School of Accountancy & Business

S U B J E C T: INCOME TAXATION Term 2, Academic Year 2013-2014

FINA EXAMS
NAME___________ _______________________ID NO._________________
PART I- OBJECTIVE TYPE
AC 111-112(DECEMBER 19,2013)
GENERAL INSTRUCTIONS:
MULTIPLE CHOICE-ENCIRCLE THE LETTER CORRESPONDING TO YOUR ANSER
PROBLEM SOLVING-USE YELLO PADS! SHO COMPUTATION AS RE"UIRED! ENCIRCLE
YOUR #INAL ANSER
A! NET OPERATING LOSS CARRY-
OVER (NOLCO)
I! MULTIPLE CHOICE
1. NOLCO SHALL BE CARRIED OVER AS
A DEDUCTION FROM GROSS INCOME
FOR
A)NEXT 3 CONSECUTIVE TAXABLE
YEARS
B)NEXT 4 CONSECUTIVE TAXABLE
YEARS
C)NEXT 5 CONSECUTIVE TAXABLE
YEARS
2. NET OPERATING LOSS OCCURS WHEN
A) GROSS INCOME IS EQUAL TO
ALLOWABLE DEDUCTIONS
B) GROSS INCOME IS OVER ALLOWABLE
DEDUCTIONS
C) ALLOWABLE DEDUCT ION IS OVER
GROSS INCOME
3. NOLCO SHALL BE ALLOWED ONLY IF
THERE HAS BEENIN THE
OWNERSHIP OF THE BUSINESS
A) NO SUBSTANTIAL
B) SUBSTANTIAL
4. NOLCO IS ALSO APPLICABLE ON ANY
NET LOSS INCURRED IN A TAXABLE
YEAR DURING WHICH THE TAXPAYER

A)WAS TAXABLE
B)WAS EXEMPT FROM TAX
5. SUBSTANTIAL CHANGE IN
OWNERSHIP OF BUSINESS MEANS
A) NOT LESS THAN !5" OF NOMINAL
VALUE OF OUTSTANDING SHARES OR
PAID#UP CAPITAL IS HELD BY OR ON
BEHALF OF SAME PERSONS
P$%& 1 '( 20
B) NOT LESS THAN 5)"
C) NOT LESS THAN 25"
*. THE REVENUE REGULATION THAT
GOVERNS NOLCO
A)RR+ 14#2))1
B) RR+2#2))1
C)RR+ ,#,-
!. ABSORPTION OF A CORPORATION BY
ANOTHER CORPORATION. THE
LATTER RETAINING ITS OWN NAME
AND IDENTITY AND ACQUIRING THE
ASSETS. LIABILITIES. FRANCHISES
AND POWERS OF THE FORMER AND
THE ABSORBED CORPORATION
CEASING TO EXIST AS A SEPARATE
/URIDICAL PERSON
A) MERGER
B) COMBINATION
C) CONSOLIDATION
D) DISSOLUTION
-. A SITUATION WHEN TWO OR MORE
CORPORATIONS ARE EXTINGUISHED.
AND BY THE SAME PROCESS A NEW
ONE IS CREATED. TA0ING OVER THE
ASSETS AND LIABILITIES OF THE
SAID EXTINGUISHED
CORPORATIONS. OR THE
UNIFICATION OF TWO OR MORE
CORPORATIONS INTO A SINGLE NEW
CORPORATION. HAVING THE
COMBINED CAPITAL. FRANCHISES.
AND POWERS OF ALL ITS
CONSTITUENTS
A) CONSOLIDATION
B) COMBINATION
C) MERGER
D) DISSOLUTION
,. A SITUATION WHEN AN OWNER OF A
BUSINESS. ORGANI1ED AS A SOLE
PROPRIETORSHIP. ADMITS A NEW
PARTNER IN THE BUSINESS FOR THE
PURPOSE OF FORMING A CO#
PARTNERSHIP
DISSOLUTION
A) CONSOLIDATION
B) MERGER
C) DISSOLUTION
D) COMBINATION
1). AN INDIVIDUALMAY BE
ALLOWED TO CLAIM DEUDCTION OF
HIS CORRESPONDING NOLCO
A)EARNING BUSINESS AND
PROFESSIONAL INCOME
B)EARNING PURELY COMPENSATION
INCOME
11. NOLCO SHALL BE AVAILED OF ON A
BASIS
A)FIFO
B)LIFO
C)MOVING AVERAGE
12. THE NET OPERATING LOSSES
INCURRED OR SUSTAINED PRIOR TO
THIS DATE SHALL NOT QUALIFY FOR
PURPOSES OF NOLCO
A)PRIOR TO /ANUARY 1. 1,,-
B)PRIOR TO /ANUARY 1. 1,,,
C)PRIOR TO /ANUARY 1. 2)))
13. A CORPORATION CAN NOT EN/OY
THE BENEFIT OF NOLCO FOR AS
LONG AS TO MCIT ANY
TAXABLE YEAR
A) IT IS SUB/ECT
B) IT IS NOT SUB/ECT
B! IMPROPERLY ACCUMULATED
EARNINGS TA$(IAET)
P$%& 2 '( 20
14.IN GENERAL. ACCUMULATION OF
EARNINGS WOULD BE IMPROPER IF NOT
WITHIN THE REASONABLE NEEDS OF
THE BUSINESS
A)TRUE
B)FALSE
15.REASONABLE NEEDS OF THE
BUSINESS INCLUDE ONLY THE PRESENT
NEEDS TO THE EXCLUSION OF FUTURE
NEEDS
A)TRUE
B)FALSE
1*.THE IAET DOES NOT APPLY TO
A)PUBLIC#HELD CORPORATIONS
B)BAN0S AND OTHER NON#BAN0
FINANCIAL INSTITUTIONS
C)INSURANCE COMPANIES
D)ALL OF THE ABOVE
1!.THE RR THAT GOVERNS IAET
A)RR 3#2))1
B)RR 4#2))1
D)RR 2#2))1
1-.ALLOWANCE FOR THE INCREASE IN
THE ACCUMULATION OF EARNINGS UP
TOOF PAID#UP CAPITAL IS STILL
WITHIN THE REASONABLE NEEDS OF
THE BUSINESS
A)1))"
B)12)"
C)-)"
1,.PRIMA FACIE INSTANCE2S) OF
ACCUMULATION OF PROFITS BEYOND
THE REASONABLE NEEDS OF A
BUSINESS
A)INVESTMENT IN BONDS AND OTHER
LONG#TERM SECURITIES
B)ACCUMULATION OF EARNINGS IN
EXCESS OF 1))" OF PAID#UP CAPITAL
C)INVESTMENT OF SUBSTANTIAL
EARNINGS AND PROFITS OF THE
CORPORATION IN UNRELATED BUSINESS
D)ALL OF THE ABOVE
2).IAET RATE ISOF IMPROPERLY
ACCUMULATED EARNINGS
A)3)"
B)1)"
C)2)"
C! MINIMUM CORPORATE INCOME TA$
(IAET)
21. THE IMPOSITION OF MINIMUM
CORPORATE INCOME TAX SHALL NOT BE
SUSPENDED WHENEVER THE
CORPORATION SUFFERS LOSSES DUE TO
A) FORCE MA/EURE
B) LEGITIMATE BUSINESS REVERSES
C) MISMANAGEMENT
D) PROLONGED LABOR DISPUTE
22.A CORPORATION WHICH WAS
REGISTERED WITH THE BUREAU OF
INTERNAL REVENUE IN MAY. 2))2
SHALL BE COVERED BY MCIT IN
A) 2))5
B) 2))*
C) 2))-
D) 2)),
NOTE3 FIRMS WHICH WERE REGISTERED
WITH BUREAU OF INTERNAL REVENUE IN
ANY MONTH IN 2))2 SHALL BE COVERED
BY THE MCIT AFTER THE LAPSE OF
THREE23) CALENDAR YEARS FROM 2))2.
