TAX.M-1403 VALUE ADDED TAX Problem 1
Topline Company sold to Bestbooks Enterprises goods worth P 10 000, exclusive o tax! "ecord Topline the accounting entries in the sales book and in the purchase book i# 1! The buyer buyer and the the seller seller are sub$ect sub$ect to %& %&T! '! (eller is %& %&T registered registered,, while buyer is is not! )! (eller is no %& %&T registered, while buyer is %&T registered! &nswer#
(ales book 1! Cash* Cash* acco account untss recei receivabl vablee P 11 '00 (ales 10 000 +utput Tax Tax 1 '00 '! Cash* Cash* acco account untss recei receivabl vablee P 11 '00 (ales 10 000 +utput Tax Tax 1 '00 )! Cash* Cash* acco account untss recei receivabl vablee P 10 000 000 (ales 10 000
Purchase book Purchases P 10 000 nput tax 1 '00 Cash 11 '00 Purchases P 11,'00 Cash 11 '00 Purchases P 10 000 Cash 10 000
Problem 2
&ll amounts given are total invoice costs*prices# &, non-%& n on-%&T T taxpayer, sells to B, B , %&T %&T taxpayer
P 67 200 200
B, %&T taxpayer, sells to C, %&T taxpayer
100 .00
C, %&T taxpayer, sells to /, %&T taxpayer, an exporter
1. 000
/, %&T taxpayer, exports
)00 000
1! The The valu valuee-ad added ded tax tax o B# &! Payable o P ) 00 B! Payable o P 10 .00 '! Th Thee valu valuee-ad added ded tax tax o C# &! Payable o P 2 '00 B! Payable o P 2'0 )! Th Thee valu valuee-ad added ded tax tax o /# &! Payable o P 1. 000 B! "eundable o P 1. 000 Problem 3
C! Payable o P 10 0.0 /! Payable o P 1' 0 C! Payable o P . 03 /! "eundable o P 10 00 C! Payable o P ) 000 /! "eundable o P ) 000
4 and 5, husband and wie had the ollowing gross sales 6net o tax7 during the year# 5- restaurant owner P .00 000 4a! Proessional CP& b! 9edium si:ed store# (ale o oice*school supplies 1'0 000 (ale o books P '28 000
P )80 000 P1
3! 5hich 5hich o the the ollowi ollowing ng statem statement entss is true; true; &!
8! 5inery 5inery is a manuacture manuacturerr o wine! /uring /uring a particular particular calendar calendar =uarter =uarter,, it had the ollowing transactions 6net o %&T7# >an! 3, '01) # Consigned wine to a retailer in 9akati City amounting to P '00 000!
anuary 1, '01)# The ollowing are its records# ?ross sales- >anuary 1 to /ec! )1, '01' P ' 00 000 >anuary '01) data# >anuary 1 inventory# Purchased rom %&T registered persons
3. 000
%&T7
Purchased rom non-%&T registered persons &ctual %&T paid ))' 000 8 130 (ales 6total invoice amount7 ''3 000 Purchases 6exclusive o 0 000
! The %&T payable on >anuary '01) is &! P 11 0 C! P 1 300 B! P '00 /! @one Problem 6
&:ucarera de Papa is a processor o reined sugar! t purchases sugarcane rom armers or processing into intermediate stages until it becomes reined sugar! n a month, it had the ollowing sales and purchases, no tax included# (ales
P ..0 000 Purchases o sugarcane ''0 000 Purchases o containers and paper labels 100 000
2! The value-added tax payable is# C! P .3 .00 A. P 2 '00 B! P . '00 /! P '00 Problem 7
.! n a month, total invoice prices*costs# /omestic sales Export sales Purchases rom %&T-registered persons o# ?oods exported ?oods sold in the Philippines +perating expenses
P
2' 000 1 800 000 80 000 ''3 000 11' 000
The input taxes attributable to export sales which may be reunded or credited against other internal revenue taxes, including any value-added tax on domestic sales, is# A. P 0 000 B! P '3 000
C! P .3 000 /! P 000
Problem 8
! Bogart is an operator o parking lots! 5hat business tax is due on his income rom the business; C! CatererAs tax A. BrokerAs tax B! Common carrierAs tax /! %alue-added tax
Problem 9
(ale o services by a %&T-registered contractor# Collections on total invoice price or contracts completed 6including P 33. 000 or materials7 P 1 1'0 000 "eceivables on billings 6%&T included7 )) 000 &dvances on contracts 6%&T not included7 '00 000 "etentions on contracts made by clients out o contract price already earned 0 000 Purchases o# 9aterials 6%&T included7 (ervices o sub-contractor 6%&T not included7 (ervices o persons sub$ect to percentage taxes (alaries o employees
