6. Bruce owns a car shop. The shop has a building to house its equipment. When...
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6. Bruce owns a car shop. The shop has a building to house its equipment. When his only son, Steve, got married, he decided to donate. the building to his son and his son's wife for their family home. Bruce paid the 6% donor's tax to the BIR. However, the BIR is asking for 12% VAT on top of the 6% donor's tax. Should Bruce pay additional 12% VAT on his donation? Tony 7. Tony divided his lot into 8 and sold each to SMDC. There were 8 distinct sale transactions and contracts made on different dates. paid the 6% CGT to the BIR but the latter is collecting a a 12% from each of the 8 sale transaction. What is the proper tax treatment of the sale? 8. The receipt for your purchase of a mobile phone charger shows that that you just bought it for P 2,100. The receipt shows that the total amount is broken down between the selling price of the charger, which is P 2,050, and the value-added tax, which is P 50. Is the amount the amount of VAT correct? Explain briefly. 9. After finally passing the Bar Examinations, a new lawyer was given an engagement ring worth PHP1,000,000.00 by a longtime significant other who happened to be one of the most junior sitting Justices of the Supreme Court. Their relationship has so far been platonic. Being an avid supporter of the current government, the new lawyer told the significant other that the gift would only be accepted if all taxes due have been paid. Is there any tax liability arising from the giving of the engagement ring? Explain briefly. 6. Bruce owns a car shop. The shop has a building to house its equipment. When his only son, Steve, got married, he decided to donate. the building to his son and his son's wife for their family home. Bruce paid the 6% donor's tax to the BIR. However, the BIR is asking for 12% VAT on top of the 6% donor's tax. Should Bruce pay additional 12% VAT on his donation? Tony 7. Tony divided his lot into 8 and sold each to SMDC. There were 8 distinct sale transactions and contracts made on different dates. paid the 6% CGT to the BIR but the latter is collecting a a 12% from each of the 8 sale transaction. What is the proper tax treatment of the sale? 8. The receipt for your purchase of a mobile phone charger shows that that you just bought it for P 2,100. The receipt shows that the total amount is broken down between the selling price of the charger, which is P 2,050, and the value-added tax, which is P 50. Is the amount the amount of VAT correct? Explain briefly. 9. After finally passing the Bar Examinations, a new lawyer was given an engagement ring worth PHP1,000,000.00 by a longtime significant other who happened to be one of the most junior sitting Justices of the Supreme Court. Their relationship has so far been platonic. Being an avid supporter of the current government, the new lawyer told the significant other that the gift would only be accepted if all taxes due have been paid. Is there any tax liability arising from the giving of the engagement ring? Explain briefly.
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6 The donation of a family home is exempt from donors tax under certain conditions If the donation i... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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