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ENHANCEMENT EXERCISES
3.
4.
5.
6.
7.
8. 1st Statement
To be exempt from taxation under the
Constitution land & buildings must be exclusively and
actually used for religious, educational or charitable
purpose, even if not directly.
2nd Statement
Exemptions of non-profit schools are
only limited to revenue and assets derived from strictly
school operations.
a. True, True
c. False, True
b. False, False
d. True, False
9.
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b.
c.
d.
INCOME TAXATION
17. Which is not a correct principle of individual income
taxation?
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a.
b.
c.
d.
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P 20,000
3,000
1,000
10.000
4,000
34,000
70,000
140,000
30,000
6,000
150,000
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P630,000
P 95,000
90,000
250,000
3,000
4,000
120,000
1,500
240,000
100,000
100,000
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P1.502A
Partnership
Pio
Pia
Gross Income
P570,000 P280,000 P190,000
Allowable Deductions
250,000 150,000 70,000
Drawing Accounts
30,000 20,000
10,000
Other Income
20,000
10,000
Charitable partnership contribution: (not included
above)
To:
UP
P20,000
To:
Malate Church
50,000
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b.
P187,000
d.
P100,000
3.
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2,000,000
Deductions claimed:
Funeral expenses
250,000
Fire loss of apartment
(occurred 4 months after death) 80,000
Bad debt (represents unpaid receivable
from Bert, an insolvent)
100,000
Mortgage on inherited land
30,000
Vanishing deduction on
inherited land
40,000
Vanishing deduction on
donated land
20,000
Standard deduction
2,000,000
Death benefits (R.A 4917)
150,000
The gross estate of H is:
a. P4,900,000
b. P5,000,000
c. P6,900,000
d. P4,500,000
P1.502A
b.
c.
d.
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71. The donors tax due on the December 25, 2012 for Mr.
& Mrs. are:
a. Mr. 9, 875; Mrs. P13, 500
b. Mr. 67, 500; Mrs. P67, 500
c. Mr. 9, 000; Mrs. P13, 500
d. Mr. 9, 000; Mrs. P67, 500
72. The donors tax due on the December 25, 2012 for
their Kumpare is:
a. P90, 000
c. P0
b. P6, 000
d. P30, 000
73. Matubo Corp. donated P100,000 for the purpose of
cementing a Barangay road where its factory is
located.
1st statement: The donation is exempt from donors
tax.
2nd statement: The corporation may claim a full
deduction for income tax purposes.
a. Both statements are incorrect
b. Only 1st statement is correct
c. Both statements are correct
d. Only 2nd statement is correct
74. A donor gave the following donations in year 2012
Jan. 24- Land located in the Philippines valued at
P2,000,000 to her uncle subject to the
condition that uncle will pay the donors
tax due and mortgage to which she
agreed to pay the mortgage amounting
to P500,000.
Nov.30-Building in US valued at P4,500,000 to her
sister. Donors tax paid in US was
P400,000.
The donors tax on the gift on Jan. 24 is:
a. P84,000
c. P450,000
b. P92,000
d. P480,000
75. The donors tax due on the Nov. 30 donation is:
a. P131,000
c. P47,000
b. P524,000
d. P124,000
VAT AND OPT
76. MY BABY Sales Corporation provided the following data
for the first quarter of 2012 first year as VAT registered
person:
Cash sales, total value
P336, 000
Open account sales
112,000
Consignment made
(Exclusive of VAT)
Jan. 1- P200, 000
Feb. 15- 150, 000
Purchased of capital goods,
VAT excluded
50,000
Purchased of materials, net of VAT
40,000
Value of inventory as of Jan .1 of the year
Purchased from VAT Registered Person
P240,000
Purchased from non-Vat Registered
Person
50,000
Purchased of VAT Exempt goods
10,000
VAT paid on the (above inventory)
4,000
Equipment purchased, March 2012
(useful life 10 yrs.)
