Additional Practice Problems - Solutions

ESSAY QUESTION NO. 01 Which among the items mentioned below reduces the gross value of the estate but not the net value of the estate of a citizen of the Philippines for purposes of Estate Taxation? Explain. Transfer for Public Purpose, Property Previously Taxed (Vanishing Deduction), Life Insurance, or Capital of the Surviving Spouse

H. profile-image Sami moved to Europe on August 15th, 2022, to open and incorporate a café in a small European village. Prior to moving, Sami’s only income for 2022 was a salary of $55,000. Sami did not own any assets prior to moving. Sami severed all other ties to Canada prior to moving. What is the residency status for Sami in 2022 for Canadian tax purposes?

28 Which is FALSE in partial disposition of estate?  Group of answer choices  The estate is still required to file the estate tax return within the prescriptive period  In case of failure to pay, total estate tax due shall be immediately due and demandable without penalties if taxpayer has justifiable reason  The taxpayer is required to execute an undertaking that the proceeds shall be exclusively used for the payment of estate tax  The BIR may allow the sale of a portion of property without payment of estate tax provided the proceeds shall be used for the payment of estate tax

User During the 2023 income year, Lance McGuinness (a non-resident taxpayer) received the following income: Salary from employer for work performed in Australia $ 45,000 Salary from employer for work performed outside of Australia $105,000 Rent received from property in Hong Kong $ 20,000 Calculate Lance's Australian taxable income for 2023 Question 7Select one: A. $170,000 B. $65,000 C. $45,000 D. $ 150,000

Question #5 of 85 Your client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents?     A) He will avoid gift tax liability by titling the property this way.     B) The property will pass to his parents outside of probate.     C) The property will receive a step-up in basis when his parents die.     D) His parents will have a life estate in the property if he predeceases them.

48 Inday, a resident of Manila City is the executor of Nicanor, a Filipino migrant in Canada. Nicanor’s home province in the Philippines is Pampanga while the property is located in Cebu City. In processing Nicanor’s estate, the estate tax return shall be filed in:  Group of answer choices  Office of the Commissioner thru RDO 39-South Quezon City  Manila City  Cebu City  Pampanga

Problem 2 A nonresident alien, married, died on September 2018. He left the following: Conjugal properties, Philippines, 5,000,000 Exclusive properties, Philippines, 2,000,000 Conjugal properties, USA, 10,000,000 Exclusive properties, USA, 5,000,000   The following deductions were claimed:   Actual funeral expenses, 1,250,000 Judicial expenses, 800,000 Claims against the estate, 1,725,000 Transfer for Public Use, 200,000 Medical expense, 875,000   Included in the Philippines gross estate (conjugal) were the following:   Domestic shares, 500,000 Share in a partnership, 1,000,000 Other tangible personal properties, 3,500,000   The Philippine exclusive properties were all tangible personal properties. These included a car, which was inherited 3 ½ years before the present decedent’s death, and had a fair market value of 500,000.   Required Determine the following: Exclusive Property of the Decedent Community Property Taxable Net Estate Estate Tax Due

Question 12 Which of the following statements is NOT correct with respect to an individual who qualifies for the eligible dependant tax credit? The individual must be: related by blood, marriage, adoption, or common-law relationship. under 10 years old at some time during the year residing in Canada unless they are a child of the taxpayer O living with the taxpayer in a self-contained domestic establishment

During the 2023 income year, Lance McGuinness (a non-resident taxpayer) received the following income: Salary from employer for work performed in Australia $45,000 Salary from employer for work performed outside of Australia $105,000 Rent received from property in Hong Kong $ 20,000 Calculate Lance's Australian taxable income for 2023 Question 7Select one: A. $170,000 B. $65,000 C. $45,000 D. $150,000

Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? a. A gain from sale of a motor vehicle as another income of a taxpayer who is a compensation income earner b. A passive income in the form of prize won in a raffle amounting to PHP 4,000 c. Salary received by a managing partner of a general professional partnership d. A gain on sale of a real property for private use of the family of the taxpayer

Please quote the " sections "under Australian Taxation law for the following question Alex is a carpenter who purchased a vacant block of land in Sydney on 1 October 1980. On 1 September1986, Alex built a house on the land. At the time, the land was valued at $110,000 and the cost ofconstruction was $100,000. Immediately, after the construction finished, the property has beenrented out. On 1 March 2019, Alex sold the property at auction for $1,400,000.Required:With reference to relevant legislation/case law, determine:a) Alex’s net capital gain or net capital loss for the year ended 30 June 2019 using both Discountmethod and Indexation method. b) How would your answer to a) differ if the owner of the property was a company instead of Alex?

