a ee oe Re 2 ee Maria TAXATION PREWEEK BATCH 76 b 1. Your client is Mr. Irving Ackerman, consulted you on how he can transfer all his properties to ‘th a minimum tax consequence. What will you advise Mr. Irving Ackerman? IIRC Gee Yh Prey ooh Co ny Frid dacivene his lone son wi a, Sell all his properties in favo: of his son. b. Incorporate and give all stoc kholdings to his son. ©. Liquidate, convert all his properties into cash. 17 d. Gera life insurance, the proceeas therefrom will cover the tax consequence, 7°" © 2. Who are allowed to withhold VAT fro a. Entities, organization, busines Economic Zone Authority; b. Non-rasident individuals and corporation; ©. Governmen: or any of its instrumentalities including government owned and controlled corportation; FAL ileus op VAT ream geurgton 4. Resident Foreign Corporation deing business in the Philippines. VAT suppliers? or corporation duly registered with Philippine h 3. Who makes revenue regulations? a. Secretary of Finance b. Commissioner of Bureau of Internal Revenue — ¢1re edctia" wity . 2. Board of Accountancy d. House of Representatives b 4, Which of tne followigg may he @editzble withholdivigtax2- alue added tax = FRr'aby withiula hy he eov'l . Income tax — Gornatty wifat cid c. Excise tax d. Percentage tax & 5. The RATE program of the dureau of internal Rever.ue is to eradicate? a, Underground economy; Rem Atay Tox Eunctess b. Smugglers; evaders; d. Unregistered taxpayers. »% 6. Refers to a local sale of service by VAT-registered person toa person or entity who was granted indirect tax.exemptian under the special laws or interantional agreement? a. Autornatic zero-rated transactions; Ln Fiocrpers os (Fetestve zero-rated transac‘ions; ae ST aise VAT exeinpt transaction; ULtegtace eae Ket Reeth Mawane ty 4, Zero-rated transactions.7, Which of the following aro tero-ratad transactions, & Sate of services to Asian Davelopment Bank - fete 97 Rat }. Sale of services to Interna ional Rice Research Institut 2; - Efi wtee © Rau © Sale of gold to Bangko Sentral of Pilipinas; I Sale of serivces to duly registered and accredited enterprises with Philippines Economic Zone Authority. Cewine 0 rand zg a rast, ©8OH 4 NS 1. luk Deatt beat 8. What input taves maybe credited?) r4..179 | a. Input texes fro upplless; | b. Input taxes from puchase Of direct labor; - elm / mene sad sou Input taxes from importation of goods for sale; Invut taxes from Importation of personal and household effects. 9. The irput taxes on zero-rated salas.of goods may at the option of the VAT-registered person be, excert: , a, Refunded; b. Converted into tax credit certificates; ©, Carried over to the rext quarter; ay Used as payment of other Internal reveriue tax, except, wtihholding tax.| Cvedit Thack/ 28 Opp ter THe vast “etiiias Tt Camied ter — 10, A f Input taxe} must be made within: 2 years 3 years ©. Syears d. 10 years 14, The Commissionesis given how mary daygto decide'a refund 9f input taxes? a 18D days = apptcavle only 4 PEC = Grang, Sriram i b. 160 gays ©. 120 days appienie fe EER AND 4. 90 days ~ etngeot acurg. met oe 12, When may VAT registered person clair llowable. deductions from his lacaine tax return? vepen ne Input taxes from zero-ratad sales; Qyer ester ems Tape VAT a tocol om input taxes from capital goods; d. Input taxes from Export sale. 13, Adocumentary stemp taxisnecessary in; 9,¢, asp tie > MIO aeel be prt ue sca. in cowry a. Sale of real property; Seer al fee 6804 ONO b. Inheritance of real property; 7 evinnjervod c. Esatate tax payment; 4, Donation of real propeity,1448 bookstore is using cash method of accounting in recognitng its taxable income and deructions. For the curent vear, J3 decided: the accrual method of recognizing Income and expenses. "We apilcation fer Berson) Sons re ‘method of accounting employed and the basis up the returnis mat e Tiled to the BIR within: Q 9C days; 60 days; ©. 30days; 4. 