Midterm QUIZ TAX1 - tax PDF

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Which is a VAT-exempt receipt to a bus operator? (A- SUBJECT TO 3% COMMON CARRIER’S TAX; b and c are subject to VAT)a. Receipts from passengers b. Receipts from cargoes c. Receipts from baggage d. e. None To an operator of a domestic sea transport vessel, which of the following is vatable? 12% VAT i...

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1. Which is a VAT-exempt receipt to a bus operator? (A- SUBJECT TO 3% COMMON CARRIER’S TAX; b and c are subject to VAT) a. Receipts from passengers b. Receipts from cargoes c. Receipts from baggage d. e. None 2. To an operator of a domestic sea transport vessel, which of the following is vatable? 12% VAT in general (within the Phil. Operations); 0% if outgoing; exempt if incoming. a. Fares from passengers b. Fares from baggage c. Fares from cargoes and mails d. All of these 3. To an international carrier, which if subject to percentage tax? a. Transport of passengers (whether out or in. exempt) b. Transport of baggage (if outgoing-3% other percentage tax; if incoming still exempt) c. A and B d. None 4. Which is not specifically subject to common carrier’s tax? a. Bus b. Taxi c. Jeepney d. Truck (12% VAT) 5. Franchise grantees of telephone, telegraph, and other communication equipment are subject to percentage tax on a. Overseas dispatch of message (10% overseas communication tax – Phil to abroad; abroad to Phil – zero rated) b. Domestic dispatch of message (12% VAT) c. A and B d. Neither 6. Which of these is vatable? Term “vatable” mean subject to VAT if VAT-registered or a registrable person. Otherwise, 3% GPT applies. a. City taxis b. Sea vessels c. Provincial buses d. City buses A, C and D are subject to 3% PT if they transporting passengers. If baggage/mails/cargoes, VATABLE. 7. Which is subject to the gross receipt tax? a. Banks b. Quasi-banks c. Pawnshops

d. All of these 8. The premiums tax on life insurance applies to (SUBJECT TO 2% PREMIUMS TAX.) a. Direct premium b. Re-insurance premium c. Refunded premium d. All of these 9. The percentage tax for operators of race tracks is a. 10% b. 15% c. 18% d. 30% (AMUSEMENT TAX) 10. Which winning is subject to percentage tax? Winnings from a. Lotto (EQUAL OR LESS THAN 10,000 – REGULAR TAX IF PCSO. MORE THAN 10,000 – 20% FT) b. Derby (REGULAR TAX – A FORM OF SUGAL) c. Horse race d. Gambling (REGULAR TAX) 11. Which of the following events is not exempt from amusement tax? (EXEMPT RECEIPTS ON PROFESSIONAL BOXING) a. National championship b. World championship c. Oriental championship d. All of these 12. If the block sale of primary shares exceeds 1/3 of the outstanding shares after the IPO, the IPO tax is? MORE THAN 33.33% a. 2%(OVER 25% UP TO 33.33%) b. 1% c. 4% (UP TO 25%) d. 5% 13. Fami, a VAT-registered taxpayer, reported P 200,000 sales in the month of May. Her annual sales never exceeded P 1,800,000. Compute her percentage tax. a. 54,000 b. 0 c. 24,000 d. 6,000 STILL SUBJECT TO 12% VAT BECAUSE HE IS VAT REGISTERED REGARDLESS OF THE AMOUNT OF SALES HE HAVE 14. Amelia Sumatra owns a cargo truck for rent. During the month, it generated total receipts of P40,000 from various clients. The percentage tax is a. 4,800 b. 1,200 c. 0 (VATABLE TRANSACTION ITO. TRANSPORTING CARGO)