A _____________________________ is a means of ensuring that the expatriate’s after-tax income in the host country is similar to what the person’s after-tax income would be in the home country A) International tax management system B) HRM system C) Nucor sytem D) Tax deduction system E) Tax equalization system

If the decedent was a nonresident alien and his country exempts a Filipinocitizen from estate tax, how much of his assets would be subject to reciprocity? P1,000,000P800,000P600,000P350,000

Ms. Filipina A. Ko, a Filipino, works abroad. Ms. Filipina’s work requires her to be overseas most of the time. In fact, she comes home to our country only once every two years. Her only source of income is the salary she earns abroad. Which of the following taxes will the BIR require her to pay?    A. Income Tax B. Business Tax C. A and B D. None of these

Question from Taxation ( This is Australian Tax system) Please only consider the taxation of Australia   Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs. Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question…

Question #39 of 85   Question ID: 1251813 Samuel has a $5 million gross estate. His solely owned business is his major asset. All of his other assets are also solely owned. Samuel has never married, but does have two children. His financial advisor has suggested that Samuel title all of his assets in some form of will substitute to avoid the costs of probate, which are very high in Samuel 's state. Which of the following expenses could Samuel avoid by following his advisor's advice? A personal representative's fee The premium on a surety bond for the personal representative Appraisal fees to value estate assets Federal estate taxes     A) II and III     B) I and IV     C) I and II     D) III and IV

A resident citizen had a family home in the Philippines.  Worked abroad and was temporarily absent from his family home when he died.  Which of the following statements is correct ?          The decedent would not be allowed family home deduction because he was abroad when he died   The decedent would not be allowed family home deduction because he was non-resident citizen when he died   The decedent would be allowed family home deduction because actual occupancy of the family home was not interrupted or abandoned because of his temporary absence.

What is the gross estate of the decedent if he is a non-resident alien and there is reciprocity with Japan and France? A decedent left the following properties: Properties Amount in Php Bank deposit in Japan 80,000 Franchise in Japan 100,000 Land in France (with PhP1 million unpaid mortgage) Land in Benguet Province (acquisition cost) Other personal properties Receivables from debtor in Philippines 2,000,000 500,000 300,000 70,000 Receivables from debtor in Japan Shares of stocks of ABC, foreign corporation, 75% of the business in the Philippines Shares of stocks of PLDT, Philippines Zonal value of the land in Benguet 100,000 125,000 75,000 750,000 500,000 750,000 1,050,000

Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(a) of the NIRC?  a. Salary received by a managing director of a general professional partnership. b. A passive income in the form of a prize win in a raffle amounting to P4,000.00. c. A gain from sale of his personal motor vehicle as another income of a taxpayer who is a compensation earner. d. A gain on sale of a real property for private use of the family of the taxpayer.

Case Study: Comprehensive Individual Tax Return Advice Joseph Shrestha, the holder of a Nepalese passport and relevant working visa, arrived in Australia from Nepal in January 2016. He started work as an administrator in a Sydney hospital. On 10 July 2018 he travelled back to Nepal for personal reasons and worked in odd jobs until 1 November 2018 when he returned to Sydney and resumed his position at the hospital. While in Nepal he continued to maintain the apartment which he had bought in Sydney and his Australian bank account. He was on “leave without pay” from his job at the hospital. During the 2018/19 income year Joseph was paid $25,000 for his work in Nepal and $35,000 for his work as an administrator in Australia. Nepalese tax of $3,000 was deducted from his salary. He was paid a bonus of $2,800 from Sydney hospital on 5 July 2018 for his work performed during April to June 2018. He also received $2,000 interest on the savings in his Australian bank account and a fully franked…

The executor of Niel, a Filipino citizen based in Canada, provided details of his properties in connection with processing and payment of his estate tax:    Philippines Canada Gross estate 5,000,000 10,000,000 Allowable Deductions 5,000,000 5,000,000 Net Estate  0 5,000,000 Estate tax Paid    500,000 How much is the Allowable Tax Credit?

59 S1 - Estate tax is a tax on the transfer of estate upon death by the decedent to his beneficiaries. S2 - In all types of decedents, the basis of estate tax is net estate or net taxable estate.  Group of answer choices  Both are false  S2 is true  S1 is true  Both are true

According to the Resides Test, which of the following is NOT normally relevant when assessing tax residency?    Select one: The person's behaviour and daily routine whilst in Australia How often the person travels to and from Australia The person's citizenship status Whether the person has business connections in Australia Whether the person has family in Australia