P2M
The VAT due is:
a. P37, 000
c. P51, 400
b. P38, 000
d. P55,200
77. One of the following activities is not subject to VAT:
a. Movie house operators
b. Pawnshop
c. Drugstores
d. Parking lot operators
78. A building contractor provided the following data (all
figures are net of VAT)
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Amount
received
from
building
Advances received from
building
Amount
received
from
building (net of P200t
retention cost)
Receivable from building
Disbursement:
Services of Subcontractors
Materials for construction
Imported materials, landed
cost
Other general & operating
expenses
-1
P800, 000
-2
400, 000
-3
800, 000
-4
1,000,000
500,000
700,000
200,000
100,000
c. P93, 600
d. P69, 600
P4, 000,000
5, 000,000
6, 000,000
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c. P30,000
d. P36,000
c. P144,000
d. P 62,000
2,000,000
c. P 7,320
d. P13,400
REMEDIES
P1.502A
b.
c.
d.
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in
the
96. Barby filed her 2010 ITR and paid the tax shown
thereon on April 10, 2011. Upon investigation the BIR
found out a deficiency income tax of P20, 000. The tax
payer agreed with the said findings and on July 15 ,
2011, assessment notice was sent to her giving her up
to July 30, 2011, to pay the amount shown thereon
plus penalty and interest. Barby however failed to pay
the tax as well as the penalty and interest on the due
date. She was only able to pay on December 15, 2011.
The total correct amount of tax to be paid is:
a. P35,208
c. P28,438
b. P34,671
d. P34,667
97. Which statement is wrong? A revenue bill
a. Must originate from the House of Representatives
and on which same bill the Senate may propose
amendments.
b. May originate from the Senate and on which same
bill the House of Representatives may propose
amendments.
c. May have a house version and a senate version
approved separately and then consolidated with
both houses approving the consolidation version.
d. May be recommended by the President to
Congress.
98. Statement 1: The power of Commissioner of Internal
Revenue to recommend the promulgation of rules and
regulations by the Secretary of Finance may not be
delegated.
Statement 2: The power of Commissioner of Internal
Revenue to issue ruling of first impression or to
reverse, revoke, or modify any existing rules of the
Bureau of Internal Revenue may not be delegated.
a. Both are True
b. Both are False
c. First statement is True, second statement is False
d. First statement is False, second statement is True
99. Statement 1: The Commissioner of Internal Revenue
has authority to terminate the tax period of a taxpayer
who is retiring from a business subject to tax, or is
intending to leave the Philippines or to remove his
property or to hide or conceal his property, or to
perform an act tending to obstruct the collection of
taxes.
Statement 2: When a tax period is terminated, any
unpaid tax is due immediately.
a. First statement is True, second statement is False
b. First statement is False, second statement is True
c. Both are True
d. Both are False
100. Which of the following violations cannot be subjected
to compromise penalties?
a.
b.
c.
d.
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P1.502A
180,000
100,000
113.
If the taxpayer is a domestic corporation,
its income tax due is:
a. P306,000
c. P326,400
b. P357,000
d. P403,200
114.
If the taxpayer is a resident foreign
corporation, and it remitted 40% of its profit to
USA (Head Office) the total tax liability is:
a. P222,720
c. P238,032
b. P244,188
d. P251,117
115.
Taxpayer, individual, married with 3 minor
children, one is gainfully employed, has the
following transactions in 2012:
Sales
P2,000,000
Cost of sales
1,150,000
Operating expenses
560,000
Other transactions:
c.
Sale of office equipment held for 2 years:
Selling price
100,000
Cost
120,000
Accumulated depreciation
80,000
b. Sale of family van held for 4 years:
Selling price
300,000
Cost
210,000
c. Sale of family car held for 15 months:
Selling price
480,000
Cost
500,000
Taxpayer will report a taxable income of:
a. P335,000
c. P360,000
b. P325,000
d. P285,000
116.
RA-A-A
Corporation,
a
domestic
corporation now on its 5th year of operation
provided the following data:
Gross sales
P1,100,000
Sales returns and allowances
200,000
Cost of goods sold
300,000
Gain on sale of capital assets held
for 11 months
10,000
Loss on sale of capital assets held
for 20 months
5,000
Royalty income
50,000
Allowable business expenses
580,000
Income tax due is:
a. P8,800
b. P10,500
c. P12,000
d. 7,500
117.
On October 1, 2012, Dragon Girl Co.
leased a residential house for the use of one of its
executives, Mr. Kurukuru, a special alien
employee. The rent agreed upon was P170,000
per month. The FBT for the quarter is:
a. P54,400
c. P45,000
b. P524,000
d. P15,000
118.
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by the buyer
1,500,000
8/15/2012
10/20/2012
11/1 5/2012
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d.
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b.
c.
d.
