San Beda University: Department of Accountancy and Taxation

Department of Accountancy and Taxation
COLLEGE OF ARTS AND SCIENCES

San Beda University
Manila
FINAL DEPARTMENTAL EXAMINATION

SUBJECT CODE/ TITLE: TAX01-Philippine Tax System
NAME: ___________________________________ Section: _________ Score/Rating : ________________

Instructions:
1. Answer these problems on a separate paper by your own handwriting.
2. Provide solutions and double rule your final answers. No solution, no credit.
3. Take a picture of your answers and send them individually to my viber account.
DEADLINE: On or before eternity.
1. Taxes paid by a corporation in 2020 were as follows:

National income taxes:
Normal tax............................................................ P500,000
Improperly accumulated income tax.................... 300,000
Capital gain tax...................................................... 740,000
Final tax.................................................................. 50,000
Community tax.................................................................... 10,500
Value-added tax................................................................... 89,000
Local taxes and licenses....................................................... 10,000
Interest for late payment of national and local taxes........... 40,000
Surcharges for late payment of national and local taxes...... 60,000
The deduction for taxes is:
a. P618,500 c. P1,799,000
b. P20,500 d. P1,899,000
2. Though the information given by Albert Rivers, a Canadian rock star promoting an upcoming concert in
the Philippines, the BIR was able to collect/recover unpaid taxes of a Chinese Tax evader amounting to
P1,400,000. How much is Albert entitled to receive as a reward, net of tax?
a. P900,000
b. P126,000
c. P1,260,000
d. P0
For Numbers 3-6:

Polka Cilla is a rank and file employee in an Advertising Firm in Makati. In the year 2020, he had the following
compensation record:
Basic Pay P500,000.00
Overtime Pay 200,000.00
13th Month & Other Benefits:
13th Month 20,000.00
14th Month 20,000.00
15th Month 20,000.00
Christmas Bonus 10,000.00
Creditable Withholding Tax 156,000.00
De Minimis Benefits:
Christmas and Anniversary Gifts 3,000.00
Laundry Allowance 2,600.00
Employee Achievement Award in kind 12,000.00
Actual Medical Assistance 5,000.00
Rice Subsidy 22,000.00
Medical Cash Allowance To Employee Dependents 2,500.00
Uniform and Clothing Allowance 5,000.00
Productivity Incentive Allowance 18,000.00
MENTORING THE BEDAN CPA

TAX01-Philippine Tax System 2nd Semester, AY2019-2020
Final Examination Page |2
Persons Living with and Dependent on the Taxpayer :
3 Illegitimate Children (Aged 22, 23 and 25)
1 Minor Adopted Child
Senior Citizen Father
1 Foster Child
3. Polka’s Total Compensation Income is:
a. P699,000
b. P700,000
c. P650,000
d. P649,000
4. Polka’s Taxable De Minimis Benefits amount to:
a. P11,200
b. P10,000
c. P3,800
d. none
5. Polka’s Tax Payable/(Refundable) for the year is:
a. P105,000
b. (P51,000)
c. P26,920
d. P56,000
6. Polka’s Total De Minimis Benefits exempt by law:
a. P70,100
b. P80,100
c. P60,100
d. P0
7. Benjamin, a resident Filipino, married but legally separated, supporting his mother, has the following
transactions for the year 2020:
Sales P2, 000,000
Cost of Sales 1, 150,000
Operating expenses 560, 000
Interest income from BDO 10, 000
Interest Expense 20, 000
Other transactions:
Sale of office equipment held for 5 years:
Selling price 100, 000
Cost 120, 000
Accumulated depreciation 80, 000
Sale of family van-bus held for 3 years:
Cost 210, 000
Sale of family car held for 18 months:
Cost 500, 000
Taxpayer will report a taxable income of:
a. P365,000
b. P385,000
c. P368,300
d. P318,300
8. Naak Cindyti was a victim of a vehicular accident who filed a case against Suma Gasa. The court
awarded him the following:
Actual damages for expenses paid in the hospital P500, 000
Attorney’s fee paid to his lawyer 150, 000
Actual damages for lost arm 250, 000
Nominal Damages 30,000
Moral damages 200, 000
Exemplary damages 150, 000
Salaries for 6 months when the tax payer was in the Hospital, absent from
his job w/ a monthly salary of P50, 000 300, 0000
THAT IN ALL THINGS GOD MAY BE GLORIFIED

