Professional Documents
Culture Documents
28 SEPTEMBER 2016
8:00 AM 11:00 AM
IN THE PROVIDED SCANNABLE SHEET, SHADE THE BOX WHICH CORRESPONDS TO YOUR
CHOSEN ANSWER. WRITE YOUR COMPUTATIONS IN A SEPARATE WORKSHEET. KEEP YOUR
SCANNABLE SHEET CLEAN AND FREE FROM UNNECCESARY MARKINGS. YOU HAVE THREE (3)
HOURS FOR THIS EXAM. CHEATING IS A MAJOR OFFENSE. GOD BLESS!
1. As provided under the second paragraph of Section 105 of the National Internal Revenue Code, the value-
added tax (VAT) is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee
or lessee of the goods, properties or services. Since the payment of the tax may be shifted by the seller to the
buyer, who shall file the VAT return?
a. The buyer, under the pay-as-you-file system.
b. The seller, because he is the one statutorily liable for the tax.
c. The buyer, because the burden of the payment of the tax is already passed on to him.
d. The seller, provided he agrees to the arrangement.
3. A donation of shares of stocks issued by a domestic corporation engaged in land and property development,
with a value of 3,500.00
a. may be made orally. c. should be in a public instrument.
b. should be in writing. d. is void.
4. For donors tax purposes, who among the following is not a relative?
a. illegitimate child. c. mother-in-law.
b. legally adopted child. d. granddaughter.
5. The part of the testator's estate which he cannot dispose of because the law has reserved it for certain heirs.
a. Legacy. c. Bequest.
b. Devise. d. Legitime.
6. The heirs acquire their successional rights over the decedent properties
a. at the exact moment of death.
b. when the properties are delivered to them, either actually or constructively.
c. when the heirs manifest their acceptance over the properties.
d. if they are indicated as heirs in the testators last will and testament.
10. The right to designate by will or deed the person or persons who are to receive certain properties from the
estate of a prior decedent.
a. Power of appointment. c. Deed of donation.
b. Right to revoke. d. Last will and testament.
11. Which of the following will not form part of landed cost for purposes of determining the VAT on importation?
a. Wharfage dues. c. Facilitation fees.
b. Arrastre charges. d. Brokerage fees.
12. It is the input tax to be credited against the output tax which is based on the value of the beginning inventory
or the actual VAT paid on such goods, materials and supplies, whichever is higher in case of taxpayers who
became VAT-registered upon exceeding the threshold gross sales or receipts or taxpayers who voluntarily
register under the VAT system even if they did not exceed such threshold.
a. 2% transitional input VAT. c. 2% presumptive input VAT.
b. 4% transitional input VAT. d. 4% presumptive input VAT.
13. A friend of yours has made various donations last year and this year. Your friend asks you on the proper
treatment as far as donors tax is concerned. What would you tell your friend?
a. The donations last year should not be added to the donations this year because the computation of
taxable net gifts is cumulative basis over a period of one calendar year.
b. The donations last year should be added to the donations this year because the computation of taxable
net gifts is cumulative, the donors tax paid last year serving as tax credit.
c. The donations last year should not be added to the donations this year, unless the donees are all relatives
or are all strangers.
d. The donations last year should be added to the donations this year because the computation of donors
tax is progressive in nature.
15. Persons or entities that are engaged in the lending, investing or placement of funds or evidence of indebtedness
or equity deposited with them, acquired by them or otherwise coursed through them, either for their own
account or for the account of others.
a. Banks. c. Brokers.
b. Dealers in securities. d. Non-bank financial intermediaries.
16. Mr. X is registered under the VAT system. He purchased fresh durian from a VAT-registered person from
Davao, converted them to durian candy and exported them to Taiwan. Which of the following is true?
a. There is no input VAT
b. There is a 12% input VAT
c. There is presumptive input VAT
d. There is transitional input VAT
17. Which of the following would not form part of the gross estate?
a. Exclusive property of the decedent.
b. Community/conjugal property of the decedent and the surviving spouse.
c. Share of the surviving spouse in the community/conjugal property.
d. Exclusive property of the surviving spouse.
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18. Which of the following is false? In value-added taxation, importations
a. are subject to VAT whether on not made in the ordinary course of trade or business.
b. subject to VAT is computed on the basis of total landed cost.
c. may adopt either inclusive or exclusive methods in the computation of the corresponding VAT.
d. makes tariff and customs duties as well as excise tax subject to VAT.
21. Lease of industrial units with monthly rentals of 10,000.00 per unit and annual gross receipts of 1,500,000.00
is
a. subject to VAT.
b. subject to percentage tax.
c. subject to VAT and percentage tax.
d. exempt from business tax.
22. Zack, a non-resident citizen, died. The only property that he owned at the time of his death are some shares
of stocks from a domestic corporation, which also operates outside the Philippines. At the time of his death,
the shares have a fair market value of 200,000.00. In this case, the heirs of Zack should file before the BIR
a. a notice of death.
b. an estate tax return.
c. a notice of death and an estate tax return.
d. nothing.
