ILLUSTRATIONS DOCX

Title	ILLUSTRATIONS
Author	J. Bantolinao
Pages	3
File Size	19.8 KB
File Type	DOCX
Total Downloads	219
Total Views	483

Summary

INDIVIDUAL TAXPAYERS ILLUSTRATION 1 Pedro left the Philippines on July 1, 2018 to go to abroad and work there for two years. The following data were provided for 2018 taxable year (assume 40% of gross income and business expenses presented below were derived abroad): Gross Income Business Expense Ja...

Description

INDIVIDUAL TAXPAYERS ILLUSTRATION 1 Pedro left the Philippine on July 1, 01,8 to go to abroad and work there for two year . The following data were provided for 01,8 taxable year (a ume 40% of gro income and bu ine expen e pre ented below were derived abroad): Gross Income Business Expense January 1, – June 30 P600 000 P 80 000 July 1, – December 31, 400 000 1, 0 000 Que tion 1,: Hi taxable income i : Que tion : A uming he arrived from abroad on July 1, 01,8 to permanently re etle in the Philippine hi taxable income for 01,8 i : ILLUSTRATION 2 Determine the correct classifcaaon of the taxpayer from the independent cases provided Ca e 1,: Allan i natural born Filipino citiien. Hi family migrated in U.S. 1,5 year ago. For per onal rea on he decided to return and re ide permanently in the Philippine on March 1, 01,8. Ca e : GI Joe i an American information technology expert. He wa igned by the NoyPi Telecom (a local telecommunication company) from January to March of 01,8 to improve it internet ervice . Due to the anticipated entry of the competitor from other countrie NoyPi decided to extend indefnitely the ervice of GI Joe. Ca e 3: Greg Popovich head coach of the San Antonio Spur in the NBA i in the Philippine for a month long NBA promotional tour. He al o expre ed hi intention to regularly vi it the country. Ca e 4: U ing the ame data a number 3 a ume the Greg inve ted in hare of tock of variou dome tic corporation during hi recent tay in the Philippine . Ca e 5: Mika "the iceman" Immonen a Finni h cue arti t and former world billiard champion i a re ident of Finland. He won the world 9 ball champion hip in 005 in the Philippine . He i al o the owner of one of the di co pub in Malate ince then. ILLUSTRATION 3 U e the following data to compute the taxable income of for Ca e A-E An individual taxpayer provided the following information for 01,8: Gro Bu ine income Philippine P5 000 000 Gro Bu ine income Canada 000 000 Gro Bu ine income Singapore 1, 000 000 Gro Bu ine expen e Philippine 3 000 000 Gro Bu ine expen e Canada 1, 000 000 Gro Bu ine expen e Singapore 500 000 Ca e A. Re ident Citiien Ca e B. Nonre ident Citiien Ca e C. Re ident Alien Ca e D. NRA-ETB Ca e E. NRA-NETB Ca e F. The income and expen e of a Filipino citiien for 01,8 were provided a follow : January – June Philippine Canada Gro Income P5 000 000 P 000 000 Allowable deduction 000 000 1, 000 000 July - December Gro Income P 000 000 P3 000 000 Allowable deduction 1, 000 000 1, 00 000 A ume the taxpayer i a re ident who left the country in July of the current year to re ide permanently in Canada how much i hi taxable income? Ca e G. A ume the ame data with ca e F except that the taxpayer i a nonre ident citiien who returned and re ide permanently in the country in July of the current year. Hi taxable income before per onal exemption i : ILLUSTRATION 4 A re ident citiien taxpayer provided the following information for 01,8: Gro bu ine income Philippine P 000 000 Gro bu ine income Canada 3 000 000 Bu ine expen e Philippine 1, 400 000 Bu ine expen e Canada 050 000 Intere t Income – BDO Philippine 1,00 000 Intere t Income – BDO Canada 50 000 Dividend Income from a dome tic corporation 1, 5 000...