TOP Business Taxation MCQs and Answers QUIZ EXAM PDF

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TOP BUSINESS TAXATION MCQs and ANSWERS QUIZ EXAMStatement 1: Other percentage taxes are indirect taxes that can be passed on by one person required to pay to another person who shall bear the burden of paying the tax. Statement 2: Transactions that are subject to the other percentage taxes are no lo...

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TOP BUSINESS TAXATION MCQs and ANSWERS QUIZ EXAM Statement 1: Other percentage taxes are indirect taxes that can be passed on by one person required to pay to another person who shall bear the burden of paying the tax. Statement 2: Transactions that are subject to the other percentage taxes are no longer subject to the valueadded tax but maybe subject to excise tax. a. b. c. d.

Only statement 1 is correct Only statement 2 is correct Both statements are correct Both statements are incorrect

Statement 1: All VAT-exempt taxpayers shall be subject to other percentage taxes. Statement 2: A taxpayer who is subject to percentage tax on his gross receipt will also be subject to income tax on his net income. a. b. c. d.

Only statement 1 is correct Only statement 2 is correct Both statements are correct Both statements are incorrect

Which statements is wrong? a. b. c. d.

Percentage taxes are basically on sales of services. Percentage taxes are not allowed by law to be shifted to the customers or clients. An isolated transaction not in the course of business will not result in a liability for a percentage tax. None of the above.

A seller of agricultural food products is VAT-exempt. His annual gross sales in 2020 amounted to P3,000,000. To what business tax is he liable? a. b. c. d.

3% tax on VAT-exempt persons under Sec. 116 of the Tax Code 12% VAT 3% common carrier’s tax under Sec. 117 of the Tax Code None of the above.

Ana has the following data for 2019 taxable year: Gross sales P2,850,000 Collections P1,420,000

If Ms. Ana is a seller of goods, her business tax for the year should be: a. b. c. d.

P42,600 OPT P85,500 OPT P170,400 VAT P342,000 VAT

If Ms. Ana is a seller of service, her business tax for the year should be: a. b. c. d.

P42,600 OPT P85,500 OPT P170,400 VAT P342,000 VAT

Using Ms. Ana’s data for 2019 taxable year and assuming further that the taxable year is 2020, the correct amount of Percentage Tax should be: a. b. c. d.

nil P14,000 P28,500 P57,000

Arianne is an operator of 10 buses with roues from Manila to Subic and is likewise a transportation contractor with 3 freight trucks. For the taxable year 2021, she reported gross receipts from her bus operations of P36,000,000. Her gross receipts, however, from her freight of goods or cargoes amounted to only P800,000 for the year.

Assuming Arianne is a non-VAT registered, how much is her total business tax due? a. b. c. d.

P1,088,000 P1,104,000 P1,176,000 P4,416,000

Assuming Arianne is VAT registered, how much is her total business tax due? a. b. c. d.

P1,088,000 P1,104,000 P1,176,000 P4,416,000

The 3% percentage tax on international carrier is imposed upon: International air carrier doing International shipping doing business in the Philippines business in the Philippines a. Yes Yes b. No No c. Yes No d. No Yes

Which of the following franchise grantee is subject to the franchise tax? a. Franchise on radio and/or television broadcasting companies the annual gross receipts in the preceding year exceed P10,000,000. b. Franchise on gas and water utilities. c. Franchise on toll road operations. d. PAGCOR and its licensees and franchisees. One of the following is subject to overseas communication tax: a. b. c. d.

Long distance call by a son from Manila to his father in Iloilo City. Monthly telephone bill from PLDT. Telephone bill on a call by a mother in the Philippines to her son in London. Telephone call by Magda in Hongkong to her friend in Manila.

Moon Telecom Inc. has the following collections for the month of April 2021: Overseas call originating abroad P1,120,000 Overseas call originating in the Philippines P 880,000 Local calls P2,240,000 How much is the overseas communications tax to be remitted by Moon for the month? a. b. c. d.

P220,000 P88,000 P200,000 P80,000

Ace Bank sold a repossessed car to JJ at P1,000,000. Ace Bank is I. Subject to VAT II. Subject to gross receipts tax of 7% III. Subject to regular corporate income tax a. b. c. d.

I and II only I and III only II and III only None of the above

Mae Bank extended loans to its debtors during the year, with real properties of the debtors being used as collateral to secure the loans. When the debtors failed to pay the unpaid principal and interest after several demand letters, the bank foreclosed the same and entered into contracts of lease with tenants. The bank is subject to business tax as follows: I. 12% VAT II. 7% gross receipts tax

a. b. c. d.

I only II only Both I and II Neither I and II...