Académique Documents
Professionnel Documents
Culture Documents
a. P350,000 c. P500,000
b. P100,000 d. P200,000
a. P460,000 c. P92,000
B.P184,000 d. P138,000
a. P3,000,000 c. P1,000,000
b. P1,500,000 d. P500,000
a. P600,000 c. P500,000
b. P300,000 d. 250,000
a. P4,808,000 c. P3,808,000
b. P4,908,000 d. P3,908,000
48. Estate tax credit for foreign estate tax paid is available to the estate of:
b. Non-resident alien
d. None of these
49.
Philippines Foreign
How much was the Philippine estate tax due if the decedent was a non-resident, not
citizen of the Philippines, and there was a foreign estate tax payment of P400,000?
a. P0 c.P571,875
b. P515,000 d. P443,000
51. Which of the following statements is false? When an estate tax return had been
filed and the estate tax had been paid but subsequently, because of errors in the
return, a deficiency estate tax has to be paid:
a. The Bureau of Internal Revenue can ask payment from the heirs to whom the
estate had been distributed.
b. The Bureau of Internal Revenue cannot ask the executor or administrator
administrator to
pay because he would have been discharged from liability for the estate tax to the
heirs once the estate tax had been paid.
c. The Bureau of Internal Revenue can still ask the executor or administrator to
pay, even if the heirs have dissipated the inheritance, if the executor or administrator
did not ask for a written discharge from liability
liability from the Bureau of Internal Revenue .
d. The Bureau of Internal Reveneu shall have a lien on the properties of the
estate once a demand for payment had been made.
52. When a donation which paid a donor’s tax was actually a donation mortis causa,
as ascertained by the Bureau of Internal Revenue, which of the following is true?
a. The donation shall be required to pay the estate tax on its proper valuation
valuation at
the time of death, and there can be a refund for the wrong payment of the donor’s tax.
b. The donation shall be required to pay the estate tax so that the estate tax
computed shall be reduced by the donor’s tax already
alr eady paid.
d. The donation has to pay the estate tax in addition to the donor’s tax
previously paid.
53. Taxpayer died February 2, 2013. No judicial proceedings were instituted for the
settlement of his estate. Return was filed and tax of P20,000 was paid November 2,
2013. The estate tax due, including increments,
increments, as of November 2, 2013 is:
a. P26,000 c.P31,000
b. P26,250 d. P31,500
------------------------end-------------------------
TAX. M- 1402 Donor’s Tax
Problem 1
Ara gave the following properties to various donees on December 25, 2012:
Time deposit
deposit in a New York Bank 120,000
a. P13,895,000 c. P8,520,000
b. P8,955,000 d. none
2. The gross gift if Ara is a resident and citizen of united states (without reciprocity).
reciprocity).
a.13,895,000 c. 8,520,000
b. 8,955,000 d. None
3. The gross gift if Ara is a resident and citizen of the donor as diminution on the
property donated.
a.13,895,000 c. 8,520,000
b. 8,955,000 d. None
Problem 2
02-14-12 — Azucena,
Azucena, legitimate daughter on account of marriage last December 31,
2010 — P190
P190 ,000.
06-01-12 — Brusco,
Brusco, brother on account of marriage scheduled December 31, 2011 —
2011 —
P160,000.
10-13-12 — Carizosa,
Carizosa, legitimate daughter, on account of marriage on November 12,
2011 — P180,000
P180,000
05-15-13 — Dalmacio,
Dalmacio, father, on account of marriage, land with a fair market value of
P1,000,000 but mortgage for P100,000 which was assumed by the donee.
a. 190,000 c. 2,000
b. 1,800 d. 200,000
a. 6,200 c. 1,200
b. 8,000 d. 350,000
a. 15,200 c. 7,800
b. 15,800 d. 7,200
a. 900,000 c. 44,000
b. 1,000,000 d.38,000
Problem 3
Dec. 30, 2013 -Conjugal property donated to Carlota. The dowry has fair market
value of P800,000
a. 1,000 c. 800
b. 5,600 d. 6,000
a. 21,800 c. 12,600
b. 21,000 d. 6,400
10. The gift tax due of Mrs. Alavado on December 30, 2013
a. 15,000 c. 8,200
b. 9,000 d. 15,800
Problem 4
Devt. Academy of the Phil’s For education and training purposes, P50,000.
a. 800 c. 140,000
b. 660 d. 6,600
a.16,700 c. 9,200
b. 15,900 d. 15,720
Problem 5
Sept. 25, 2013 Cash of P300,000 to Cuarto, son of Mrs. From her teen-age
boyfriend .
