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Quiz on Percentage Tax, Documentary Stamps Tax & Excise Tax

Prof. Antonio A. Ligon

MULTIPLE CHOICES: Choose the best answer. Write your answer before the number.
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Lita is the owner of a small variety store. Her gross sales in any one year do not exceed one year P 1,919,500. She is not VATregistered. The following data are taken from the books of the variety store for the quarter ending March 31, 2011:
Merchandise inventory, December 31, 2006
P 100,000
Gross sales
450,000
Purchase from VAT-registered supplies
350,000
The percentage tax due is
P 13,500
b. P 10,000
c. P 16,500
d. None
e.
In the third quarter of 2011, a taxpayer engaged in the sale of services whose annual gross receipts do not exceed P 1,919,500 has the
following data:
f.
Accounts receivable, beginning of the quarter
P 50,000
g.
Sales during the quarter
100,000
h.
Accounts receivable, end of the quarter
75,000
i.
Purchase of supplies, total invoice amount
11,200
j.
The percentage tax due for the quarter is
P 2,250
b. P 3,000
c. P 7,500
d. P 6,500
e.
Sol, operates a ferry boat. During a particular quarter, its receipts consist of the following:
f.
Gross receipts: (without VAT)
g.
Transport of passengers
P 1,000,000
h.
Transport of goods
1,500,000
i.
Transport of cargoes
500,000
j.
The common carrier’s tax payable is
P 30,000
b. P 90,000
c. P 100,000
d. None
e.
Using the data above, the output VAT is
P 360,000
b. P 90,000
c. P 100,000
d. P 240,000
e.
A person whose business is to keep automobiles for hire or keep them stored for use or order
Keepers of garage
b. Common carrier
c. Taxicab operators
d. Bus operators
e.
Which of the following statements is incorrect?
A taxpayer whose annual gross receipts/sales exceed P 1,919,500 shall pay VAT even if he is not VAT-registered.
A taxpayer whose annual gross receipts/sales do not exceed P 1,919,500 but who is VAT-registered shall pay VAT.
Percentage tax maybe imposed together with excise tax.
Percentage tax maybe imposed together with VAT.
One of the following is subject to common carrier’s tax
Common carriers by land for transport of passengers.
c. Owners of animal-driven two wheeled vehicles.
Common carriers by land for transport of goods or cargoes.
d. Owners of banca.
e.
The franchise tax of grantees of radio and television broadcasting whose annual gross receipts of the preceding year do not exceed
P10,000,000 shall be
5% of gross receipts.
b. 2% of gross receipts.
c. 4% of gross receipts.
d. 3% of gross receipts.
e.
One of the following is not subject to the 3% percentage tax
Franchise grantee of electric utilities.
c. International shipping carrier doing business in the Philippines.
Domestic carriers and keepers of garage.
d. International air carrier doing business in the Philippines.
e.
Franchise grantees of city gas and water utilities are subject to franchise tax of
10%
b. 5%
c. ½ of 1 %
d. 3%
e.
Amounts received for overseas dispatch, message or conversations originating from the Philippines are subject to
10% overseas communication tax
c. 12% franchise tax
3% franchise tax
d. 12% VAT
e.
A domestic corporation paid P 40,000 stock transaction tax o Initial Public Offering (IPO) of P 500,000 shares. After IPO, there
were 800,000 shares outstanding. The selling price of IPO per share was
P8
b. P 10
c. P 2
d. P 4
e.
One of the following is not subject to amusement tax on gross receipts
Bowling alleys
b. Disco houses
c. Cockpits
d. Professional basketball
e.
All of the following except one are liable to ½ of 1% stock transaction tax. Which one is not?
Dealers in securities
c. Individual citizens, whether citizens or alien
Estates and trust
d. Corporate taxpayers, whether domestic or foreign
e.

