Professional Documents
Culture Documents
TAXATION
Final Pre board Examination
1.
Joe an official of ABS Corporation asked for an earlier retirement because he was emigrating to Canada, he was paid
P3M separation pay in recognition of his valuable services to the corporation plus P100,000 13th month pay and P20,000
xmas bonus, Gani another official was separated due to retrenchment. He was given P1M separation pay plus P150,000
unpaid salaries. Raul was separated for violating company rules but was given P500,000 separation pay. Anson opted to
retire at 55 years old after working for 10 years in the same company. He received P1M. All of the foregoing are not
covered by BIR approved Retirement Plan except for Anson. The total income subject to withholding tax on the above
payment is:
a.
P 2,540,000
c. P 3,400,000
b.
P 3,540,000
d. P 3,735,000
A building contractor provided the following data (all figures are net of VAT)
Amount received from Building 1
P 1,800,000
Advances received from Building 2
400,000
Amount received from Building 3 (net of P400T retention cost)
800,000
Receivable from Building 4
1,000,000
Disbursements:
Services of contractors
500,000
Materials for construction
700,000
Imported material, landed cost
200,000
Other general and operating expenses
100,000
Note: The imported material was also subjected to P20,000 excise taxes.
2. The VAT due is:
a.
P58,000
c. P117,600
b.
P120,000
d. P237,600
Batman Trans, is a common carrier by land. During a particular quarter its receipts consist of the following: (Figures are net of
any business taxes)
Transport of passengers
P 5,000,000
Transport of goods
5,000,000
Transport of cargoes
6,000,000
3. The total business taxes payable is:
a.
P1, 500,000
c. P1,800,000
b.
P1,920,000
d. P1,470,000
Roberto, Filipino, single, has the following transactions in 2012:
Business gross income
P200,000
Business expenses
60,000
Wagering gains
10,000
Wagering losses
5,000
Selling price, partnership interest
100,000
Investment in partnership in 2000
20,000
Gain on sale of capital asset held for 4 years
10,000
Loss on sale of capital asset held for 8 months
12,000
Loss on account of failure to exercise 2 month option to buy property
2,000
Liquidating dividend from Z Co.
150,000
Cost of investment in Z Co. in 2000
60,000
Note: In 2011, Roberto had a net income of P65,000 and a net capital loss of P92,000.
4.
P2,400,000
600,000
1,350,000
150,000
90,000
10.
8/15/2012
10/20/2012
8,000
11/1 5/2012
100,000
5,000
P413.000
12. The total exemption or deductions from the total gross gift is:
a.
P120,000
c. P218,000
b.
P118,000
d. P300,000
13. The gift tax payable on 11/15/2012 donation is:
a.
P1,900
c. P1,800
b.
P800
d. P100
Questions 14 and 15 are based on the following information:
Donor made the following donations:
Jan. 24 - Land located in the Philippines valued at P2,000,000 to her uncle subject tothe condition that uncle will pay the
donors tax due and mortgage to which her uncle agreed and pay the mortgage amounting to P500,000.
Nov. 30- Building in USA valued at P4,500,000 to her sister. Donors tax paid in USA was P400,000.
14. The donors tax due on the gift on Jan. 24 is:
a.
P84,000
c. P450,000
b.
P92,000
d. P480,000
15. The donors tax due on November 30 donation is:
a.
P131,000
c. P47,000
b.
P524,000
d. P124,000
Sam and Piolo are partners who provided the following data about their partnership and their own data in their separate
businesses.
Partnership
Sam
Piolo
Gross income
P2,000,000
P1,000,000
P500,000
Deductions
500,000
300,000
100,000
P&L ratio
4:6
Status
Single
Married
Drawing account
P200,000
P 100,000
P100,000
Other income (salaries)
0
200,000
300,000
16. The taxable income of Sam if the partnership is a General Professional Partnership and he opted to claim OSD is:
a.
P1,400,000
c. P1,350,000
b.
P1,380,000
d. P1,450,000
17. 1st Case: Mr. Ong sold his 5 - door apartment for P10,000,000. The monthly rental per unit is P20,000. This sale is
subject to capital gains tax.