''3 000 33. 000 8 000 0 000
10! +utput taxes are# C! P 1)' 000 A. P 18. 300 B! P 133 000 /! P 183 000 11! The input taxes are# C! P 22 20 A. P 2 '00 B! P 2' 000 /! P .0 30 1'! The value-added tax payable is# C! P . 300 A. P 3 .00 B! P . 300 /! P '30 Problem 10
1)! esion is a lessor o real property and personal property 6cars7! The tax that he pays is# C! Transaction tax A. Excise tax B! %alue-added tax /! @one o these Problem 11
13! 5hich o the ollowing shall be sub$ect to 0 %&T; &! (ale o electricity by generation companies! B! (ale o electricity by transmission companies! C! (ale o electricity by distribution companies! /! (ale o power or uel generated through renewable sources o energy! Problem 12
>apayuki Corp! imported an article rom >apan! The invoice value o the ollowing article was P 1 000 000 Den 61 Den P0!807! the ollowing were incurred in connection with the importation# nsurance
P 18 000 10 000
Postage 5harage dues &rrastre charges Brokerage ee
8 000 2 000 . 000 '8 000 ) 000
The imported article was sub$ect to P 80 000 customs duty and P )0 000 excise tax! >apayuki Corp! spent P 8 000 or trucking rom the customs warehouse in Fue:on City! 18! The %&T on importation is# C! P 8 000 A. P 8 .00 B! P 2. 000 /! P 80 000 1! &ssuming that the imported article was sold or P 80 000, %&T exclusive, the %&T payable is# C! P )0 000 A. P ) 000 B! P ' '00 /! P 113 000 Problem 13
9! Porter is %&T-registered! mportations were or# &ny value-added tax not included! (ale +wn use nvoice cost 6Exchange rate is G1# P87 G .0 000 G 3 000 Expenses based on cost#
Problem 14 20. @/C&TE i the ollowing receipts rom lease o residential units are sub$ect to %&T or not#
Case
9onthly "ental
&ggregate &nnual "ental
1 ' ) 3 8
P 2 000 1' .00 800 1) 000 1) 000
P ' 00 000 1 300 000 1 380 000 1 1 800 ' 00 000
Taxable* @ot taxable @ot taxable @ot taxable @ot taxable @ot taxable Taxable
Problem 15
9iss /ivina %alencia, a bold actress, had the ollowing data or the =uarter ending >une )0, '01) 6amounts are exclusive o tax7# "eceipts rom talent ees P 1 000 000 ?ross receipts rom taxicabs 63 units7 800 000 Purchases o wardrobes used in ilms '00 000 Purchases o spare parts o taxicabs 100 000 Public relation services or image build-up as an actress .8 000 nsurance premiums or taxicabs 1 000 "ent o oice space used both or her occupation and taxicabs business, sub$ect to %&T 300 000 '1! The %&T payable by 9iss %alencia isC! P 8) .00 A. P )2 .00 B! P 631 8'07 /! P 1. 3.0 Problem 16
(osyal is a %at-registered taxpayer! The ollowing data rom the books o accounts were transactions or each o the months o >anuary,
>anuary P 330 000
110 000 '0 000
0 000 )0 000 80 000
9arch P 220 000
))0 000 18 000
''! The value-added tax payable at the end o >anuary is# C! P )0 000 A. P )) 000 B! P ) 00 /! P 8' .00 ')! The value-added tax payable 6reundable7 at the end o
'! The ollowing irst =uarter data pertain to a value-added taxpayer whose purchases were all rom value-added taxpayers# +utput taxes, >anuary nput taxes, >anuary +utput taxes,
P 1)' 000 '30 000 )3. 000 133 000 ) )0 000 1 38 000
C! P '03 000 /! P '0 300
Problem 18
& %&T registered business has the ollowing transactions# (ales o good to private entities, net o 1' %&T P ' 800 000 Purchases o goods sold to private entities, gross o 1' %&T . 000 (ales to a ?+CC, net o 1' %&T 1 000 000 Purchases o goods sold to ?+CC, net o 1' %&T 200 000 27. 4ow much is the withholding %&T; C! P 80 000 A. P 1'0 000 B! P 20 000 /! none o the above '.! 5hat is the treatment o the excess actual input %&T attributable to sales to ?+CC; C! income A. nput tax credit B! Expense or cost /! none o the above '! 4ow much is the %&T payable; C! P 1'0 000 A. P '33 000 B! P '03 000 /! none o the above Problem 19