The total income subject to tax is?
a. P300, 000
b. P550, 000
c. P700, 000
d. P100, 000
9. PP & Co., a partnership engaged in the practice of accounting, had a gross income of 220,000 and
expenses of 85,000 during the year 2020:
Ping Pong
Share in P/L ration 75% 25%
Income from other business 125,000 325,000
Expenses 80,000 190,000
Status Married Unmarried
Dependent children none 2
What is the income tax payable of the partnership?
a. Zero c.75,000
b. 40,500 d. 47,250
10. Using the preceding number, what is the taxable income of Ping and Pong?
a. P96,250; P68,750 c. P146,250; P118,750
b. P146,250; P168,750 d. P96,250; P168,750
11. Following the preceding problem, how much is the income tax payable/(refundable) of Ping and Pong?
a. P18,100; P28,700 c. (P10,125): (P3,375)
b. 0;0 d. P29,250;P P33,750
12. Assuming, PP & Co., a partnership engaged in the practice of law, had a gross income of 2,200,000 and
expenses of 200,000 during the year 2020:
Ping Pong
Share in P/L ration 50% 50%
Income from other business 125,000 325,000
Expenses 80,000 190,000
Status Married Unmarried
Dependent children none 2
How much is the income tax payable/refundable of Ping and Pong?
a. P203,500; P230,500 c. P230,500;P203,500
b. P53,500; P80,500 d. P80,500; P53,500
13. Using No. 12, assuming PP & Co. is a general partnership, how much is the taxable income of Ping and
Pong?
a. P45,000; P135,000 c. P1,045,000; P1,135,000
b. (P5,000); P35,000 d. P995,000; P1,035,000
14. Usang Boltahe, a national athlete, received the following during 2020:
Ramon Magsaysay award P 50,000.00
Athlete of the year award 100,000.00
Prize – Jollibee raffle 5,000.00
Prize for winning the silver Olympic medal 500,000.00
Cash award from Mr. Alfred Lim 250,000.00
Cash from Nissan as a gift 1,000,000.00
Winnings – Philippine sweepstake 100,000.00
Gambling winnings 5,000,000.00
The total winnings/awards and prizes not subject to income tax is:
a. P2,505,000
b. P2,000,000
c. P1,905,000
d. P1,900,000
15. Mang Kanor, single, received the following during the taxable year:
Proceeds of his life insurance paid at an annual premium of P15,000
within 15 years P2M
Proceeds of his mother’s life insurance paid at an annual premium of
P10,000 within 20 years P5M
House and lot inherited from his mother P3M
Rent income from inherited properties P450,000
For income tax purposes, how much of the above items must be included in his gross

income?
a. P9,360,000
b. P8,360,000
c. P2,225,000
d. P1,120,000
For Numbers 16 to 19
PolVi Cecilia, a Non-resident Citizen, received the following from sources within the Philippines during the year
2020:
Interest income from PNBank savings account, net of final tax P 16,000.00
Interest income from a Tax-free Covenant Bond 8,000.00
Interest income on long-term deposits, pre-terminated on the 4th year 12,000.00
Interest Income from Notes Receivable 23,000.00
Interest Income from FCDU maintained with PNBank (P45:$1) $ 5,000.00
Capital gains on sale of shares of stock, not listed or traded through a local stock exchange P 180,000.00
Capital loss on sale of shares of stock, not listed or traded through a local stock exchange 60,000.00
Capital gains on sale of shares of stock, not listed or traded through a local stock exchange 120,000.00
Sold residential lot located in the Philippines, held as capital asset (Appraised value by an P 580,000.00
Independent Appraiser – P800,000.00; Assessed Value – P700,000.00; Zonal value –
P680,000.00). The proceeds were used to build his principal residence amounting to
P1,000,000.00.
Dividends received from a Resident Foreign Corporation 8,000.00
Dividends received from a Domestic Corporation 6,000.00
Royalties from musical composition 14,000.00
Winnings (25% of which came from PCSO winnings) 12,000.00
Prize received from Essay contest 1,500.00
Prize received from Bowling Tournament 10,000.00
Prize received from being an outstanding Resident of their barangay 20,000.00
Indemnity for Moral Damages from Libel suit filed 500,000.00
Appreciation in the value of his real property due to a road – widening project by the 300,000.00
Government
Separation pay received due to company retrenchment program 150,000.00
Rental Income from 4-door apartment inherited from his deceased Father 80,000.00
Income from Services rendered as a professional mortician 60,000.00
16. Final Tax withheld on Interest Income is:
a. P6,400
b. P8,800
c. P7,000
d. P12,340
17. At the end of the year, the sale of shares of stock will result in Annual:
a. Capital Gains Tax Refundable of P1,000
b. Capital Gains Tax Payable of P1,000
c. Capital Gains Tax Payable of P9,000
d. Capital Gains Tax Refundable of P9,000
18. The Capital Gains Tax on the sale of real property is:
a. P0
b. P42,000
c. P48,000
d. P40,800
19. Total Final Tax Due on Dividends, Royalties, Winning and Prizes is:
a. P3,800
b. P5,800
c. P6,100
d. P5,200
20. The Aidsiah, Inc., an insurance company, had the following data for the taxable year 2020:
Sales P5,000,000