23.THE MCIT IS TO BE IMPOSED
P$%& 3 '( 20
A)BEGINNING THE 3
RD
YEAR THE
CORPORATION STARTS BUSINESS
OPERATIONS
B)ANY YEAR OF CHOICE BY THE
TAXPAYER
C)BEGINNING THE 4
TH
YEAR THE
CORPORATION STARTS BUSINESS
OPERATIONS
D)THE SAME YEAR THE CORPORATION
START BUSINESS OPERATIONS
24.WHEN THE MCIT IS GREATER THAN
THE NORMAL INCOME TAX DUE FROM A
CORPORATION
A) CORPORATION PAYS THE NORMAL
INCOME TAX AMOUNT
B) CORPORATION PAYS THE AVERAGE
OF MCIT AND NORMAL INCOME TAX
AMOUNT
C) CORPORATION PAYS THE MCIT
AMOUNT
25.ABC ORP. IS A BOI#REGISTERED
ENTERPRISE WHICH HAS BOTH
4REGISTERED5 AND 4UNREGISTERED5
ACTIVITY. THE MCIT APPLIES TO
A) UNREGISTERED ACTIVITY ONLY
B) BOTH REGISTERED AND
UNREGISTERED ACTIVITES
C) REGISTERED ACTIVITY ONLY
D) NONE OF THE ABOVE
2*.ANT EXCESS OF MCIT OVER NORMAL
INCOME TAX SHALL BE CARRIED
FORWARD ONNAN ANNUAL BASIS AND
CREDITED AGAINST NORMAL INCOME
TAX FOR
A) ANY YEAR OF YAXPAYER6S CHOICE
B) 4 IMMEDIATELY SUCCEEDING
TAXABLE YEARS
C) 3 IMMEDIATELY SUCCEEDING
TAXABLE YEARS
D) 3 SUCCEEDING TAXABLE YEARS. NOT
NECESSARILY IMMEDIATELY AFTER
2!.A STRI0E TO BE CONSIDERED A
PROLONGED LABOR DISPUTE SHOULD
HAVE LASTED
A) MORE THAN 3 MONTHS WITHIN A
TAXABLE YEAR
B) MORE THAN , MONTHS WITHIN A
TAXABLE YEAR
C) MORE THAN * MONTHS WITHIN A
TAXABLE YEAR
2-.FOR MCIT PURPOSES. THE TAXABLE
YEAR IN WHICH BUSINESS OPERATIONS
START SHALL BE THE YEAR OF
REGISTRATION WITH
A) BARANGAY WHERE BUSINESS IS
CONDUCTED
B) BUREAU OF INTERNAL REVENUE
C) SECURITIES AND EXCHANGE
COMMISSION
2,.THE MCIT IS TO BE PAID ON A
ONLY
A) MONTHLY
B) QUARTERLY
C) ANNUAL
3).FOR RESIDENT FOREIGN
CORPORATION. MCIT IS TO BE APPLIED
FOR
GROSS INCOME
A) FROM WITHOUT THE PHIL.
B) FROM WITHIN THE PHIL.
C) FROM WITHIN AND WITHOUT THE
PHIL.
31.THE REVENUE REGULATION WHICH
GOVERNS MCIT
A) RR+ 3#,-
B) RR+ ,#,-
C) RR+ 14#2))1
P$%& % '( 20
32.WHICH OF THE FOLLOWING DOES
NOT BELONG TO THE GROUP. AS FAR AS
EXEMPTION FROM MCIT IS
CONCERNED7
A) FIRMS COVERED BY PE1A LAW AND
BASES CONVERSION DEVELOPMENT
ACT
B) DOMESTIC CORPORATION
OPERATING AS PROPRIETARY
EDUCATIONAL INSTITUTION
C) DOMESTIC CORPORATION ENGAGED
IN HOSPITAL OPERATIONS
D) DOMESTIC CORPORATION SUB/ECT
TO NORMAL INCOME TAX
D! #RINGE BENE#IT TA$ (#BT)
33. THE FRINGE BENEFIT TAX IS NOT
IMPOSED ON#
A) SUPERVISORY EMPLOYEE
B) RAN0 AND FILE EMPLOYEE
C) MANAGERIAL EMPLOYEE
D) ALL EMPLOYEES
34.FRINGE BENEFIT TAX IS IMPOSED ON#
A) FRINGE BENEFITS GRANTED FOR THE
CONVENIENCE OF THE EMPLOYER
B) RAN0 AND FILE EMPLOYEE
C) DE MINIMIS BENEFITS
D) SUPERVISORY AND MANAGERIAL
EMPLOYEES
35. THE FOLLOWING EARNINGS ARE
SUB/ECT TO FRINGE BENEFIT TAX.
EXCEPT3#2RPCPA)
A) SALARY OF RAN0 AND FILE
EMPLOYEE
B) HOUSING NECESSARY FOR THE
TRADE AND FOR THE CONVENIENCE
OF THE EMPLOYER
C) FOOD ALLOWANCE FOR THE
CONVENIENCE OF THE EMPLOYER
AND NECESSARY IN THE CONDUCT
OF THE BUSINESS
D) ALL OF THE ABOVE
3*. THE FOLLOWING STATEMENTS ARE
TRUE. EXCEPT3#2RPCPA)
A) FRINGE BENEFIT TAX SHALL BE
TREATED AS A FINAL INCOME TAX
ON THE EMPLOYEE WITHHELD AND
PAID BY THE EMPLOYER ON A
QUATERLY BASIS
B) THE GROSSED#UP MONETARYVALUE
OF THE FRINGE BENEFIT IS THE
ACTUAL AMOUNT RECEIVED BY THE
EMPLOYEE
C) THE GROSSED#UP MONETARY VALUE
OF THE FRINGE BENEFIT SHALL BE
DETERMINED BY DIVIDING THE
MONETARY VALUE OF THE FRINGE
BENEFIT BY THE GROSS MONETARY
VALUE FACTOR
D) THE PERSON LIABLE FOR FRINGE
BENEFIT TAX IS THE EMPLOYER.
