Anda di halaman 1dari 6

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

CHAPTER 2

TRANSFER TAXES AND BASIC SUCCESSION


Problem 2-1 1. False - gratuitous 2. False donation mortis-causa is subject to estate tax. 3. False Not all gratuitous transfer is subject to transfer tax. Example, the first P100,000 of net gift is exempt. Also, gratuitous transfer to the government is not subject to business tax. 4. True 5. False subject to business tax 6. True 7. False the legitime is based on value of the estate, not on the form of the estate. 8. False they are voluntary heirs. 9. True 10. False fixed by law 11. False executor 12. True 13. False an income earned; therefore, onerous transfer (consideration for service rendered). 14. False upon right to transfer 15. True 16. False upon death of the decedent. Problem 2-2 1. True 2. False no oral will is valid. Will must be in writing to be valid. 3. False legitimate parents succeed the rank, in the absence of the legitimate child. 4. False relatives up to the 5th degree 5. True 6. True 7. True 8. False equal rights 9. True 10. True 11. True 12. False the 5th degree collateral line relative is the legitimate heir 13. False If the surviving spouse is alone, his/her share is 100%. If no children, but with parents of the decedents, he/she will receive only if there is will. 14. False if the transfer is testamentary, the free portion can be given to legitimate parent as provided in the will. 15. False one for the legitimate child and half for the illegitimate child

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

Problem 2-3 1. A 2. B 3. B 4. C 5. D 6. C 7. D 8. A 9. C 10. B 11. A 12. B 13. D 14. C


Problem 2-6 A

Problem 2-4 1. A 2. D 3. C 4. D 5. C 6. C 7. D 8. B 9. C 10. B 11. A 12. D 13. B 14. A

Problem 2-5 1. D 2. C 3. B 4. D 5. D 6. C 7. A 8. B 9. A 10. A 11. B & D 12. A 13. D

Zero. Except for the prize for winning the tournament which is subject to final income tax of 20%, all properties received are subject to transfer tax which will be paid by the donor or the estate of the decedent. Problem 2-7 1. Letter D Business liabilities Car first prize Amount of mortgage assumed Salary Amount of onerous transfer 2. Letter B Business, net of liabilities (P2,000,000 P500,000) House and lot as donation, net of mortgage (P2,000,000 P1,500,000) Farm as inheritance Amount of gratuitous transfer Problem 2-8 1. Letter A Car (P800,000 P300,000) 2. Letter D House and lot mortis causa

P 500,000 1,000,000 1,500,000 300,000 P3,300,000 P1,500,000 500,000 500,000 P2,500,000

P 500,000 P1,000,000

Every donation between the spouses during the marriage shall be void. This prohibition does not apply when the donation takes effect after the death of the donor. Neither does this prohibition apply to moderate gifts which the spouses may give each other on the occasion of any family rejoicing. (Art. 133, Civil Code) Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited nongovernment organization, trust or philanthrophic organization or research institution or organization are tax-exempt. (Sec. 101, NIRC)

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

Problem 2-9 A Property left by the decedent Less: Charges against the estate Hereditary estate Problem 2-10 D Distributable estate Less: Share of 3 children (P12,000,000 x 50%) Share of surviving spouse (P6,000,000/3) Free portion Less: Share of illegitimate child per Will Free portion for the church

P 5,000,000 1,000,000 P 4,000,000 P12,000,000 P6,000,000 2,000,000 8,000,000 P4,000,000 3,000,000 P1,000,000

The share of the illegitimate child must be taken from the free portion. The Will is valid because the 50% of the hereditary estate intended to legitimate children is not impaired. Problem 2-11 B Increase in the share of C (P1,500,000 x 3/5) Problem 2-12 C Net hereditary estate Legitime of children (P5,000,000 x ) Portion for the surviving spouse (P5,000,000 x ) Free portion may be distributed to strangers Problem 2-13 B Inheritance of the spouse (P5,000,000/5) Problem 2-14 A Share of Abu = share of Surot (P12,000,000/3) Add: Share inheritance repudiated by Cuto (P4,000,000/2) Share of Surot Problem 2-15 A Hereditary estate Legitime of children (P3,000,000 x ) Portion for the spouse (P1,500,000/4) Free portion Multiplied by Legacy to the sister-in-law Problem 2-16 NOT IN THE CHOICES Hereditary estate Less: Share of parents (P3,000,000 x1/2) Share of illegitimate child (P3,000,000 x 1/4) Share of surviving spouse (P3,000,000 x 1/8) Free portion Share of the surviving spouse Add: Share from free portion (P375,000/3) Total share of the surviving spouse P900,000 P5,000,000 ( 2,500,000) ( 1,250,000) P1,250,000 P1,000,000 P4,000,000 2,000,000 P6,000,000 P3,000,000 ( 1,500,000) ( 375,000) P1,125,000 20% P 225,000 P3,000,000 P1,500,000 750,000 375,000 P 2,625,000 375,000 P375,000 125,000 P500,000

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

Problem 2-17 D Share of Anac (P12,000,000/3) Divided by number of children of Anac Share of Cute

