Theory The following income are subject to final tax, except? A. Royalty income received by a domestic corporation from a domestic corporation B, Cash dividends received by a non-resident foreign corporation from a domestic corp. C. Cash dividends received by a domestic corporation from a domestic corporation. D. Interest income received by resident foreign corporation from a Phil. bank, Answer: C Problem: Ardiente Corporation which started with its operations in 2010 has the following records in 2014 1" Quarer 2" Quaner3 Quarter4" Quarter Gross Profit 500,000 850,000 $00,000 770,000 Expenses 400,000 770,000 640,000 575,000 Dividend Domestic 15,000 15,00 20,000 20,000 Company Inverest Peso bank 3,000 $000 3,750 2.250 deposit Income ax withheld 5.000 7,000 000 6.750 Rent Income, gross of 36000 36,000 48,000 48,000 Se withholding tax ‘The company had an excess payment of 12,500 in 2013 from which it had decided to claim tax credit on the exeess. The income tax payable at the end of the 2" Qtr is: A. 26,000 B. 28, 320 C. 31,800 D. 75,600 Answer: A. 26,000 F Quarter?” Quanter Gross Profit sooooo 1350000 (400000) (1170000) on000 180000 Ada: Rest Income 36000 72000 Taxable Income 136000 252000 Rate of ax 30% 30% Income Tax 40N00 75600 Less: Tax Cres Excess Ta, 2 Income tax withheld, 1° Qtr Tocome tax withheld. 2 Qu Tax withheld on rent, 2" Qt Tovome Tax, 1" Qt “Total Tax credits (19300) (49600) INCOME TAX PAVABLE 2150026000‘mucory ‘Staten: The dooce’ a payable oa the psc donation Includes the previous denatioes ‘ade Gung the curent Yeat ‘Statement HB ot proper add he prior ct its Baring the ‘current year bene the fe id. ths deeations wilt be ered front ‘he donor's tax commuted ‘Statement I The artes int an tbe fr donor's tan are elaine Hower tha the ta rates theta table fo estat ta, ‘Statement IV: The highest a ate on do's axis higher than ‘he at Fate ow ete an Cheone the best anew 2 Statements | and 2 are ase 1 Statements I, Zand are false, © Statements Vand are cree 4d Statemcot 2 fae. ‘Answer: BL Statements Zand are tale,(BSearch #ecco = 6:47AM < Donor's Tax - Banqui PROBLEM [i sinple,Sanstesthe fallowsng propetics on Sepeeber 207, eben hh sete Pie ie rad — ‘THEORY. ‘Statement |: The donor’ ex puyable cathe pesent donation Incudes be peviowsdonstioes ‘ade during the curent Yearrabies 2 Tralla Corporation a domesti corporation has the following record cere and expense during the Yar — bana)donation may «sade erat ee in ANS Of the persenal propery can eee Scceplance shall be d= in witing, ~Hmust be made ina public insmancat B toxable gin?aE 33 aE 1 Hance Ra rs ‘hte tepercetaet ie secrecy oh ar epste nan tae PAC no mt ro worpromon ofa moore ome ae rn ct arr Tea ‘The power to reverse, eco A a & 5 bean i | 1 i Sete mt(Geage cus oy moro coctan 13 pea ‘hee bam Oeceribe 12014 ca wom ‘he ta persons exertion sae 199000 <7 Bie tie ener oa taped ak Hips aid prion wh Say Baneg | PD ‘Be cea as we a eas manag, TG re Canker SA OR RTT RA Or aay | FT tame ib Boca Ten cas wae 668 epee aoe2 Meerereretrrereratcetegmereicas, PSEA core 2 Trannys pacmanetnan eae ne antennae ene ty ew Looe Ener en aS 7 = = = Ea Soctes = iw 2 5 IE‘int Panceues san Souci conan TAKA by OMAR ERASVG@ RUPONGAN ‘Guerin | Gat etn frre erent Papp? ‘Guemani re garment expe nae ee? not ae ene Conpes con wc aa nn eer ot acannon Sn ate SR te Lee ee,Somes ested ou] Miranda, Layla Cr...ME TAXATION - Read-only oe =e le READ-ONLY — This is an older file forma. v QDeome wesron Theory Which ofthe following statement isnot wrong? |A.Non-payment of adetional community tac isa ground for imprisonment. 8. Incase of conflict hotwoon a taxlaw and a revenue regulation, the latter shal provail G_Arevenue regulation can expand the provision of law byimposing a penalty even ifthe law that ‘implements docs not impose a penalty. 