WHETHER HE IS INDIVIDUAL.
PROFESSIONAL PARTNERSHIP OR A
CORPORATION REGARDLESS OF
WHETHER THE CORPORATION IS
TAXABLE OR NOT OR THE
GOVERNMENT AND ITS
INSTRUMENTALITIES
3!. THE CORPORATION GAVE A BRAND NEW
CAR TO ITS SALES MANAGER. THE FRINGE
BENEFIT GIVEN IS#
A) SUB/ECT TO FRINGE BENEFIT TAX
BASED ON THE PROVISIONS OF THE
TAX CODE
B) SUB/ECT TO FRINGE BENEFIT TAX
BECAUSE IT WAS GIVEN TO A RAN0#
AND#FILE EMPLOYEE
C) EXEMPT FROM THE FRINGE BENEFIT
TAX BECAUSE IT IS REQUIRED BY
THE NATURE OF OR NECESSARY TO
THE TRADE OR BUSINESS OF THE
EMPLOYER
P$%& & '( 20
D) EXEMPT FROM THE FRINGE BENEFIT
TAX BECAUSE IT WAS GIVEN FOR
THE CONVENIENCE OF THE
EMPLOYER
3-.THE FBT IS
A) FINAL WITHHOLDING TAX
B) CREDITABLE WITHHOLDING TAX
3,. THE BASIS OF THE FBT IS
A) GROSSED#UP MONETARY VALUE OF
THE FRINGE BENEFITS
B) FAIR MAR0ET VALUE
C) CASH VALUE
4).THE FBT SHALL BE TREATED AS FINAL
INCOME TAX ON THE EMPLOYEE WHICH
SHALL BE WITHHELD AND PAID BY THE
EMPLOYER ON A
A) CALENDAR QUARTERLY BASIS
B) CALENDAR MONTHLY BASIS
C) CALENDAR ANNUAL BASIS
41.THE GROSSED#UP MONETARY VALUE
2GMV) OF FB SHALL BE DETERMINED BY
DIVIDING THE FB BY THE FOLLOWING
PERCENTAGES
A) **". EFFECTIVE /ANUARY 1. 1,,-8
*!". EFFECTIVE /ANUARY 1. 1,,,8
*-". EFFECTIVE /ANUARY 1. 2)))
B) *-". EFFECTIVE /ANUARY 1. 1,,-8
*!". EFFECTIVE /ANUARY 1. 1,,,8
**". EFFECTIVE /ANUARY 1. 2)))
42.THE FIRST STEP IN THE DETERMINATION
OF FBT IS THE VALUATION OF THE BENEFIT
GRANTED
A) TRUE
B) FALSE
43.IF THE FB IS GRANTED IN MONEY OR IS
DIRECTLY PAID FOR BY THE EMPLOYER.
THEN THE VALUE IS THE AMOUNT
GRANTED OR PAID FOR
A) TRUE
B) FALSE
44.IF THE FB IS GRANTED OR FURNISHED
BY THE EMPLOYER IN PROPERTY OTHER
THAN MONEY AND OWNERSHIP IS
TRANSFERRED TO THE EMPLOYEE. THE
VALUE OF THE FB IS EQUAL TO THE
OF THE PROPERTY
A) FAIR MAR0ET VALUE
B) DEPRECIATION VALUE
45.IF THE FB IS GRANTED OR FURNISHED
BY THE EMPLOYER IN PROPERTY OTHER
THAN MONEY BUT OWNERSHIP IS NOT
TRANSFERRED TO THE EMPLOYEE. THE
VALUE OF THE FB IS EQUAL TO THE
OF THE PROPERTY
A)DEPRECIATION VALUE
B)FAIR MAR0ET VALUE

4*.THE FBT OFIS IMPOSED ON THE
GMV OF THE FB RECEIVED BY A NON#
RESIDENT ALIEN NOT ENGAGED IN TRADE
OR BUSINESS IN THE PHIL.
A) 25"
B) 3)"
C) 35"
4!.FBT SHALL BE PAID IN THE SAME
MANNER AS
A) FINAL WHT
B) CREDITABLE WHT
4-.FIXED REPRESENTATION AND
TRANSPORTATION ALLOWANCES
REGULARLY RECEIVED BY EMPLOYEES AS
PART OF THEIR MONTHLY COMPENSATION
INCOME ARE
P$%& ' '( 20
A) NOT SUB/ECT TO FBT
B) SUB/ECT TO FBT
4,.THE USE OF MOTOR VEHICLES FOR
SALES. FREIGHT. DELIVERY SERVICE AND
OTHER NON#PERSONAL USE IS
A) NOT SUB/ECT TO FBT
B) SUB/ECT TO FBT
5).THE USE OF AIRCRAFT 2INCLUDING
HELICOPTERS) IS
A) NOT SUB/ECT TO FBT
B) SUB/ECT TO FBT
CHAPTER 1-GENERAL PRINCIPLES
AND CONCEPTS OF TAXATION
51.THE POWER OF TAXATION IS A
POTENT POWER AND THEREFORE IS
A)HOWEVER SUBJECT TO
CONSTITUTIONAL AND INHERENT
LIMITATIONS
B)ABSOLUTE
52.THE CONSTITUTIONAL PROVIDES
THAT NO PERSON MAY BE DEPRIVED OF
LIFE, LIBERTY OR PROPERTY
A)WITHOUT DUE COMPENSATION
B)WITHOUT DUE PROCESS OF LAW
C)WITHOUT THE INDIVIDUALS CONSENT
53.THE DELEATION IS INVALID IF WHAT
IS DELEATED IS
A)TAX ADMINISTRATION
B)TAX LEISLATION
5!.AS A ENERAL RULE, AENCIES
PERFORMIN """""""" ARE EXEMPT FROM
TAX UNLESS EXPRESSLY TAXED, WHILE
THOSE PERFORMIN """""""" ARE
SUBJECT TO TAX UNLESS EXPRESSLY
EXEMPTED
A)OVTAL FUNCTIONS# PROPRIETARY
FUBCTIONS
B)PROPRIETARY FUNCTIONS# OVTAL
FUNCTIONS
55.THAT THE LAW S$B REASONABLE AND
NOT OPPRESSIVE DESCRIBES
A)SUBSTANTIVE DUE PROCESS
B)PROCEDURAL DUE PROCESS
5%.CONRESS SHALL EVOLVE A
A)PRORESSIVE SYSTEM OF TAXATION
B)RERESSIVE SYSTEM OF TAXATION
5&.THE SUPREME COURTS POWER OF
JUDICIAL REVIEW IS
A)LIMITED TO THE INTERPRETATION AND
APPLICATION OF TAX LAWS
B)INCLUSIVE ON THE WISDOM OF THE
TAXIN ACT
5'.NO LAW RANTIN ANY TAX
EXEMPTION SHALL BE PASSED WITHOUT
THE CONCURRENCE OF A MAJORITY OF
"""""""""OF CONRESS
A)(UORUM
B)ALL MEMBERS
5).THAT A TAX BILL MUST ONLY BE
APPLICABLE AND OPERATIVE AFTER
BECOMIN A LAW DESCRIBES THE
A)IMPRESCRIPTIBILITY OF TAXES
B)PROSPECTIVE APPLICATION OF TAX
LAWS
%*.TAX EXEMPTIONS ARE STRICTLY
CONSTRUED AAINST THE
A)OVT
P$%& ( '( 20
B)TAXPAYER
%1.RA '!2! A+A NIRC$CTRP TOO+ EFFECT
A)JANUARY 1, 1))%
B)JANUARY 1, 1))&
