CASE STUDY NO.

1- ESTATE TAX
Exclusive
Residential house and lot (Family Home)
Building apartment
Income from rental of apartment
Bank deposits-BPI
Agricultural Land-inherited
Family car
Other personal properties
Claims against insolvent person
Gross Estate
LESS: ORDINARY DEDUCTIONS
(1) Conjugal Deductions
(a) ELITE:
Funeral expenses
Judicial expenses
Claims against the estate
Claims against insolvent person
(2) Exclusive Deductions
(a) ELITE:
Unpaid mortgage
(b) Transfer for public use
(c) Vanishing deduction
Total
Net Estate Before Special Deductions
SPECIAL DEDUCTIONS
Standard Deduction
Family Home
Medical Expenses
Net Estate before share of surviving spouse
Share of surviving spouse (43500000/2)
Net Taxable Estate

Community
7,000,000
20,000,000
6,000,000
10,000,000

1,600,000

1,600,000

1,100,000
2,000,000
400,000
46,500,000

200,000
1,200,000
1,200,000
400,000

600,000
400,000
1,466,943.87
2,466,943.87

3,000,000

(866,943.87)

43,500,000

CASE STUDY NO.1- ESTATE TAX

Exclusive
Residential house and lot (Family Home)
Building apartment
Income from rental of apartment
Bank deposits-BPI
Agricultural Land-inherited
Family car

Community
7,000,000
20,000,000
6,000,000
10,000,000

1,600,000
1,100,000

Other personal properties

Gross Estate
Less: Ordinary Deductions
ELITE
Funeral Expenses
Judicial Expenses
Claims Against Estate
Unpaid Mortage
Transfer for Public Use
Net Estate
Share of Surviving Spouse
Estate Tax Paid
Net Distributable Estate

1,600,000

2,000,000
46,100,000

(700,000)
(1,200,000)
(1,600,000)
(600,000)
(400,000)
600,000

42,600,000

Total
Vanishing Deduction
Value to take
Mortage Paid
Initial Basis
Proportionate Deduction (4M X
1600/48100)
Final Basis
Multiply by Rate
Vanishing Deduction

1,600,000
0
1,600,000
(133,056.13)
1,466,943.87
100%
1,466,943.87

48,100,000

(5,466,943.87)
42,633,056.13
(1,000,000)
(1,000,000)
(500,000)
40,133,056.13
(21,750,000)
18,383,056.13

ESTATE TAX DUE

Tax on 10,000,000
Tax on Excess of 8,383,056 (20%)
Total Estate Tax Due

1,215,000
1,676,611.23
2,891,611.23

Total
Distribution of Estate
Legitimate Child 1 (1/4)
Legitimate Child 2 (1/4)
Surviving Spouse (1/4)
Illegitimate Child (1/8)

4,752,097.25
4,752,097.25
4,752,097.25
2,376,048.625

47,700,000

43,200,000
(21,300,000)
(2,891,611)
19,008,389

Free Portion to San Andres de Pores

Church
Net Distributable Estate

2,376,048.625
19,008,389

CASE STUDY NO.2- DONOR'S TAX

Cash to daugther
BMW Sedan Car
Cash to maid
Jewelries
Total Gift
Deductions:
Dowry
Net Gift

RELATIVE
STRANGER
4,000,000
3,600,000
400,000
100,000
7,600,000
500,000
(10,000)
7,590,000

Tax on 5000,000

404,000

Tax on Excess of 2,590,000

(12%)
Total Tax on Gift to Relative

310,800
714,800

Tax on Gift to Stranger

(500,000 X 30%)
Total Donor's Tax Due

150,000
864,800

500,000

CASE STUDY NO.4- OTHER PERCENTAGE TAX

Sales of Goods
Goods for personal use
Sales Returns and Allowances
Net Sales
OPTRate
Percentage Tax Due

1,690,000
26,000
(50,000)
1,666,000
0.03
49,980

CASE STUDY NO.4- VALUE ADDED TAX

Sales of Goods
Goods taken out for personal use
Sales Returns and Allowances
Cash Sales to VAT persons
Cash Sales no NON-VAT persons
Credit Sales to VAT persons
Sales Returns
Sales Discount
Net Sales
Cash Sales to government units
Total/Net Sales

OCTOBER
312,000
6,000
(10,000)

NOVEMBER
340,000

TOTAL

900,000
100,000
400,000
(40,000)
(10,000)
1,350,000
150,000
1,500,000

1,988,000
150,000
2,138,000

0.9298
0.0702

1,259,600

140,547.32
10,604.68

(10,000)

308,000

330,000

308,000

330,000

Purchases of goods
Purchases of services
Defective goods return
Total/Net Purchases

176,000
22,000
(4,400)
193,600

180,000
28,000
(10,000)
198,000

Output VAT
Input VAT
VAT Payable

36,960
(23,232)
13,728

39,600
(23,760)
15,840

Output VAT
Proportionate Input VAT
Standard Input VAT
Final Witholding VAT
VAT Payable
VAT Paid in October
VAT Paid in November

DECEMBER

700,000
168,000
868,000

256,560.00
(140,547.32)
(10,500.00)
(7,500.00)
98,012.68
(13,728)
(15,840)

VAT Payable December

68,444.68

Sales of Goods
Goods for personal use
Sales Returns and Allowances
Net Sales
OPTRate
Percentage Tax Due

1,690,000
26,000
(50,000)
1,666,000
0.03
49,980