BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

Ch !t"# $: INTRODUCTION TO INTERNAL REVENUE TAXES

C%A&TER $

INTRO' TO INTERNAL REVENUE TAXES

Problem 1-1 1. True as to the object of tax 2. True as a general rule, except if the merchandise is sold outside the Philippines not subject to business tax in the Philippines. If the resident Filipino citizen is ithin the subsistence li!elihood earnings, tax"exempt. #. False business tax is another Internal $e!enue Tax distinct from income tax. %. True &. False it is the other a' around. (. True ). True *. True +. True 1,. False citizens, resident or nonresident are subject to transfer tax for transfers ithin.. 11. False on the 2,th of the month follo ing the taxable month. 12. True 1#. False onl' income earned ithin ill be taxable against resident alien 1%. False should be at least P1,,,,,,,, per 'ear. Problem 1-2 1. 2. #. / %. 0 &. (. 0 ). *. . +. / 1,. 11. . 12. 1#. / Problem 14 Problem 1-3 1. . 2. #. / %. &. / (. ). . *. +. / 1,. / 11. . 12. . 1#. -

1. -

1ubject to business tax is P(,,,,,,,,. 2nl' sales 1ubject to income tax3 Total sales 4P(,,,,,,,, 5 P%,,,,,,,,6 Total cost of sales 4P2,,,,,,,, 5 P1,&,,,,,,6 7ross income 1ubject to transfer tax 4P#,,,,,,,, 5 P2,,,,,,,,6

ithin are subject to business tax. P1,,,,,,,,, 4 #,&,,,,,,6 P (,&,,,,,, P &,,,,,,,, ithin and ithout is subject to

1ince the donor is a citizen, all of his properties donated donor8s tax.

2. 0

BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS
1ubject to business tax is P(,,,,,,,,. 2nl' sales ithin are subject to business tax.

Ch !t"# $: INTRODUCTION TO INTERNAL REVENUE TAXES

1ubject to income tax3 1ales ithin /ost of sales ithin 7ross income 1ubject to transfer tax 4P#,,,,,,,, 5 P2,,,,,,,,6 1ince the donor is a citizen, all of his properties donated donor8s tax. Problem 15 1. 0 2. 2 #. 2 %. 2 &. 2 Problem 16 9ithin 1ales 7ross income 1. #,,,,,,,, (,,,,,, 9ithout 2,,,,,,,, %,,,,,, $es. /itizen #,,,,,,,, 1,,,,,,,, (. 0 ). 0 *. 2 +. T 1,. T

P(,,,,,,,, 42,,,,,,,,6 P%,,,,,,,, P&,,,,,,,, ithin and ithout is subject to

Taxable -mount $es. -lien #,,,,,,,, (,,,,,,

:on"$es. -lien #,,,,,,,, (,,,,,,

Taxpa'er is a resident citizen a. P1,,,,,,,, ; <P&,,,,,,,, 4P&,,,,,,,,=1.2&6> b. P#,,,,,,,, 2. a. b. Taxpa'er is a resident alien P(,,,,,, ; <P#,,,,,,,, 4P#,,,,,,,,=1.2&6> P#,,,,,,,,

#.

Taxpa'er is nonresident alien a. P(,,,,,, ; <P#,,,,,,,, 4P#,,,,,,,,=1.2&6> b. P#,,,,,,,,

Problem 17 1. 2. P)2,,,,, ; 4P(,,,,,, x 1.26

P1*,,,,, ; 4P)2,,,,, P(,,,,,,6 5 4P((,,,,, P(,,,,,,6

Problem 18 1. Tax returns3 a. 0I$ Form 2&&1 for business tax b. 0I$ Form 1),1? for @uarterl' income tax return c. 0I$ Form 1),1 for annual income tax return 2. b. .ates of filing and pa'ments3 -pril 1&, -ugust 1&, and :o!ember 1& for the first # @uarters and -pril 1& of the follo ing 'ear for the annual tax return

a. 2n or before the 2,th of each month 40I$ Form 2&&16