C)JANUARY 1, 1))'
%2.TARIFF OR TAX BILLS EMANATE FROM,
A) SENATE
B) SUPREME COURT
C)HOUSE OF REPRESENTATIVES
%3.THE PHILIPPPINES FOLLOWS THIS
SYSTEM OF TAXATION
A)PRORESSIVE SYSTEM OF TAXATION
B)RERESSIVE SYSTEM OF TAXATION
%!. EVEN WITHOUT BASIS,
INTENTIONALLY DECREASIN THE
INCOME AND INCREASIN TAX
DEDUCTIONS IS AN EXAMPLE OF
A)TAX EVASION
B)TAX AVOIDANCE
%5. AVAILIN OF TAX DEDUCTIONS
ALLOWED BY LAW IS
A)TAX EVASION
B)TAX AVOIDANCE
CHAPTER 2-TAX ADMINISTRATION
%%.ASSESSMENT AND COLLECTION OF
NATIONAL INTERNAL REVENUE TAXES IS
THE RESPONSIBILITY OF
A)BUREAU OF CUSTOMS
B)BUREAU OF INTERNAL REVENUE
%&.THIS DEPARTMENT HAS SUPERVISION
AND CONTROL OF THE BIR
A)DEPT OF FINANCE
B)DEPT. OF JUSTICE
C)DEPT. OF TRADE AND INDUSTRY
%'. THE REVENUE REIONAL OFFICES
AND REVENUE DISTRICT OFFICES OF BIR
ARE UNDER
A) OPERATIONS ROUP
B) INFORMATION SYSTEMS ROUP
C) RESOURCE MANAEMENT ROUP
%). THIS COURT HAS EXCLUSIVE
APPELLATE JURISDICTION ON TAX CASES
A) REIONAL TRIAL COURT
B) COURT OF FIRST INSTANCE
C) COURT OF TAX APPEALS
&*. THIS IS A +IND OF SUMMONS OR
SUBPOENA THAT CIR MAY ISSUE AND
WHOSE OBJECT IS THE PRESENTATION OF
BOO+S OF ACCOUNTS OR OTHER
ACCOUNTIN RECORDS RELEVANT TO
THE CIRS IN(UIRY AS TO DETERMINE
THE TAX LIABILITY OF A TAXPAYER
A)SUBPOENA DUCES TECUM
B)SUBPOENA TESTIFICANDUM
&1. IN RELATION TO -&* ABOVE, IF THE
OBJECT IS FOR PERSON SUMMONED TO
IVE HIS TESTIMONY RELEVANT TO THE
CIRS IN(UIRY, IT IS
A)SUBPOENA DUCES TECUM
B)SUBPOENA TESTIFICANDUM
&2.PRINCIPLE.S) OF A SOUND TAX
SYSTEM
A)FISCAL ADE(UACY
B)E(UALITY OR THEORETICAL JUSTICE
C)ADMINISTRATIVE FEASIBILITY
D)ALL OF THE ABOVE
P$%& ) '( 20
&3.THIS PRINCIPLE STATES THAT THE TAX
BURDEN MUST BE PROPORTIONATE TO
THE TAXPAYERS ABILITY TO PAY
A) FISCAL ADE(UACY
B)E(UALITY OR THEORETICAL JUSTICE
C)ADMINISTRATIVE FEASIBILITY
&!.NOTWITHSTANDIN THE BAN+
SECRECY ACT .RA 1!*5), THE CIR CAN
IN(UIRE INTO BAN+ DEPOSIT A$C OF THE
TAXPAYER WHEN
A)DEATH OF A TAXPAYER TO DETERMINE
ROSS ESTATE
B)FILIN OF CLAIM OF BAN+RUPTCY BY
TAXPAYER TO THE PREJUDICE OF
PAYMENT OF TAX LIABILITY
C)WEDDIN OF THE TAXPAYER
D) A) AND B) ONLY
&5.IN THE PHILIPPINES, THE FILIN AND
PAYMENT OF TAX IS UNDER
A)PAY NOW, FILE LATER SYSTEM
B)PAY/AS/YOU/FILE SYSTEM
C)FILE NOW, PAY LATER SYSTEM
&%.FOR SIMPLE NELECT, THE TAX
SURCHARE IS
A) &50
B) 250
C) 5*0
&&.FOR WILLFUL NELECT, THAT TAX
SURCHARE IS
A) &50
B) 250
C) 5*0
&'.ANY TAX DEFICENCY SHALL BE
SUBJECT TO THE INTEREST AT THE RATE
OF """"""W$C INTEREST SHALL BE
ASSESSED AND COLLECTED FROM THE
DATE PRESCRIBED FOR ITS PAYMENT
UNTIL THE FULL PAYMENT THEREOF.
A) 120
B) 2*0
C) 250

&). FAILURE TO REPORT SALES,
RECEIPTS, OR AN INCOME IN AN AMOUNT
EXCEEDIN"""""""PER DECLARED TAX
RETURN , AND A CLAIM OF DEDUCTIONS
IN AN AMOUNT EXCEEDIN""""""""OF
ACTUAL DEDUCTIONS IS CONSIDERED
FALSE OR FRAUDULENT RETURN
A) 1*0# 1*0
B) 2*0# 2*0
C) 3*0# 3*0
D) !*0# !*0
CHAPTER 3-CONCEPT OF
INCOME
'*. THE MAIN CRITERION FOR INCOME
TO BE CONSIDERED AS SUCH IS THAT IT
IS WEALTH FLOWIN IN TO THE
TAXPAYER OTHER THAN AS

A) A MERE RETURN OF CAPITAL AND
INTEREST
B) A MERE RETURN OF CAPITAL
'1. THE RE(UISITE.S) FOR TAXABILITY OF
INCOME
A) THERE MUST BE AIN
B) THE AIN MUST BE REALI1ED OR
RECEIVED
C) THE AIN MUST NOT BE EXCLUDED BY
LAW FROM TAXATION
D) ALL OF THE ABOVE
'2. A MERE INCREASE IN THE VALUE OF
PROPERTY IS NOT INCOME BUT MERELY
AN
P$%& 9 '( 20
A) REALI1ED INCREASE IN CAPITAL
B) UNREALI1ED INCREASE IN CAPITAL
'3 IN COMPENSATION FOR PERSONAL
SERVICES, IF PAYMENT IS MADE IN CASH,
THE AMOUNT SUBJECT TO TAX IS
A) FULL AMOUNT RECEIVED
B) THE FAIR MAR+ET VALUE
CHAPTER 4-GROSS INCOME
84. THE RE(UISITE.S) FOR TAXABILITY
OF INCOME
A)THERE MUST BE AIN
B)THE AIN MUST BE REALI1ED OR
RECEIVED
C)THE AIN MUST NOT BE EXCLUDED BY
LAW FROM TAXATION
D) ALL OF THE ABOVE
'5. A MERE INCREASE IN THE VALUE OF
PROPERTY IS NOT INCOME BUT MERELY
AN
A) UNREALI1ED INCREASE IN CAPITAL
B")REALI1ED INCREASE IN CAPITAL
'%. IN COMPENSATION FOR PERSONAL
SERVICES, IF PAYMENT IS MADE IN CASH,
THE AMOUNT SUBJECT TO TAX IS
A) THE FAIR MAR+ET VALUE
B)FULL AMOUNT RECEIVED
'&. A TAXPAYER RECEIVES INTEREST
INCOME ON OVERNMENT BONDS AND
DBP COUNTRYSIDE BILLS AMOUNTIN TO
P2**,***. AND P1**,***, RESPECTIVELY.