13. The donor’s tax due on Mr. and Mrs. Albano on July 1, 2013 –
a. 7,000;7,000 c.97,500;7,000
c.97,500;7, 000
b. 7,000;97,500 d. 97,500;97,500
97,500;97,50 0
14. The donors tax due on Mr. Albano on September 25, 2013 –
2013 –
a. 1,000 c. 45,000
b. 90,000 d. 6,000
Problem 7
c. U, a minimum wage earner, gives his son a gift worth P2,000 as a birthday
gift.
d. V and W are the only heirs of X. V renounces his share of inheritance in favor
of W
Problem 8
Problem 9
19. One of the following statement is false:
a. Contracts of donation between husband and wife are void in most cases.
b. The donation by the public works contractor to a Mayor, in view of her public
office is void in all cases.
Problem 10
20. A, a citizen and resident of the Philippines, made donations on January 10, 2013,
as follows: Donation to B, a legitimate son, on account of marriage, to be celebrated on
February 14, 2013, property in the United States (on which a U.S. donor’s tax of
P1,200 was paid), with a fair market value of Donation to B, cash in the Philippines of
Donor’s tax credit for donor’s tax paid to the U.S.:
a.P1,200 c. P600
b. P1,000 d. P2,000
Problem 11
a. Must be filed within thirty days after the end of the calendar year.
d. In the case of husband and wife making donations, one donor’s tax return
shall be filed and signed by either the husband or the wife.
22. One of the following statements is not true. Which is it? If on any one date there
is a donation by one donor to a donee who is not a stranger together with a donation
to a donee who is a stranger:
a. There will be two separate donor’s tax return because the donor’s tax on the
donation to a non-stranger
non-stranger is at graduated rates while the donor’s tax on the donation
to a stranger is at the flat rate of 30%.
b. There will be one donor’s tax return only, where the donor’s tax at graduated
rates on the donation to a non-stranger
non- stranger will be shown together with the donor’s tax at
the flat rate of 30% on the donation to a stranger, the total being the donor’s tax to
pay.
c. If there were previous donations to strangers during the year, the prior net
gifts to strangers need not be added anymore in the computation
computation of aggregate net gifts,
donor’s tax on aggregate net gifts and donor’s tax due on the donations to strangers.
23. On March 6, 2013, a Filipino citizen donated house and lot with fair market value
of P200,000 to his child on account of marriage on January 1,2013. Gift tax return
was filed and tax paid on July 5, 2013. The donor’s tax due, including increments, as
of July 5, 2013 is:
a. 2,400 c. 2,600
b. 2,340 d. 1,800
a. The first take effect during the lifetime of the grantor while the second takes
effect after the death of the grantor.
b. The first is subject to the donor’s tax while the second is subject to the estate
tax.
c. The first always requires a public document while the second may not require
a public document.
d. The first is valued at fair market value at the time the property is given while
the second is valued at fair market value at the time of the death of the grantor.
2. The following are the requisites of a donation for purposes of the donor’s tax, except
one:
3. 1st statement: A sold his car ( cost, P300,000 ) to B for P500,000. The car has a fair
market value of P900,000 at the time of sale. The difference of P400,000 in selling
price and fair market value constitutes a gift subject to donor’s tax.
2nd statement: C purchased a lot and cottage in Alaminos City (home of 100 islands) in
2009 for P1,000,000. It was used as summer vacation house by his family. In 2010, C
decided to sell the lot and cottage to D for P2,000,000 although its present market
value is P2,500,000. The P500,000 difference in selling price and market value is a gift
but not subject to donor’s tax.
4. Statement 1: The gross gifts of a donor who is a non-resident alien will include all
properties regardless of location.
Statement 2: The gross gifts of a donor who is a non-resident alien of the Philippines,
will include only property located in the Philippines.
a. P2,100,000 c. P2,950,000
b. P1,950,000 d. P3,000,000
8. If he is a non-resident Japanese,
Japanese, and there is reciprocity law, his gross gift is:
a. P850,000 c. P1,050,000
b. P650,000 d. P700,000
9. Which of the following statements is correct? A donation inter vivos by husband and
wife, jointly during the marriage
c. Is a donation of exclusive property by the either spouse that will require one
computation of the donor’s tax, if the spouses are under the system of conjugal
partnership of gains.
b. Situation 1 is bad debt expenses of the business and should not be treated
as involving a taxable donation.