(ales, net o %&T Purchases o goods or sale, exclusive o %&T Purchases o machines 6%&T not included7 9achine lie
Case & 1 00 000 1 '0 000 1 330 000 years
Case B ' .00 000 1 00 000 00 000 ) years
)0! The %&T payable in Case &# C! P 23 300 A. P 2 .00 B! P 2. '0 /! P 183 0.0 )1! The %&T payable in Case B# C! P 13' '00 A. P ) 000 B! P 131 000 /! P )00 000 )'! The %&T payable in Case & i the lie o the machine is 3 years only# C! P 2) '00 A. P 2) '0 B! P 183 .00 /! P 23 300
MULTIPLE C!ICE "UE#TI!$#
1! The ollowing are ma$or internal revenue business taxes in the @"C o 12, except one# C! %alue-added tax A. ncome tax B! Excise tax /! Percentage tax '! &lamid imported cigarettes rom Taiwan or sale! &t a later date, he sold cigarettes in the Philippines! 4e is sub$ect to value-added tax! 4e is also sub$ect to the business tax o# C! Percentage tax A. Excise tax B! ncome tax /! @one o these )! Burgos is manuacturer o ermented li=uors! n making sales, all taxes on the products and transactions are passed on to the buyers!
B! (hould be paid by the non-tax-exempt purchaser to whom the tax-exempt importer sells it! C! s a liability either o the tax-exempt importer or the non-tax-exempt purchaser! /! (hall not pay the value-added tax because the transaction was exempt at the point o importation! 2! The value-added tax o ?encor Co!, beore any tax credits, is# C! P 12) )00 A. P '10 0 B! P 128 .00 /! P '02 0 .! The business tax o
&! Both statements are correct B! Both statements are wrong C! The irst statement is correct but the second statement is wrong /! The irst statement is wrong but the second statement is correct 13! 5hich statement is correct; &! The sales invoice that shows a total, with an indication that it includes the valueadded tax even i 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 is a properly prepared invoice! C! &n invoice which shows the selling price and the value-added tax separately, which is paid by the buyer, is violative o the revenue regulations on issuance o sales invoice! /! & sales invoice by a %&T taxpayer can be used only on a %&T sale! 18! (1# in the books o accounts o a %&T-registered taxpayer, sales are recorded net o output taxes! ('# in the books o accounts o a %&T-registered taxpayer, purchases are recorded net o input taxes! &! Both statements are correct B! Both statements are wrong C! The irst statement is correct but the second statement is wrong /! The irst statement is wrong but the second statement is correct 1! 5hich o the ollowing are not account titles with balances in the books o accounts o a %&T taxpayer; C! Excess input taxes carry-over A. +utput taxes B! nput taxes /! %&T payable 12! Taku:a, a >apanese residing in the Philippine, bought garments rom 4alili Corp!, a domestic corporation, and exported the same to >apan! Total value o export is P 100 000! The output %&T due on the transaction is# &! P 1' 000 B! P 10 000 C! @one, because 0 applies /! @one, because the sale is exempt rom %&T 1.! The allowable transitional input tax is# &! The lower between ' o the value o beginning inventory or actual %&T paid on such inventory! B! The higher between ' o the value o beginning inventory or actual %&T paid on such inventory! C! The actual %&T paid on the beginning inventory! /! ' o the value o beginning inventory! 1! 5hich statement is wrong; &! There is a transitional input tax on sales o goods or properties! B! There is a transitional input tax on sales o services! C! There is a presumptive input tax on sales o goods or properties! /! There is a presumptive input tax on sales o services!