THE TAXABLE INCOME IS
A)P3**,***
B)1ERO
C)P2**,***
D)P1**,***
''. A TAXPAYER RECEIVES LEAL
INTEREST AND USURIOUS INTEREST OF
P2*,*** AND P%*,***, RESPECTIVELY. HIS
TAXABLE INCOME IS
A)P2*,***
B)P%*,***
C)P'*,***
CHAPTER 8-DEDUCTIONS FROM
GROSS INCOME
'). THIS REFERS TO INCOME RECEIVED
OR EARNED BUT IS NOT TAXABLE AS
INCOME BECAUSE EXEMPTED BY LAW OR
BY TREATY
A) EXCLUSION FROM ROSS INCOME
B) DEDUCTION FROM ROSS INCOME
C) LIMITATION OF ROSS INCOME
)*. THESE ARE SUBTRACTED FROM
ROSS INCOME TO DERIVE TAXABLE
NET INCOME
A) EXCLUSION FROM ROSS INCOME
B) DEDUCTION FROM ROSS INCOME
C) LIMITATION OF ROSS INCOME
)1. FOR BAD DEBTS TO BE DEDUCTED
FROM ROSS INCOME, THE FOLLOWIN
SHOULD BE SATISFIED,
A) DEBT ACTUALLY ASCERTAINED TO BE
WORTHLESS
B) CHARED OFF WITHIN THE TAXABLE
YEAR
C) BOTH CONDITIONS A) AND B) ABOVE
SHOULD BE SATISFIED
)2. THE 0 LIMIT ON INDIVIDUALS
TAXABLE INCOME .BEFORE DEDUCTIN
CHARITABLE CONTRIBUTION) FOR
P$%& 10 '( 20
DEDUCTIBILITY OF ORDINARY
CHARITABLE CONTRIBUTIONS
A) 1*0
B) 1ERO
C) 50
D) 150
)3. THE 0 LIMIT ON CORPORATIONS
TAXABLE INCOME .BEFORE DEDUCTIN
CHARITABLE CONTRIBUTION) FOR
DEDUCTIBILITY OF ORDINARY
CHARITABLE CONTRIBUTIONS
A) 1*0
B) 1ERO
C) 50
D) 150
)!. THE AMOUNT OF PREMIUM ALLOWED
PER FAMILY DURIN THE TAXABLE YEAR
FOR HEALTH AND$OR HOSPITALI1ATION
INSURANCE FOR DEDUCTION FROM
ROSS INCOME
A) 1ERO
B) P!,'**
C) P2,!**
)5. IN RELATION TO NO. )! ABOVE, THE
ADDITIONAL PROVISION SAYS THAT THE
ROSS FAMILY INCOME SHALL BE
A) NOT MORE THAN P3**,*** FOR THE
TAXABLE YEAR
B) NOT MORE THAN P2**,*** FOR THE
TAXABLE YEAR
C) NOT MORE THAN P25*,*** FOR THE
TAXABLE YEAR
D) NONE OF THE ABOVE
)%. AS A ENERAL RULE, SALARY
EXPENSES ARE ALLOWED AS
DEDUCTIONS FROM ROSS BUSINESS
INCOME ONLY IF
A) CORRESPONDIN WHT HAS BEEN
DEDUCTED AND REMITTED TO THE BIR
B) SALARY HAS BEEN PAID$ACCRUED
C) SALARY IS IN ACCORDANCE WITH
MINIMUM WAE LAW
)&. THE SECRETARY OF FINANCE
PROVIDES THE FOLLOWIN CEILINS
FOR REPRESENTATION EXPENSES
A) 10 FOR TAXPAYERS ENAED IN SALE
OF OODS$PROPERTIES# 2 0 OF NET
REVENUE FOR TAXPAYERS ENAED IN
SALE OF SERVICES
B) 2 0 FOR TAXPAYERS ENAED IN
SALE OF OODS$PROPERTIES# 10 OF
NER REVENUE FOR TAXPAYERS ENAED
IN SALE OF SERVICES
,-.THE OPTIONAL STANDARD DEDUCTION
ON INDIVIDUAL IS#
A) 1)" OF BUSINESS AND9OR
PROFESSIONAL EXCLUDING
COMPENSATION INCOME
B) 4)" OF TAXABLE INCOME
C) 4)" OF BUSINESS AND9OR
PROFESSIONAL INCLUDING
COMPENSATION INCOME
D) 4)" OF BUSINESS AND9OR
PROFESSIONAL INCOME
,,.OPTIONAL STANDARD DEDUCTION IS
ALLOWED TO
A) NON#RESIDENT FOREIGN
CORPORATION
B) RESIDENT ALIEN
C) NON#RESIDENT ALIEN ENGAGED IN
TRADE OR BUSINESS
D) NON#RESIDENT ALIEN NOT ENGAGED
IN TRADE OR BUSINESS
1**. FOR ENERAL EXPENSE TO BE
ALLOWED AS A DEDUCTION FROM
ROSS INCOME, IT MUST NOT BE
CONTRARY TO
P$%& 11 '( 20
A) LAW
B) MORALS
C) PUBLIC ORDER
D) PUBLIC POLICY
E) ALL OF THE ABOVE
1*1.THE FOLLOWIN COMPENSATIONS
INCOME ARE NOT SUBJECT TO WHT AND
NOT SUBJECT TO INCOME TAX
A) COMPENSATION INCOME OF
MINIMUM WAE EARNERS
B) 3DE MINIMIS4 BENEFITS RECEIVED
BY EMPLOYEE
C) BOTH A) AND B)
D) A) ONLY
E) B) ONLY
1*2. WHEN A LESSEE CONSTRUCTED AN
IMPROVEMENT ON THE LEASED
PROPERTY, THE COSTS OF SUCH
IMPROVEMENT SHALL BE DEPRECIATED
OVER THE LIFE OF THE IMPROVEMENT
OR THE TERM OF THE LEASE CONTRACT
WHICHEVER IS
A) LONER
B) SHORTER
1*3.THE INTEREST EXPENSE PAID IFO
THE OVERNMENT IS
A) DEDUCTIBLE SUBJECT TO LIMIT
B) DEDUCTIBLE IN FULL
1*!. INTEREST ON DELIN(UENT TAXES IS
A) NON/DEDUCTIBLE
B) DEDUCTIBLE
1*5.INTEREST PAID ON INDEBTEDNESS
TO FINANCE PETROLEUM OPERATION IS
A) DEDUCTIBLE
B) NON/DEDUCTIBLE
1*%. INCO NRAETB AND A RFC, THE
DEDUCTIONS FOR TAXES SHALL BE
ALLOWED ONLY IF AND TO THE EXTENT
THAT THEY ARE CONNECTED WITH
INCOME FROM SOURCES """"""THE
PHILIPPINES
A) WITHOUT
B) WITHIN
C) WITHIN AND WITHOUT
1*&. IF RECEIVABLES ARE AC(UIRED
THROUH SALE OF OODS OR SERVICES,
THE ORIINAL AMOUNT AMOUNT OF
RECEIVABLE IS"""""""BUT THE RELATED
INTEREST THEREOF, NOT REPORTED AS
INCOME IS""""""""""".