11. Q sold his land (capital asset) on September 5, 2012 to his best friend for
P300,000 when the market value was P500,000 He gave a commission of P20,000 to
the broker and spent for documentary stamp taxes and transfer fees the amount of
P4,000. The internal revenue tax payable is:
12. Statement 1: In showing gross gifts in the donor’s tax return, buildings should be
valued at the current fair market value as shown in the assessment rolls, or the fair
market value as determined by the Commissioner of Internal Revenue, whichever is
higher.
Statement 2:In showing gross gifts in the donor’s tax return, personal property
should be valued at current fair market value or at cost, whichever is lower.
13. A donation on account of marriage will gave a donor a deduction from the gross
gifts made if:
14. Which of the following statements wrong? A deduction for a donation on account
of marriage:
15. All of the following statements are wrong, except one. If the donor is a nonresident,
not citizen of the Philippines:
a. Property situated abroad but donated to a citizen of the Philippines will pay
the donor’s tax.
b. Property situated in the Philippines but donated to a donee aboard will not
pay the donor’s tax.
16. Husband and wife made out of conjugal cash of P1,000,000, a donation on
account of marriage, to a legitimate child. Which of the following statements is not
correct on deduction for donation on account of marriage?
18. Since a donation to a charitable institution has a deduction without any ceiling.
Statement 1: The net gift will be zero, so that in computing the donor’s tax, the
donation may be omitted in gross gift if it is likewise omitted in deductions.
Statement 2: The gross gifts should be reported and the deduction shall be
claimed.
b. Donation to scientific
scientific organization
20. R donated a total amount of P500,000, ½ to the Quezon City Hall and ½ to a
charitable institution, TAHANANG WALANG HAGDANAN. Upon inquiry, it was verified
that the charitable institution’s total receipts from donation amounted to P10M and its
total administrative expenses reached P4.0M. R can claim a total
deduction/exemption of:
a. P250,000 c. P200,000
b. P500,000 d. None
22. First distinction: The rates for donor’s tax are lower than those for estate tax, in all
cases.
Second distinction:
distinction: In donor’s
donor’s tax, the exemption is P200,000
P200,000 while in estate tax it is
P100,000.
24. Statement 1: All gifts made on the same date pay one donor’s tax only.
25. In computing
computing the donor’s tax on a subsequent donation, the donor must also
consider:
a. P680,000 c. P590,000
b. P580,000 d. P700,000
27. Who of the following is a stranger under the donor’s tax law?
28. For donor’s tax purposes, one of the following is not stranger.
b. step-son d. son-in-law
29. One of the following is n`ot a relative by consanguinity n the collateral line within
the fourth degree of relationship.
relationship.
31. Which of the following statement is wrong? A donation by husband and wife out of
conjugal or community
community property to a brother of the wife.
c. Is a donation on which the husband must pay a donor’s tax of 30% on his
net gift.
d. Is a donation on which the husband must pay the graduated donor’s tax on
his net gift.
32. When the donee or beneficiary is a stranger, the tax payable by the donor shall be.
c. Based on the graduated rates with the first P100,000 net gift exempt.
d. Based on the graduated rates with the first P100,000 net gift exempt or 30%
of the net gifts whichever
whichever is higher.
The total
total donor’s tax is:
a. 77,750 c. 185,950
b. 84,950 d. 199,400
1/25/2013 -To L, their legitimate son, on account of marriage last 1/20/2012, car
worth P400,000, with P200,000 mortgage, ½ was assumed by the one.
5/31/2013 -to M, brother of Mr. K, his capital property worth P200,000 on
account of marriage 6 months ago of M with a condition that the one
will pay the donor’s tax thereon.
7/15/2013 -To N, daughter of Mrs. K by former marriage, on account of her
marriage 12 months
months ago, Mrs. K’s paraphernal
paraphernal property worth
P100,000.
8/20/2013 -To N on account of the same marriage, conjugal car of the couple
worth P400,000, with P200,000 unpaid mortgage, ½ assumed by N.
And P500,000 worth of land to their four sons on account of their
graduation, 20% of which was owned by their Kumpadre who agreed
to donate his share thru a public document.