d. 2,000 15. Saragosa Ferries transports passengers and cargoes between the islands of Palaui and Sta. Barbara. It earned a total of P 130,000 in March 2020 inclusive of P 10,000 freight for cargoes. What is the percentage tax if it is registered as non-VAT and as a VAT-taxpayer? a. P3,900; P3,600 b. P3,600; P3,600 c. P3,900; P0 d. P0;P0 SINCE IT IS NON-VAT, THE FREIGHT FOR CARGOES WILL BE SUBJECT TO 3% GPT. THE 120,000 SUBJECT TO 3% COMMON CARRIER’S TAX WHICH IS SPECIFIC % TAX. THE QUESTION ASKED YOU TO COMPUTE THE TOTAL PERCENTAGE TAX. 16. MAYUMI is a local water district with annual sales exceeding P10 M a year. During the month, it collected P 4M from sales of water. Compute the percentage tax. a. 200,000 b. 0 c. 80,000 d. 120,000 REGARDLESS OF THE AMOUNT OF RECEIPTS OF THE LOCAL WATER DISTRICT, SUBJECT TO 2% FRANCHISE TAX. NO THRESHOLD IS BEING OBSERVED. 17. A cellular company had the following receipts: P 2,000,000 From domestic calls 3,000,000 Incoming calls 2,500,000 Outgoing calls How much is subject to business tax? a. 2,000,000 b. 7,500,000 c. 5,500,000 d. 5,000,000 2,000,000 = 12% VAT 3,000,000 = 0% VAT 2,500,000 = 10% OCT 18. In relation to the previous problem, how much is the output VAT relating to P 3,000,000? BECAUSE IT IS SUBJECT TO ZERO-RATED VAT a. 0 b. 360,000 c. 90,000 d. 300,000

19. Selecta Company, a VAT taxpayer, leases commercial spaces to various businesses. During the month, it received P 142,500 rentals, net of 5% creditable withholding tax. Compute the business tax. a. 4,500 b. 17,100 c. 4,275 d. 18,000 TECHNICALLY SUBJECT TO 12% VAT. 142,500/95%=150,000 X 12% = 18,000 20. Almendralejo Corporation sells bread to various stores and makes P 150,000 monthly sales on the average. During the month, it made total sales of P 200,000 out of which only P 150,000 was collected. Compute the percentage tax. a. 4,800 b. 0 c. 4,500 d. 6,000 150,000 X 12 MONTHS = 1,800,000. HINDI PA RIN LUMAMPAS SA THRESHOLD NA 3M. SUBJECT STILL TO 3% GPT AS OF NOW. BUT UPON EFFECTIVITY OF CREATE LAW, 1% WILL BE THE NEW RATE FOR GENERAL PERCENTAGE TAX 21. Interest income on loans is specifically subject to percentage tax if earned by a a. All of these b. Quasi-banking institution c. Lending investor (HINDI KASI SINABI NA PERFORMING QUASI-BANKING) d. Dealers in security THIS IS APPLICABLE ONLY TO BANKS AND NON-BANK FINANCIAL INTERMEDIARIES PERFORMING QUASI-BANKING FUNCTIONS. 22. Arellano, a VAT-registered operator of jeepney, reported a total receipt of P 200,000 during the month, including P 20,000 rentals for cargo transport. Compute the business tax. a. 5,400 b. 2,400 c. 7,800 d. 6,600 200,000 – 20,000 = PASSENGERS 180,000 X 3% = 5,400 CARGOES 20,000 X 12% = 2,400 5,400 CCT + 2,400 VAT = 7,800 TOTAL BUSINESS TAX 23. In relation to number 22, what if he is non-VAT taxpayer, how much is the percentage tax? a. 6,600 b. 5,400 c. 24,000 d. 6,000 200,000 x 3% = 6,000

24. Emilia, a VAT-registered taxpayer, reported P 200,000 sales in the month of May. Her annual sales never exceeded P 1,800,000. Compute her business tax. a. 54,000 b. 216,000 c. 24,000 d. 6,000 200,000 x 12% = 24,000 25. Felix Company is conducting an initial public offering of 1,000,000 shares. It already had 4,000,000 common shares but they have 950,000 treasury shares. The new IPO shares shall be sold at P 3 per share. What is the IPO tax? a. 120,000 b. 30,000 c. 240,000 d. 60,000 1,000,000 / (4,000,000 – 950,000 + 1,000,000) = 24.69% (4% IPO TAX) 1,000,000 X P3 X 4% = 120,000...