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ACTIVITY 1Question 1Statement 1: Taxes are important because they are the lifeblood of the government and so should be calculated without unnecessary hindrance. Statement 2: The legislature, in adapting measures to implement our tax laws wants to be ensured that taxes are paid and collected without ...

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ACTIVITY 1 Question 1 Statement 1: Taxes are important because they are the lifeblood of the government and so should be calculated without unnecessary hindrance. Statement 2: The legislature, in adapting measures to implement our tax laws wants to be ensured that taxes are paid and collected without delay Response: Both statements are correct Correct answer: Both statements are correct Score: 1 out of 1 Yes

Question 2 In 2018, Pedro signified his intention to be t axed at 8% income tax rate on gross sales in his 1st quarter income tax return. His total gross sales during the year exceeded the vat threshold of P3M. The following quarterly data were provided by Pedro: Q1 Q2 Q3 Q4 Annual Sales P500,000;P500,000;P2,000,000;P3,500 Cost of sales (300,000);(300,000);(1,200,000);(1,200,000) Gross income 200,000;200,000;800,000;2,300 Operating expenses (120,000);(120,000);(480,000);(720,000) Net Taxable Income P 80,000;P 80,000;P 320,000;P1,580 How much is Pedro's total business tax due for the year? Response: 510,000 Correct answer: 510,000 Score: 1 out of 1 Yes

Question 3 “Other Benefits” under revenue regulations include I. Christmas Bonus II. Productivity incentives bonus III. Loyalty Awards Response: All of the above Correct answer: All of the above Score: 1 out of 1 Yes

Question 4 Which of the following is a requisite of the validly imposed tax?

Response: All of the above Correct answer: All of the above Score: 1 out of 1 Yes

Question 5 In 2018, Pedro signified his intention to be t axed at 8% income tax rate on gross sales in his 1st quarter income tax return. His total gross sales during the year exceeded the vat threshold of P3M. The following quarterly data were provided by Pedro: Q1 Q2 Q3 Q4 Annual Sales P500,000;P500,000;P2,000,000;P3,500 Cost of sales (300,000);(300,000);(1,200,000);(1,200,000) Gross income 200,000;200,000;800,000;2,300 Operating expenses (120,000);(120,000);(480,000);(720,000) Net Taxable Income P 80,000;P 80,000;P 320,000;P1,580 How much is Pedro's annual income tax? Response: 289,200 Correct answer: 289,200 Score: 1 out of 1 Yes

Question 6 Which of the following statements is correct? Response: . All of the above Correct answer: . All of the above Score: 1 out of 1 Yes

Question 7 e secretary of finance, upon recommendation of the commissioner of Internal Revenue, Issued a Revenue Regulation using gross income as the tax base for corporations doing business in the Philippines. Is the revenue Regulations valid? Response: No, secretary of Finance has virtually amended the NIRC Correct answer: No, secretary of Finance has virtually amended the NIRC Score: 1 out of 1 Yes

Question 8 The cost of leasehold improvements shall be deductible by the lessee by

Response: Spreading the cost of the improvements over the life of the improvements or remaining term of the lease, whichever is shorter. Correct answer: Spreading the cost of the improvements over the life of the improvements or remaining term of the lease, whichever is shorter. Score: 1 out of 1 Yes

Question 9 The amount of P90, 000 under “other benefits” which are excluded from gross income shall I. Not be applicable to self –employed individual II. Not be applicable to income generated from the conduct of trade or business III. shall be applicable to all types of income Response: II only Correct answer: II only Score: 1 out of 1 Yes

Question 10 Which of the following income of an individual taxpayer is subject to final tax? Response: Dividend received by non resident alien from a domestic corporation Correct answer: Dividend received by non resident alien from a domestic corporation Score: 1 out of 1 Yes

Question 11 Person’s with disability (PWD) deriving returnable income during the taxable year, whether from compensaton or otherwise, is: Response: Required to file their ITR’s and pay the tax as they file the return Correct answer: Required to file their ITR’s and pay the tax as they file the return Score: 1 out of 1 Yes