34. The gift tax due of Mr. K as of May 31, 2013 is:
a. 8,000 c. 7,200
b. 7,000 d. 6,600
35. The gift tax due of Mrs. K as of July 15, 2013 is:
a. 3,600 c. 2,800
b. 2,600 d. 4,000
36. The gift taxes due of Mr. & Mrs. K on Aug. 20, 2013 are
a. P30,000 c. P45,000
b. P10,000 d. none
a. P150 c. P 900
b. P600 d. P1,800
a. P5,750 c. P4,500
b. P24,000 d. P5,800
a. P1,000 c. P6,250
b. P3,000 d. P6,150
a. P1,350 c. P6,500
b. P2,450 d. P600
a. P2,200.00 c. P4,625.50
b. 2,750.00 d. P3,208.33
44. The gift tax due after tax credit on April 15, 2013 is:
a. P30,800 c. P44,000
b. P35,000 d. P33,920
a. P 40,000 c. P84,000
b. P36,400 d. P38,920
46. L, a citizen and resident of the Philippines, made the following donations on
January 14, 2013: To M, M, a legitimate
legitimate child, on account of marriage on the same day,
day,
property in Japan, which paid the Japanese government a donor’s tax of P52,000 and
with a fair market value of P610,000
To N, a friend,
friend, ordinary
ordinary donation of property in the Philippines,
Philippines, subject
subject to a mortgage
mortgage
of P60,000 which was assumed by N. Fair market value of the property, 160,000
a. P34,628.06 c. P42,857.14
b. P52,000.00 d. P31,520.43
Deductions
Deductions 250,000 200,000 150,000 150,000
a. P35,600 c. P33,520
b. 25,600 d. P39,000
48. Mr. P is a citizen and resident of the Philippines. On July 8, 2013, he made
donations to Q, a friend, of properties in Country Y and Country Z. Donor’s taxes were
paid to country to Country Y and a fair market value of P300,000 while the property in
Country Z had a fair market value of P200,000. The donor’s tax still due after credit
for foreign donor’s taxes paid is:
a. P0 c. P145,000
b. P15,000 d. P10,000
49. On one date, a resident alien donor made donations of property in the Philippines
to a non-stranger and of property outside the Philippines to a stranger. In taking a
credit for the foreign donor’s tax paid, the credit shall be against the Philippine donor’s
tax on the:
d. None of these.
50. One of the following statements is correct. Which is it? In the preparation of the
donor’s tax return.
51. One of the statements that follow is correct. Which is it? A deed of donation was
executed by G, resident of Dagupan City, in favor of H, a resident of Baguio City. H
executed a deed of acceptance
acceptance in Baguio City. The donor’s tax return must be filed
with the Bureau of Internal Revenue
Revenue Office:
c. At the resident of the donor or the 19one, whichever the donor chooses.
52. Statement 1. A donation on which the donor’s tax was not paid is not a valid
donation.
Statement 2 . Title to the donated real property cannot be transferred to the donee
in the Register of Deeds unless the donor’ s tax on the donation had been paid.
a. The Commissioner is not allowed to grant extension of time within which the
donor’s tax returns may be filed, and such extension shall not exceed thirty days.
b. The return may be filed in one municipality and the tax paid in another
municipality.
d. A gross gift of P50,000 for the whole year to non-strangers need not be
covered by a donor’s tax return.
54. Statement 1: When a donor’s tax return was filed and it was found by the Bureau
of Internal Revenue to have errors which gave rise to a deficiency donor’s tax, the
donor may be required to pay the deficiency although he does not possess or own the
property anymore.
Statement 2 : The Government is not bound by any agreement between the donor
and the done that the latter shall pay tax on
o n the donation.
Problem 1
Topline Company sold to Bestbooks Enterprises goods worth P 10 000, exclusive of tax. Record
the accounting entries in the sales book and in the purchase book if:
Answer:
Problem 2
Problem 3
H and W, husband and wife had the following gross sales (net of tax) during the year:
Problem 4
The output tax for the calendar quarter ended March 31, 2013 is:
A. P 48 000 C. P 140 000
B. P 168 000 D. P 40 000
Problem 5
Problem 6
Azucarera de Papa is a processor of refined sugar. It purchases sugarcane from farmers for
processing into intermediate stages until it becomes refined
refined sugar. In a month, it had the
following sales and purchases, no tax included:
Problem 7
The input taxes attributable to export sales which may be refunded or credited against
other internal revenue taxes, including any value-added tax on domestic sales, is:
A. P 60 000 C. P 84 000
B. P 24 000 D. P 96 000
Problem 8
9. Bogart is an operator of parking lots. What business tax is due on his income from the
business?