0. Reveruebils shal originate exclusively from the Senate. Answer: Probiere 1n2014,Padila received from his employer a promissory note with a face value of P50,000 for services ‘tendered. The note will mature in 2015. However, it can be sold to a bankata discount of 25%. The ‘employer pale the promissory note In 2015, How much taxable income Isto be declared by Padilla on tho promissory note in 2014 and 2015? 2014 2oas 2014 2015 ‘A. P50,000 —P50,000, c.P37,S00—F12,500 8. 12,500 37,500 ©. None ‘50000 Answer: 2014 Face Value 50,000 Less: Discount (P50,000x 25%) 32,500 Taxable Income 37,300 201s Face Value 50,000 Less: Income reported in 2014 37,500 Taxable Income 12,500Prone traces | Wiehe tle act seme apt dee ne? cece oven etait eee Ving ecinn Semel The te eeu ecupaet weyeabe be Pabpeet Stat = Wheat cin of nga fly dm emai tt (op cmpena uy ey oper ‘Fa aot sac: Sac et eg (Fu ssn wong Sco emt conc (a tes een Areas4cull cul Gl & Edit intense 1. se sn a in i ft tinh 5 tue hon erin etre © Winnings trom gambling by the husband 4. Toten ene ntl ae soma A Figo, tng anda eefen ft Pelppnes, at lasing preparbes wh fae market ‘ef P1_S80000 1 Na rs. The atu expenses neirted meena oa death are Funeral expenses Preocoo oscil emanser Psneen ‘anes du porto deat psd ou Ofte Pase00 Compute fr tenet tanable ete seul 09.00 ° Steforee Ente 75000 Manin Atoned 70000 75000 ° ees penne sone 25800 ess special caueta8e ‘Standaed Ondeton ‘200,000 ooe,000) (Met Taxable estate sg00 B oo =| oo Mobile View Toolsslate # ose pm @ ose Done —_Encina,Raechel B..docx fh |. XY2 Corporation manufactures glass punch ands almost at ‘he pot of sere. ta 50 one cash and al iB ae ‘anol glass panels recived an assessment fromthe BIR for Sefciency income tes Ht wants to pay but de wo lek of exh, ‘seeks permission wo pay in kis wih las aes, Shou the [BER grant dhe perminston?(BEQ) A Teshoul sane prminson to om payment convenient Laapuners. [Bi should wot grand permission because aan pnerally a ecumay hard Ce shoold grant parmision,otbenebe, XV Coporation would ne be able to pay (D TeahookS nt grant permmaon Recast the goteramcel doce ‘not have te storage facies Fr gles panels eower It 2 Imgase of sbi, at Laws shall be etespretadall Globe > 9 PM @ 33% E+ Done DELAPENA-INCOME TAXATIO... 4 2. Eugene had the following data during the year: Capita ain Capital loss Detucions Donation oan screed NGO Donationto Charch 1.000009, 1000 20000 400.000 31.000 ‘The taxable income of Eugene if he is an individual taxpayer, single, with a compensation income during the a. PSS0, 000 Answer: D Gross Income Less: Deductions except contributions Taxable Income from business Less: Contributions Donations to accredited NGO Donation to church Limit (600,000 x 10%) Deductible (lower) ‘Taxable income after contributions ‘Add: Other income ‘Compensation income Net capital gain: Capital gain Capital loss Total Less: Personal exemptions Taxable income year of P40,000 c. 560,000 4. P570,000 1,000,000 400,000 600,000 30,000 20,000 60,000 50,000 550,000 40,000 50,000 (20,000) 70,000 620,000 50,000 570,000WGlobe 3G 10:08 PM ye eye Mea Cee Leva DD Ison, Marielle Joy D. GENERAL PRINCIPLES OF TAXATION SOURCE: CPA Reviewer in Taxation by Omar Erasmo G, Ampongan 1, Which of the following activities is not a public purpose? a. Construction of bridg b, Payment of Christmas bonuses of government officials and employees ¢. Openit individual of road on a trak of land owned by private 4, Scholarship to poor but deserving students Answer: C. Opening of road on a tract of land owned by private individu: 2, Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxation (BEQ) a, violates substantive due process, b, does not violate subs antive due process. ¢. violates the right to equal protection. 