132. The widow of your best friend has just been paid
P1,000.000 on account of the life insurance policy of
the deceased husband. She asks you whether she
should declare the amount for income tax purposes
or for estate tax purposes.
1st advice: The proceeds of life insurance paid to the
beneficiary upon the death of the insured are exempt
from income tax and need not be declared for
income tax purposes.
2nd advice: The proceeds of life insurance would
have to be declared for estate tax purposes if the
designation of the beneficiary was irrevocable,
otherwise it need not be declared.
a. Both advices are correct.
b. 1st advice correct; 2nd advice wrong;
c. Both advices are wrong.
d. 1st advice wrong, 2nd advice correct
133. Laila took out a life insurance policy for P500,000
naming her niece, Samantha, as beneficiary. Under
the terms of the policy, the insurer, Paramount
Insurance Corp., will pay Laila the amount of
P500,000 after the 25th year of the policy, and her
beneficiary, should she die before that date. Laila
outlived the policy and received the proceeds of
P500,000. The premiums paid on the policy were
P400,000. The proceeds from the life insurance
policy of Laila is:
a. exempt from income tax
b. taxable to the extent of P100,000
c. the entire proceeds is taxable
d. taxable to the extent of PI 00,000 less current
rate of interest
134.
Which of the following income of an
individual taxpayer is subject to final tax?
a. P10,000 prize in Manila won by a resident citizen.
b. Dividend received by a resident citizen from a
resident corporation.
c. Shares in the net income of a general professional
partnership received by a resident alien.
d. Dividend received by a non-resident alien from a
domestic corporation.
135.
1st Statement: If an estate is not the object
of judicial or intestate proceeding, an estate is not
the income taxpayer but the direct beneficiaries.
2nd Statement: If an estate is the object of judicial
or intestate proceeding, an estate emerges as
taxable person. The personal representative must file
an annual return for the estate up to final
settlement.
a. True, True
c. False, True
b. False, False
d. True, False
136.
One of the following is exempt from both
MCIT (Minimum Corporate Income Tax) and IAET
(Improperly Accumulated Earnings Tax)
a. Private Educational Institutions
b. International Carriers
c. Publicly held corporations
d. Corporations registered with EPZA or PEZA
137.
The accounting period of Corporation A is
.fiscal year ending on October 31. For the year 2010,
Corporation A filed its annual tax return on March 15,
2011. The last day for BIR to assess is on:
a. February 16, 2014
c. March 15, 2014
b. March 14, 2014
d. April 16, 2014
138.
Miramar's income tax for 2010 was
P75,000 as shown in her income tax return (ITR).
P1.502A
She filed her return only on July 15, 2012 and paid
the total amount upon filing the return. The total
amount payable if assuming she filed with the wrong
RDO is:
a.
P113,750
c. P108,750
b.
P131,250
d. P 97,500
P 300,000
450,000
1,500,000
100,000
145.
The community tax for individual is basic tax of
P5.00 plus:
a.
P1.00 for every P1,000 gross sales
b.
P1.00 for every P1,000 gross receipts
c.
P1.00 for every P1,000 net income
d.
P1.00 for every P1,000 gross income
250,000
50,000
150,000
75,000
1,000,000
200,000 a.
b.
The gross estate under conjugal partnership of gain is:
a. P2,600,000
b. P3,600,000
c. P1,950,000
d. P2,200,000
147.
The following entities or association are liable to
pay community tax, except:
a.
All domestic corporations
b. All foreign corporations engaged in business in
the Philippines.
c. All partnerships for profit.
d. All joint ventures engaged in energy operations
with the Philippine Government.
140.
Under the same problem, the gross estate
under absolute community of property is:
a. P2,600,000
b. P3,600,000
c. P1,950,000
d. P2,500,000
141-143
a.
b.
c. P 1,500,000
d. P 4,000,000
144.
The following individuals are liable to pay
community tax, except:
a. Every inhabitant of the Philippines who is at least
18 years old.
b. Anybody who has worked in the Phils. for at least
30 consecutive days.
c. Anybody who is engaged in business or practice
of profession.
d. Owners of real property with assessed value of
P10,000 or more.
139.
Mr. Jose, Filipino, married died leaving the
following estate:
41.
42.
a.
b.
In every challenge or undertaking, the important thing is you do your best, its up to God to do the rest.
- VICTOR
- end of preweek -
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P1.502A