A. Broker’s tax C. Caterer’s tax
B. Common carrier’s tax D. Value-added tax
Problem 9
Purchases of:
Materials (VAT included) 224 000
Services of sub-contractor (VAT not included) 448 000
Services of persons subject to percentage taxes 56 000
Salaries of employees 60 000
Problem 10
Problem 11
Japayuki Corp. imported an article from Japan. The invoice value of the following article was
P 1 000 000 Yen (1 Yen= P0.50). the following were incurred in connection with the
importation:
Insurance P 15 000
Freight 10 000
Postage 5 000
Wharfage dues 7 000
Arrastre charges 8 000
Brokerage fee 25 000
Facilitation fee 3 000
The imported article was subject to P 50 000 customs duty and P 30 000 excise tax. Japayuki
Corp. spent P 5 000 for trucking from the customs warehouse in Quezon City.
Problem 13
Selling price of goods imported for sale within the same taxable period of importation, value-
added tax included, was P 6 720 000.
Problem 14
20. INDICATE if the following receipts from lease of residential units are subject to VAT or
not:
Case Monthly Rental Aggregate Annual Rental Taxable/ Not
taxable
1 P 7 000 P 2 600 000 Not taxable
2 12 800 1 400 000 Not taxable
3 9 500 1 450 000 Not taxable
4 13 000 1 919 500 Not taxable
5 13 000 2 600 000 Taxable
Problem 15
Miss Divina Valencia, a bold actress, had the following data for the quarter ending June 30,
30 , 2013
(amounts are exclusive of tax):
Problem 16
Sosyal is a Vat-registered taxpayer. The following data from the books of accounts were
transactions for each of the months of January,
Jan uary, February and March (first quarter) of 2012:
Problem 17
26. The following first quarter data pertain to a value-added taxpayer whose purchases were
all from value-added taxpayers:
Output taxes, January P 132 000
Input taxes, January 240 000
Output taxes, February 348 000
Input taxes, February 144 000
Sales, total invoice price, March 3 360 000
Purchases, total invoice cost, March 1 456 000
The value-added tax payable for March is:
Problem 18
Problem 19
Case A Case B
Sales, net of VAT 1 900 000 2 800 000
Purchases of goods for sale, exclusive of VAT 1 260 000 1 600 000
Purchases of machines (VAT not included) 1 440 000 900 000
Machine life 6 years 3 years
1. The following are major internal revenue business taxes in the NIRC of 1997, except one:
A. Income tax C. Value-added tax
B. Excise tax D. Percentage tax
2. Alamid imported cigarettes from Taiwan for sale. At a later date, h e sold cigarettes in the
Philippines. He is subject to value-added tax.
tax . He is also subject to the business tax of:
A. Excise tax C. Percentage tax
B. Income tax D. None of these
3. Burgos is manufacturer of fermented liquors. In making sales, all taxes on the products
and transactions are passed on to the buyers. For purposes of the value-added tax, which
of these taxes listed below that he pays
pa ys forms part of the gross selling price?
A. Excise tax C. Percentage tax
B. Value-added tax D. None of these
4. Cantor is a VAT-registered dealer of liquors. On his sales in the Philippines, his tax is:
A. Excise tax C. Percentage tax
B. Value-added tax D. None of these
5. Statement 1: A person subject to excise tax is also subject to value-added tax.
Statement 2: A person subject to percentage tax is also subject to value-added tax.
A. Both statements are correct
B. Statement 1 is correct while statement 2 is wrong
C. Both statements are wrong
D. Statement 1 is wrong while statement 2 is correct
6. Which statement is correct? The value-added tax on importation:
A. Should be paid by b y the tax-exempt importer, if he subsequently sells the goods to a
non-tax-exempt purchaser.
B. Should be paid by the non-tax-exempt purchaser to whom the tax-exempt importer
sells it.
C. Is a liability either of the tax-exempt importer or the n on-tax-exempt purchaser.
D. Shall not pay the value-added tax because the transaction was exempt at the point of
importation.
7. The value-added tax of Gencor Co., before any tax credits, is:
A. P 210 960 C. P 173 300
B. P 175 800 D. P 207 960
8. The business tax of Falcon Co., before any tax credits, is:
A. Value-added tax of P 3 960 C. Value-added tax of P0
B. Percentage tax of P 990 D. Percentage tax of P0
9. Which statement is wrong? Transactions considered “in the course of trade or business”
and, therefore, subject to the business taxes include:
A. Regular conduct or pursuit of a commercial or an economic activity by b y a stock private
organization.
