ILLUSTRATIVE PROBLEM:

Angel is married to Angela 3 yrs ago, died leaving the following properties:

Condo unit, Makati City acquired by him and his wife 2,500,000
Apartment unit in Vancouver Canada inherited from his parents
during his marriage 3,500,000
Car donated to him by his mother before the marriage (Phil.) 2,000,000

Fortuner SUV purchased by Angel out of his exclusive property (Phil.) 1,200,000

Jewelry in the Phil. Inherited by his wife from her mom last year 550,000

BDO Savings account containing the spouses earning from industry 840,000

Interest in domestic partnership acquired by Angelo before marriage 300,000

Proceeds from life insurance- irrevocable beneficiary is his brother 700,000

Real property located in Canada acquired during the marriage 2,300,000
Shares of foreign corporation-80% business in the Phil. Acquired by
Angel before marriage 50,000

Surviving spouse real property located in USA before marriage 7,000,000

Compute the exclusive, common properties and the gross estate of

Mr. Angel

CONJUGAL PARTNERSHIP OF GAINS-RESIDENT CITIZEN

EXCLUSIVE CONJUGAL
Condo unit, Makati City acquired by him and his wife 2,500,000
Apartment unit in Vancouver Canada inherited from his parents
during his marriage 3,500,000
Car donated to him by his mother before the marriage 2,000,000

Fortuner SUV purchased by Angel out of his exclusive property 1,200,000

BDO Savings account containing the spouses earning from industry 840,000

Interest in domestic partnership acquired by Angelo before marriage 300,000

Real property located in Canada acquired during the marriage 2,300,000
Shares of foreign corporation-80% business in the Phil. Acquired by
Angel before marriage 50,000
7,050,000 5,640,000

ABSOLUTE COMMUNITY OF PROPERTY-RESIDENT CITIZEN

EXCLUSIVE CONJUGAL
Condo unit, Makati City acquired by him and his wife 2,500,000
Apartment unit in Vancouver Canada inherited from his parents
during his marriage 3,500,000
Car donated to him by his mother before the marriage 2,000,000

Fortuner SUV purchased by Angel out of his exclusive property 1,200,000

BDO Savings account containing the spouses earning from industry 840,000

Interest in domestic partnership acquired by Angelo before marriage 300,000

Real property located in Canada acquired during the marriage 2,300,000

Surviving spouse real property located in USA before marriage 7,000,000

Shares of foreign corporation-80% business in the Phil. Acquired by
Angel before marriage 50,000
4,700,000 14,990,000

CONJUGAL PARTNERSHIP OF GAINS-NON-RESIDENT ALIEN WITH

RECIPROCITY
EXCLUSIVE CONJUGAL
Condo unit, Makati City acquired by him and his wife 2,500,000
Car donated to him by his mother before the marriage 2,000,000
Fortuner SUV purchased by Angel out of his exclusive property 1,200,000
3,200,000 2,500,000

ABSOLUTE COMMUNITY OF PROPERTY-non-resident alien without

reciprocity
EXCLUSIVE CONJUGAL
Condo unit, Makati City acquired by him and his wife 2,500,000
Car donated to him by his mother before the marriage 2,000,000
Fortuner SUV purchased by Angel out of his exclusive property 1,200,000

BDO Savings account containing the spouses earning from industry 840,000

Interest in domestic partnership acquired by Angelo before marriage 300,000

1,200,000 5,640,000
TOTAL

12,690,000

TOTAL
 19,690,000

TOTAL

5,700,000

TOTAL

6,840,000
Problem A

Kalakuti Auto shop , VAT registered had the following data in its
books during the period:
Receipts:
-From auto repair 85,620
-From washing & greasing 45,425
-Reimbursement by customer on payments made
to VAT machine shop 4,350
-Payments received for oil and fluid provided by
the shop to cars undergoing repairs 5,780
Disbursements:
-Electric Bill 3,550
-Water Bill 2,380
-Salaries of employees 15,000
-Payments made to machine shops-non-vat 4,350
-Purchase of lubricants, oil and fluids 3,000
-Purchase of capital goods (life-10 years) 24,000

Compute the output tax and vat payable

Receipts:
-From auto repair 85,620
-From washing
-Payments & greasing
received for oil and fluid provided by 45,425
the shop to cars undergoing repairs 5,780
Total gross receipts 136,825
Rate of vat 12%
Output vat 16,419

Otput vat 16,419

Input tax
electric bill 3,550 x 12% 426
Lubricants, oil & fluids 3,000 x 12% 360
Capital goods 24,000 x 12% 2,880 3,666
12,753

Problem B

Mayumu is a VAT registered grocery owner and sugar dealer. She

submitted list of inventory as of Dec. 31, 2016 to thr RDO as follows:

Grocery items , total value 325,000.00

Raw cane sugar 255,000.00
In January 2017, she had the following sales:
Sales Purchases
 Grocery, invoice value 1,042,525.00 650,100.00
Sugar, excluding VAT 480,000.00 420,000.00

Compute the vat payable on Jan 2017.

Output 1,042,525 x 12/112 111,699.11

Input 650,100 x 12/112 69,653.57
vat payable 42,045.54

Problem C
Lavinia had the following data in July:
Sale of goods excluding VAT 2,540,000
Purchase of goods net of VAT 1,450,000
Purchases of capital goods (invoice amount)
Machine 1 (useful life 6 yrs) 974,400
Machine 2 (useful life 3 yrs) 67,200

Compute the vat payable for July.

Output 2,540,000 x 12% 304,800

Input on goods 1,450,000 x 12% 174,000.00
Input on capital goods
930k x 12% 111,600.00 285,600
19,200

M1 974,400/1.12 870,000.00
M2 67,200/1.12 60,000.00
aggregate cost did not exceed 1M 930,000.00

Problem D
The following are the data of City Appliances Marketing Company
for Oct. 2015:
Sales (invoice value) 266,000
Purchases, net of input tax 215,000

On Oct. 16, 2015, the company retired from its business and the
inventory valued at P190K, net of input taxes, was taken. There is
a deferred input taxes from the third quarter of P3,500. How much
is the total value added taxes due and payable by City appliances
in its operation in Oct and its retirement from business?

Output taxes regular sales 266K x 12/112 28,500

Deemed sale 190K x 12% 22,800
Total output 51,300
Less: input 215K x 12% 25,800
deferred input 3,500 29,300
Vat payable 22,000
E= EXCLUSIVE ; C=COMMON OR CONJUGAL; X = NOT INCLUDED IN
THE COMPUTATION OF THE DECEDENT'S GROSS ESTATE
CPG ACP
1. Cash owned by the decedent before the marriage E C
2. Commercial building owned before marriage E C
3. Income from item no. 2 C C
4. Commercial building inherited during marriage E E
5. Income from item no. 4 C E
6. Personal property received by the surviving spouse as gift
before marriage X C
7. Exclusive property was sold and was repurchased using
conjugal property C C
8. Property acquired by the decedent with cash owned before
marriage E C
9. Personal belongings used exclusively by the decedent E E

10. Lot acquired by the surviving spouse before the marriage (she
had a previous marriage and legitimate children X X