15 days. 18. Diety is_non-stock, non-profit organization made an importation italian in "sal sa oa chee fom ‘amounting to Php2,240,000.00- IT you are the Custor [OF how will you treat suc importation, will it be? a. Subject to 12% VAT; Suita = dasa a b. Subject to zero rated VAT; 7 @ Exempt from VAT; 4d. Subject to 3% other percentage tax. “Ee.\ng 16. Which of the following. is VAT-able? €o- 104 a. Sale or importation of fertilizer, ordinary feeds, seeds, seedlings and fingerlings; ». Importation of prefessional instruments and implements wearing apparel, domestic animals and personal househald effects: ’ . Services of agricultural co tract growers and milling far others of palay into rice, com into grits and sugar cane to raw sug: (@pental and veren ay services nai to professionals) 17, Which of the following Geran ransaction? a, Sales by non-agricultural, electrical and non-credit cooperatives duly registered with ecoperative development authority; ‘ Sale of power or fuel generated through renewable sources of energy. VATANIC %. Export sale of non-vat registered individuals; ’ 4. Sale by agricultural cooperatives duly registered with Cooperative Development Authority; 18. Which of the following is an\bffectively'zero-rated transaction? 2. Fdueaclonal serves rendered by private educational institutions duly accredited by DEPED, CHED and TESDA; Vt Erpyt . Services rendered dy regional or area headquarteds established in the Philippines by ‘multinational corporations which act as supervitory, communication and coordlanting centers; ©) Sale of services to Asian Development Bank; 4. Services of banks, non-bank, financial intermediaries. ‘ 19. Allaf the following are VAT-exempt, vihich is the jon? Grae Importation, printing of magazines devoted principally for.pald advertisements; B. Importation of fuel, goods, and suppiies by person engaged in international shipping or r transpertation; © 6. Sale or importation of passenger or cargo: vessels and aircrafts for domestic or international shipping or air tinasportation; ' d. Gross receipts from lending cooperatives. 7i age 4 ad anima 20. Mr. San DiegoApproached you and asked for your professional help with regard toa sale of his aneestral_house and tot in the amount of Php§,000,000.00. Your advise would be: Such transaction will be subject to? acts, Mass £1 290 reaps a, 12% VAT . t. Zero rated VAT @Pexempt from var ‘4. 3% otner percentage tax ee 2s 21. Your client, Mir. Aegis, is @local tader‘inquired what laws will have most relevance in his daily transactions. Having severel laws to take Into consideration which laws do you re Gretna Aegis to read? National Internal Revenue Code; Tey cade Implementing Rules and Rogulation of NIRC; ¢. ‘ariff and Customs Code; ~ Int! trade @. Local Gevernment Code, ~ Mares pm FC ned Oh Heh iv Pransse’ NEF 22. Agustos is a Greek company that manufactures keratonio. Its Philippine @xclusivewistributor is\koonr Industries Philippines Incorporated. Agustos receives royalty income from sou-ces within the Philippines. As a Certified Public Accountant,-whletref the foliowing is correct with regard to the applicable tax impose upon thera income? ) case OMT >. chante ee eT nee gta a. Subject to final withholding-tax of 10%; § caput Base + 65 Sha : 'b. Subject to final withholding tax of 20%; a ae ¢. Subject to final withholding tax of 39%; Resjatt, g teele BE Tkindaat hav custna of Yang 20h 4. Subject to Profit Remittance tax oF 35% ee seen y 7 23. Zeus a Domestic Corporation has incurred Rent Ex; paid the lessor a total Php120,000.00 rent expense can Zeus claim as an allowabl ense amaunting to Php120,000.00. Zeus x therefrom. How much a. 120,000 ASIA een mahtslA ~ faaepne camped Chain ae atin O eA eb b. 60,000 a zero d. None of the above. 