B. Regular conduct or pursuit of a commercial or an economic activity by a non-stock,
non-profit private organization.
C. Isolated services in the Philippines by non-resident foreign persons.
D. Isolated sale of goods or services for a gross selling price or receipts of P 500 000.
10. First statement: Sales of drugs and medicines of pharmacy run b y the hospital to
outpatients are subject to VAT.
Second statement: Pharmacy items used in the performance of medical procedures in
hospital units such as in the operating and delivery
d elivery rooms and by other departments
dep artments are
considered part of medical services rendered by the hospital, hence, not subject to VAT.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct
11. To be exempt from value-added tax, the lease of residential units shall have:
I. Monthly rental per unit of P 12 500 or less.
II. Gross annual rentals exceeding P P 1 919 500.
A. Both I and II are necessary
B. Both I and II are not necessary
C. Only I is necessary
D. Only II is necessary
12. Gross selling price includes all of the following, except one. Which one?
A. Total amount which the purchaser pays to the seller.
B. Total amount which the purchaser is obligated to pay to the seller.
C. Excise tax.
D. Value-added tax.
13. Statement 1: The output value-added tax is computed by multiplying the gross selling
price by 12%; or multiplying the total amount indicated in the invoice by 12/112.
Statement 2: The output value-added tax is computed by multiplying the total amount
indicated in the invoice by 12%.
A. Both statements are correct
B. Both statements are wrong
C. The first statement is correct but the second statement is wrong
D. The first statement
statement is wrong but the second
second statement is correct
14. Which statement is correct?
A. The sales invoice that shows a total, with an indication that it includes the value-
value -
added tax even if it does not show the tax separately, is a correctly prepared invoice.
B. The invoice which shows the selling price and the value-added tax separately, but
with a total which is a correct amount
a mount is a properly prepared invoice.
C. An invoice which shows the selling price and the value-added tax separately, which is
paid by the buyer, is violative of the revenue regulations on issuance of sales invoice.
D. A sales invoice by a VAT taxpayer can be used only on a VAT sale.
15. S1: in the books of accounts
accou nts of a VAT-registered taxpayer, sales are recorded net of
output taxes.
S2: in the books of accounts
accou nts of a VAT-registered taxpayer, purchases are recorded net of
input taxes.
A. Both statements are correct
B. Both statements are wrong
C. The first statement is correct but the second statement is wrong
D. The first statement is wrong but the second statement is correct
16. Which of the following are not account titles with balances
b alances in the books of accounts of a
VAT taxpayer?
A. Output taxes C. Excess input taxes carry-over
B. Input taxes D. VAT payable
17. Takuza, a Japanese residing in the Philippine,
P hilippine, bought garments from Halili Corp., a
domestic corporation, and exported the same to Japan. Total value of export is P 100 000.
The output VAT due on the transaction is:
A. P 12 000
B. P 10 000
C. None, because 0% applies
D. None, because the sale is exempt from VAT
18. The allowable transitional input tax is:
A. The lower between 2% of the value of beginning inventory or actual VAT paid on
such inventory.
B. The higher between 2% of the value of beginning inventory or actual VAT paid on
such inventory.
C. The actual VAT paid on the beginning inventory.
D. 2% of the value of beginning inventory.
19. Which statement is wrong?
A. There is a transitional input tax on sales of goods or properties.
B. There is a transitional input tax on sales of services.
C. There is a presumptive input tax on o n sales of goods or properties.
D. There is a presumptive input tax on o n sales of services.
20. Ilarde, a VAT taxpayer, on January
Jan uary 1, 2013, made the following purchases from VAT
sellers, for use in his business. The amounts stated below are not inclusive of value-added
taxes:
Machine 1, with a useful life of 20 years P 3 000 000
Machine 2, with a useful life of 3 years 1 800 000
Patent, with usefulness of 10 months 600 000
The input taxes from the purchases, available to Ilarde, for the month of January, 2013:
20 13:
A. P 19 200 C. P 79 500
C. P 70 000 D. P 84 000
21. A VAT-registered supplier sold goods amounting to P 500 5 00 000 gross selling price to a
government-controlled corporation during a particular quarter. Which of the following
statements is incorrect in relation to the sale of goods?
A. The sale is subject to withholding of final VAT.
B. The government-controlled corporation will withhold P 25 000 final VAT.
C. The government-controlled corporation shall remit withholding VAT to the BIR
within 10 days following the end of the month the withholding was made.
D. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
22. Zorro had the following data arising out of sales and
a nd purchases in January, 2013:
Output taxes on sales P 240 000
Input taxes on purchases of goods sold 238 200
Input taxes on machine bought with a useful life of 12 180 000
years
Items 24-25
After recognizing the value-added tax payable for the month of December 2012, the books of
accounts of Colors, a merchandising company, showed a debit balance in the input taxes account
of P 12 000. Sales and purchases at total invoice prices/costs for January 201 3 were:
Q2:
A. 2, 4 and 5 C. 1, 2 and 5
B. 2 and 6 only D. 2, 5 and 6
Q3: Che-che is a CPA. The following are her data during the period (amounts are net of tax):
Q4: Trucseabus Company, Manila based, had the following receipts during the month:
During the month, one of the units of Accident Company bumped the taxi and paid Trucseabus
Company P 15 000 for the damages done.
A. P 4 026.9 C. P 4 516.5
B. 4 513.5 D. 6 696.81
Q5: Love Bus Transport Company, Monumento-Baclaran, operates ten (10) units of buses
with a capacity of 50 passengers. During the month, it had the following data in its books:
A. 12% VAT
B. 3% common carrier’s tax
C. 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes
and 3% common carrier’s tax on gross receipts from transport of passengers.
D. 12% VAT on gross receipts from transport of goods and cargoes and 3% common
carrier’s tax on gross receipts from transport of passengers.
A. 12% value-added tax and ordinary income tax on gross receipts within the Philippines.
B. 0% VAT and 2.5% income tax on gross receipts within the Philippines.
C. 3% other percentage tax on gross receipts
D. 3% other percentage tax on gross receipts and ordinary income tax on gross income.
Q9: Malansa Company is a holder of a franchise to sell water. During the month, it had the
following data:
Gross receipts from the sale of water to the public P 3 000 000
Penalties imposed and collected on illegal connections 150 000
Rent of its heavy equipment to a private subdivision 50 000
developer
Sale of scrap materials 20 000
A. P 61 400 C. P 60 000
B. 60 400 D. 61 000
Q10: DYYY is a franchisee to operate a radio station. The data in its books are
a re as follows:
Gross receipts last year P 8 000 000
Gross receipts during the month 700 000
Payment to VAT suppliers of goods and services 300 000
Payment to non-VAT suppliers of goods and services 20 000
Q13: the Bayani Telephone Company, a franchisee to operate a landline telephone, billed
Telly Babad the following:
A. P 1 280.00 C. P 850.00
B. 1 452.50 D. 871.50
Q14: Filipinas Life Insurance Company had the following data on collections of
premiums and disbursements during the month:
The amounts indicated pertaining to VAT transactions do not include the value-added
tax.
Q15: A domestic insurance company gave the following information for the month:
Q16: The PBA is a professional basketball organization which holds the games in the Big
Dome. In May of the current year, it had the following gross receipts:
During the month, it was leased to a private group of persons who sponsored an
international derby inside the Big Dome. The gross receipts amounted to P 2 500 000.
It also hosted the UAAP Volleyball Championship between Ateneo Lady Eagles and De
La Salle Lady Archers. Gross receipts from the gates amounted to P 250 000.
Q17: Carlos supplies foods and drinks in Peacock which is operated by a friend, Rudy.
It’s gross sales (per invoice) during the month amounted to P 250 000 and his
h is purchases
from VAT suppliers amounted to P 185 000. The gross receipts of Rudy for the month
was P 425 000. The amusement tax due is-
Q18: Boxing exhibitions shall be exempt from amusement tax when the following
conditions are present:
Q19:
1. The business tax if a domestic common carrier by land for the transport of
passengers:
A. P 12 000 C. P 10 800
B. 9 000 D. 22 800
2. The business tax if a night club:
A. P 54 000 C. 72 000
B. 64 800 D. 136 800
3. The business tax if a race track:
A. P 120 000 C. P 90 000
B. 228 000 D. 108 000
Q20: A horseracing aficionado has the following winnings during a particular race day:
A. P 1 000 C. P 950
B. 400 D. 380
Q21: A corporation where at least fifty percent (50%) in v alue of the outstanding capital
stock or at least fifty (50%) of the total combined voting p ower of all classes of stock
entitled to vote is owned directly or indirectly by or
o r for not more than twenty (20)
(20 )
individuals.
Q22: Yveth sold the following shares of stocks of a domestic corporations, thru her
broker.
