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CHAPTER 1
1. A
Subject to business tax is P6,000,000. Only sales within are subject to business tax. Subject to income tax: Total sales (P6,000,000 + P4,000,000) Total cost of sales (P2,000,000 + P1,500,000) Gross income Subject to transfer tax (P3,000,000 + P2,000,000) P10,000,000 ( 3,500,000) P 6,500,000 P 5,000,000
Since the donor is a citizen, all of his properties donated within and without is subject to donors tax.
2. B
Subject to business tax is P6,000,000. Only sales within are subject to business tax.
BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS
Subject to income tax: Sales within Cost of sales within Gross income Subject to transfer tax (P3,000,000 + P2,000,000)
Since the donor is a citizen, all of his properties donated within and without is subject to donors tax. Problem 15 1. B 2. O 3. O 4. O 5. O Problem 16 Within Sales Gross income 1. 3,000,000 600,000 Without 2,000,000 400,000 Res. Citizen 3,000,000 1,000,000 6. B 7. B 8. O 9. T 10. T Taxable Amount Res. Alien 3,000,000 600,000
Taxpayer is a resident citizen a. P1,000,000 = [P5,000,000 (P5,000,000/1.25)] b. P3,000,000 Taxpayer is a resident alien a. P600,000 = [P3,000,000 (P3,000,000/1.25)] b. P3,000,000 Taxpayer is nonresident alien a. P600,000 = [P3,000,000 (P3,000,000/1.25)] b. P3,000,000
2.
3.
Problem 18 1. Tax returns: a. BIR Form 2551 for business tax b. BIR Form 1701Q for quarterly income tax return c. BIR Form 1701 for annual income tax return 2. Dates of filing and payments: a. On or before the 20th of each month (BIR Form 2551) b. April 15, August 15, and November 15 for the first 3 quarters and April 15 of the following year for the annual tax return