Cost of Goods Sold 2,000,000
General, Selling and Administrative Expenses 500,000
Interest Income/yield from trust funds 100,000
Rental Income (net of 5% withholding tax) 190,000
Dividend Income: From domestic corporation 60,000
From foreign corporation 50,000
Winnings from charity sweepstakes 1,000,000
Capital gains from sale of domestic share of stocks not traded in the PSE, sold 75,000
directly to buyer
Dividend declared and paid during the year 500,000
Retained earnings, beg. of the year (subjected to IAE tax last year) 1,000,000
Paid-up Capital, inclusive of Share Premium amounting to P300,000 800,000
Note: The board of directors approved a resolution reserving P1,500,000 of its net profit for the year for plant
expansion.
How much is the Improperly Accumulated Earnings Tax?
a. P142,875 c. P162,875
b. P62,875 d. none
21. A real estate investment trust (REIT) is a stock corporation established principally for the purpose of
owning income-generating real estate assets such as apartment buildings, office buildings, medical
facilities, hospitals, hotels, resorts, highways, warehouses, shopping centers, railroads, among others. It is
a type of investment instrument that provides a return to investors derived from rental income of the
underlying real estate asset. It has essential requirements to avail of the tax incentives. Which of the
following is NOT a requirement?
a. It must be registered with the SEC as a stock corporation with a minimum paid-up capital of P300
million.
b. It must be listed with an Exchange and, upon listing, have at least 1,000 Public shareholders each
owning at the minimum 500 shares and which, in the aggregate, own at least1/3 of the outstanding capital
stock of the REIT.
c. The independent directors in the REIT must be composed of at least one-third or two, whichever is
higher, of the board of directors.
d. A REIT must appoint an independent Fund Manager and Property Manager who must qualify under the
fit and proper rule.
22. Miss Darrelle Joe is a self-published author. She established a printing press and a marketing distribution
business for her books which sells wildly hot like chili-flavored pizza. She does not know anything about
taxation so she consulted you about what type of income tax she will pay.
What advice would you give her?
a. You are subject to regular tax not to final tax so file three quarterly income tax returns every 60 days
following the end of the first three quarters and file an annual consolidated income tax return on or before
April 15 of the following year.
b. You are subject to final tax on your book royalties. There is no need to file regular tax returns.
c. You should pay regular income tax on your net income and 10% final tax on your royalties from your
books to avoid hassle with the tax authorities.
d. You are subject to regular tax. You shall file three quarterly income tax returns on or before April 15,
August 15, and November 15 respectively and file a consolidated annual income tax return on or before
April 15 of the following year.
23. San Miguel Corporation is a resident corporation having the following data in 2020:
Selling price, at fair market value, on a direct sale
to a buyer, of shares of stock of a domestic corporation,
not traded in the Philippine Stock Exchange, held as capital asset 3,500,000
Sales Discount 15,000
Expenses on sales 30,000
Cost of the shares of stock 1,850,000
Holding period of the asset 24 months
What is the capital gain tax?
a. 240,000 c. 155,500
b. 240,750 d. 160,000
24. Jalex Rosales, an entrepreneur, met an accident and was able to claim the following damages:
Actual damages for unrealized profit P100,000
Actual damages for lost products 200,000

