Professional Documents
Culture Documents
M Mockbar
M Mockbar
For how many shares is Ariel entitled to be paid cash dividends? Explain.
2. Stella contracted the services of Starlight Travel and Tours International Inc. to
arrange and facilitate her booking, ticket and accommodation in a tour dubbed as
“EuroTrip”. Pursuant to the contract, the travel agent gave Stella her travel documents
and plane tickets and reminded her that her flight leaves in 2 days. But when she
went to the airport for her flight, Stella realized that the flight she was supposed to
take had already departed the previous day. She filed a case against Starlight Travel
and Tours for breach of contract and failure to observe the standard of case required
of a common carried when it wrongly informed her of the flight schedule.
Was there a contract of carriage from this transaction? Why or why not?
The building was totally destroyed by fire, a peril insured against under both
insurance policies. It was subsequently determined that the fire had been intentionally
started by Leoncio and that, in violation of the loan agreement, he had been storing
flammable materials in the building.
10. Businessmen from Sweden called you to discuss the possibilities of investing in
various projects in the Philippines and wanted your thoughts on certain issues
regarding foreign investments in the Philippines. One of the burning questions asked
was: Aside from Filipino citizens, which other entities would be considered
“Philippine National” under the Foreign Investments Act?
11. Explain the concept of watered stock and the liability arising from its issuance.
12. Mr. Kermit D. Frug is the President and Director of Piggy Bank, a commercial
bank holding its main office along Sesame Street. His brother, Robin D. Frug, owned
a big tadpole breeding business based in Lake Ness. Robin applied for a P50M loan
with Piggy Bank. Robin followed the ordinary banking procedures in all the stages of
the processing of his application. When required, he made the necessary
arrangements to guarantee the loan. Thus, in addition to the real estate mortgage,
Robin executed a joint and solidary suretyship, issued post dated checks and
submitted all other requirements prescribed by Piggy Bank.
When the loan was about to be approved and the proceeds released, Jim Henson,
known to be Robin’s competitor, wrote to the Piggy Bank’s Management and Board
of Directors questioning the loan on the ground of conflict of interest due to Kermit
and Robin being brothers, citing the legal restriction against bank exposure of
directors, officers, stockholders or their related interests (DOSRI).
13. The Anti Money Laundering Council initiated a discreet investigation of the
financial transactions of Walter White, a suspected drug trafficker based in Makati.
AMLC, PDEA and NBI worked together and were able to gather more than enough
evidence to prosecute Walter for his drug activities. AMLC had probable cause that
Walter’s deposits and investments in various banks, including Hermanos Bank, were
related to money laundering. So AMLC sent Hermanos Bank a formal demand letter
to allow its agents to examine Walter’s banking transactions, but Hermanos Bank
refused the demand.
Is the insurer liable under the insurance coverage? Why or why not?
It appears that the co-pilot who had control of the plane’s landing had less than the
required flying and landing time experience, and should not have been in control of
the plane at the time. He was allowed to fly as a co-pilot because of the scarcity of
pilots. The main pilot, on the other hand, had a very high level of blood alcohol at the
time of the crash.
You are a part of the team that the victims hired to handle the case for them as a
group. You were asked to explain the causes of action legally possible under the
given facts against the airline and the pilots and whom you need to implead in these
causes of action.
20. Hello Philippines (HP) is a public utility company registered with the SEC. Its
authorized capital stock consist of voting common shares and non-voting preferred
shares, with equal par values of P100/share. Currently, the issued and outstanding
capital stock of HP only consists of the common shares of Maria dela Cruz, a Filipino
(60%) and John Snow, an Australian national (40%).
To raise additional funding for its operations, HP issued preferred shares to John
Snow, equivalent to the currently outstanding common shares. A suit was filed
questioning the corporation action on the ground that the foreign equity holdings in
the company would now exceed the 40% foreign equity limit allowed under the
Constitution for public utilities. Rule on the legality of John Snow’s current holdings.
22. Princess and Chin are illegitimate children of Quenie who was then a common
law wife of a Taiwanese. After the birth of Princess and Chin, Quenie died without a
will due to a vehicular accident.
In order to avail of the benefit of the Tax amnesty on the estate of Quenie, Princess
and Chin hired you to help them prepare the necessary document needed to the
settlement of the properties left by their mother consisting of 2-hectares of parcel of
land situated at Puerto Princessa. To expedite the settlement of the parcel of land you
recommended that a deed of extra-judicial settlement will be executed, instead of a
judicial settlement before a court which they readily agreed.
How would you apportion/divide the said property when at the time of Quenie’s death
her father was still alive up to the present and Queenie’s siblings were also alive.
23. Clay Clarkson is an NBA player. In 2022, from the USA where he is a resident
and citizen. Clarkson stayed in the Philippines from Nov. 29, 2022 to December 5,
2022 to watch the 2022 FIBA World Qualifying tournament held in MOA, Paranaque,
Philippines.
During his stay, he bought equity investment from Alpha and Delta investment
company (domestic Corporation).
24. On October 2021, Mr. Roy an American basketball Coach was hired as a team
consultant by the Gilas Pilipinas Team, in the Philippine Basketball Association for
the FIBA Elimination rounds for a period of more than three (3) months from
October to December 2021. His coming to the Philippines was for a definite
purpose. But he was subsequently selected to coach the Philippine Mens Basketball
Team for a period of 2 years. The American coach intends to leave the Philippines as
soon as his job is completed in 2022 Is Mr. Roy
Classified as resident alien or non-resident alien. What would be your answer. Justify.