24, Which of the following i: AT? a. Export saie by non-vat individuals; b. Foreigh Currency Denominated Transactions; ©: Sale of services to entities duly registered with PEZA; iff. 07 ane 4, Sale to Ramon Magsaysay Awards Foundation” vate te ~ treet sa OT 25. AS a Certified Public Accountant what would you tell if a domestic corporation asked you where to tile first its financial state.nents and inceme tax returns? a. Securities and Exchange Commission; 'b. Local?Municipal City Treasurer where the corporatior has a principal address; ~ ‘¢, Bureau of Internal Revenue; fest 4, Authorized Accredited Agent Banks.Page 5 26. With regard to the preceeding question, how many financial statement and tax return copies are filed with the Bureau of Internal Revenue? a. Duplicate - b. Triplicate ©. quadruplicate @. As many as required by the revenue officer. 27. When will an self employed individual file its 1st quarter income taxreturn? 7) iy 3 "SCY ‘April 15 of current year. b. May 31 of the current year. ¢. July 15 of the current year. d. August 15 of the current year. re Vitdape del On Doyen Pet Aaae Apel 28. Conscruction by XYZ Coristruction Co. of concrete barrier fo: the Asian Development Bank in Ortigas Center to prevent car bombs from the ADB gates along ADB Avenue in. Mandaluyong City. Is subject to wl isiness tax? a. 12% VAT — @. omvar ¢. Exempt from VAT d. None of the above aid tale ef 29. Call Cehier operated by a domestic enterprise in Makati that handles exclusively the reservations of a hotel chain which are all located in North America. The services are paid for in USS and duly accounted for with the Bangko Sentral ng Filipinas, Is subject to: a, 12% VAT’ b. 0% VAT . Exempt from VAT d. None of the above of orchids by a flower shop which raises its flower in Tagaytay. Is subject to: 22%VAT “7h fo 0% VAT Exempt from VAT None of the above b. © qd. 31, In 2009, Caruso, a resident Filizino citizen, received dividend income from WS =brsed Corporation wt ich owns a chain cf Filipine restaurant in the West Coast, U.S.A. The dividend remitted to Ca-uso is subject to U.S withholaing tax with respect to a non-resident alien fike Caruso. The dividend is subjectto: P.) ~» 03 Final income tax Basic income tax Capital gains tax . Exempt from tax ite Geng 2 dine Am caytnes”2 | Page 6 32. Meador, i "7 domestic corporation, fled its Annual income Tax Return for its taxable year 20 it on *pril 45, 2012. In the Return, it reflected an income tax overpayment of cairo ansat and indicated its choice to ca -over the overpayment as an automatic ‘ax “rea agoinst its income tax liabilities in subsequent years. 1° \ feet On Aoril 15, 2023, t filed its Annual income Tax Return ‘or its taxable year 2012 reflecting a taxable loss and an income tax ove payment for the current year 2012 in the amount of 500,000.00 and its income tax. overpayment for the prior year 2011 of P1,000,000,00, , In Its 2042 Return, the corporation indicated its option to claim for ‘refund thd total incorse tax overpayment of P1,50C,000.09 ! Choose which of the following statements is correct. 3 Mirador, ‘ne. may claim as refund the total income tax overpayment of 1,500,000.00 Teflected in its income tax return for its taxable year 2012; | It may claim as refund the amount of P5J0,C00.00 representing its incom? tax ‘overpayment for its taxable year 2032; © No amount may be claimed as refund. | d. None of the above, Medical services such as dental and veterinary services rendered by profestionats. Legal service Services arising from employee-employ2r relationship, |. Services rendered by domestic air transp ort companies, 33, Which of the following transactions ‘s exempt from value-added-tax? aoe 34. Which of the following transactions isevempt fromvalue-added-tax? rv if 2. Services zendared by international shipping or air fassengeDtransport operstions. -»4 reego b. Service: rendered by artist, actors and athletes, © Generation, transmission and uistribution of electricity. i 4. Services rendered by professionals such a5 CPAs, Physicians and Lawyers tp on | 35. The Secretary of Finance is authorized '¢ imposition of Minimum Corporate Income Tax on any corporation which suffers J3S885 of BCC a. Econemic Sabotage; b. Insolvency; ¢ Force Majeure®— potest vetw oy 4. Corporate Rehabilitation 36: When may the Bureau of interna’ Revenue terminate taxing Period SiGEED> 2. When the taxpayer is retiring from business subject to tax; b. When the taxpayer went abroad; © Wnen the taxpayer removes his property from Philippines; vies COOL 37. Which among the following Government Owned and Controlled Bion Ge eau» essey 2. Philippine Amusement and Gaming Corporation. PAGCOR”? ». Social Security System, - ©. Philippine Health Insurance Company.) 