1. Which of the following improperly depicts the timing of registration for taxpayers subject to any internal revenue tax?

The annual registration fee shall be

Which is subject to the annual registration fee?

Which of the following does not require update of registration?

Statement 1: Registration with the BIR is once but taxpayers pay annual registration fee.

Statement 2: Each taxpayer shall be given at least one Taxpayer’s Identification Number.

Mr. Elitsgo has a principal office in Baguio City and a branch in La Trinidad City. Which is correct with respect to his annual registration fee?

Who are required to update their registration information with the BIR?

Issuance of receipts is required for every sale transaction with an amount of at least

An expanding enterprise is registered with the BOI. It has a base figure of P20M with actual sales of P50M for the year out of which it reported a net income of P18M. What is the rate of exemption?

In the preceding problem, what is the income tax holiday?

11. The following information pertains to NEGROS CORP. for the calendar year 2009:

*70% of sales from registered activities constitutes export sales while all of the purchases of the registered activities were from farmers

Compute the corporate income tax.

In filing its annual tax return, the taxpayer shall use BIR Form

13. A BOI-registered biofuel manufacturing corporation had the following for the third quarter of 2018:

*70% of sales from registered activities constitutes export sales while all of the purchases of the registered activities were from farmers

Compute the VAT due.

The 8% optional income tax is not allowed to

The TIN of the buyer is required to be indicated in the invoice or receipt if

The TIN of the buyer is required to be indicated in the invoice or receipt if

A VAT official receipt may not be issued for the

Statement 1: VAT taxpayers with quarterly total sales/receipt exceeding P2.5M are required to submit Summary List of Sales

Statement 2: VAT taxpayers with quarterly total sales/receipt exceeding P1.0M are required to submit Summary List of Purchases

Temporary closure of business establishment shall be enforced against

20. A VAT taxpayer had the following details in the preceding quarter:

Sales to private entities         P  400,000

Export sales                         200,000

Sales to the government              300,000

Exempt sales                         100,000

Total                             P 1,000,000

Input VAT                         P   72,000

Compute the output VAT.

21. A VAT taxpayer had the following details in the preceding quarter:

Sales to private entities         P  400,000

Export sales                         200,000

Sales to the government              300,000

Exempt sales                         100,000

Total                             P 1,000,000

Input VAT                         P   72,000

Compute the creditable input VAT.

22. A VAT taxpayer had the following details in the preceding quarter:

Sales to private entities         P  400,000

Export sales                         200,000

Sales to the government              300,000

Exempt sales                         100,000

Total                             P 1,000,000

Input VAT                         P   72,000

Compute the VAT still due.

23 to 28 Questions

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also opened other sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P 12,000,000, inclusive of an equipment costing P 2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P 4,000,000.

Required: Determine the following:

Total VAT due for 2018

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P 12,000,000, inclusive of an equipment costing P 2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P 4,000,000.

Required: Determine the following:

Income tax due 2018

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Where to file the annual income and VAT returns

26. Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Total gross sales or receipt subject to local business tax in Baguio City

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Rhad’s real property tax and the venue of payment.

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Rhad’s annual community tax and the venue of payment.

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

A private hospital is exempt from

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Which is vatable under the TRAIN law

Rhad Vic, a resident of Baguio City, started his siopao business by establishing a factoring in Aringay, La Union and a sales outlet in Baguio City as head office. He also openedother sales outlets in San Fernando City, Municipality of La Trinidad and Dagupan City. Rhad’s consolidated sipao sales and income for 2018 is shown below:

Rhad Vic made vatable purchases of totaling P12,000,000, inclusive of an equipment costing P2,000,000 acquired in June 2018.All sales were for cash. Rhad’s factory in Aringay has a total fair value of P4,000,000.

Required: Determine the following:

Which is not a PEZA incentive?

1. A VAT-registered service provider had the following receipts from services rendered in the Philippines in fourth quarter 2017 and first quarter of 2018:

Paid for in foreign currencies (Peso equivalent)        2017               2018

Services rendered to non-residents           P        500,000   P      400,000

Services rendered to residents                          400,000            300,000

Paid for in the local currency

Services rendered to non-residents           P        800,000          700,000

Sales of goods to BOI-enterprises                    1,200,000        1,000,000

Services rendered to international carriers          400,000          600,000

Sale of gold to BSP                                     100,000            200,000

What is the total zero-rated sale in 2017 and 2018?

A VAT-registered service provider had the following receipts from services rendered in the Philippines in fourth quarter 2017 and first quarter of 2018:

Paid for in foreign currencies (Peso equivalent)        2017               2018

Services rendered to non-residents           P        500,000   P      400,000

Services rendered to residents                          400,000            300,000

Paid for in the local currency

Services rendered to non-residents           P        800,000          700,000

Sales of goods to BOI-enterprises                    1,200,000        1,000,000

Services rendered to international carriers          400,000          600,000

Sale of gold to BSP                                     100,000            200,000

Compute the sales subject to 12% VAT in 2017 and 2018.