A. P 2 500 P 8 000
B. 2 250 5 000
C. 2 500 None
D. 2 250 8 000
Q23: Who is the taxpayer as far as the initial public offering in the local stock exchange
ex change of
closely held corporations is concerned?
A. The purchaser of shares of stock offered in the IPO
B. The corporate issuer
C. The corporate purchaser
D. The local stock exchange
Q24: ABC Corporation, closely held corporation, has an authorized capital stock of 100 000
0 00
shares with a par value of P 1.00 per share as of January 1, 2013: 25 000 thereof
t hereof is
subscribed and paid up by the following stockholders:
Andi P 5 000
Bianca 5 000
Carla 5 000
Diana 5 000
Enciang 5 000
Total shares outstanding 25 000
ABC Corporation finally decides to conduct an IPO and initially offers 25 000 of its unissued
shares to the investing public at P1.25 per share. After the IPO in March 2013,
20 13, ABC
Corporation’s total issued shares increased from 25 000 to 50 000 shares.
At the IPO, Andi has likewise decided to sell her entire 5 000 shares to the public at P 1.50
per share. Thus, 5 000 shares have been offered in the primary offering and 5 000 shares in
the secondary offering.
1. How much is the percentage tax on ABC Corporation’s newly issued shares?
A. P 375 C. 750
B. 1 500 D. 93.75
2. How much is the percentage tax on the secondary offering of Andi’s shares
A. P 3 000 C. 300
B. 75 D. None
3. If in June 2013, ABC Corporation again decides
d ecides to increase capitalization by offering
another 300 000 of unissued shares to the public at P 2/share, such follow-through shall
be subject exempt from-
A. Percentage tax and documentary stamp tax
B. Documentary stamp tax but not percentage tax
C. Percentage tax but not documentary stamp tax
D. Neither percentage tax nor documentary stamp tax
4. In case Diana decides to offer her existing
ex isting 5 000 shares to the public subsequent
subseq uent to IPO at
P 2/share, the percentage tax shall be-
A. P 25 C. 300
B. 50 D. 1 000
Q25: Manalo, a dealer in securities, sold P 1 500 000 (tax included) worth of shares it held as
inventory to Romulo. The shares sold were acquired for P 1 000 000 (tax excluded) and were
listed and traded in the local stock exchange. The tax due on the sale is:
A. None C. P 45 000
B. P 7 500 percentage tax D. 60 000 value-added tax
Q26: ABC Bank has the following income/loss for the following months:
March April
Interest income with maturity of less than 5 years P 50 000 P 100 000
Rentals 50 000 50 000
Net trading gain/loss (10 000) 20 000
The gross receipts tax for the months of March and
an d April, respectively:
A. P 1 000 C. 4 500
B. 1 350 D. none
In the second quarter of 2013, a taxpayer engaged in the sale of services and whole annual
gross receipts do not exceed P 1 919 500 has the following data:
40. First statement: The monthly percentage tax returns of taxpayers shall be filed, and taxes
paid, not later than the 20th day following the end of the month.
Second statement: With respect to taxpayers enrolled with EFPS, the deadline for e-filing
the monthly percentage tax return and e-paying the tax thereon shall be 5 days later than
that set in the first statement.
A. Both statements are correct C. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
41. How is the percentage tax on the secondary offering of shares of stock of closely held
corporation collected and paid?
A. The stockbroker collects and remits the tax within 5 working days from the date of
collection.
B. The stockbroker collects and remits the tax within 5 banking days from the date of
collection.
C. The purchaser collects and remits the tax within5 days after the end of the quarter,
fiscal or calendar.
D. The local stock exchange collects and remits the tax within 5 banking days from the
date of collection.
42. Which of the following percentage taxes are paid on a quarterly basis?
I. Overseas communications tax III. Taxes on winnings
II. Amusement tax IV. Stock transactions tax
A. All of the above C. III and IV only
B. I and II only D. II only
43. Any person retiring from a business subject to percentage tax shall notify the nearest
internal revenue officer, file his return and pay the tax due theron within how many days
after closing his business?
A. 10 days C. 20 days
B. 15 days D. 30 days
44. First statement: Other percentage taxes are indirect taxes that can be passed on by person
pe rson
required to pay to another person who shall bear the burden of the tax.
Second statement: The persons liable to overseas communication
commun ication tax may or may not be
engaged in trade or business.
A. Both statements are correct C. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
45. The lease of property, real or personal, byb y a bank is subject to-
to -
A. 7% gross receipts tax C. 12% VAT
B. 5% gross receipts tax D. 1% gross receipts tax