4, does not violate the right to equal protection, Answer: C. violates the right to equal protection,by law Problem: ‘Mr. Castaneda, Filipino, single, died on Nov. 12, 2015. The following assets, expenses, liabilities, and charges were left Assets Fishpond ia General Santos City 2,500,000 Latin Las Pinas City 125,000 House and Lot in San Juan, Metro Manila (Family Home) 593,750 Honda Car 375,000 Farm in Nueva Ecija donated mortis causa to sister 262,500 Time Deposit 150,000 Expenses, liabilities and Charges Funeral Expenses paid jointly by brothers and sisters of decedent 137,500, Mortgage on fishpond, (112,500 of the mortgage wes paid before decedent's death) 137,500 ‘Medical Expenses incurred in 2015, 287,500 ‘Unpaid Real Estate Tax for the 4 quarter of 2015 20,000 The net taxable estate is: ‘A. 2,580,000 B, 1,380,000 C. 3,173,750 D. 2,173,730Solution: Gross Estate Fishpond in General Santos City, Lot in Las Pinas City House and lot in San Juan, Metro Manila Honda Car Farm in Nueva Ecija donated mortis cause to sister Time Deposit Less: Deductions Mortgage on fishpond Medical Expenses incurred in 2012 Unpald real estate tax for the 4" quarter of 2012 Family Home Standard Deduction Net Taxable Estate 2,500,000 625,000 593,750 375,000 262,500 150,000. 25000 287,500 20,000 593,750 1,000,000 4,506,250 1,926,250 2,580,000PROBLEM: Mr. Adamson, resident decedent, married, died, leaving the following properties: Real and personal properties acquires during the marriage 3,000,000 House and land inherited from the father one year and 3 months before 2,000,000 he died (fair market value when inherited, P1, 500, 000) used as, decedent's family home Car purchased wit cash received as gift from the mother during the year $00,000 the decedent died Cash (inclusive of PS00, 000 received as inheritance from the father) 1,$00,000 The following obligations and expenses were also made available: Claims against conjugal properties £600,000 Unpaid mortgage on the inherited house and land (original mortgage 100,000 ‘was for P600,000) How much was the vanishing deduction? A. P 1,530,000 B. P 1,080,000 C. P-1,000,000 D. None of the choices ANSWER: A Inherited property from father Value to take House and land P 1,500,000 Cash 500,000 Total 2,000,000 Less: Mortgage paid — £500,000) Initial basis P 1,500,000 Less: Proportional deduction [(1.5M'7M) x 700k] __(150,000) Final basis P 1,350,000 X Rate 80% P 1,080,000 Car purchased with cash received from mother ‘Value to take / Initial basis 500,000 Less: Proportional deduction [(500k/700k) x 700k] __(50,000) Final basis 450,000 X Rate 100% __450,000 Vanishing deduction 1,830,000tN 7 eae ==, question.docx Exempted from donors taxation are gifts made (A) For the use ofthe barangay. (8) In consideration of marriage. (©) Toa school which is astock corperation. (0) Toa for-profit eoverrment corporation brs: A tia donated P110, 000.00te hor frond Vieteria who was getting married. Cola gave no other gift ‘during the celordar year, What ie the dances taximpliationon ali's donation? {(A) The P100, 000.00 portion of tho donation is comp since givenin zorsidoration f mariage. {8) AP 10,009.09 portion ofthe donation is exempt being a donation in consideration of marrage. (©) Celia shal pay 290% donor's tax on the P110,000.00 donation. (0) The P10, 000.00 portion ofthe donation is exempt under the rate schedule for donor'sta. as:5. Mr. Castaneda, Filpino, single, died on Nov. 12, 2016, The folowing assets, ‘expenses, liabilities, and charges were left 4 ni House and Let in San Juan, Metra Manila (Family Home) HondaCar ‘Farm in Nuewa Ecija donated mortis causa to sister ‘DepositA, The importation of laboratory equipment - from custom duties. B. The schoo! building being rented by the school — from real property tax. C.A portion of the schoo! building being leased to a fastfood chain ~ from real property tax. D. The income from operation — from income tax.