23. In estate taxation, there is a need to differentiate between ordinary deductions and special deductions because
a. only resident citizen decedents can claim special deductions.
b. only resident decedents can claim special deductions.
c. only citizen decedents can claim special deductions.
d. all decedents, except for non-resident aliens, can claim special deductions.
25. Mr. X inherited from his father a parcel of land while he was still single. If Mr. X gets married, under the
conjugal partnership of gains, this land will be classified as
a. exclusive, because it was acquired by Mr. X gratuitously.
b. conjugal, because properties brought into the marriage are classified as conjugal property.
c. exclusive, because properties brought into the marriage remain to be the exclusive property of the party.
d. conjugal, because properties acquired gratuitously forms part of conjugal property.
26. Mr. X inherited from his father a parcel of land while he was still single. If Mr. X gets married, under the
absolute community of property, this land will be classified as
a. exclusive, because it was acquired by Mr. X gratuitously.
b. community, because properties brought into the marriage are classified as community property.
c. exclusive, because properties brought into the marriage remain to be the exclusive property of the party.
d. community, because properties acquired gratuitously forms part of community property.
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27. Mr. X inherited from his father a house and lot when he was already married to Mrs. Y. Under the conjugal
partnership of gains, this property will be classified as
a. exclusive, because it was acquired by Mr. X gratuitously.
b. conjugal, because properties acquired during the marriage are classified as conjugal property.
c. exclusive, because properties acquired during the marriage are classified as exclusive property.
d. conjugal, because the property will be used by Mr. Xs family.
28. In computing for the claimable vanishing deduction, which of the following should not be considered?
a. Medical expenses.
b. Claims against insolvent persons.
c. Transfers for public use.
d. Casualty loss.
A donor had the following data for the current taxable year:
Cash gift to a legitimate son and his bride, on account of their marriage 150,000.00
Jewelry, a birthday gift to his best friend, with an installment payable
of 50,000.00 to the be assumed by the donee 250,000.00
A 100 square meters lot in Manila, a donation to the government 300,000.00
A personal computer given to a daughter on account of her debut 80,000.00
In May 2016, Mr. Mapagbigay donated a real property to his legitimate son on account of the sons marriage.
Said property was acquired in 2008 at a cost of 560,000.00 with unpaid mortgage of 510,000.00 to be assumed
by the donee. At the time of donation, said property has a fair market value of 800,000.00. On the same date, he
donated educational books worth 35,000.00 to Burgos Elementary School, a government school.
In October 2016, Mr. Mapagbigay gave a gold bracelet worth 50,000.00 to his legally adopted daughter on
account of her marriage to be celebrated in November 2016 with a condition that said donee will donate 15,000.00
cash to their parish church to which the donee agreed. Mr. Mapagbigay likewise gave to his wife shoes and bags
worth 3,500.00 on account of his wifes birthday.
34. How much is the donors tax still due in October 2016?
a. 1,140.00 c. 1,540.00
b. 1,410.00 d. 1,740.00
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Tinda Corp. is a non-VAT registered taxpayer whose gross receipts never reached 1,919,500.00. It provided the
following data for July, 2015:
35. How much is the business tax due if Tinda is a seller of goods?
a. 6,000.00 c. 5,700.00
b. 5,850.00 d. 5,550.00
36. How much is the business tax due if Tinda is a seller of service?
a. 6,000.00 c. 5,700.00
b. 5,850.00 d. 5,550.00
37. How much is the business tax due if Tinda is an operator of cabaret?
a. 35,100.00 c. 58,500.00
b. 36,000.00 d. 60,000.00
38. How much is the business tax due if Tinda is an operator of racetrack?
a. 35,100.00 c. 58,500.00
b. 36,000.00 d. 60,000.00
Spouses Justin and Kerstin donated the following to their son Lester and their daughter-in-law Marjo, jointly:
39. As far as his donation to his son Lester is concerned, how much is the gross gift of Justin if he is a resident
citizen donor?
a. 2,500,000.00 c. 5,000,000.00
b. 3,000,000.00 d. 5,500,000.00
40. As far as her donation to her son Lester is concerned, how much is the taxable net gift of Kerstin if she is a
non-resident alien donor and there is no reciprocity?
a. 1,750,000.00 c. 2,250,000.00
b. 2,000,000.00 d. 3,000,000.00
41. As far as her donation to her daughter-in-law Marjo is concerned, how much is the gift tax due of Kerstin if
she is a non-resident alien donor and there is reciprocity?
a. 675,000.00 c. 525,000.00
b. 600,000.00 d. 337,500.00
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Mr. Pabenta made the following sales of goods during the month of October, exclusive of VAT:
42. How much is the output VAT for the month of October?
a. 30,000.00 c. 67,200.00
b. 46,000.00 d. 84,000.00
Manix, a resident citizen, made the following donations for the year 2015:
On January 4to Nova, his friend, a car with a fair market value of 600,000.00, with unpaid mortgage of
100,000.00 to be assumed by Nova; to Oscar, his brother, cash for 80,0000.00.