47. 4 d, Philippine Charity Sweepstakes Office’ OP Ley mets Ragives paverse® |Pope 7 D 38, For donor's tax purposes, one Of the followings a stranger, ¢a.. & Brother or sister ©. Uncle Mites 8 8 dine of cansatsponc b. Spouse at. Son-in- law Ne og tee AB 39; aa 's the winning bidder to exclusively Supply construction materials for the construction Of Makati Parking Building 2, fo: the Month it has the following: Gee ane ot Sales Php 400,000: ¥8T suey aes 2 914@ Purchases of merchandise 80,000 (™w Purchases of deliveiy equipment 5 years life 1,200,000 vw) / PLOT bill 30,000 (thn sate Cam) How much VAT peyable for the monsh: a a. 36,000 Se Hts of IN Taw IIT 6 + ayslomet (dh VAT b, 32,400 UAT OU ar SL os Gren, Tneturnive oh WAT ©. 13,600 4. 10,000 CRP Is one of the Philippines registered top 20,000 private corporation. As the company’s eccountant you where tasked to account for_all payments made local/resident suppliers. What percentage of withho'ding tax rates af Income payments made by top 20,000 private corporations to their local/resident suppliers of goods? Wh atthe ct tha gross payments; Wh tenia iil ‘ b. Z%of the gross payments; tof. cence ©. 3% of the gross payments; gt Mea d, 4% of the gross payments, AK 41, The Board of Directors of RAPC corporation received a subpoena from the Department of Justice involving tax fraud, The Chairman of the Board summon you to attend the regular Board of Directors meeting to address whose signature must appear before a withholaing tax returns and consequently be held imprisoned in case of fraud? a. President‘and Treas urer? Nescaint Comparten ». Treasurer and Corporate Secretary;” x Wenge ~ Tnterral Rese ter €. Corporate Secretary and Internai Auditor; 4, Internal Auditor and Comptroller, x 42. In a protest letter address to the Commissioner of Internal Revenue, which of the following & 'sbest to make reference to.your subject matter? 8. With regard to; by In regard to ; = ©. AS regards; d. Regarding, Dh Perms /In buat “14 Ade vehate ded antePage 8 Cc 43. Tan-Torres a nan-stock and.non-profit charitable institution pays for its regujar repairs and_ maintenance of Its facilities to Carmel Mangower Service Incorprated. As t the exempt entity, how much withholding tax will you impose to its supplier ( tepairs and mein‘enar.ce expense? a. Exempt from withholding tax; b. 1% withholding tax on its gross payment; ¢.2% Withholding tax or. its gross payment; 97076 4. 5% withholding tax on its gross payment; nay! GPP. by tveunyh Aco A 44. Ayer domestic corporation hired Velava, Gartés and Santos accounting firm|to conduct its annual audit for the year 2013, Ayer corporation paid VGS & Co., an engagement fees equivalent to Php100 Millon. accoutant of armel) for the How much withholding tax will Ayer corporation impose upon its payment of services to VGS &Co.? fh fet. eivlaag doe if [sole PRopRreTd a. Exempt from withholding tax; b. 1% withholding tax on its gross payment €. 2% withholding tax on its gross payment; 4. 5% withholding tax on its gross payment; 45. The Bureau of Internal Revenue may use “Oplan | p eXcept? a. VAT registered person who faiis to issue receipts; b. VAT registered person who fails to file VA1 returns; < ¢. VAT registered perscn who understates Its tax d. VA indado” against the following taxpayer, ‘able sales by 30%; registered person who averstates its purchases by 30%,