Odyssey 7: Income Taxation (Difficult)

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A taxpayer with net sales of ₱ 2,000,000 and cost of sales of ₱ 1,800,000 incurred. ₱ 15,000 entertainment, amusement and recreation expenses. Compute the allowable deduction for EAR expenses.

1. The following data relate to an individual taxpayer:

- Capital gain – current year ₱ 80,000

- Ordinary gain – current year ₱ 150,000

- Net capital loss – last year ₱ 90,000

- Net income – last year ₱ 80,000

What is the net capital loss carry-over for the current period?

Mr. Herman had the following dealings in capital assets?

- Short term capital gain ₱ 200,000

- Long term capital gain ₱ 100,000

- Short term capital loss ₱ 100,000

- Long term capital loss ₱ 150,000

What is the net capital loss carry-over for the current period?

Atimonan Company received a bill for ₱ 27,440 from a non-VAT service provider. The payment for the service is subject to 2% creditable withholding tax.

If Atimonan is a non-VAT taxpayer, what is the amount of cash to be paid by Atimonan to the service provider?

In July 2019, Naga purchased a ₱ 1,200,000 car for the use of its managerial employee. Compute for the fringe benefit tax if the employee is a resident citizen for the calendar quarters ending September 2019.