P4,000,000 2 P2,000,000

Problem 2-18 A Zero, because Lolo and Lola are excluded by Tatay and Nanay who are nearer to the testator. The nearer excludes the farther. Problem 2-19 D Hereditary estate, net of charges (P7,000,000 P1,000,000) Legitime of legitimate children (P6,000,000 x ) Portion for the acknowledge natural child (P3,000,000/3) x 50% Portion for the surviving spouse (P3,000,000/3) Free portion could be disposed of as legacy to the nanny P 6,000,000 ( 3,000,000) ( 500,000) ( 1,000,000) P 1,500,000

Note: The testator is still intending to give 1/4 of the free portion to the nanny, but he can give the entire amount of free portion to the nanny. Problem 2-20 C Inheritance of each child (P5,000,000/6) Problem 2-21 Gross taxable value for: 1. Capital gain tax 2. Donors tax 3. Business tax 4. Estate tax (P1,500,000 + P300,000) Problem 2-22 Cash in bank House and lot Investments in securities Total gross estate Less: Unpaid mortgage Existing loan Funeral expense Estate tax Hereditary estate Problem 2-23 Legitimate child Mario (P1,200,000 x ) Illegitimate child Maria (P600,000 x ) Surviving spouse (P600,000 x ) P 833,333

P 300,000 P 500,000 P - 0 -

P1,800,000 P 100,000 5,000,000 400,000 P5,500,000

P 200,000 100,000 100,000 100,000

500,000 P5,000,000 P 600,000 300,000 300,000 P1,200,000

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

Problem 2-24 With respect to legitime: Legitimate child (P4,200,000 P200,000) x 50% Surviving spouse (P2,000,000 x ) Remaining balance (divide based on the intention of the will) Legitimate child (P1,000,000 x ) Surviving spouse (P1,000,000 x ) Problem 2-25
Gross estate Less: Deduction Net estate before share of the surviving spouse Less: Share of the surviving spouse (P1,000,000 x 50%) Net estate before estate tax Less: Estate tax Net distributable estate Estate Distribution death of Sabel Fraction of share - intestate Distribution of inheritance Death of Jess Exclusive share when Sabel died Add: Share from distributable share Distributable estate Fraction of share - testate Distribution of inheritance Dorado (child) 1/3 P161,667 Maya (child) 1/3 P161,667

Son P2,000,000

Wife P1,000,000

500,000 . P2,500,000

500,000 P1,500,000
P2,000,000 1,000,000 P1,000,000 500,000 P 500,000 15,000 P 485,000

Jess (husband) 1/3 P161,667

Total 1 P485,000 P 500,000 161,667 P 661,667 Total 1 P 661,667

Dorado (child) P165,417

Maya (child) P165,417

Free Portion P333,883

Problem 2-26
Legitimate child 1 Legitimate child 2 Surviving spouse Illegitimate child Total

Fraction of share Amount of inheritance

1 P2,857,143

1 P2,857,143

1 P2,857,143

P1,428,571

3.5 P10,000,000

Note: The last will and testament is void because the presence of legitimate child eliminates the parents from the inheritance. In all cases, the legitime must not be impaired by the disposition through will. Problem 2-27 1. Computation of net distributable share Total gross estate (P10,000,000 + P20,000,000 + P30,000,000) Less: Ordinary deductions Net estate before share of surviving spouse Less: Share of surviving spouse (P57,500,000 x 50%) Net estate before standard deduction Less: Standard deduction Net taxable estate Multiplied by assumed estate tax rate Estate tax Net estate before standard deduction Less: Estate tax Net distributable estate

P60,000,000 2,500,000 P57,500,000 28,750,000 P28,750,000 1,000,000 P27,750,000 15% P 4,162,500 P28,750,000 4,162,500 P24,587,500

BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 10 SUGGESTED ANSWERS
Chapter 2: TRANSFER TAXES AND BASIC SUCCESSION

2. Computation of the shares of the heirs Share of legitimate son (P24,587,500 x ) Share of surviving spouse (P24,587,500 x )

P12,293,750 P12,293,750

Note: His mother and brother, as secondary heirs, are disqualified to share from the portion of the legitime due to the presence of a legitimate child. Hence, the will becomes void. Problem 2-28
1. Computation of net distributable estate: Gross estate (P4,000,000 + P1,000,000 + P200,000 + P5,000,000 + P3,000,000) Less: Ordinary deductions: Funeral expense P 100,000 Unpaid mortgage 200,000 Allowable deduction - Standard deduction Net taxable estate Less: Estate tax (P11,900,000 x 15%) Net estate after tax Add: Standard deduction Net distributable estate Distribution of net distributable estate: Testate succession Intestate succession Mixed succession Christopher (son) P4,000,000 2,957,500 P6,957,500 Cristeta (daughter) P1,000,000 2,957,500 P3,957,500 P13,200,000 P 300,000 1,000,000

1,300,000 P11,900,000 1,785,000 P10,115,000 1,000,000 P11,115,000

2.

Crisistomo (driver) P 200,000 . P 200,000

Total P 5,200,000 5,915,000 P 11,115,000

Anda mungkin juga menyukai