A VAT-registered corporation reports on a fiscal year. It made the following purchases in the quarter ending August 31, 2019 from VAT suppliers:

June 2019

Truck, estimated 10-year useful life               P     700,000

Office equipment, estimated 4-year useful life           500,000

Supplies                                                 200,000

July 2019

Goods                                                    1,200,000

August 2019

Office furniture, estimated 5-year useful life           600,000

General services                      500,000

Assume all amounts are exclusive of VAT.

What is the creditable input VAT in June 2019?

1. A VAT-registered corporation reports on a fiscal year. It made the following purchases in the quarter ending August 31, 2019 from VAT suppliers:

June 2019

Truck, estimated 10-year useful life               P     700,000

Office equipment, estimated 4-year useful life           500,000

Supplies                                                 200,000

July 2019

Goods                                                    1,200,000

August 2019

Office furniture, estimated 5-year useful life           600,000

General services                      500,000

Assume all amounts are exclusive of VAT.

In the preceding problem, what is the creditable input VAT in July 2019?

A VAT-registered corporation reports on a fiscal year. It made the following purchases in the quarter ending August 31, 2019 from VAT suppliers:

June 2019

Truck, estimated 10-year useful life               P     700,000

Office equipment, estimated 4-year useful life           500,000

Supplies                                                 200,000

July 2019

Goods                                                    1,200,000

August 2019

Office furniture, estimated 5-year useful life           600,000

General services                      500,000

Assume all amounts are exclusive of VAT.

In the preceding problem, what is the creditable input VAT for the quarter ending August 2019?

An international carrier is subject to percentage tax on

A bus operator is subject to a percentage tax based on

Rural Bank of Gumaca, Inc. (RBG) shows the following receipts during a quarter:

Assuming RBG is not a cooperative bank, compute the gross receipt tax.

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Total gross income in Mr. Ace’s income tax return?

41.  Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Total deductions in Mr. Ace’s income tax return

42. Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Income tax still due of Mr. Ace

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Total gross income in Mr. Ace’s estate income tax return

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

• Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return

Income tax still due of Mr. Ace’s estate

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Percentage tax payable of Mr. Ace

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Gross estate

Case Analysis  – Income Tax, Donor’s Tax, and Estate Tax with Business Tax

Mr. Ace, single non-VAT taxpayer using the accrual basis, died on March 31, 2018due toa stroke. His estate underwent judicial settlement. Mr. Ace’s Statement of Assets, Liabilities and Networth for 2017 revealed total assets of P24,000,000 and P2,000,000 a business loan which pays 10% annual interest.

Mr. Ace had the following income and transactions before his death:

1. Earned P532,000for professional servicesnet of 5% withholding tax.
2. Paid P90,000 in business expenses inclusive of P36,000 interest on the loan.
3. Donated P100,000 to BantayBakla, an accredited non-profit institution.
4. Donated a car worth P800,000 in his last SALN to his father Roben who is getting married subject to the condition that the latter shall pay the donor’s tax.
5. Made a P500,000 donation to Ruel, his dependent brother, subject to the condition that Ruel shall pass the May 2018 CPA Board Exam.
6. Paid P300,000 for various personal expenses.

The following transactions and events occurred after his death in 2018:

1. His estate received P1,710,000 in annual rentals which were evenly earned throughout 2018. The amounts were net of 5% withholding tax
2. His appointed executor, Michael, paid P 300,000 of this rental to Miss Elaine, Mr. Ace’s girlfriend in accordance with Ace’s stipulation in his last will and testament.
3. P400,000 worth of jewelry were stolen from Ace’s residence. The same was reported to the BIR.
4. His estate received P 2,000,000 proceeds of Mr. Ace’s life insurance which was designated to his estate as beneficiary.

With his early death, Mr. Ace has not yet filed any internal revenue taxes with the government. Mr. Ace’s residential house was valued at P8,000,000.

Required: Determine the following

Note:

Percentage tax is based on gross receipts or sales before withholding taxes. Percentage taxes are deductible expenses in the income tax return.

Estate tax due

Which is incorrect with respect to business taxes?

Which of the following transactions has no consumption tax?

Which of these importations is subject to VAT?

The sale of which of the following is exempt from business tax?

Which of the following ingredients is exempt from the VAT on importation?

Which of the following agricultural products is not exempt from business tax on sales?

Mabiga Cooperative is an agricultural cooperative which processes the coffee production of its members for sale to NesFe Corporation, a coffee processing company selling bottled instant cofee. Mabiga imported a coffee drier from Colombia Coffee Machineries Corporation. After 3 years of active use, Mabiga disposed the drier to Pedro Mabanag, a member.

Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:

Compute the Customs duties on the dutiable value

1. Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:

Compute the VAT on importation on the landed cost.

Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:

Which is subject to business tax?

Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:

Which is considered pure consumption tax?

Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:

Who is statutory liable to pay the VAT on importation?

1. A business taxpayer had the following summarized transactions during the quarter:

Cash sales                                           P   400,000

Sales on credit (account sales)                         600,000

Installment sales (P30,000 collected)                   100,000

Sales returns and allowances                             20,000

Quota discounts                                          10,000

Advances for goods not yet delivered                     20,000

Purchase of goods, including of P72,000 VAT

    passed on by sellers                                672,000

Compute the gross selling price.

A lending investor had the following data during a month:

Cash collection for loan principal                               P   400,000

Cash collection for interest                                         50,000

Cash collection for penalties                                         6,000

Uncollected loan principal                                          300,000

Billed but uncollected interest                                       2,000

Billed but uncollected penalties                                      1,000

What is the gross receipt?

A lending investor had the following data during a month:

Cash collection for loan principal                               P   400,000

Cash collection for interest                                         50,000

Cash collection for penalties                                         6,000

Uncollected loan principal                                          300,000

Billed but uncollected interest                                       2,000

Billed but uncollected penalties                                      1,000

Geneva Corporation, a VAT lessor which leases commercial spaces to various businesses, received P1,284,000 rentals from various clients, net of 5% withholding tax. What is the gross receipt?

A VAT registered seller made the following sales of goods during a month:

                     Selling price        Fair value       

To customer A        P       150,000      P    180,000

To customer B                200,000           190,000

To customer C                102,000           150,000

Total sales          P       452,000

Compute the output VAT.

A VAT-registered seller made the following sales to the following entities:

                           Selling price       Fair value      

City of San Fernando     P      134,000      P    200,000

ABC Trading Company             100,500           150,000

What is the output VAT?

The following pertain to a VAT-registered taxpayer in July 2016:

Fees from senior citizens, before 20% discount             P   225,000

Fees from PWD, before 20% discount                             75,000

Fees received from regular customers                           340,000

Total fees                                                 P   640,000

Compute the output VAT assuming the given figures are exclusive of VAT.

DEF Realty Corporation, a VAT-registered realty dealer, sold the following residential properties during the month:

                                  Zonal         Assessed        Selling

                                  Value           Value           Price   

Residential lot            P  1,500,000   P  1,200,000   P  1,700,000

Residential dwelling          3,500,000      1,500,000      3,200,000

Compute the output VAT

Sarangani, a VAT-taxpayer made a sale of real property with a fair value of P3,000,000 at a selling price of P2,000,000. The sale qualified for installment reporting of output VAT.Saranganiis due to receive the following amounts(net of VAT) in the coming month:

Installment                      P    200,000

Interest                               12,000

Penalty                                 4,000

Total                            P    216,000

What is the reportable output VAT on the scheduled collection?

A VAT-registered taxpayer has its own sales operations but also sells goods through consignees. It also sells goods on consignment for a commission. The following were the results of operations for the month ended April 30, 2016:

Sales of own inventories                     P    500,000

Sales made through consignees                     150,000

Sales made for consignors                         100,000

Commission income from consignors                  20,000

Commissions paid to consignees                     30,000

Compute the output VAT.

Misamis, a VAT-registered taxpayer, ceases business operation in May 2015. His business properties upon termination of business operation include the following:

Cash                                   P     50,000

Accounts receivables                        120,000

Investments                                 180,000

Inventories                                 200,000

Property, plant and equipment               800,000

Total assets                           P  1,350,000

Compute the Output VAT on deemed sales.

Which of the following is not a purpose of taxation?

Taxation is important because it is based on

The following taxes are examples of excise tax, except

Distraint of personal property is administered by the Revenue

District Officer if the amount involved on tax liabilities is not more than

A notice to the effect that the amount therein stated is due from a

taxpayer as a tax with a demand for payment of the same within a stated period of time

All of the following, except one, are sources of tax laws

Some franchise holders who are paying the franchise tax are being required

by an amendatory law to pay the value-added tax, while others remain subject

to franchise tax. Which of the following constitutional provisions makes the

law unconstitutional?

The books of accounts or records of the taxpayer must not be kept in the following language

The following are sources of tax laws. Which is not a source?

80. The distinction of a tax from permit or license is that a tax

Which of the following is a civil remedy for the collection of internal revenue taxes, fees or charges, and any increment thereto resulting from delinquency?

Date of tax erroneously paid – June 10, 2019

Date of claim for refund was filed with BIR – March 2021

Date of BIR decision of denial was received – April 5, 2021.

Last day to appeal to the Court of Tax Appeals

The distinction between actual and constructive distraint is that

Taxpayer-withholding agent applies with the BIR for the compromise of withholding taxes it had withheld at source because its financial position demonstrates a clear inability to pay the assessed tax. Should the compromise prosper?

The following statements are correct except