'0! larde, a %&T taxpayer, on >anuary 1, '01), made the ollowing purchases rom %&T sellers, or use in his business! The amounts stated below are not inclusive o value-added taxes# 9achine 1, with a useul lie o '0 years 9achine ', with a useul lie o ) years Patent, with useulness o 10 months
P ) 000 000 1 .00 000 00 000
The input taxes rom the purchases, available to larde, or the month o >anuary, '01)# &! P 1 '00 C! P 2 800 C! P 20 000 /! P .3 000 '1! & %&T-registered supplier sold goods amounting to P 800 000 gross selling price to a government-controlled corporation during a particular =uarter! 5hich o the ollowing statements is incorrect in relation to the sale o goods; &! The sale is sub$ect to withholding o inal %&T! B! The government-controlled corporation will withhold P '8 000 inal %&T! C! The government-controlled corporation shall remit withholding %&T to the B" within 10 days ollowing the end o the month the withholding was made! /! The %&T-registered supplier may reuse the withholding o %&T as long as it is willing to pay the ull 1' %&T! ''! Lorro had the ollowing data arising out o sales and purchases in >anuary, '01)# +utput taxes on sales nput taxes on purchases o goods sold nput taxes on machine bought with a useul lie o 1' years
P '30 000 '). '00 1.0 000
The value-added tax payable or the month# &! P 0 C! P 2' 000 B! P 1 .00 /! P 0 000 ')! Mitkat, a %&T taxpayer, had the ollowing data or the irst ) months o taxable ye ar '01)# /ata or the months >anuary anuary 8, '01), (marty Co!, %&T-registered, sold on account goods or P 11' 000 to ?lobal Corp! The term was '*10, n*)0! Payment was made on >anuary 10, '01)! The total amount due is!
&! P 11' 000 B! P . 000
C! P 10 20 /! P 100 000
tems '3-'8 &ter recogni:ing the value-added tax payable or the month o /ecember '01', the books o accounts o Colors, a merchandising company, showed a debit balance in the input taxes account o P 1' 000! (ales and purchases at total invoice prices*costs or >anuary '01) were# (ales (ales return and allowances (ales discount Purchases o# ?oods or sale, rom %&T-registered persons ?oods or sale, rom non-%&T registered persons (ervices, rom %&T-registered persons E=uipment 6lie o 10 years7 rom %&T-registered person mportation o goods or sale# nvoice cost, country o origin
P . 000 8 000 '' 300 ''3 000 8 000 '1 '.0 11' 000 '0 000 800 '00 00 100 )00 '80 )0 000
'8! The value-added tax on the importation is# &! P ' 120 C! ' )3 B! P '03 /! P ')3 '! The value-added tax payable or >anuary '011 is# &! P )3 21 C! P 30 21 B! P 31 180 /! P 3 21 '2! & %&T-registered stockbroker 6not dealer in securities7 who owns shares o stock as investments had the ollowing selected data on gross receipts, costs and expenses 6valueadded taxes not included7, or >anuary '01)# Commissions received rom buyers Commissions received rom sellers (elling price o shares o stock traded in the (E# &BC Company NDL Company Cost o the shares sold# &BC Company
P '00 000 )00 000
300 000 00 000 )00 000
NDL Company
800 000
Cost o supplies used in the brokerage business paid to %&T-taxpayers amounted to P )) 00, value-added tax included! (alaries o employees amounted to P 2 '00! The valueadded tax payable and the other percentage tax due or the month are# %&T payable Percentage tax due %&T payable Percentage tax due &! P 3 30 P 10 000 C! P 8' .00 P 30 000 B! P 3 '00 P '0 000 /! P 8 300 P 8 000 '.! & %&T- registered public works contractor has the ollowing data on services rendered to the government in the Philippines or the 1st =uarter o '01)# Contract price on government contracts Collections rom private sector clients Collections on government contracts Purchases or services o a %&T-registered subcontractor 6used in government contracts7 Purchases 6used in private sector and government contracts7 The tax payable or the =uarter# &! P 80 000 B! P 120 000
P ) 000 000 ' 000 000 1 000 000 300 000 )00 000
C! P 1'0 000 /! @one
TAX.M-1404 !TE% PE%CE$TA&E TAX
F1# 5hich o the ollowing statements is incorrect; &! B! C! /!
The percentage tax is basically on sale o services! The percentage tax may be imposed on a sale o goods! The percentage tax may be imposed together with the value-added tax! The percentage tax may be imposed together with excise tax!
F'# 1! '! )! 3! 8! !
