Taxation Straight Problem No. 4: Pia Wurtzbach

This is an old news already. Pero, relevant pa rin ito, yamang tax season na ngayon, at nagkukumahog na ang ating mga kababayan sa paghahanda ng tax returns at pagbabayad ng buwis hanggang ngayong April 15.

The question is: How about Pia Wurtzbach?

Tulad ng dati, pinaaalalahanan ni BIR Commissioner Kim Henares ang kasalukuyang Miss Universe na si Pia Wurtzbach na magbayad ng tamang buwis. Ito ay sa harap ng maraming pribilehiyo at mga premyo na natatanggap niya sa pagkapanalo sa nasabing pageant. Sinabi naman ni Pia na kung meron man, magbabayad siya ng buwis.

Isang araw, lumapit si Pia Wurtzbach sa iyo. Gusto niyang malaman kung ang ilan sa mga premyong natatanggap niya ay taxable o hindi. Paano mo sasagutin ang kanyang katanungan? Sa kasong ito, hindi tayo masyadong gagamit ng computations, dahil hindi naman natin alam kung magkano ang kanyang napanalunan. Solve her tax problems using all the concepts that you learned in Taxation.

  1. Classify the prizes she received under different categories: Income Tax, Donor’s Tax, Estate Tax, etc. If any of these kinds of taxes does not apply to a particular prize, write None.

The prize package for this year includes

  • A year-long salary as Miss Universe. Amount undisclosed, however, a site had placed her salary at USD 1,500 per month.
  • Luxury Accomodations in a New York City Apartment for her entire reign, inclusive of living expenses. “According to reports, the average one bedroom apartment in Manhattan, New York City, costs over $4,000 per month. Miss Universe will get to enjoy a luxury apartment for the next year, with all living expenses included as well.”
  • A one-year scholarship from the New York Film Academy College of Visual Performing Arts
  • A one year supply of hair care and other products from Chi
  • A new custom Diamond tiara and jewelry designed by DIC
  • Shoe wardrobe from Chinese Laundry Shoes
  • Swimwear by Yamamay
  • A year’s worth of skincare products from Image Skincare
  • Gym Membership to Gravity Fitness @Le Parker Meridien Hotel and Hair Services from John Barrett Salon
  • A modeling portfolio from Fadil Berisha
  • Dermatology and skincare services from Dr. Cheryl Thellman-Karcher
  • Professional Health and Nutrition Consultation by Tanya Zuckerbrot and Dental Services by Dr. Jan Linhart
  • Professional representation by the Miss Universe Organization
  • Extensive travel representing sponsors and charitable partners
  • Access to various New York City events including casting opportunities, movie premiers, screenings, Broadway shows and launch parties
  • Personal appearance wardrobe and styling by the official Miss Universe Organization
  1. When shall Pia Wurtzbach file and pay her taxes?

A. Taxable Year 2015
B. Taxable Year 2016
C. Fiscal Year 2015
D. Fiscal Year 2016

3. What will be her standing as taxpayer?

A. Resident Citizen
B. Non-Resident Citizen
C. Special Filipino Employee
D. Exempt

Discussion Questions:

  1. Will the luxury accomodations in the New York City for her entire reign be subjected to Fringe Benefits Tax? Explain.
  2. Recently, Kim Henares had told that Pia’s Miss Universe crown is taxable. Is it subject to any taxes, and if yes, which type of tax? Explain.
  3. Explain the steps where and how she can file her taxes if she is still living in the United States.

Taxation problem prepared by: TweetNewscaster

Featured Image Credit: Kim Henares and Pia Wurtzbach





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