A) NON/DEDUCTIBLE# DEDUCTIBLE
B) DEDUCTIBLE# NON/DEDUCTIBLE
1*'. FOR NRA OR FC, THE DEPRECIATION
OF DEPRECIABLE ASSET MAY BE
DEDUCTIBLE AS LON AS THE ASSET IS
LOCATED
A) WITHOUT THE PHILIPPINES
B) WITHIN THE PHILIPPINES
C) REARDLESS WHERE LOCATED
1*). UNDER THE DEFINED BENEFIT PLAN,
THE FUND IS HANDLED AND MANAED
BY
A) EMPLOYER
B) THIRD PARTY
11*. UNDER THE DEFINED
CONTRIBUTION PLAN, THE TRUST FUND
IS HANDLED BY
A) EMPLOYER
B) THIRD PARTY
P$%& 12 '( 20
111.UNDER PREMIUM PAYMENTS FOR
HEALTH$HOSPITALI1ATION INSURANCE,
THE SPOUSE CLAIMIN THE FOR
ADDITIONAL EXEMPTIONS FOR
(UALIFIED DEPENDENT CHILDREN SHALL
BE
"""""""TO CLAIM THE DEDUCTION FOR
PREMIUM PAYMENTS
A) DIFFERENT SPOUSE
B) SAME SPOUSE
112. UNDER AN ADOPT/A/SCHOOL
PRORAM, DONATION TO PUBLIC
SCHOOLS, THE DEDUCTIBLE AMOUNTS
FROM ROSS INCOME IS THE ACTUAL
DONATION PLUS""""""OF THE ACTUAL
DONATION
A) 250
B) 5*0
C) &50
D) 1**0
113. UNDER THE ROOMIN/IN AND
BREAST FEEDIN PRORAM, A PRIVATE
HEALTH INSTITUTION
MAY DEDUCT ACTUAL EXPENSES
PLUS"""""OF THE ACTUAL EXPENSES
A) 250
B) 5*0
C) &50
D) 1**0
11!.THE STATUTORY RATES OF SENIOR
CITI1ENS DISCOUNTS ARE """""""FOR
OODS AND SERVICES, """""""FOR
WATER AND ELECTRICITY
CONSUMPTION.NOT EXECEEDIN 3* CU.
MTRS. AND 1** +WHS, RESPECTIVELY),
AS LON AS THE CONSUMPTION ARE
REISTERED IN THE NAME OF THE
SENIOR CITI1EN
A) 50# 2*0
B) 2*0# 50
C) 2*0# 1*0
D) 50# 3*0
CHAPTER 11-TA$ATION O# INDIVIDUALS

115. THIS INDIVIDUAL IS NOT REQUIRED TO
FILE INCOME TAX RETURN3
A)HIS GROSS COMPENSATION INCOME IS
MORE THAN THE TOTAL PERSONAL AND
ADDITIONAL EXEMPTIONS
B)HIS GROSS COMPENSATION INCOME
DOES NOT EXCEED THE TOTAL PERSONAL
AND ADDITIONAL EXEMPTIONS
11*.THE LIMIT OF THE AMOUNT RECEIVED
BY SENIOR CITI1EN WHICH DOES NOT
NEED FILING OF INCOME TAX RETURN3
A) NOT MORE THAN P-).))) IN A YEAR
B) NOT MORE THAN P1)).))) IN A YEAR
C) NOT MORE THAN P*).))) IN A YEAR
11!. ONE BORN OUTSIDE WEDLOC0
BETWEEN A MAN AND A WOMAN WHO. AT
THE TIME OF THE CONCEPTION OF THE
CHILD. WERE FREE TO MARRY EACH OTHER
AND IS RECOGNI1ED BY ONE OR BOTH
PARENTS
A) LEGITIMATE CHILD
B) RECOGNI1ED NATURAL CHILD
C) ILLEGITIMATE CHILD
D) LEGALLY ADOPTED CHILD
11-. THIS MEANS PAYMENTS OF ANY 0IND
RECEIVED AS A CONSIDERATION FOR THE
USE OF OR THE RIGHT TO USE. ANY
COPYRIGHT OF LITERARY. ARTISTIC OR
SCIENTIFIC WOR0
A) SALARIES
B) RENTALS
C) ROYALTIES
P$%& 13 '( 20
11,. SPOUSES COMPUTE THEIR INCOME TAX
SEPARATELY BUT SHOULD NEVERTHELESS
FILE THEIR RETURN IN ONE INOME TAX
RETURN AND THIS IS
A) OPTIONAL
B) MANDATORY
12). UNDER THIS SYSTEM. THE AMOUNT OF
INCOME TAX WITHHELD BY THE
WITHHOLDING AGENT IS CONSTITUTED AS
A FULL AND FINAL PAYMENT OF THE
INCOME TAX DUE FROM THE PAYEE OF
SAID INCOME
A) CREDITABLE WIHHOLDING TAX
B) FINAL WITHHOLDING TAX
121. IN RELATION TO +12) ABOVE. TAXES
WITHHELD ON CERTAIN INCOME TAX
PAYMENTS ARE INTENDED TO EQUAL OR
APPROXIMATE THE TAX DUE OF THE PAYEE
ON SAID INCOME
A) CREDITABLE WITHHOLDING TAX
B) FINAL WITHHOLDING TAX
122. THE LIMIT OF TAX DUE WHEREIN THE
TAXPAYER CAN AVAIL OF INSTALLMENT
PAYMENT3
A) IN EXCESS OF P4.)))
B) IN EXCESS OF P*.)))
C) IN EXCESS OF P2.)))