BO(@E(( Barbershop "estaurant /epartment store odging house "ice retailer
%&T "E?(T"&T+@ %&T registered @ot %&T registered %&T registered @ot %&T registered @ot %&T registered @ot %&T registered
5hich o the above establishments are not sub$ect to %&T; &! ', 3 and 8 B! ' and only
C! 1, ' and 8 /! ', 8 and
&@@O& (&E( P .00 000 .00 000 ' 200 000 ' .00 000 ' 80 000 ' 800 000
F)# Che-che is a CP&! The ollowing are her data during the period 6amounts are net o tax7# (alary as accounting teacher and reviewer 9otel business 6amounts are exclusive o tax7# ?ross receipts rom business 6%&T registered7 /iscounts Purchases#
P '0 000 '80 000 '8 000 '. 000 '2 800 '8 000 32 800 '1 '00 1. 000 '3 000
1! The %&T payable is&! P ' 30 C! P ) 3.0 B! ) )) /! '1 .30 '! The percentage tax payable is&! P ''8 C! P '01 B! 1 3'8 /! .1 F3# Trucseabus Company, 9anila based, had the ollowing receipts during the month# Bus 6receipts rom cargo senders, P 11 3807 6total pass 387 To be received on reight collect conditions (alaries o drivers and conductors Cost o oil and gasoline Taxi >eepney Cargo truck (ea vessel, 9% olo Bogg 6carriage o cargo )87
P 100 000 3 )'0 '8 000 )0 000 30 000 10 000 20 000 300 000
/uring the month, one o the units o &ccident Company bumped the taxi and paid Trucseabus Company P 18 000 or the damages done! The percentage tax due is&! P 3 0'! B! 3 81)!8
C! P 3 81!8 /! !.1
F8# ove Bus Transport Company, 9onumento-Baclaran, operates ten 6107 units o buses with a capacity o 80 passengers! /uring the month, it had the ollowing data in its books# "eceipts rom passengers "eceipts rom cargoes Expenses or repair o transport units 6%&T7 (alaries o personnel Purchase o spare parts "egistration with T+ Premiums on insurance per unit
P ' 000 000 800 000 )0 000 )00 000 0 000 10 000 18 000
1! 4ow much is the percentage tax payable; &! P 0 000 C! P 0 380 B! 3. 280 /! 28 000 '! 4ow much is the %&T payable; &! P 32 300 C! P )1 '00 B! 3 '00 /! 83 '30 F# & common carrier by land is engaged in the transport o passengers, goods and cargoes! 4e is not %&T-registered! 5hat business taxes is he liable to the government; &! 1' %&T B! ) common carrierAs tax C! ) tax on %&T-exempt persons on gross receipts rom transport o goods and cargoes and ) common carrierAs tax on gross receipts rom transport o passengers! /! 1' %&T on gross receipts rom transport o goods and cargoes and ) common carrierAs tax on gross receipts rom transport o passengers! F2# &n international carrier is sub$ect to the ollowing tax&! B! C! /!
1' value-added tax and ordinary income tax on gross receipts within the Philippines! 0 %&T and '!8 income tax on gross receipts within the Philippines! ) other percentage tax on gross receipts ) other percentage tax on gross receipts and ordinary income tax on gross income!
F.# The (ocsksargen ?roup o Companies is engaged in dierent lines o business in region N! (oc Corporation 6not %&T registered7 is engaged in the business o radio and television broadcasting! Msar Corporation is a ranchisee to supply water in the whole province o (ultan Mudarat and ?en Corporation has a ranchise to generate and distribute electricity in the entire area covered by ?eneral (antos City! /uring the month, it had the ollowing receipts# (ocs Corporation Msar Corporation ?en Corporation
P )0 000 3 .00 000 . '80 000
4ow much is the total ranchise tax on (ocsksargen ?roup o Companies; &! P 10 .00 B! 128 .00
C! P )38 800 /! 000
F# 9alansa Company is a holder o a ranchise to sell water! /uring the month, it had the ollowing data# ?ross receipts rom the sale o water to the public Penalties imposed and collected on illegal connections "ent o its heavy e=uipment to a private subdivision developer (ale o scrap materials
P ) 000 000 180 000 80 000 '0 000
The ranchise tax is&! P 1 300 B! 0 300
C! P 0 000 /! 1 000
F10# /DDD is a ranchisee to operate a radio station! The data in its books are as ollows# ?ross receipts last year ?ross receipts during the month Payment to %&T suppliers o goods and services Payment to non-%&T suppliers o goods and services
P . 000 000 200 000 )00 000 '0 000
The business tax payable i it is not %&T-registered*%&T registered# @ot %&T-registered &! P '1 000 B! '1 000 C! '1 000 /! '1 000
%&T-registered P 3. 000 '3 000 3. 000 '3 000
F11# & telephone company, %at-registered, provides services or domestic and overseas calls! 5hat business taxes will be due rom the services oered; &! B! C! /!
