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Estate Tax Problem

Mr. Gatu, a single Japanese man, died on November 1, 2018 leaving various assets and obligations. His assets included cash, investments, a car, shares in a Japan-based company with partial Philippine operations, domestic shares, and accounts receivable from an insolvent debtor in Japan. His obligations were funeral and legal expenses, business losses, unpaid taxes, and charitable bequests to the Philippine Red Cross and City of Makati. The document requests calculating his net taxable estate under different residency scenarios.

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Hulaan Mo
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850 views1 page

Estate Tax Problem

Mr. Gatu, a single Japanese man, died on November 1, 2018 leaving various assets and obligations. His assets included cash, investments, a car, shares in a Japan-based company with partial Philippine operations, domestic shares, and accounts receivable from an insolvent debtor in Japan. His obligations were funeral and legal expenses, business losses, unpaid taxes, and charitable bequests to the Philippine Red Cross and City of Makati. The document requests calculating his net taxable estate under different residency scenarios.

Uploaded by

Hulaan Mo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Mr. Gatu, single and Japanese, died On November 1, 2018.

He left the following assets, expenses,


charges and obligations:
Assets:
Cash in bank, Makati City 7,200,000
Investment in a Domestic Partnership 4,000,000
Car 900,000
Foreign shares, Japan-based company with 40% business in the Phil 900,000
Domestic shares 1,500,000
Accounts receivable from a debtor residing in Japan. Debtor is
fully insolvent 100,000

Expenses, charges and obligations:


Funeral expenses 150,000
Judicial expenses 100,000
Loss in business 180,000
Unpaid Income tax for 2017 160,000
Legacy in favor of the Philippines National Red
Cross 150,000
Legacy to City of Makati 100,000

Required:
Compute for the net taxable estate
1. Decedent is a resident of the Philippines at the time of death.
2. Decedent is a non-resident alien and there is no reciprocity
3. Decedent is a non-resdent alien and there is
reciprocity

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