123.UNDER RA ,5)4. THE ADDITIONAL
EXEMPTION OF EACH QUALIFIED
DEPENDENT CHILD IS3
A) P-.)))
B) P5).)))
C) P25.)))
124. THE MAXIMUM ADDITIONAL
PERSONAL EXEMPTION IS3
A) P2)).)))
B) P1)).)))
C) P32.)))
125. LINDA MATIISIN IS HEAD OF THE
FAMILY WITH 3 QUALIFIED DEPENDENT
CHILDREN. HER TOTAL PERSONAL AND
ADDITIONAL EXEMPTION IS3
A) P1!5.)))
B) P125.)))
C) P15).)))
12*. WHAT " IS THE SURCHARGE FOR
FAILURE TO FILE9PAY TAX DUE ASSUMING
THERE IS NO WILLFUL NEGLECT9FALSE OR
FRAUDULENT RETURN7
A) 5)" OF TAX DUE
B) 25 " OF TAX DUE
C) 2)" OF TAX DUE
D) 3) " OF TAX DUE
E) 35 " OF TAX DUE
12!. IN CONNECTION WITH +12* ABOVE. IF
THE BASIC TAX IS P1)).))). HOW MUCH IS
THE SURCHARGE7
A) P5).)))
B) P25.)))
C) P2).)))
D) P3).)))
E) P35.)))
12-. WHAT " IS THE SURCHARGE FOR
FAILURE TO FILE9PAY TAX DUE ASSUMING
THERE IS WILLFUL NEGLECT9FALSE OR
FRAUDULENT RETURN7
A) 5)" OF TAX DUE
B) 25 " OF TAX DUE
C) 2)" OF TAX DUE
D) 3) " OF TAX DUE
E) 35 " OF TAX DUE
12,. GENERALLY SPEA0ING. INTEREST AS A
PENALTY FOR LATE PAYMENT IS BASED ON
P$%& 1% '( 20
A) BASIC TAX PLUS THE SURCHARGE
B) BASIC TAX ONLY
13). THE 13TH MONTH IS EXCLUDED FROM
GROSS INCOME TO THE EXTENT OF3
A)P4).)))
B)P5).)))
C)P3).)))
131. DE MINIMIS BENEFITS GIVEN TO
ARE NOT SUB/ECT TO WHT ON
COMPENSATION INCOME
A) MANAGERIAL EMPLOYEE ONLY
B) RAN0 AND FILE EMPLOYEE ONLY
C) BOTH MANAGERIAL AND RAN0 AND
FILE EMPLOYEE
132. MONETI1ED UNUSED VACATION
LEAVES NOT EXCEEDING IS NOT
TAXABLE
A) 2) DAYS
B) 15 DAYS
C) 1) DAYS
133. EMPLOYEE ACHIEVEMENT AWARD IN
THE FORM OFIS TAXABLE
A) TANGIBLE PERSONAL PROPERTY
B) CASH OR GIFT CERTIFICATE
134. DAILY MEAL ALLOWANCE FOR OT
WOR0 NOT EXCEEDING OF BASIC
MINIMUM WAGE IS NOT TAXABLE
A) 3)"
B) 2)"
C) 25"
CHAPTER 12-TA$ATION O#
CORPORATION
135. A DOMESTIC CORPORATION IS
TAXABLE FOR FOR ALL INCOME
A)FROM WITHIN AND WITHOUT THE PHIL
B)FROM WITHOUT THE PHIL. ONLY
C)FROM WITHIN THE PHIL. ONLY
13*. THE RATE OF TAX FOR DOMESTIC
CORPORATION IS
A) 3)" EFF. /ULY 1. 2))5#DEC. 31. 2))-8 35"
EFF. /AN. 1. 2)),
B) 35" EFF. /ULY 1. 2))5#DEC. 31. 2))-8 3)"
EFF. /AN. 1. 2)),
C) 32" EFF. /ULY 1. 2))5#DEC. 31. 2))-8 3)"
EFF. /AN. 1. 2)),
13!. EFFECTIVE /AN. 1. 2))). CORPORATION
MAY ELECT TO BE TAXED 15" OF GROSS
INCOME. HOWEVER. THIS IS AVAILABLE
ONLY TO FIRMS WHOSE RATIO OF COST TO
GROSS SALES OR RECEIPTS FROM ALL
SOURCES
A) DOES NOT EXCEED 55"
B) DOES NOT EXCEED !5"
C) DOES NOT EXCEED *5"
13-. UNLI0E OTHER DOMESTIC
CORPORATIONS. THE TAX RATE ON
TAXABLE INCOME FOR PROPRIETARY
EDUCATIONAL INSTITUTIONS AND NON
PROFIT HOSPITALS IS3
A) 1)" ON GROSS INCOME
B) 1)" ON TAXABLE INCOME
13,. A PROPRIETARY EDUCATIONAL
INSTITUTION AND NON#PROFIT HOSPITALS
WILL BE SUB/ECTED TO INCOME TAX RATE
OF 1)" ON TAXABLE INCOME IF ITS GROSS
INCOME FROM UNRELATED BUSINESS OR
OTHER ACTIVITY IS3
A) LESS THAN *)" OF TOTAL GROSS
INCOME
B) LESS THAN 5)" OF TOTAL GROSS
INCOME
C) LESS THAN 4)" OF TOTAL GROSS
INCOME
P$%& 1& '( 20
D) NONE OF THE ABOVE
14). ABC CORP.. A NON#RESIDENT FOREIGN
CORPORATION. HAS A GROSS INCOME
OFP1.))).))) AND EXPENSES OF P2)).))). ITS
TAXABLE INCOME IS
A) P1.))).)))
B) P-)).)))
C) P2)).)))

PART II- PROBLEM SOLVING
A!NET OPERATING LOSS CARRY-OVER (NOLCO)
1. ABC CORP.. A DOMESTIC CORPORATION. HAS THE FOLLOWING DATA3
YEAR GROSS ALLOWABLE
INCOME DEDUCTION NOL NOG
1,,, 240 ,*0

2))) 1*0 4-0
2))1 *40 4-0
2))2 -)0 4)0
2))3 *)0 120
2))4 !20 4)0
RE"UIRED: A) #ILL UP THE NOL OR NOG COLUMN
B) HO MUCH IS TA$ABLE INCOME #OR EACH YEAR*
NOTE: CONSIDER THE NOLCO AS APPLICABLE INYOUR ANSER!
1999+
2000+

2001+
2002+
2003+
200%+
P$%& 1' '( 20
B! IMPROPERLY ACCUMULATED EARNINGS TA$ (IAET)
::
1. FLT CORPORATION HAS THE FOLLOWING DATA FOR YEAR 2009:

DIVIDENDS ACTUALLY PAID P1.2)).)))
INCOME3
SUB/ECT TO FINAL TAX P1.5)).)))
EXEMPT FROM TAX P1.2)).)))
EXCLUDED FROM GROSS INCOME P,)).)))
AMOUNT OF NOLCO DEDUCTED P*)).)))