%&T on both services +verseas communications tax on both services %&T on domestic calls and overseas communications tax on overseas calls!
F1'# 5hich o the ollowing percentage taxes is not payable on or beore the '0th day ater the close o the month; &!
C! common carrierAs tax /! tax on lie insurance
F1)# the Bayani Telephone Company, a ranchisee to operate a landline telephone, billed Telly Babad the ollowing# &mount collected on calls# ncoming calls 68 toll charges billed to local receiver7 +utgoing overseas calls /omestic long-distance calls 9onthly bills on subscribers
P 3 )00 )80 1 '00 8'8
The overseas communication tax on Telly Babad is&! P 1 '.0!00 B! 1 38'!80
C! P .80!00 /! .21!80
F13#
Cash collections Checks &ccounts receivable Payments o expenses to %&T businesses Payments o expenses to non-%&T businesses
@on-lie insurance P 138 200 )3 00 8. 00 3) 000 )8 000
The amounts indicated pertaining to %&T transactions do not include the value-added tax! 1! The premium tax due is&! P 11 010 B! 13 2.8 '! The %&T payable is&! P 12 3.3 B! 1' )'3
C! P 280 /! ) 00 C! P 1 32 /! 1' '2
F18# & domestic insurance company gave the ollowing inormation or the month#
?ross receipts rom its insurance policies# Premium on lie insurance Premium on non-lie insurance ?ross receipts as agent o a oreign insurance company# Premium on non-lie insurance Premium on property insurance
P ' 100 000 1 800 000 3 000 000 1 000 000
Percentage tax due or the month is&! P )88 000 B! 83' 000
C! P 08 000 /! 210 000
F1# The PB& is a proessional basketball organi:ation which holds the games in the Big /ome! n 9ay o the current year, it had the ollowing gross receipts#
P ' 000 000 1 000 000 180 000 800 000 28 000 38 000
/uring the month, it was leased to a private group o persons who sponsored an international derby inside the Big /ome! The gross receipts amounted to P ' 800 000! t also hosted the O&&P %olleyball Championship between &teneo ady Eagles and /e a (alle ady &rchers! ?ross receipts rom the gates amounted to P '80 000! The total amusement tax due is&! P 88. 280 B! )) 280
C! P 1 00. 280 /! 1 03 '80
F12# Carlos supplies oods and drinks in Peacock which is operated by a riend, "udy! tAs gross sales 6per invoice7 during the month amounted to P '80 000 and his purchases rom %&T suppliers amounted to P 1.8 000! The gross receipts o "udy or the month was P 3'8 000! The amusement tax due is&! P 2 800 B! 38 000
C! P 1'1 800 /! .. '00
F1.# Boxing exhibitions shall be exempt rom amusement tax when the ollowing conditions are present# 1- nvolves 5orld, +riental or Philippine Championships in any division! '- Both o the contenders are citi:ens o the Philippines! )- Promoted by citi:ens o the Philippines, or association at 0 o the capital is owned by
P 300 000 80 000 )00 000 10 000
1! The business tax i a domestic common carrier by land or the transport o passengers# &! P 1' 000 C! P 10 .00 B! 000 /! '' .00 '! The business tax i a night club# &! P 83 000 C! 2' 000 B! 3 .00 /! 1) .00 )! The business tax i a race track# &! P 1'0 000 C! P 0 000 B! ''. 000 /! 10. 000 F'0# & horseracing aicionado has the ollowing winnings during a particular race day# Total winnings Cost o winning tickets
P 10 000 800
The tax on winnings is# &! P 1 000 B! 300
C! P 80 /! ).0
F'1# & corporation where at least ity percent 6807 in value o the outstanding capital stock or at least ity 6807 o the total combined voting power o all classes o stock entitled to vote is owned directly or indirectly by or or not more than twenty 6'07 individuals!
&! B!
Closely held corporation Publicly held corporation
C!