25. The board of Director of the Northview I Homeowner Association held a meeting
last January 1, 2022. In the said meeting the looked on the necessity to increase the
existing association dues.
One of the Board of Directors proposed an increase of 50% to cover the payment of
the 12% value added Tax (VAT) on the association dues which is being collected for
services rendered in connection with trade and business of the said association.
However, another member of the board opposed the proposal to increase because the
association is not empowered to impose additional dues on the account of covering
the value added tax. Decide with reason.
In his share in the profit he received the following receipt below which is considered
received by him and thus taxable although not yet distributed.
His accountant told him to report all of these receipt as listed below as part of his
share from the partnership.
a. A security deposit to ensure the faithful performance of a certain obligation.
b. b. Deposit in banks which made available to the partnership as the seller of services
without restriction.
c. c. Issuance of the debtor of notice to offset any debt or obligation and acceptance
thereof by the partnership as seller as payment of services.
e. Interest coupon that have matured and are payable but not been cashed.
Mr. Lorenzo has certain reservation regarding the position of his accountant, so he
asked you to help him in the computation his share for income tax purposes. State
your position with reason.
27. X hired you as the tax consultant of XYZ company with substantial amount of
compensation.
During a board meeting of the Directors, you have been invited to explain the
following for their information:
3. Destination principle
One taxpayer consulted you, on what would be the requirements and/ conditions to be
qualified under the substituted filing of the income tax returns.
What would be the advised you can give to the concern of the taxpayer.
29. For the purpose of determining a person who is self employed and/or professional
a barangay Kagawad asked you , who are these persons for tax purposes.
30. Conrad sold his real properties consisting of land and building.
For this purpose, he executed a deed of sale covering the land and
building. When the buyer, Delfin, was to register the Deed of Sale
with the Registry of Deed in order to request for an issuance of New
Certificate (TCT), the Registry of Deed notice that Documentary Stamp
Tax was not paid. So, he requested that the DST should be paid.
Conrad and Delfin refused to pay the said DST. The Registry of Deed
refused to register the said Deed of Sale. They consulted you on
this. What would be your advice. Explain.
31. A, B,C are friends. They intend to form a general professional Partnership as a
platform for them to exercise their profession.
They consulted you what would be the tax liability of the partnership and A, B, C as
partners. A is a general and capitalist partner. B is a limited partner and C as industrial
partner. They also asked the allowable deduction to the partners of a GPP.
32. Mr. X asked you what are the administrative remedies that the government will be
available as remedies relative to the collection of internal revenue taxes, fees, or
changes resulting from delinquency. What would be your answer? What is the
distinction between actual and constructive distraint. Briefly explain.
33. X is a construction company, owned by Xerox. Y is also a construction company
engaged in construction of big construction projects of the government and those in
the private sector. Yahoo is the owner of Y Construction. Yahoo would like to
undertake a big project to be implemented by the DPWH. This project is financed by
international funds under a bilateral agreement entered by and between the Philippine
government and a foreign financing institution.
X and Y decided to undertake the said big construction project. They hired you to
help them on how they would be able to form a commercial undertaking particularly a
big construction project similar to the above mentioned project to be implemented by
DPWH.
What would you advise particularly on the income tax liability of X and Y. Explain.
34. Last 2021, Lorenzo received from the Bureau of Internal Revenue (BIR) Final
Assessment Notice (FAN) stating that after its audit pursuant to a letter of Authority
duly issued by the said agency, Lorenzo has deficiency on his Value Added and
Withholding Taxes.
A warrant of distraint and/or levy was issued against Lorenzo particularly his personal
and real properties.
He hired you as his lawyer and upon knowing from him that he did not receive a
Preliminary Assessment Notice (PAN) after the BIR conducted its investigation,
immediately you interposed your objection in the deficiency tax assessment of
Lorenzo. The allegation of Lorenzo that he didn’t receive a PAN was readily admitted
by the BIR.
Are the deficiency tax assessment and warrant distrain and/or levy issued against
Lorenzo valid? Explain.
35. Explain the nature and concept of a Preliminary Assessment Notice (PAN) and
Final Assessment Notice (FAN).
36. Bravo Corporation is a duly registered with the Philippine Economic Zone
Authority (PEZA) under RA. 7916. Its profit for 2022 is being subject to Improperly
Accumulated Earning Tax (IAET).
Roy Bravo the President of the aforesaid corporation disagrees with the imposition of
IAET on its profit.
He requested you to represent the company regarding his opposition on the imposition
of IAET. What is your position? Explain briefly.
37. Mr. X is interested to create a trust relative to his properties. He consulted you to
give him pointers for the creation of trust agreement.. Discuss the concept of trust.
38. The President of a Corporation hired you as legal and tax consultant. During one
of the board meetings, he invited you to discuss the Minimum Corporate Income Tax
(MCIT). Many of the members of the Board of Directors are confused on the possible
effect of the MCIT due to the passage of the Create Law.
How would you explain to the board the various concerns relative to MCIT and
Create Law?
The director of the school is worried on how he would explain this to the board. He
asked you to join him. What would be your explanation?
40. Princess and Chinka wanted to know from you as student of law when is a co-
ownership created. What is the tax liability of co-ownership? Discuss.