Exemplary damages due to injuries 50,000
Moral damages due to injuries 50,000
Interest on nontaxable damages 20,000
Attorney’s fee 80,000
How much damages are taxable and not taxable?
Taxable Nontaxable
a. P380,000 P120,000
b. P300,000 P200,000
c. P200,000 P300,000
d. P120,000 P380,000
25. Ms. Vandish, a manager of Burn, Inc., received the following fringe benefits during the taxable year
2020:
Cash travel allowance ---------------------------------------------- P 34, 000
House and lot- ownership of real property is transferred to
Ms Vandish, (FMV, P544,000) cost ------------------------------ 476,000
Car-ownership was transferred to Ms. Vandish.
The car has a 10-year estimated useful life, but
already 1 year in use at date of transfer --------------------------- 680,000
The grossed-up monetary value of the fringe benefits would be
a. P 850,000 c. P 1,750,000
b. P 950,000 d. P 1,830,769
For questions 26 and 27, use the following information:

The following data pertains to a domestic corporation which was incorporated in 2014 but was registered
with the BIR on 2015:
2018 2019 2020 2021 2022 2023
Gross Income 1,000,000 1,800,000 2,200,000 2,600,000 3,000,000 3,500,000
Allowable 800,000 1,700,000 2,300,000 2,800,000 2,600,000 3,000,000

Deduction
26. What is the income tax payable in 2021?
a. P330,000 c. P300,000
b. P52,000 d. P0
27. What is the income tax payable in 2023?

a. P150,000 c. P12,000
b. P18,000 d. P24,000
28. Masikap Corporation, a domestic corporation, has the following information regarding its income and
expenses for the taxable year 2018, which is in its 6th year of business operation:
First Second Third Fourth
Normal Tax P1,000,000 P1,200,000 P2,200,000 P3,100,000
MCIT 600,000 1,300,000 1,920,000 2,680,000
CWT 320,000 480,000 704,000 896,000
*Excess MCIT from previous year = P50,000
Q: Assume that the amounts are cumulative from first quarter to the fourth quarter, what is the income tax
still due in the fourth quarter?
a. P758,000 c. none
b. P2,154,000 d. P708,000
29. Flight Pacific Airline, a resident foreign shipping company, has the following data of its gross receipts
from passengers, cargoes, excess baggage and mail during the month of May 2020:

Incoming Flights Outgoing Flights Total
Philippines billings P 18,000,000 P 15,000,000 P 33,000,000
Foreign billings 10,000,000 9,000,000 19,000,000
Total P 28,000,000 P 24,000,000 P 52,000,000
Value of fares on non-revenue 400,000 500,000 900,000

passengers
Cancelled and refunded fares 250,000 800,000 1,050,000
Flight Pacific Airline shall pay the following income tax:

a. P580,000 c. P600,000
b. P1,273,750 d. exempt
For numbers 30-35, use the following data:

Wilchon, a resident citizen, has the following income for the year 2019:
Gross income from business of poultry (net of Cost of Sale: 200,000)..... P1,500,000
Gross income from business of piggery(net of Cost of Sale: 100,000)...... 900,000
Dividend from domestic corporation...................................................... 10,000
Dividend from resident corporation...................................................... 50,000
Interest on bank deposit……… ………………………........................... 15,000
Monetary benefit from Deposit Substitute .............................................. 25,000
Sale of common shares held as capital asset from SMART, Inc, not
listed and traded thru Philippine Stock exchange:
Fair Market Value P 1,000,000
Selling Price 500,000
Acquisition Cost 200,000
Sale of common shares held as capital asset from
GLOBE, Inc, listed and traded thru Philippine
Stock exchange:
Fair Market Value P 2,000,000
Selling Price 1,000,000
Sale of real property not used in trade or business
located in Tondo, Manila:
Assessed Value P 5,000,000
Zonal Value 6,000,000
Selling Price 4,000,000
Acquisition Cost 7,000,000
Sale of real property not used in trade or business
located in Kazakhstan:
Assessed Value P 500,000
Zonal Value 600,000
Selling Price 400,000
Interest under Expanded Foreign Currency Deposit System 500,000
Won 1st prize: Montero Sport, in a raffle draw worth 3,000,000
Won winnings from Barangay Basketball League 11,000
Won winnings from Barangay Volleyball League 9,000
Interest from P1,000,000 individual trust funds
(Term: 5 years)......................................................................... 100,000
Royalties from cinematographic films………......................... 50,000

