Manila.
Renato is an overseas worker in Hong Kong while Judy lives and works
in Manila. During the year, the bank paid interest income of P10,000 on
the peso deposit and US$1,000 on the dollar deposit. The bank withheld
final income tax equivalent to 20% of the entire interest income and
remitted the same to the BIR.
b) Is the bank correct in withholding the 20% final tax on the entire
interest income? Explain. (3%)
NOTHING FOLLOWS.