WorksheetsTAXATION
Total questions: 65
Worksheet time: 33mins
A citizen who has been previously considered as nonresident citizen and who arrives in the Philippines at any time during the taxable year to reside permanently in the Philippines shall likewise be treated as a nonresident citizen for the taxable year in which he arrives in the Philippines with respect to his:
income derived from sources abroad until the date of his arrival in the Philippines.
income derived from sources within the Philippines.
income derived from sources abroad until the last day of the calendar year.
income derived from sources within and outside the Philippines.
The MCIT shall be imposed upon a domestic corporation or a resident foreign corporation:
I - whenever such corporation has a zero or negative taxable income;
II - when the amount of minimum corporate income tax is greater than the normal income tax due from such corporation.
Both I and II are correct
Neither I nor II is correct
Only I is correct
Only II is correct
Excise tax on certain articles is an example of:
An indirect tax
A direct tax
A local tax
A transfer tax
An annual tax of P1,000 was imposed upon all residents of the Philippines, who are above 21 years of age, with a gross income of P250,000, whether or not they send their children to public schools, for the purpose of raising funds in order to improve public school buildings. The tax is:
violative of the equal protection clause of the Constitution
confiscatory
for public purpose
contradicts the inherent limitations
In case of conflict between tax laws and generally accepted accounting principles (GAAP):
both tax laws and GAAP shall be enforced
GAAP shall prevail over tax laws
tax laws shall prevail over GAAP
the issue shall be resolved by the court
Which of the following cases may not be compromised?
Delinquent accounts
Cases under administrative protest after issuance of the Final Notice of Assessment to the taxpayer still pending in the BIR
Civil tax cases being disputed before the courts
Criminal violations involving criminal tax fraud
The following are instances when penalties and/or interest imposed on the taxpayer may be abated or cancelled on the ground that the imposition thereof is unjust and excessive, except when the:
Filing of the return or payment of the tax is made at the wrong venue
Taxpayer’s mistake in payment of his tax is due to erroneous written official advice of a revenue officer
Assessment is brought about or a result of the taxpayer’s noncompliance with the law due to a difficult interpretation of the said law.
Taxpayer is declared insolvent or bankrupt.
For requests for reinvestigation, the taxpayer shall submit all relevant supporting documents in support of his protest within how many days from the date of filing of his letter of protest, other-wise, the assessment shall become final?
Sixty (60) days
Thirty (30) days
Twenty (20) days
None of the choices
Under the TRAIN, the books of accounts shall be audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements if the:
gross annual sales, earnings, receipts or output exceed Three million pesos (P3,000,000).
gross quarterly sales, earnings, receipts or output exceed Three million pesos (P3,000,000).
gross annual sales, earnings, receipts or output amount to Three million pesos (P3,000,000)or more
gross quarterly sales, earnings, receipts or output exceed One Hundred Fifty Thousand (P150,000).
On every original issue, whether on organization, reorganization or for any lawful purpose, of shares of stock by any association, company or corporation, the documentary stamp tax is:
One peso and fifty centavos (P1.50) on each Two hundred pesos (P200), or fractional part thereof, of the par value of such stock
Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock
Three pesos (P3.00) on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock
Fifteen pesos (P15.00)on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock
A Company that hires a PWD shall be allowed subject to certain conditions:
Ten percent (10%) of the total amount paid as salaries and wages to senior citizens as additional deduction.
Fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens as additional deduction.
Twenty-five percent (25%) of the total amount paid as salaries and wages to senior citizens as additional deduction
Twenty-five percent (25%) of the total amount paid as salaries and wages to senior citizens as additional deduction
Which of the following is not a relief from double taxation?
Tax credit
Allowance of deduction for foreign taxes
Tax treaties
Not reporting income or transactions in foreign countries
The final income tax return for the taxable year 2018 which was due on April 15, 2019 was filed earlier on March 15, 2019. A substantially amended return was filed on May 31, 2019. When is the last day to make a valid assessment?
March 15, 2022
April 15, 2022
May 31, 2022
May 31, 2025
How much is the income tax due and payable?
P 27,000
P 6,600
Zero
None of the choices
How much is the total amount of excluded or exempted income?
P1,150,000
P1,000,000
P 500,000
480,000
How much is the final withholding tax on certain income?
P130,000
P120,000
P110,000
P 20,000
How much is the taxable net income?
P651,176
P510,000
P385,000
P375,000
How much is the tax due and payable?
81,544
61,544
57,500
(62,500)
How much is the total income tax expenses for the year?