2nd Case: Mr. Ocampo bought a lot for P2,000,000 which he intended to be used as family home. After 5 years, he
abandoned his plan and sold it for P3,000,000. This sale is subject to capital gains tax.
28.
e.
f.
a.
b.
P113,750
P131,250
c. P108,750
d. P97,500
g.
h.
a.
b.
a.
b.
On January 1, 2008, lessor leased a lot with a building thereon for a period of 10 years. It was agreed that the
lessee will pay the following:
a) Rent of P120,000 per year
b) Fire Insurance premium in the building of P16,000 per year
c) Real property tax as of P10,000/yr
i.
Lessee will also construct a warehouse on the lad at a cost P3,600,000 with a useful life of 10 years completed
on June 30, 2010, which shall belong to the lessor at the end of the lease.
j.
34. The lessor shall report for year 2010, as income from lease the total amount of:
k.
a.
P336,000
c. P326,000
l.
b.
P206,000
d. P1,296,000
35. Mr. X filed his ITR on April 15, 2010. He received an assessment from BIR on June 30, 2012, which was duly protested
within the period allowed. If the protest above was denied by the BIR Commissioner and he received the said decision on
August 31, 2012, his remedy is:
a. Appeal to the Court of Tax Appeals on or before September 30, 2012.
b. Appeal to the Court of Tax Appeals on or before September 15, 2013.
c. Appeal to the Office of the President on or before September 30, 2012.
d. Appeal to the Finance Secretary on or before September 30, 2012.
m. A tax payer provided the following data
n.
Sales
P 24M
o.
Sales returns & discounts
P 4M
p.
COGS
P 8M
q.
Operating expenses
P 4M
r.
Other income: rent
P 1M
s.
Royalty income
P 1M
t.
36. Using Optional Standard Deduction, the taxable net income if the taxpayer is a corporation is _______________.
P 7,200,000.00
c. P 7,800,000.00
P 11,700,000.00
d. P 8,200,000.00
37. Based on the same data above, using OSD, the taxable net income if the taxpayer is individual, married w/5 minor
children is ____________________.
P 11,800.00
c. P 7,200.00
P 10,100.00
d. P 11,250.00
u. Mr. Juan provided the following data:
v.
Salaries
w.
P9
x.
y.
30
z.
aa.
ab.
30
ac.
ad.
10
ae.
af.
20
ag.
ah.
The salaries are net of P100,000 withholding tax but gross of P40,000 SSS, union dues & Pag-ibig
contributions. Mr. Juan is married with 5 minor children.
ai.
38. The Taxable Net Income is:
a. P360,000
c. P720,000
b. P660,000
d. P905,000
aj. H and W married on June 6, 1980 without a marriage settlement. H died on August 20, 2010. The estate
reported the following assets and deductions of H and W.
al.
ak. Conjugal Properties of H and W:
am.
Fishpond, Dagupan
an. P
1,
5
0
0,
0
0
0
ao.
Apartment houses, Makati
ap. 1,
5
0
0,
0
0
aq.
Cash in bank
as.
Family house
au.
aw. Exclusive Properties of H:
ay.
Land, inherited from father who died on August 20, 2006. Value of
land when inherited was P210,000. The land has a mortgage of P30,000 when
inherited of which P10,000 was paid by H before he died
be.
Land, donated on February 14, 2007 by his mother who died on
November 2, 2008. Value of land when donated was P500,000
bm.
bo.
bu.
bi.
bk. Exclusive Properties of W:
Farm in Davao acquired before marriage
Family lot
bq.
bs. Deductions claimed:
Funeral expenses
bw.
bz.
cc.
ce.
0
ar. 1
0
0,
0
0
0
at. 6
5
0,
0
0
0
av.
ax.
az.
ba.
bb.
bc.
bd. 4
0
0,
0
0
0
bf.
bg.
bh. 6
0
0,
0
0
0
bj.
bl.
bn. 2,
0
0
0,
0
0
0
bp. 3
5
0,
0
0
0
br.
bt.
bv. 2
5
0,
0
0
0
bx.
by. 8
0,
0
0
0
ca.
cb. 1
0
0,
0
0
0
cd. 3
0,
0
0
0
cf. 1
4
0,
0
cg.
ci.