F''# Dveth sold the ollowing shares o stocks o a domestic corporations, thru her broker!
(tocks o & Corporation (tocks o B Corporation
Cost P 100 000 )80 000
(elling Price P 1.0 000 )'0 000
/ate o (ale 10-0)-1' 10-'0-1'
The total percentage tax i the stocks are# isted traded @ot listed traded &! B! C! /!
P ' 800 ' '80 ' 800 ' '80
P . 000 8 000 @one . 000
F')# 5ho is the taxpayer as ar as the initial public oering in the local stock exchange o closely held corporations is concerned; &! B! C! /!
The purchaser o shares o stock oered in the P+ The corporate issuer The corporate purchaser The local stock exchange
F'3# &BC Corporation, closely held corporation, has an authori:ed capital stock o 100 000 shares with a par value o P 1!00 per share as o >anuary 1, '01)# '8 000 thereo is subscribed and paid up by the ollowing stockholders# &ndi P 8 000 Bianca 8 000 Carla 8 000 /iana 8 000 Enciang 8 000 Total shares outstanding 25 000 &BC Corporation inally decides to conduct an P+ and initially oers '8 000 o its unissued shares to the investing public at P1!'8 per share! &ter the P+ in 9arch '01), &BC CorporationAs total issued shares increased rom '8 000 to 80 000 shares! &t the P+, &ndi has likewise decided to sell her entire 8 000 shares to the public at P 1!80 per share! Thus, 8 000 shares have been oered in the primary oering and 8 000 shares in the secondary oering! 1! 4ow much is the percentage tax on &BC CorporationAs newly issued shares;
&! P )28 C! 280 B! 1 800 /! )!28 '! 4ow much is the percentage tax on the secondary oering o &ndiAs shares &! P ) 000 C! )00 B! 28 /! @one )! in >une '01), &BC Corporation again decides to increase capitali:ation by oering another )00 000 o unissued shares to the public at P '*share, such ollow-through shall be sub$ect exempt rom&! Percentage tax and documentary stamp tax B! /ocumentary stamp tax but not percentage tax C! Percentage tax but not documentary stamp tax /! @either percentage tax nor documentary stamp tax 3! n case /iana decides to oer her existing 8 000 shares to the public subse=uent to P+ at P '*share, the percentage tax shall be&! P '8 C! )00 B! 80 /! 1 000 F'8# 9analo, a dealer in securities, sold P 1 800 000 6tax included7 worth o shares it held as inventory to "omulo! The shares sold were ac=uired or P 1 000 000 6tax excluded7 and were listed and traded in the local stock exchange! The tax due on the sale is# &! @one B! P 2 800 percentage tax
C! P 38 000 /! 0 000 value-added tax
F'# &BC Bank has the ollowing income*loss or the ollowing months# 9arch &pril nterest income with maturity o less than 8 years P 80 000 P 100 000 "entals 80 000 80 000 @et trading gain*loss 610 0007 '0 000 The gross receipts tax or the months o 9arch and &pril, respectively# &! 8 000K . 800 B! 000K 00
C! 000K '00 /! 8 )00K '00
F'2# Banco /eposito had the ollowing data or the irst month o the current year# nterest, commissions and discounts rom lending activities 6remaining maturity o instrument is 8 years7 ncome rom inancial leasing 6remaining maturity o instrument is more than 8 years7 /ividends and e=uity shares in net income o subsidiaries "entals o properties @et trading gains within the taxable year on oreign currency 4ow much is the gross receipts tax;
P 8 000 000 ) 000 000 1 000 000 800 000 )00 000
&! P ). 000 B! '80 000
C! )) 000 /! )' 000
MULTIPLE C'!ICE "UE#TI!$#
1! 5hich o the ollowing statements in incorrect; &! & taxpayer whose annual gross sales and*or receipts exceed P 1 1 800 shall pay %&T even i he is not %&T-registered! B! & taxpayer whose annual gross sales and*or receipts do not exceed P 1 1 800 but who is %&T-registered shall pay %&T! C! Percentage tax may be imposed together with %&T! /! Percentage tax may be imposed together with excise tax! '! First statement: Persons whose transactions are exempt rom value-added tax because their gross sales and*or receipts do not exceed P 1 1 800 may voluntarily apply or registration under the %&T system! Second statement: & %&T-registered person whose gross sales and*or receipts or two 6'7 consecutive years did not exceed P 1 1 800 may apply or cancellation o %&T registration and revert back to being %&T-exempt! &! Both statements are correct C! only the irst statement is correct B! Both statements are incorrect /! only the second statement is correct )! & seller o goods is not %&T-registered! 