Rosette T.

Revilala BSA 3C

1.
A. Donation – FEB 14

Mr. K Mrs. K
Gross Gift (400K /2) 200,000 200,000
Less: Exempt Gift 250,000 250,000
Taxable Gift - -

B. Donation – MAY 14

Mr. K Mrs. K
Gross gift (1M /2) 500,000 500,000
Add: Net Gift, Feb 14 200,000 200,000
Total gifts 700,000 700,000
Less: Exempt gift 250,000 250,000
Taxable gift 450,000 450,000
X Tax rate 6% 6%
Tax due 27,000 27,000

C. Donation – JUNE 14

Mr. K Mrs. K
Gross gift (200K /2) 100,000 100,000
Add: Net Gift, May 14 700,000 700,000
Total gifts 800,000 800,000
Less: Exempt gift 250,000 250,000
Taxable gift 550,000 550,000
X Tax rate 6% 6%
Tax due 33,000 33,000
Less: Tax paid, May 14 27,000 27,000
Tax payable 6,000 6,000
 D. Donation – SEPT 14

Mr. K Mrs. K
Gross gift (300K /2) 150,000 150,000
Add: Net Gift, June 14 800,000 800,000
Total gifts 950,000 950,000
Less: Exempt gift 250,000 250,000
Taxable gift 700,000 700,000
X Tax rate 6% 6%

Tax due 42,000 42,000

Less: Tax paid, June 14 6,000 6,000
Tax payable 36,000 36,000

E. Donation – OCT 14

Mr. K Mrs. K
Gross gift (500K /2) 250,000 250,000
Add: Net Gift, Sept 14 950,000 950,000
Total gifts 1,200,000 1,200,000
Less: Exempt gift 250,000 250,000
Taxable gift 950,000 950,000
X Tax rate 6% 6%
Tax due 57,000 57,000
Less: Tax paid, sept 14 36,000 36,000
Tax payable 21,000 21,000
 F. Donation – Dec 14

Mr. K
Gross gift 400,000
Add: Net Gift, Oct 14 1,200,000
Total gifts 1,600,000
Less: Exempt gift 250,000
Taxable gift 1,350,000
X Tax rate 6%

Tax due 81,000

Less: Tax paid, Oct 14 21,000
Tax payable 60,000

G. Donation – Dec 25

Mr. K Mrs. K
Gross gift (1.2M /2) 600,000 600,000
Less: Deductions (400/2) 200,000 200,000
Net gift 400,000 400,000
Add: Net Gift, 1,600,000 (dec, 14) 1,200,000 (oct 14)
Total Net gifts 2,000,000 1,600,000
Less: Exempt gift 250,000 250,000
Taxable gift 1,750,000 1,350,000
X Tax rate 6% 6%
Tax due 105,000 81,000
Less: Tax paid 60,000 (dec, 14) 21,000 (oct 14)
Tax payable 45,000 60,000
2.
NET GIFT, PHILIPPINES 350,000
NET GIFT, USA 300,000
NET GIFT, CANADA 250,000
NET GIFT, AUSTRALIA 100,000 650,000
TOTAL NET GIFT 1,000,000
Less: Exempt Gift 250,000
TAXABLE GIFT 750,000
X TAX RATE 6%
TAX DUE 45,000
Less : Tax Credit
Tax paid, USA 15,000
Limit (300k / 1M X 45,000) 13,500
CREDIT ALLOWED (lower) 13,500
Tax paid, CANADA 10,000
Limit (250k / 1M X 45,000) 11,250
CREDIT ALLOWED (lower) 10,000
Tax paid, AUSTRALIA 5,000
Limit (100k / 1M X 45,000) 4,500
CREDIT ALLOWED (lower) 4,500
Total Credits, 1ST LIMITATION 28,000
2ND LIMITATION (650k / 1M X 45,000) 29,250
CREDIT ALLOWED (lower) 28,000

TAX PAYABLE 17,000

3.
Current assets 13,000,000
Fixed assets
Land 1 7,000,000
Land 2 4,500,000
Building 1 4,000,000
Building 2 2,300,000
Total Assets 30,800,000

Current Liabilities 3,000,000

Long term Liabilities 2,000,000
Net Equity 25,800,000
Total liabilities and equity 30,800,000

FMV per share = ADJUSTED NET ASSET / OUTSTANDING SHARES

= 25,800,000 / 10,000
= P 2,580
SP per share = P 1,000
Cost per share = P 500
BV per share = 15,000,000/10,000
=P 1,500
Share Sold = 100 shares
3. TAX CONCEQUENCES
Fair Market Value( 2,580 x 100) 258,000
Less: Selling Price (1,000 x 100) 100,000
DEEMED GIFT 158,000

Selling Price 100,000

Less: Cost (500 x 100) 50,000
Capital Gain 50,000
RATE OF TAX X 15%
CAPITAL GAINS TAX 7,500