P177,500
P167,500
P 77,500
P 57,500
Compute the Output VAT?
420,000
396,000
372,000
360,000
Determine the creditable input VAT?
120,000
184,800
166,800
108,000
Determine the Taxable Income?
1,000,000
1,082,800
1,350,000
1,500,000
The concept of “situs of taxation” is based on which limitation of taxation?
Territoriality
International comity
Exemption of the government
Public purpose
Which of the following is not a nonresident citizen?
A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.
A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.
A citizen of the Philippines who works and derives income from sources abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year.
A citizen of the Philippines who goes on a business trip abroad and stays there in most of the time during the year.
Noah Reed, a Canadian, arrived in the Philippines on January 1, 2018 and continued to live and engage in business in the Philippines. He went on a tour of India and Pakistan from April 1 to November 5, 2018. He returned to the Philippines on November 6, 2018 and stayed until April 15, 2019 when he returned to Quebec, Canada. From his investments in the Philippines, he earned a gross income of P2.5 million. For the year 2018, Noah's taxable status is that of:
A non-resident alien not engaged in trade or business in the Philippines.
A non-resident alien engaged in trade or business in the Philippines.
A resident alien not engaged in trade or business in the Philippines
A resident alien engaged in trade or business in the Philippines
In 2018, Nelia Gomez, an MWE, received from her employer an annual minimum wage salary of P99,702. Aside from this, she also received P8,000 for holiday pay, overtime pay, and night shift differential pay. Furthermore, she received P8,303 as her 13 month pay. What amounts shall she be taxable on?
P8,000
P107,702
P8,303
None
Nelia in the immediately preceding number was promoted in June 2018, and starting the same month was given a raise in salary which was more than the statutory minimum wage. Will her entire compensation during 2018 be taxable and subject to withholding tax?
Yes. Her entire earnings shall be taxable
No. Her entire earnings shall not be taxable
Only her earnings from June 2018 to December 2018 shall be taxable and subject to withholding tax
None of the above
How much discount is granted to a senior citizen on his purchase of basic and prime commodities subject to limitation
20%
15%
10%
5%
An individual taxpayer holds shares of stock as investment which he bought from a publicly-listed company for P500,000 (P500,000 par value). The shares are listed and traded in the local stock exchange. He sells them for P750,000. How much is the capital gains tax on the sale, if any?
P112,500
P 37,500
P 4,500
None, not subject to capital gains tax
One of the following does not fall under the definition of a “corporation” for income tax purpose:
General partnership
Joint stock company
Insurance company
Sole proprietorship
Which of the following is classified as a special corporation subject to a preferential corporate income tax rate?
Social Security System
Proprietary Educational Institution
Philippine Charity Sweepstakes Office
Government Services Insurance System
All of the following are elements of double taxation, except -
Both taxes are imposed by the same taxing authorityBoth taxes are imposed by the same taxing authority
Both taxes are levied for the same purpose
Both taxes are imposed in the same amount
Both taxes are imposed upon the same person
In 2018, Ms. Glai Espenilla Bangug, a financial comptroller of EB Company, earns annual compensation of P1,500,000, inclusive of 13th month and other benefits in the amount of P80,000 and mandatory SSS contribution of P3,500 and Philhealth contribution of P2,000. Aside from her employment income, she Owns a convenience store, VATregistered, with gross sales of P3,000,000. Sales discount amounts to P300,000; sales returns and allowances amount to P150,000. Her cost of sales and operating expenses are P1,000,000 and P600,000 respectively and with non- operating income of P100,000. Payments for the first three (3) quarters amount to P300,000.
Can she avail of the 8% income tax rate?
Yes, because her gross sales do not exceed the VAT threshold.
No, because she is VAT-registered.
Yes, because she is a mixed income earner.
No, because her total income including compensation income exceed the VAT threshold.
In 2018, Ms. Glai Espenilla Bangug, a financial comptroller of EB Company, earns annual compensation of P1,500,000, inclusive of 13th month and other benefits in the amount of P80,000 and mandatory SSS contribution of P3,500 and Philhealth contribution of P2,000. Aside from her employment income, she Owns a convenience store, VATregistered, with gross sales of P3,000,000. Sales discount amounts to P300,000; sales returns and allowances amount to P150,000. Her cost of sales and operating expenses are P1,000,000 and P600,000 respectively and with non- operating income of P100,000. Payments for the first three (3) quarters amount to P300,000.
How much is her total taxable income?