Question 12 What is the correct treatment of advance payment made by the lessee to the lessor? I. If the advance payment represents loan, the amount is the part of the lessor’s taxable income. II. If the advance payment represents security deposit, the amount is part of

the lessor’s taxable income. III. If the advance payment representing loan is applied to unpaid rent, the amount is part of the lessor’s taxable income IV. Prepaid rent must be reported in full in the year of receipt. Response: III and IV only Correct answer: III and IV only Score: 1 out of 1 Yes

Question 13 A tax exclusion is defined as Response: Income received but which is not part of gross income as it is exempted by law or by treaty Correct answer: Income received but which is not part of gross income as it is exempted by law or by treaty Score: 1 out of 1 Yes

Question 14 Which of the following statements is correct? Response: Indirect double taxation is legal as long as there is no violation of equal protection and uniformity clauses of the constitution Correct answer: Indirect double taxation is legal as long as there is no violation of equal protection and uniformity clauses of the constitution Score: 1 out of 1 Yes

Question 15 Which of the following statements is correct? I. Taxes are pecuniary in nature II. It co-exist with the existence of the state III. Imposed on persons and property beyond the territorial jurisdiction of the state Response: I and II only Correct answer: I and II only Score: 1 out of 1 Yes

Question 16 Which of the following statements is correct? Response: The power of taxation and police power may be exercised simultaneously

Correct answer: The power of taxation and police power may be exercised simultaneously Score: 1 out of 1 Yes

Question 17 Raising revenue is the primary purpose of taxation, which of the following is not one of the secondary purposes of taxation Response: Protection of foreign interests Correct answer: Protection of foreign interests Score: 1 out of 1 Yes

Question 18 Which of the statements is correct? I. A minimum corporate income tax(MCIT) of 2% of gross income as of the end of the taxable year is imposed upon any domestic corporation beginning the 4 th taxable year immediately following the taxable y ear in which such corporation commended its business operations. II. MCIT shall be imposed whenever such corporation has zero or negative taxable income , or when the amount of MCIT is greater than normal income tax due from such corporation III. The computation and the payment of MCIT, shall likewise apply at the me of filing the quarterly corporate income tax Response: All of the above Correct answer: All of the above Score: 1 out of 1 Yes

Question 19 Who makes revenue regulations Response: Secretary of finance Correct answer: Secretary of finance Score: 1 out of 1 Yes

Question 20 Minimum Wage Earners (MWEs) receiving” other benefits” exceeding the P90, 000 limit shall be Response: Taxable on the excess benefits only Correct answer: Taxable on the excess benefits only Score: 1 out of 1 Yes

Question 21 This is an inherent limitation on the power of taxation Response: The tax laws cannot apply to the property of foreign governments. Correct answer: The tax laws cannot apply to the property of foreign governments. Score: 1 out of 1 Yes

Question 22 What is the correct treatment of overtime pay, holiday pay, night shift differential, and hazard pay received by those whose basic pay is more than the statutory minimum wage (SMW)? Response: Subject to income tax,and subsequently, to the withholding tax on compensation income Correct answer: Subject to income tax,and subsequently, to the withholding tax on compensation income Score: 1 out of 1 Yes

Question 23 Anon-resident alien not engaged in trade or business derived P50,000 interest income from his long-term bank deposit in the Philippines. How much is the income tax due of the said alien? Response: 12,500.00 Correct answer: 12,500.00 Score: 1 out of 1 Yes

Question 24 Which of the following income will be taxed in the same manner regardless of the classification of the taxpayer? Response: Capital gain on sale of shares of stock of a domestic corporation Correct answer: Capital gain on sale of shares of stock of a domestic corporation Score: 1 out of 1 Yes

Question 25 Which of the following statements is correct? I. Excise taxes on domestic products should be paid upon distribution to outlets II. Excise taxes on imported products shall be paid before release from the customers’ custody

III. Imposition of VAT in necessary before excise tax is imposed on excisable products. Response: II only Correct answer: II only

ACTIVITY 2 Question 2 No law granting any tax exemption shall be passed without the concurrence of (RPCPA) Response: Majority of all members of the Congress Score: 1 out of 1 Yes

Question 3 The power of taxation can only be exercised by the lawmaking body Response: Legislative in character Score: 1 out of 1 Yes

Question 4 Which of the following is not one of the canons of a sound tax system? Response: Quantifiiability Score: 1 out of 1 Yes

Question 5 One of the characteristics of tax is that Response: It is generally payable in money Score: 1 out of 1

Question 8 The basic community tax of P5.00 of an individual is a (an) Response: direct tax Score: 1 out of 1 Yes

Question 9 All of the following, except one, are canons of a sound tax system.