Interest from P3,000,000 investment management accounts
(Term: 5 years) After one year and one month, he pre-
terminated the investment account..................... 200,000

Business expenses from poultry business................................... 720,000
Business expenses from piggery business................................... 900,000
An amount paid out for betterments made to increase
the value of the land.................................................................... 80,000
Amount paid in restoring the real property located in
Tondo, Manila ............................................................................ 120,000
30. Assuming Wilchon signified in his first quarter return his intention to avail of the 8% preferential tax rate,
how much is his income tax due for the year 2019?
a.P224,720 c. P204,720
b.P200,720 d. P196,720
31. Assuming Wilchon failed to file his Quarterly Tax Return in the First Quarter, how much is his income
tax due and business tax, if any for the year 2019?
a. P156,700; P81,000 c. P231,700; P81,000
b. P246,700; P84,270 d. P231,700;P82,770
32. Assuming Wilchon is also employed in Meralco earning a total compensation income per annum of
P1,500,000, which of the following is correct?
a. Wilchon cannot avail of the 8% preferential tax rate because his total income from his business and
employment exceeds P3Million
b. Wilchon may avail of the 8% preferential tax rate for his entire income because it is provided for under
the TRAIN Law
c. Wilchon may avail of the 8% preferential tax rate on his income earned from business and other non-
operating income, but his compensation income shall be taxable by graduated income tax rates.
d. Wilchon may avail of the 8% preferential tax rate on his income earned from business and other non-
operating income, but his compensation income shall be taxable by graduated income tax rates plus
3%OPT.
33. Using the facts stated above, but the businesses of Wilchon involves cockpits and cabarets, which of the
following is correct?
a. Wilchon may avail of the 8% preferential tax rate but without the benefit of the P250,000 exemption.
b. Wilchon may avail of the 8% preferential tax rate with the benefit of the P250,000 exemption
c. Wilchon’s business income is subject to graduated income tax
d. Wilchon may be imprisoned because of these illegal businesses
34. Assuming Wilchon, a purely self-employed income earner, signified in his first quarter return his
intention to avail of the OSD, how much is his income tax due?
a. P408,700 c. P107,250
b. P266,020 d. P318,700
35. Assuming that Wilson is a mixed income earner where he also earned a total compensation income of
P1,500,000, net of exclusions, and availed of the OSD for his business income from the start of the year
2019, how much is his total income tax due?
a. P658,700 c. P883,280
b. P606,020 d. P748,700
36. Mr. Panchito, a lawyer by profession, had the following income and donations during the year 2020:
Professional fees…………………………………….. P1,500,000
Expenses related to practice of profession………….. 400,000
Facilitation fees……………………………………… 200,000
Donations to government priority activities……………..100,000
Donations to pursuant to treaties………………………….30,000
Donations to accredited charitable institutions…………....50,000
Donations to the government for public purpose………….80,000
Donations to non-accredited charitable institutions……….60,000
Donations to a foreign charitable institution………………40,000
Donations to street beggars………………………………..50,000
How much is the total deductible contribution expense?
a. P290,000 c. P370,000
b. P270,000 d. P320,000
37. Burn Inc. leases its lot to Sta. Barbara for 15 years with an annual rental of P50,000. They have agreed
that Sta. Barbara shall construct a building thereon with a stipulation that at the end of the lease term, the
ownership of the building will go to Burn Inc. The building has a fair market value of P1,200,000 with an
estimated life of 20 years. On the 10th year of the lease, the building was destroyed by tornado. A part of
it was saved with an estimated amount of P40,000 and the same was covered by insurance amounting to
P100,000. How much is the loss on the building?