P2,913,500
P2,464,500
P2,550,000
None of the choices
In 2018, Ms. Glai Espenilla Bangug, a financial comptroller of EB Company, earns annual compensation of P1,500,000, inclusive of 13th month and other benefits in the amount of P80,000 and mandatory SSS contribution of P3,500 and Philhealth contribution of P2,000. Aside from her employment income, she Owns a convenience store, VATregistered, with gross sales of P3,000,000. Sales discount amounts to P300,000; sales returns and allowances amount to P150,000. Her cost of sales and operating expenses are P1,000,000 and P600,000 respectively and with non- operating income of P100,000. Payments for the first three (3) quarters amount to P300,000.
How much is her tax due when she files her final tax return?
P338,640
P366,000
P482,320
None of the choices
In 2018, Ms. Glai Espenilla Bangug, a financial comptroller of EB Company, earns annual compensation of P1,500,000, inclusive of 13th month and other benefits in the amount of P80,000 and mandatory SSS contribution of P3,500 and Philhealth contribution of P2,000. Aside from her employment income, she Owns a convenience store, VATregistered, with gross sales of P3,000,000. Sales discount amounts to P300,000; sales returns and allowances amount to P150,000. Her cost of sales and operating expenses are P1,000,000 and P600,000 respectively and with non- operating income of P100,000. Payments for the first three (3) quarters amount to P300,000.
How much is the output VAT, if any?
P306,000
P342,000
P360,000
None of the choices
How much is the income tax due for the first quarter?
P40,000
P20,000
Zero
None of the choices
How much is the income tax payable for the second quarter?
P100,000
P 80,000
P20,000
None of the choices
How much is the income tax payable for the third quarter?
P220,000
P150,000
P120,000
None of the choices
How much is income tax payable for the final return?
P574,000
P560,000
P340,000
None of the choices
How much is the percentage tax under Section 116 for the third quarter?
P210,000
P 45,000
Not subject to Sec. 116
None of the choices
How much is output VAT for the fourth quarter, if any?
P840,000
P480,000
P120,000
None of the choices
How much is the common carrier’s tax payable?
P120,000
P90,000
P60,000
P30,000
When shall the percentage tax return be filed?
April 25, 2021
April 24, 2021
April 21, 2021
April 15, 2021
How much is the Value-Added Tax?
P360,000
P240,000
P120,000
None. VAT threshold not exceeded
When shall the Quarterly VAT be filed?
April 25, 2021
April 24, 2021
April 21, 2021
April 15, 2021
Assuming it is not VAT-registered, how much shall be the total percentage taxes?
P90,000
P60,000
P50,000
P30,000
Mr. Gerardo Ireneo transfers inter vivos a personal property to his son on March 15, 2018. His son who lives in another province let his father know that he is accepting the gift on March 31, 2018. The personal property was delivered and received on April 15, 2018. When shall be the last day to file the donor's tax return and pay the donor's tax to avoid penalties?
April 14, 2018
April 30, 2018
May 15, 2018
None of the choices
A property was transferred mortis causa. The following dates were gathered from the transaction:
Fair market value, time of transfer P500,000
Fair market value, time of death P700,000
Consideration received when transferred P550,000
How much shall be included in the gross estate?
P500,000
P700,000
150,000
None of the choices
One of the following is not qualified to register as Barangay Micro Business Enterprise (BME).
Bakery with a total assets not exceeding P3,000,000
Motor shop with total assets not exceeding P3,000,000
A CPA practitioner with total assets not exceeding P3,000,000
Form producing agricultural products with total assets not exceeding P3,000,000
How much was the franchise tax due?
P75,000
P60,000
P50,000
P20,000
How much was the overseas communications tax?
P250,000
P200,000
P75,000
P50,000
How much is output VAT, if any?
P720,000
P660,000
P420,000
None
Which of the following ordinary deductions for estate tax is not prorated with respect to deductions allowed to non-resident alien decedent?
Losses
Indebtedness (Claims against the estate)
Claims against the insolvent debtor
Transfer for public use
Mr. Andres, VAT-registered real estate dealer, transferred a parcel of land held for sale to his son as gift on account of his graduation. For VAT, purposes, the transfer is:
Subject to 12% VAT
Subject to 0% VAT
Exempt from VAT
None of the choices
Mr. Andres, VAT-registered real estate dealer, transferred a parcel of land held for sale to his son as gift on account of his graduation. For VAT, purposes, the transfer is:
Not subject to VAT because it is a gift
Subject to VAT because it is deemed a sales transaction
Not subject to VAT because it is subject to gift tax
Subject to VAT because it is considered as an actual sale
Under this system, the amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income.
