Tax Midterm Questions: (Always check the date.

If no date is indicated, presumption is

that TRAIN Law should be applied.)

1.) MCQ - Who is a statutory taxpayer in the eyes of the law?

2.) Husband died. Surviving spouse doesn’t want to accept the estate. She waives her
right to inherit so the estate went to children. What is the tax implication? Is it subject
to Donor’s Tax or Estate Tax? (Bar Question)

3.) Doctor went abroad, ceases to exercise dental profession. Sold dental clinic for a
price significantly lower than the fair market value. Is it subject to VAT? Can the price
difference be subject to donor’s tax?

4.) A 70 yr. old man has a 20 million worth residential house and lot. Asks you for
advice as to how to minimize or avoid tax liabilities. What is the best possible recourse?

5.) X company situated abroad hires the legal services of a law firm, then later pays with
foreign currency. Is it subject to VAT?

6.) A is currently engaged in the catering business. Later on sells the truck which was no
longer used in the business. Is it subject to VAT?

7.) Give 4 amendments in the TRAIN Law either from transfer tax or VAT.

8.) When and where will the tax return to be filed?

9.) A has an heir, B. A died giving B 6M. Additionally, A has a creditor C, whom he owes
6M. C decides to condone the 3M or half of the debt of A. Is A liable for Estate Tax?
(Dizon vs CTA, Date of Death Valuation Rule)

10.) MCQ – What is the statutory definition of VAT?

11.) MCQ – What is considered as a deemed sale?

12.) Specify the items which will be included the composition of the gross estate based
on the mentioned facts and explain why.

13.) Whether the notarial fee paid for the extrajudicial settlement and the attorney's
fees in the guardianship proceedings may be allowed as deductions from the gross
estate of decedent in order to arrive at the value of the net estate? (CIR vs CA and
Pajonar)

14.)