Taxation — 2017

I. SMZ, Inc. is a VAT-registered enterprise engaged in the general construction business. HP International contracts the services of SMZ, Inc. to construct HP lnternational's factory building located …

II. Wreck Corporation is a domestic corporation engaged in the business of importing, refining and selling petroleum products. During the period from September 1, 2014 to December 31, 2014, Wreck Corp…

III. Vanderful, lnc.'s income tax return for taxable year 2015 showed an overpayment due to excess creditable withholding taxes in the amount of ₱750,000.00. The company opted to carry over the excess…

IV. On the basis of a warrant of seizure and detention issued by the Collector of Customs for the purpose of enforcing the Tariff and Customs Code, assorted brands of liquor and cigarettes said to hav…

V. On March 30, 2016, XL Co. filed an administrative claim for refund of unutilized input VAT for taxable year 2014, together with supporting documents. XL Co. claimed that its sale of generated power…

VI. Heeding the pronouncement of the President that the worsening traffic condition in the metropolis was a sign of economic progress, the Congress enacted Republic Act No. 10701 (RA 10701), also know…

VII. Calvin Dela Pisa was a Permits and Licensing Officer (rank-and-file) of Sta. Portia Realty Corporation (SPRC). He invited the Regional Director of the Housing and Land Use Regulatory Board (HLURB…

VIII. On April 30, 2015, Daryl resigned as the production manager of 52nd Avenue, a television studio owned by SSS Entertainment Corporation. 52nd Avenue issued to her a Certificate of Withholding Tax…

IX. Upon his retirement, Alfredo transferred his savings derived from his salary as a marketing assistant to a time deposit with AAB Bank. The bank regularly deducted 20% final withholding tax on the …

X. On January 27, 2017, Ramon, the comptroller of Vantage Point, Inc., executed a document entitled Waiver of the Statute of Limitations in connection with the BIR's investigation of the tax liabiliti…

XI. The Board of Directors of Sumo Corporation, a company primarily engaged in the business of marketing and distributing pest control products, approved the partial cessation of its commercial operat…

XII. On September 17, 2015, Data Realty, Inc., a real-estate corporation duly organized and existing under Philippine law, sold to Jenny Vera a condominium unit at Freedom Residences in Malabon City w…

XIII. BATAS Law is a general professional partnership operating in the City of Valenzuela. It regularly pays value-added tax on its services. All its lawyers have individually paid the required profes…

XIV. Globesmart Services, Inc. received a final assessment notice with formal letter of demand from the BIR for deficiency income tax, value-added tax and withholding tax for the taxable year 2016 amo…

XV. Casimira died on June 19, 2017 after three weeks of confinement due to an unsuccessful liver transplant. For her confinement, she had incurred substantial medical expenses that she financed throug…

XVI. The BIR assessed the Babuyan Water District (BWD) with deficiency income taxes amounting to P8.5 million, inclusive of interest and surcharge. The BWD disputed the assessment, and argued that it …

XVII. San Juan University is a non-stock, non-profit educational institution. It owns a piece of land in Caloocan City on which its three 2-storey school buildings stood. Two of the buildings are devo…

XVIII. (a) Differentiate outright smuggling from technical smuggling. (3%) (b)Distinguish compromise from abatement of taxes. (3%)…

XIX. CMI School, Inc., a non-stock, non-profit corporation, donated its three parcels of idle land situated in the Municipality of Cuyapo, Nueva Ecija to SLC University, another non-stock, non-profit …