Response: inherent in sovereignty Score: 1 out of 1

MODULE 2 Question 1 which of the following corporations is taxable Response: PagIBIg Score: 1 out of 1 Yes

Question 2 Kael, a minimum wage earner is employed in Holer Corporation. In 2018 he received the following: Salary, inclusive of 13th month pay of 10,000-P130,000 Overtime Pay-50,000 Night shift differential pay-30,000.00 Commission income-20,000 The taxable income is? Response: 20,000 Score: 1 out of 1 Yes

Question 3 Kim, hired as employee on July 1, 2018, received the following compensation during the year: Basic Pay (monthly)P20,000 13th month pay-20,000 Other Benefits-7,000 Salary from previous employer(january-may 2018)-180,000 Tax withhold from previous employer 4,167 Tax withhold current employer til november 2018-6,000. The income tax due on Manny is? Response: 10000 Score: 1 out of 1 Yes

Question 4 In 2018, Mark sold shares of stocks of a domestic corporation. The selling price is P80,000.000 while the cost is P65,000.00. the final tax on sale is?

Response: 2250 Score: 1 out of 1 Yes

Question 5 Lou is a compensation income earner. Her total basic pay during the year is P220,000.00 which is more than the statutory minimum wage. Other income during the year were; Overtime Pay-30,000; Holiday Pay-P15,000.00; Hazard Pay, P24,000.00, and Night shift differential Pay-18,000.00. If the amounts are net of mandatory contributions to SSS, PHIC and PagIbig, how much is the taxable income? Response: 57,000.00 Score: 1 out of 1 Yes

Question 6 A minimum wage earner is not exempt from Response: commission Score: 1 out of 1 Yes

Question 7 Refers to a Chinese residing in Japan who shall come to the Philippines and stay for an aggregate period of 180 days or less during any calendar year. Response: NRA not engaged in trade or business Score: 1 out of 1 Yes

Question 8 Jun Lopez is engaged in small business. He signified his intention to be taxed at 8% income tax rate on gross receipts in his first quarter income tax return. The following are the data on sales, cost of services and operating expenses: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Gross Receipts 300,000 600,000 500,000 400,000 Cost of services 150,000 250,000 300,000 200,000 Operating Expenses 50,000 80,000 100,000 100,000 The tax due for the 2nd quarter is? Response: 48,000.00 Score: 1 out of 1 Yes

Question 9 Jun Lopez is engaged in small business. He signified his intention to be taxed at 8% income tax rate on gross receipts in his first quarter income tax return. The following are the data on sales, cost of services and operating expenses: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Gross Receipts 300,000 600,000 500,000 400,000 Cost of services 150,000 250,000 300,000 200,000 Operating Expenses 50,000 80,000 100,000 100,000 The tax due for the 3rd quarter is? Response: 40,000 Score: 1 out of 1 Yes

Question 10 Swimple Corporation, a domestic corporation, granted Mr. Generoso, its general manager, Filipino, in addition to his basic salaries, P9,750.00 cash per quarter for his personal membership fees in an athletic club. How much is the fringe benefit tax? Response: 5250 Score: 1 out of 1 Yes

Question 11 Jun Lopez is engaged in small business. He signified his intention to be taxed at 8% income tax rate on gross receipts in his first quarter income tax return. The following are the data on sales, cost of services and operating expenses:

1st 2nd Quarter Quarter

3rd Quarte r

4th Quarte r

Gross Receipts

300,00 0

600,000

500,00 0

400,00 0

Cost of services

150,00 0

250,000

300,00 0

200,00 0

80,000

100,00 0

100,00 0

Operatin 50,000 g Expenses

The tax due for the first quarter is? Response: 4,000 Score: 1 out of 1 Yes

Question 12 Kael, a minimum wage earner is employed in Holer Corporation. In 2018 he received the following: Salary, inclusive of 13th month pay of 10,000-P130,000 Overtime Pay-50,000 Night shift differential pay-30,000.00 Commission income-20,000 The taxable due of Kael is? Response: 0 Score: 1 out of 1 Yes