TAXABLE INCOME P15.))).)))
INCOME TAX PAID FOR THE YEAR 7
RE"UIRED:
A) INCOME TA$ #OR THE YEAR
B) IMPROPERLY ACCUMULATED EARNINGS (IAE)
C ) ) IMPROPERLY ACCUMULATED EARNINGS TA$(IAET)
C! MINIMUM COR PORATE INCOME TA$ (MCIT)
1. LCY CORP. A DOMESTIC CORPORATION. HAS THE FOLLOWING DATA3
1 2 3 4 5 *
YEAR N#I#T MCIT E$CESS
MCIT OVER INCOME INCOME TA$
NIT TA$ DUE PAYABLE
1,,- P*.4)) 0 P1.*))0
1,,, -.32)0 ,.*))0
2))) 12.1*)0 12.-))0
2))1 ) 4.-))0
2))2 3.2))0 *4)0
2))3 ,*)0 3.-4)0
2))4 5120 2.5*)0
2))5 *40 3.2))0
RE"UIRED:
1)!#ILL UP COLUMNS %, &, AND '
P$%& 1( '( 20
D! #RINGE BENE#IT TA$ (#BT)
1. RESIDENTIAL PROPERTY LEASED BY EMPLOYER FOR USE OF EMPLOYEE AS HIS USUAL
PLACE OF RESIDENCE
ANNUAL RENTAL ;P1).-))0
RE"UIRED: MONTHLY MONETARY VALUE O# THE BENE#IT
2. RESIDENTIAL PROPERTY ONED BY EMPLOYER AND ASSIGNED TO EMPLOYEE AS HIS
USUAL PLACE OF RESIDENCE
FAIR MAR0ET VALUE ;P2!).)))0
1ONAL VALUE ;P234.)))0
RE"UIRED: MONETARY VALUE O# THE BENE#IT
3. RESIDENTIAL PROPERTY PURCHASED BY EMPLOYER ON INSTALLMENT BASIS FOR USE
OF EMPLOYEE AS HIS USUAL PLACE OF BUSINESS
. ACQUISITION COST ;P54).)))0
INTEREST ON INSTALMENT PAYMENT;P2,1.*))0
RE"UIRED: ANNUAL MONETARY BENE#IT
4. RESIDENTIAL PROPERTY PURCHASED BY EMPLOYER AND ONERSHIP TRANS#ERRED TO
EMPLOYEE
ACQUISITION COST ;P324.)))0
1ONAL VALUE ;P2!).)))0
RE"UIRED: MONETARY VALUE O# THE BENE#IT
5. RESIDENTIAL PROPERTY TRANS#ERRED TO EMPLOYEE AT LESS THAN EMPLOYER,S
AC"UISITION COST
FAIR MAR0ET VALUE ;P21*.)))0
1ONAL VALUE ;P144.)))0
AMT PAID BY THE EMPLOYEE ;P12).)))0
REQUIRED3 MONETARY VALUE OF THE BENEFIT
*. PERSONAL E$PENSES OF EMPLOYEE PAID OR REIMBURSED BY EMPLOYER FOR YEAR
200%
A. LAPTOP UNIT FOR THE EXECUTIVE6S OFFICE ;P24).)))
P$%& 1) '( 20
B! #AMILY SHOPPING E$PENSES +P&%,000
C. CHAIRS AND TABLES FOR EXEC. OFFICE ;P1-).)))
D! #AMILY GROCERIES +P22(,%''
E. SURVEY FORMS FOR MAR0ET STUDY ;P,).)))
#! BIRTHDAY GI#T #OR E$EC,S I#E +P'',''0
RE"UIRED: A) GROSSSED UP MONETARY VALUE
B) #RINGE BENE#IT TA$
!. PURCHASE OF MOTOR VEHICLE ON INSTALLMENT BASIS BY EMPLOYER IN NAME OF THE
EMPLOYEE
DOWNPAYMENT ;P5*)0
MONTHLY PAYMENT FOR 3* MONTHS;P*)0
USEFUL LIFE OF MOTOR VEHICLE ;5 YEARS
RE"UIRED: ANNUAL MONETARY BENE#IT
-. FLEET OF MOTOR VEHICLES ONED AND MAINTAINED BY EMPLOYER FOR USE OF THE
BUSINESS AND EMPLOYEES
FLEET OF 2.4)) CARS. '0- OF WHICH USED BY MAR0ETING DEPT.. BALANCE ASSIGNED TO
,*) OFFICERS.
TOTAL ACQUISITION COST FOR ;P2.4)).)))0
USEFUL LIFE OF CARS ;5 YEARS
RE"UIRED: ANNUAL MONETARY VALUE O# #B #OR EACH O##ICER
,. FLEET OF MOTOR VEHICLES LEASED BY EMPLOYER
UNITS LEASED3 2!) FOR DELIVERY OPERATIONS8 2!) FOR SALES #ORCE8 ,) CARS FOR ,)
O##ICERS
LUMP SUM LEASE FEE ;P!5.*))0
REQUIRED3 MONETARY VALUE OF THE FB FOR EACH O##ICER
1). USE OF AIRCRA#T.YACHT OWNED OR LEASED BY EMPLOYER
YACHT AIRCRA#T
ACQUISITION COST *)).))).0 ,)).)))0
USEFUL LIFE 2) YEARS 5) YEARS
BOTH YACHT AND AIRCRAFT ASSIGNED TO 1) E$ECUTIVE O##ICERS
P$%& 19 '( 20
RE"UIRED: ANNUAL MONETARY VALUE #OR EACH E$ECUTIVE O##ICER
11. INTEREST ON LOAN AT LESS THAN MAR/ET RATE
PRINCIPAL AMOUNT OF LOAN ;P1-).)))0
MAR0ET RATE ;12" PER YEAR
INTEREST PAID BY EMPLOYEE ;P13.5))0
RE"UIRED:ANNUAL MONETARY VALUE O# THE BENE#IT
12. COST OF ECONOMY AND BUSINESS CLASS AIRPLANE TIC0ET
FIRST CLASS AIRPLANE TIC0ET ;P*))0
ECONOMY AND BUSINESS CLASS TIC0ET ;P24)0
EXECUTIVE FLIES FIRST CLASS
RE"UIRED: MONETARY VALUE O# #RINGE BENE#IT
13. #RINGE BENE#IT RECEIVED BY NON#RESIDENT ALIEN NOT ENGAGED IN TRADE OR
BUSINESS (NRANETB)
NRANETB RECEIVED FRINGE BENEFIT 2FB) AMOUNTING TO P2,(00/
REQUIRED3
1.GROSSED UP MONETARY VALUE (GMV)
2. #RINGE BENE#IT TA$ (#BT)
****END OF FINAL EXAMS*****
THE GREATEST CRIME THAT YOU CAN COMMIT AGAINST YOURSELF
AND YOUR LOVED ONES IS NOT DOING YOUR BEST
MERRY CHRISTMAS AND HAPPY NE! YEAR
P$%& 20 '( 20