On April 4to Pedro, the grandfather of his grandfather, a Rolex watch worth 50,000.00; to Sandra, his
niece, a set of encyclopedia with a value of 150,000.00.
On July 4to Tito, the spouse of the sister of his grandfather, a set of golf club worth 150,000.00; to
Ursula, a close friend, a pearl necklace worth 100,000.00.
On October 4to Victor, the son of his cousin, a grand piano worth 200,000.00; to the Barangay, a parcel
of land with a value of 120,000.00.
During the month, Lipad Corp., a transportation company, provided you with the following information:
Receipts:
From transport of passengers 1,500,000.00
From transport of goods 1,000,000.00
From transport of cargoes 500,000.00
Input tax on fuel for its common operations 12,000.00
47. How much is the total business taxes payable if Lipad Corp. is a domestic common carrier by land?
a. 213,000.00 c. 225,000.00
b. 219,000.00 d. 348,000.00
48. How much is the total business taxes payable if Lipad Corp. is a domestic common carrier by sea?
a. 213,000.00 c. 225,000.00
b. 219,000.00 d. 348,000.00
49. How much is the total business taxes payable if Lipad Corp. is an international common carrier by air?
a. 360,000.00 c. 90,000.00
b. 348,000.00 d. 78,000.00
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Mr. Ben Tah is a VAT-registered person. He purchased an equipment on the first month of the quarter for
1,500,000.00 before VAT and local goods at an invoice price of 336,000.00. Said local goods were sold with a
mark-up of 40% based on sales. The equipment has an estimated useful life of 3 years. There is an excess input
tax from the preceding quarter amounting to 5,000.00.
Mr. Diancie died on December 31, 2015. Relative to the computation of his gross estate is the following:
During his lifetime, Mr. Diancie made the following transfers in the Philippines:
Finally, Mr. Diancies children received 500,000.00 from Unovalife Insurance Company. This is a life insurance
policy in the Philippines taken by Mr. Diancie over his own life where he designated his children as revocable
beneficiaries.
52. How much is the gross estate if Mr. Diancie is a resident alien?
a. 3,000,000.00 c. 4,000,000.00
b. 3,400,000.00 d. 4,400,000.00
53. How much is the gross estate if Mr. Diancie is a non-resident alien and there is no reciprocity?
a. 1,470,000.00 c. 1,970,000.00
b. 1,570,000.00 d. 2,120,000.00
54. How much is the gross estate if Mr. Diancie is a non-resident alien and there is reciprocity?
a. 1,570,000.00 c. 1,000,000.00
b. 1,500,000.00 d. 500,000.00
In a given month in 2016, total invoice prices and costs are as follows:
Mr. Y, a VAT-registered taxpayer, provided you with the following VAT-exclusive monthly information:
61. Assuming that there is an excess input VAT from the previous quarter amounting to 10,000.00, how much is
the VAT payable (refundable) for March?
a. 198,000.00 c. 159,000.00
b. 186,000.00 d. 102,000.00
Mr. Edgar is an investor in ABC Corporation, a domestic corporation. He purchased 10,000 shares for 200,000.00
on September 21, 2015. Two years later, or on September 21, 2017, he sold 7,000 shares for 175,000.00 when
the fair market value is 250,000.00.
62. How much is the percentage tax due if the shares are listed and traded in the local stocks exchange?
a. None. c. 875.00
b. 312.50 d. 1,250.00
63. How much is the percentage tax due if the shares are not listed and traded in the local stocks exchange?
a. None. c. 875.00
b. 312.50 d. 1,250.00
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Y Manufacturing Corporation had the following information for the current taxable month:
Sales
Processed fruits 500,000.00
Processed sardines 400,000.00
=END=
/CUL
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FINAL DEPARTMENTAL EXAMINATION
ACCO 3153 BUSINESS AND TRANSFER TAXES
1ST SEMESTER, S.Y. 2016-2017
28 SEPTEMBER 2016
8:00 AM 11:00 AM
SUGGESTED ANSWERS
PART I THEORIES (1%) PART II PROBLEMS (2%)
1. B 21. B 31. A 51. C
2. D 22. C 32. A 52. C
3. A 23. D 33. D 53. B
4. C 24. C 34. A 54. C
5. D 25. C 35. D 55. B
6. A 26. B 36. B 56. B
7. C 27. A 37. A 57. D
8. B 28. A 38. C 58. D
9. A 29. B 39. A 59. A
10. A 30. C 40. Bonus 60. D
11. C 41. D 61. D
12. A 42. D 62. C
13. A 43. D 63. A
14. C 44. B 64. D
15. D 45. C 65. B
16. Bonus 46. C
17. D 47. B
18. C 48. D
19. C 49. C
20. C 50. B
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