INSTRUCTIONS:

Use this website to share your legal mind. Please feel free to post your Suggested Answers to these Bar Questions. You can also view and response to the opinions of others.

5.

1) Vanishing deduction is availed of by taxpayers to:

a. correct his accounting records to reflect the actual deductions made

b. reduce his gross income

c. reduce his output value-added tax liability

d. reduce his gross estate

Choose the correct answer. Explain. 5%

2) The Constitution provides “charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, and nonprofit cemeteries and all lands, buildings, and improvements actually, directly and exclusively used for religious, charitable or educational purposes shall be exempt from taxation.” This provision exempts charitable institutions and religious institutions from what kind of taxes?

Choose the best answer. Explain. 5%


a. from all kinds of taxes, i.e., income, VAT, customs duties, local taxes and real property tax

b. from income tax only

c. from value-added tax only

d. from real property tax only

e. from capital gains tax only

2 comments:

Marianne Aiza said...

The provision exemptions charitable institutions and
religious institutions from (d) REAL PROPERTY TAXES
only. The exemption is only for taxes assessed as property
taxes, as distinguished from excise taxes (CIR v. CA, CTA &
YMCA, G.R. No. 124043, October 14, 1998;
Lladoc v. Commissioner of Internal Revenue, L-19201, June
16,1965).

Marianne Aiza said...

(D) reduce his gross estate. Vanishing deduction or property
previously taxed is one of the items of deduction
allowed in computing the net estate of a decedent (Section
86[A][2] and 86[B][2], NIRC).