4is annual gross sales amount to P 1 1 800! To what business tax is he liable; &! ) tax on %&T-exempt persons C! ) common carrierAs tax B! 1' value-added tax /! not sub$ect to any percentage tax 3! 9arino is an owner o a small variety store! 4is gross sales in any one year do not exceed P 1 1 800! 4e is not %&T-registered! The ollowing sata are taken rom the books o the variety store or the =uarter ending 9arch )1, '01)# 9erchandise inventory, /ec! )1, '01' P 10 000 ?ross sales 38 000 Purchases rom %&T-registered supplier ). 800 The percentage tax due is# &! P 1 000 B! 1 )80
C! 3 800 /! none
I(em) 5 *+, 6 *re b*)e, o+ (e ollo/+ +orm*(o+
n the second =uarter o '01), a taxpayer engaged in the sale o services and whole annual gross receipts do not exceed P 1 1 800 has the ollowing data# &ccounts receivable, beginning o the =uarter (ales during the =uarter &ccounts receivable, end o =uarter
P 80 000 100 000 28 000
Purchase o supplies, total invoice amount
11
'00 8! The percentage tax due or the =uarter is# &! P ' '80 C! P 1 13 B! ) 000 /! ' 3 ! &ssuming the taxpayer is %&T-registered, the %&T payable is# &! P ' '80 C! 2 8 B! 000 /! 2 .00 2! 5hich o the ollowing ranchise grantees is sub$ect to the ranchise tax; &!
&! Both statements are correct C! only the irst statement is correct C! Both statements are incorrect /! only the second statement is correct 13! Chavit, a
'1!
(econd statement# The ) common carrierAs tax is based on the actual =uarterly gross receipts or minimum =uarterly receipts whichever is lower! &! Both statements are correct C! only the irst statement is correct B! Both statements are incorrect /! only the second statement is correct '! (aludo is an operator o a leet o taxis in 9etro 9anila! (ince he operates under the Iboundary systemJ, the actual payments to him by the taxi drivers o the IboundaryJ was P 180 000! @o oicial receipts are issued by the taxi drivers! /rivers causing damage to the taxi units paid (aludo P 10 000 or the =uarter! The value-added tax or percentage tax due rom (aludo is# &! P 3 .00 percentage tax C! P 1. 000 value-added tax B! P 3 800 percentage tax /! P 1 '00 value-added tax )0! +ne o the ollowing stataments is wrong! +perators o transport acilities by land are# &! (ub$ect to the value-added tax on gross receipts rom transporting passengers! B! (ub$ect to the value-added tax on gross receipts rom transporting goods and cargoes! C! (ub$ect to percentage tax on gross receipts rom transporting passengers! /! (ub$ect to the value-added tax on gross receipts rom renting out its transporting acilities! I(em) 31 *+, 32 *re b*)e, o+ (e ollo/+ +orm*(o+ (aulod is a common carrier with passenger buses and cargo trucks! une '01), it had the ollowing data on revenues and receipts, taxes not included#
/! ust like value-added tax, percentage taxes are paid on a =uarterly 6cumulative7 basis! (econd statement# ?enerally, every person liable to pay the percentage taxes shall ile a monthly return within '0 days ater the end o each taxable month! &! Both statements are correct B! Both statements are incorrect
C! only the irst statement is correct /! only the second statement is
correct 30!
B! The stockbroker collects and remits the tax within 8 banking days rom the date o collection! C! The purchaser collects and remits the tax within8 days ater the end o the =uarter, iscal or calendar! /! The local stock exchange collects and remits the tax within 8 banking days rom the date o collection! 3'! 5hich o the ollowing percentage taxes are paid on a =uarterly basis; ! +verseas communications tax ! Taxes on winnings ! &musement tax %! (tock transactions tax &! &ll o the above C! and % only B! and only /! only 3)! &ny person retiring rom a business sub$ect to percentage tax shall notiy the nearest internal revenue oicer, ile his return and pay the tax due theron within h ow many days ater closing his business; &! 10 days C! '0 days B! 18 days /! )0 days 33!