a. P160,000 c. P60,000
b. P40,000 d. P50,000
38. Alibaba Corp. is engaged in the business of bakery and providing parlor services with net sales and
revenue of P6,000,000 and P4,000,000, respectively. The actual entertainment, amusement and recreation
expenses for the taxable year totaled P100,000. For income tax purposes, how much is the total deductible
entertainment, amusement and recreation expenses for each business, respectively?
a. P60,000;P40,000 c. P60,000;P20,000
b. P30,000;P40,000 d. P50,000; P50,000
39. The running of the Statute of Limitations provided in Sections 203 and 222 of the NIRC on the making of
assessment and the beginning of distraint or levy a proceeding in court for collection, in respect of any
deficiency, shall be suspended on the following instances, EXCEPT:
a. taxpayer requests for a motion for reinvestigation which is granted by the Commissioner
b. taxpayer requests for a motion for reconsideration which is granted by the Commissioner
c. taxpayer cannot be located in the address given by him in the return filed upon which a tax is being
assessed or collected
d. when the warrant of distraint or levy is duly served upon the taxpayer
40. Statement 1: The Court of Tax Appeals has an exclusive original jurisdiction to review the inaction by the
Commissioner of Internal Revenue (CIR) in cases involving disputed assessments, refunds of internal
revenue taxes, fees or other charges, penalties in relations thereto, or other matters arising under the
National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue.
Statement 2: Based on the preceding paragraph, the inaction of the CIR shall be deemed a denial.
a. Both statements are true
b. Both statements are false
c. Only Statement 1 is true
d. Only Statement 2 is true
41. Statement 1: Pursuant to the life blood doctrine, as a rule, no court shall grant an injunction to restrain the
collection of any national revenue tax, fee or charge imposed by the NIRC.
Statement 2: The “No injunction rule” is subject to the exception that when the decision of the
Commissioner is pending appeal before the Court of Tax Appeals (CTA), the CTA may enjoin the
collection of taxes if such collection will jeopardize the interest of the government and/or the taxpayer
42. Statement 1: The taxpayers shall be informed in writing of the law and the facts on which the assessment
is made; otherwise, the assessment shall be void
Statement 2: If the protest is denied in whole or in part, or is not acted upon within one hundred eighty
(180) days from submission of documents, the taxpayer adversely affected by the decision or inaction
may appeal to the Court of Appeals within thirty (30) days from receipt of the said decision, or from the
lapse of one hundred eighty (180)-day period
43. Pre-assessment notice shall not be required in the following cases, EXCEPT:
a. When the finding for any deficiency tax is the result of mathematical error in the computation of the tax
as appearing on the face of the return
b. When a discrepancy has been determined between the tax withheld and the amount actually remitted by
the withholding agent
c. When a taxpayer who opted to claim a refund or tax credit of excess creditable withholding tax for a
taxable period was determined to have carried over and automatically applied the same amount claimed
against the estimated tax liabilities for the taxable quarter or quarters of the succeeding taxable year
d. When the income tax due on excisable articles has not been paid
44. Statement 1: The Court of Tax Appeals has an exclusive appellate jurisdiction to review decisions, orders
or resolutions of the Regional Trial Courts in local tax cases originally decided or resolved by them in the
exercise of their original or appellate jurisdiction
Statement 2: The Court of Appeals has an exclusive original jurisdiction to review Decisions of the
Commissioner of Customs in cases involving liability for customs duties, fees or other money charges,
seizure, detention or release of property affected, fines, forfeitures or other penalties in relation thereto, or
other matters arising under the Customs Law or other laws administered by the Bureau of Customs