Creditable withholding tax
Final withholding tax
Global tax system
schedular tax
The Bureau of Internal Revenue may use “Oplan Kandado” against the following taxpayer, except?
VAT registered person who fails to issue receipts.
VAT registered person who fails to file VAT returns.
VAT registered person who understates its taxable sales by 30%.
VAT registered person who overstates its purchase by 30%.
It is important to know the source of income for tax purposes (i.e., from within and without the Philippines) because:
some individuals and corporate taxpayers are taxed on their worldwide income while others are taxable only upon income from sources within the Philippines.
the Philippines imposes income tax only on income from sources within.
some individual taxpayers are citizens while others are aliens.
export sales are not subject to income tax
Effective July 1, 2020 to June 30, 2023, the percentage tax rate on persons exempt from VAT shall be:
1%
2%
3%
5%
Which of the following is a requisite for an income to be taxable ?
There must be gain
The gain must be realized or received
The gain must not be excluded by law from taxation
All of the above
Mr. and Mrs. JBL had the following conjugal transfers during the year 2018.
January 26 Donated a parcel of land to their son, on account of his marriage. Their son’s wedding is on July 31,2018. The fair market value of the land at the time of donation was P500,000. The fair market value of the land at the time of marriage was P550,000. The donated property was subject to a P100,000 mortgage which was assumed by their son.
October 29 Donated P300,000 to the sister of Mr. JBL who was diagnosed with cancer. They donated the amount for the medication of Mr. JBL’s sister.
December 20 Sold 300,000 shares of stocks from ABC Corporation to their daughter for P 300,000. The book value per share as per latest audited financial statements of ABC Corporation is P1.50 per share. The shares of stocks were acquired two years ago for P200,000
How much is the donor’s tax due to Mr. JBL on the January 26 transfer?
P16,500
P12,000
P24,000
None
Mr. and Mrs. JBL had the following conjugal transfers during the year 2018.
January 26 Donated a parcel of land to their son, on account of his marriage. Their son’s wedding is on July 31,2018. The fair market value of the land at the time of donation was P500,000. The fair market value of the land at the time of marriage was P550,000. The donated property was subject to a P100,000 mortgage which was assumed by their son.
October 29 Donated P300,000 to the sister of Mr. JBL who was diagnosed with cancer. They donated the amount for the medication of Mr. JBL’s sister.
December 20 Sold 300,000 shares of stocks from ABC Corporation to their daughter for P 300,000. The book value per share as per latest audited financial statements of ABC Corporation is P1.50 per share. The shares of stocks were acquired two years ago for P200,000
How much is the donor’s tax due to Mrs. JBL on the October 29 transfer?
P 6,000
P57,000
P21,000
P45,000
Mr. and Mrs. JBL had the following conjugal transfers during the year 2018.
January 26 Donated a parcel of land to their son, on account of his marriage. Their son’s wedding is on July 31,2018. The fair market value of the land at the time of donation was P500,000. The fair market value of the land at the time of marriage was P550,000. The donated property was subject to a P100,000 mortgage which was assumed by their son.
October 29 Donated P300,000 to the sister of Mr. JBL who was diagnosed with cancer. They donated the amount for the medication of Mr. JBL’s sister.
December 20 Sold 300,000 shares of stocks from ABC Corporation to their daughter for P 300,000. The book value per share as per latest audited financial statements of ABC Corporation is P1.50 per share. The shares of stocks were acquired two years ago for P200,000
How much is the donor’s tax still due of Mr. JBL on the December 20 transfer?
P4,500
None
P25,500
P 9,000
Mr. and Mrs. JBL had the following conjugal transfers during the year 2018.
January 26 Donated a parcel of land to their son, on account of his marriage. Their son’s wedding is on July 31,2018. The fair market value of the land at the time of donation was P500,000. The fair market value of the land at the time of marriage was P550,000. The donated property was subject to a P100,000 mortgage which was assumed by their son.
October 29 Donated P300,000 to the sister of Mr. JBL who was diagnosed with cancer. They donated the amount for the medication of Mr. JBL’s sister.
December 20 Sold 300,000 shares of stocks from ABC Corporation to their daughter for P 300,000. The book value per share as per latest audited financial statements of ABC Corporation is P1.50 per share. The shares of stocks were acquired two years ago for P200,000
How much is the capital gains tax due of Mr. JBL on the December 20 transfer?
P22,500
P41,250
P15,000
P 7,500
