Given: Donation to son by a father on account of marriage: P200,000.

On the same day, the father donated to the Municipality of Apalit, Pampanga cash in the amount of P100,000. a. Compute for donors tax. b. Suppose that father donated on May 25, 2012. He filed his donors tax return on January 25, 2013. He just paid whatever your answer a is. Can the BIR still assess any amount against the father? If yes, until when can the BIR assess? If yes, how much? c. Assume the BIR assessed the father on February 9, 2013 (FAN), and made an error in the computation of donors tax due. What ere the remedies available to the father? Discuss fully.

a. Donation to son Donation to Govt Gross Gifts Less Deductions: Dowry Donation to Govt Net gifts (10,000) (100,000) P190,000 0.02xP90,000=P1,800 P200,000 100,000 P300,000

Using the tax schedule, the formula for the donors tax is: b. May 25, 2012= date of donation Jan. 25, 2013= actual date of payment June 5, 2012= deadline for payment 25 days= June 31 days= July 31 days= Aug 30 days= Sept

31 days= Oct 30 days= Nov 25 days= Jan 203 days of delay or 0.56 years of delay

Interest P1,800x .20x 0.56= P201.6 Surcharge 1,800x .25= 450

The BIR can still assess the amount of P651.6 representing interest and surcharge. The BIR can still assess this amount within 3 years from the date the taxpayer paid the erroneous amount (jan. 25, 2013)

Given: Gross Estate of P19,500,000 inclusive of family home. Ordinary Deductions: P2,250,000; No vanishing deductions. a. compute for estate tax due b. suppose the decedent died on June 18, 2010 and no estate tax return was filed and no estate taxes were paid. Assume the BIR waived the compromise penalty. How much will the taxes, inclusive of applicable interests and surcharge be today? c. until when can the BIR assess for estate tax? Assume the BIR assessed the estate on April 19, 2012 (FAN), and made an error in the computation of estate tax due. What are the remedies available to the estate? Discuss fully. a. Gross Estate Ordinary Deductions Special deductions: Family home Standard deduction Net Estate (1,000,000) (1,000,000) P15,250,000 P19,500,000 (2,250,000)

Using the tax schedule, the formula for the estate tax is: P1,215,000 + (0.20x P5,250,000)= P2,265,000

b. June 18, 2010 =date of death Aug. 18, 2010 =deadline of filing of notice of death Dec. 18, 2010 =deadline of filing of estate tax return and payment of estate tax

March 02, 2013 =date today (day of exams) 2 years, 2months, 15days of delays or 2.20 yrs.

How did I compute for 2.20 yrs? 2months+ 15 days= 74 days/365=0.20 January=31 days February= 28 days Computation of Interest P2,265,000=estate tax X 0.20=interest rate 453,000 X P 2.2= yrs of delay 996,600

Computation of Surcharge P 2,265,000=estate tax X 0.50*=surcharge

P1,132,500

Computation of taxes inclusive of interest and surcharge P2,265,000 996,600 1,132,500 P4,394,100 =estate tax =interest =surcharge

*0.50 surcharge bin case of willful neglect to file return within the period prescribed by the NIRC or in case of false or fraudulent return is willfully made 0.25 surcharge in other cases

c. the BIR can assess the estate tax in this given problem within 10 years from discovery that no estate tax return was filed.

A real estate developer sold houses and lots for an aggregate amount of P28,900,000. Individually, the prices of the houses and lots are above the amounts exempted by law. a. what are the business tax implications of the sale? Compute for all business taxes due. b. suppose the houses and lots were sold on Dec. 20, 2010. When should the developer pay DST? c. Assume the developer failed to pay DST on due date, until when can the BIR assess? Suppose the BIR assessed on Dec. 20, 2013, and assume the BIR waived the compromise penalty. How much will the taxes, inclusive of applicable interest and surcharge be? what if the BIR made an error in its computation? What are the remedies available to the developer? Discuss fully.

a. The sale is subject to two business taxes, to wit: (1) VAT; and (2) DST. It is subject to VAT and not to Capital Gains Tax because the real properties in this case are considered as ordinary assets and not fixed assets.

Computation of VAT P28,900,000 X 0.12

P 3,468,000

Computation of DST P28,900,000 X 15/1000

P433,500

b. the deadline for the payment of DST in this problem is on Jan. 05, 2011.

c. the BIR can assess within 10 yrs. From the discovery that no return was filed. Jan 5, 2011= deadline for payment of DST

Dec. 20, 2013=assessment date 2 yrs, 10 months (feb. 2013-nov. 2013), 46 days (jan. 05, 2013-jan.31, 2013 and dec. 1, 2013-dec 20, 2013) of delay or 2.96 years How did I compute for 2.96 years? 10 months =46 days=349 dyas/365= 0.96 Feb=28 days March=31 April=30 May=31 June=30 July=31 Aug=31 Sept=30 Oct=31 Nov=30 303 days

Interest P433,500x 0.20x 2.96= P256,632 Surcharge P433,500x 0.50= 216,750 DST= = 433,500

Taxes inclusive of interest and surcharge= P906,882

The taxpayer may file a protest against the FAN within 30 days from receipt of the assessment. Within 60 days from filing the protest, all the relevant documents should be submitted; otherwise, the assessment shall become final and unappealable. Thereafter, form the receipt of the adverse decision of the commissioner, or from the lapse of the 180 days from the submission of the documents, the taxpayer may appeal to the Court of Tax Appeal within 30 days; otherwise, the decision shall become

final. However, the SC in a recent case, held that a taxpayer can also perpetually wait for a decision of the BOR before elevating the matter to the CTA.

If after elevating the decision of the BIR to the CIR, the taxpayer still receives an adverse decision, he or she can file a motion for reconsideration within 15 days from the receipt of the decision. If the CTA maintain its adverse judgment, the taxpayer can appeal to the CTA en banc within 15 days from the receipt of the decision regarding the motion for reconsideration.

If all things fail before the CTA en banc, the tax payer can file an appeal before the SC within 15 days from the receipt of CTA en banc decision.