Final Examination P a g e | 10
45. Statement 1: For cases of financial incapacity, a minimum compromise rate equivalent to forty percent
(40%) of the basic assessed tax shall be allowed by the Commissioner
Statement 2: In case of reasonable doubt as to the validity of the claim against the taxpayer, a minimum
compromise rate equivalent to ten percent (10%) of the basic assessed tax shall be allowed by the
Commissioner
46. Statement 1: On March 15, 2019, Ping Guerrero filed an Income Tax Return which is due on April 15,
2019, with which the income declared is understated by 30% of the actual income he could have declared.
The BIR has 3 years from March 15, 2019 to assess Ping’s tax liability.
Statement 2: The taxpayer may file an administrative protest against an assessment within 30 days from
receipt of the assessment.
47. If there is showing that expenses have been incurred but the exact amount thereof cannot be ascertained
due to absence of documentary evidence, it is the duty of the BIR to make an estimate of deduction that
may be allowable in computing the taxpayer’s taxable income, which estimate may be based on 50% of
the taxpayer’s claimed deduction. This is called
a. Cohan Rule c. Cojan Rule
b. Johan Rule d. Trojan Rule
48. Which of the following is not a fundamental principle of the Local Government Taxation?
a. Uniformity
b. Equitability
c. Collection of taxes is solely for the benefit of the national and local government
d. Progressive
49. A Province cannot impose the following, EXCEPT:
a. DST c. Taxes on premiums paid by way of reinsurance or retrocession
b. VAT d. RPT
50. Statement 1: Manufacturers, assemblers, contractors, producers, and exporters with factories, project
offices, plants, and plantations in the pursuit of their business shall allocate their sales in the their
principal office in which 70% will be taxable by the city/municipality where the principal office is
located, and 30% shall be taxable by the city/municipality where the factory, project office, plant, or
plantation is located
Statement 2: Light Rail Transit Authority is exempt from real property tax
a. Both statements are correct c. Only statement 1 is correct
b. Both statements are incorrect d. Only statement 2 is correct
51. Which is not a ground to suspend the running of prescription to assess a local tax?
a. The treasurer is legally prevented from making the assessment of collection
b. The taxpayer requests re-investigation and executes a waiver in writing before expiration of the period
within which to assess or collect
c. The taxpayer is out of the country or otherwise cannot be located
d. The taxpayer requests for reconsideration
52. Statement 1: The City Treasurer’s denial of protest of the taxpayer is appealable to Local Board of
Assessment Appeals within 30 days from receipt of denial.
Statement 2: Payment under protest is not a pre-requisite to make a protest in a local tax dispute.
53. Statement 1: If the assessment of basic RPT or any other tax levied is found to be ILLEGAL or
ERRONEOUS and the tax is reduced or adjusted, the taxpayer may file a petition for refund or credit for
taxes and interests with the City Assessors Office within 2 years from the date the taxpayer is entitled to
such reduction or adjustment.

Final Examination P a g e | 11
Statement 2: In assailing the validity of RPT, deposit is jurisdictional and must be complied with only if
the real property is tax delinquent.
54. Statement 1: The Secretary of Finance has the authority to issue an injunction order if the collection of
taxes will jeopardize the interest of the taxpayer
Statement 2: An LGU can impose amusement taxes on cabarets.
55. The following entities retained their tax exemption privileges given by the Local Government Code.
Which of the following is not included?
a. Local Water District
b. Cooperatives.
c. Non-stock Non Profit Educational Institutions
d. Religious sectors

San Beda University: Department of Accountancy and Taxation

Uploaded by

Copyright:

Available Formats

San Beda University: Department of Accountancy and Taxation

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

San Beda University: Department of Accountancy and Taxation

Uploaded by

Copyright:

Available Formats

Department of Accountancy and Taxation

COLLEGE OF ARTS AND SCIENCES

FINAL DEPARTMENTAL EXAMINATION

NAME: ___________________________________ Section: _________ Score/Rating : ________________

1. Taxes paid by a corporation in 2020 were as follows:

For Numbers 3-6:

MENTORING THE BEDAN CPA

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

For questions 26 and 27, use the following information:

Allowable 800,000 1,700,000 2,300,000 2,800,000 2,600,000 3,000,000

27. What is the income tax payable in 2023?

*Excess MCIT from previous year = P50,000

THAT IN ALL THINGS GOD MAY BE GLORIFIED

Incoming Flights Outgoing Flights Total

Philippines billings P 18,000,000 P 15,000,000 P 33,000,000

Foreign billings 10,000,000 9,000,000 19,000,000

Total P 28,000,000 P 24,000,000 P 52,000,000

Value of fares on non-revenue 400,000 500,000 900,000

Cancelled and refunded fares 250,000 800,000 1,050,000

Flight Pacific Airline shall pay the following income tax:

For numbers 30-35, use the following data:

Royalties from cinematographic films………......................... 50,000

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

THAT IN ALL THINGS GOD MAY BE GLORIFIED

You might also like

NAME: _______________________________ Section: _ Score/Rating : ____________