Question 13 Jun Lopez is engaged in small business. He signified his intention to be taxed at 8% income tax rate on gross receipts in his first quarter income tax return. The following are the data on sales, cost of services and operating expenses: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Gross Receipts 300,000 600,000 500,000 400,000 Cost of services 150,000 250,000 300,000 200,000 Operating Expenses 50,000 80,000 100,000 100,000 The tax due for the final quarter is? Response: 124,000 Score: 1 out of 1 Yes

Question 14 The ceiling on rice allowance as de minimis benefits is Response: P2,000.00 per month Score: 1 out of 1 Yes

Question 15 Which of the following statement is false on partners of general professional partnerships?

Response: They are required to register as employees Score: 1 out of 1

MODULE 3 ACTIVITY 3 Question 1 Luke sold 2,000 shares of ABC Corporation at P50 per share. The cost is P42 while the par value is P43 per share, If the stocks are listed and tradeed in the stock exchange, and Luke is not a dealer in securities, the stock transfer tax is Correct answer: 600 Score: 1 out of 1 Yes

Question 2 Effective January 1,2018, the VAT threshold shall be Correct answer: 3,000,000 Score: 1 out of 1 Yes

Question 3 Exemptions from VAT is limited to the following except Correct answer: agricultural non food Score: 1 out of 1 Yes

Question 4 Zero-rated (0%) transaction Correct answer: Services rendered to persons or entities whose exemption under special laws or international agreements to which Philippines is a signatory Score: 1 out of 1 Yes

Question 5 Sale of drugs and medicines prescribed for diabetes, high cholesterol and hypertension are exempt from VAT beginning Correct answer: January 1, 2019 Score: 1 out of 1 Yes

Question 6

Mr Tiu rents his 12 residential units for P12,000.00 per month. during the taxable year 2018, his accumulated gross receipts to P2,500,000. Is Mr. Tiu subject to VAT and 3% percentage tax? Correct answer: No to both taxes Score: 1 out of 1 Yes

Question 7 All of the following, except one, are exempt from the payment of the 3% Non VAT Correct answer: Self-employed individuals and professional availing the graduated tax rate in computing income tax on their income Score: 1 out of 1 Yes

Question 8 Mr. Roman, single with one dependent child operates a car aircon repair shop. For the year 2018, it had a gross receipts of P1,630,000. The cost of services and operating expenses amounted to P400,000 and P200,000, respectively. If the business is non-VAT and Mr. Roman decides to avail the graduated rates, the income tax is? Correct answer: 199,000 Score: 1 out of 1 Yes

Question 9 Give at least three(3) transactions subject to Zero Percent (0%) VAT Rate (Train Law) Score: not graded yet

Question 10 Mr. Roman, single with one dependent child operates a car aircon repair shop. For the year 2018, it had a gross receipts of P1,630,000. The cost of services and operating expenses amounted to P400,000 and P200,000, respectively. If the business is non-VAT and Mr. Roman decides to avail the graduated rates, the business tax is? Correct answer: 48,900 percentage tax Score: 1 out of 1 Yes

Question 11 Mr. Roman, single with two dependent child operates a car aircon repair shop. For the year 2018, it had a gross receipts of P1,630,000. The cost of

services and operating expenses amounted to P400,000 and P200,000, respectively. If he avails of the 8% tax option, the total income tax and business tax is? Correct answer: 110,400 Score: 1 out of 1 Yes

Question 12 Mr Tiu rents his 12 residential units for P12,000.00 per month. during the taxable year 2018, his accumulated gross receipts to P3,500,000. Is Mr. Tiu subject to VAT and 3% percentage tax? Correct answer: No to both taxes Score: 1 out of 1 Yes

Question 13 A professional whose gross receipts from practice of profession has exceeded P3 million on the 3rd quarter of 2018 shall be subject to VAT effective Correct answer: 3rd quarter of 2018 Score: 1 out of 1

Question 15 Beginning January 1,2018 the sale, barter, exchange or other disposition of shares of stocks listed and traded through the local stock exchange other than the sale by a dealer in securities shall be subject to a tax of Correct answer: 6/10 of 1% of the gross selling price or gross value in money Score: 1 out of 1...