Standard deduction
ck.
cm.
0
0
ch. 1
2
0,
0
0
0
cj. 2,
0
0
0,
0
0
0
cl. 1
5
0,
0
0
0
cn. 6
0
0,
0
0
0
co.
39. The gross estate of H is:
a. P4,900,000
c. P6,900,000
b. P4,500,000
d. P5,000,000
40. The total deduction, chargeable against the conjugal properties is:
cp.
a.
P564,000
c. P380,000
cq.
b.
P430,000
d. P530,000
41. The total deduction including the vanishing deduction, chargeable against the exclusive properties of H is:
cr.
a.
P73,600
c. P277,600
42.
44.
cs.
b.
P93,600
The taxable net estate is:
ct.
a.
P1,307,400
d. P80,000
c. P2,067,400
cu.
b.
P982,400
d. P1,067,400
43. Which is not a constitutional limitation?
a. Non-infringement of religious freedom in taxation
b. Non imprisonment for non payment of tax
c. Uniformity of taxation
d. Due process of law in taxation
Which is correct?
a. Collection of taxes is an incidence of taxation
b. There can be no tax if there is no law providing for the said tax
c. Taxes are strictly constructed against the taxpayer
d. A tax imposed outside the situs of taxation is voidable
45. All are essential characteristics of a tax except:
a.
Payment of the tax is mandatory
b.
It is generally payable in money
c.
Imposed on persons and properties as a rule
d.
It is proportionate in character
46. All are similarities of taxation, police power, and power of eminent domain, EXCEPT:
a. All are necessary attributes of the Constitution
b. All exist independently of the Constitution
c. All contemplate an equivalent benefit
d. All are superior to the non-impairment clause of the Constitution
47. 1st Statement Non life insurance companies are subject to OPT on the premiums collected.
cv.
2nd Statement Marginal income earners are exempted from paying VAT and OPT as well.
a. True, True
c. True, False
b. False, False
d. False, True
48. Which is incorrect?
a. Sugar dealers cannot claim presumptive input tax
b. A VAT registrable person can also claim input tax
c. A VAT registered person is liable to VAT regardless of his sales or receipts
d. Any importation as a rule is subject to VAT even if for personal use only
cw. 39. Aishah University, a domestic corporation, had the following data for taxable year 2012:
cx.
Sales
P5,000,000
cy.
Cost of Goods Sold
2,000,000
cz.
General, Selling and Adiministrative Expenses
500,000
da.
Interest Income from Phil. Bank Deposit
100,000
db.
Rental Income (net of 5% withholding tax)
190,000
dc.
dd.
de.
df.
dg.
dh.
di.
dj.
dk.
dl.
dm.
dn.
do.
dp. 40.
dq.
60,000
50,000
1,000,000
75,000
500,000
1,000,000
Note: The board of directors approved a resolution reserving P1,500,000 of its net profit for the year for plant expansion.
dz.
P825,000
d.
dx.
Pl
ea. P
10
0,
00
0
ef.
20
0,
00
0
eb. Exem
pt
ec.
eg. 0
eh.
2
ej.
2
ek.
el.
eo.
5
ep. 1,
00
0,
00
0
eq. 14,0
00
er.
6
et.
1,
eu. 3,
00
0,
00
0
ev. 44,0
00
ew.
8
ey.
3,
ez. 5,
00
0,
00
0
fa. 204,0
00
fb.
10
fd.
fe. 10
ff.
fg.
ee.
P1
50
0,
00
0
2,0
00
404,0
em.
4
d.
P815,000
P113,625
dy. O
f
e
x
c
e
s
s
o
v
e
r
ed.
ei. P
1
0
0
,
0
0
0
en.
2
0
0
,
0
0
0
es.
5
0
0
,
0
0
0
ex. 1
,
0
0
0
,
0
0
0
fc. 3
,
0
0
0
,
0
0
0
fh. 5
5,
,0
00
,0
00
00
12
fi.
,
0
0
0
,
0
0
0