15. Teddy Bear Insurance Corporation, a domestic corporation, received the following premiums (net of any tax):
f.
INSURANCE
g.
Life
Fire
Marine
h. Cash
P 400,000
P 300,000
P 200,000
i.
Promissory notes
100,000
100,000
0
j.
Totals
500,000
400,000
200,000
k.
The amount subject to percentage tax is
a. P 500,000
b. P 900,000
c. P 1,000,000
d. P 400,000
e.
16. LAWRENCE Corporation is a holder of franchise to operate transportation units on land. The records for the month show (net of any
tax):
f.
Cargo
Passenger
g.
Gross receipts from transporting
P 2,000,000
P 3,000,000
h.
VAT Supplier
Non-VAT Supplier
i.
Payments to
P 800,000
P 300,000
j.
The percentage tax due is
a. P 90,000
b. P 150,000
c. P 144,000
d. P 60,000
e.
17. Using the preceding number, but the franchise is for air and sea transport, within the Philippines, the VAT due is
a. P 504,000
b. P 468,000
c. P 600,000
d. P 144,000
e.
18. Solly, is a holder of franchise to sell electricity. In a particular quarter, her gross receipts amounted to P 2,000,000 from sale of
electricity. She has also receipts from the lease of her auditorium and theatre amounting to P 600,000. The percentage due for the
quarter is
a. P 0
b. P 40,000
c. P 60,000
d. P 100,000
e.
19. Angel operates a cockpit. Inside the cockpit, he also operates a restaurant. Data for the particular quarter follow
f.
Gross receipts:
g.
Cockpit operations
P 500,000
h.
Restaurant operations:
i.
Sale of foods
100,000
j.
Sale of liquor
150,000
k. The amusement tax due from Angel is
a. P 135,000
b. P 225,000
c. P 75,000
d. P 90,000
e.
20. A horseracing enthusiast has the following winnings during a particular racing day
f.
Total winnings (winner take all)
P 10,000
g.
Cost of winning tickets
500
h. The tax on winnings is
a. P 950
b. P 1,000
c. P 400
d. None
e.
21. For filing a false or fraudulent return, a surcharge is imposed at:
a. 50% as administrative penalty
c. 25% as criminal penalty
b. 50% as criminal penalty
d. 25% as administrative penalty
e.
22. One of the following articles is not subject to excise tax;
a. Saccharine
b. Cigars
c. Distilled spirits
d. No answer
e.
23. In the case of excise tax, free articles imported into the Philippines and was subsequently sold to a non-exempt organization, the tax
implication/consequence shall be;
a. The purchaser/present owner shall be regarded as the importer liable to the excise tax.
b. The purchaser/present owner shall be the one to pay the corresponding VAT, but not the related excise tax.
c. The tax free benefit shall extend to the purchaser.
d. No answer.
f.
24. In general, excise tax on goods shall accrue and is payable;
a. Immediately before the removal of the articles from the place of production or from the customs custody.
b. Immediately after the production/manufacture of the articles.
c. On the sale of the articles to the customers.
d. No answer.
g.
25. One of the following is an example distilled spirits subject to excise tax;
a. Gin, Rum, Whisky, Brandy
c. Champagne, Sparkling wine
b. Beer, Ale, Porter
d. No answer
e.
26. In the case of non-essential goods or luxury items, such as perfumes, toilet waters and jewelry, the twenty percent (20%) excise tax
shall be based on;
a. The wholesale price or the importation value used for the computation of tariff & customs duties, net of vat & excise tax.
b. Retail price, net of VAT & excise tax.
c. The wholesale price or the importation value used for the computation of tariff & customs duties, inclusive of vat & excise tax.
d. No answer.

27. One of the following is an example of fermented liquors subject to excise tax;
a. Porter, ale, beer
c. Sparkling wines, champagne
b. Rum, brandy
d. No answer
e.
28. For the purpose of excise tax, a roll of tobacco or any substitute therefore, wrapped with tobacco leaf is called;
a. Cigar
b. Cigarette
c. Snuff
d. No answer
e.
29. The excised tax on locally produced automobiles shall be based on;
a. The producer’s production cost, inclusive of VAT.
b. The manufacturer’s sales price, inclusive of VAT & excise tax.
c. The manufacturer’s sales price, exclusive of VAT & excise tax.
d. No answer.
f.
30. The specific tax rate on distilled spirits that are produced from sap of buri palm or nipa, produced in a pot still, with a production of
not more than one hundred (100) liters daily containing not more than fifty percent (50%) of alcohol volume is;
a. 8.96 per proof liter
b. 6.64 per proof liter
c. 4.48 per proof liter
d. No answer
e.
31. A. Articles subject to excise tax is no longer subject to vat.
f.
B. Damaged liquors maybe removed and sold without the payment of excise tax
a. False, false
b. True, true
c. True, false
d. False, true
e.
32. A. The specific tax is considered a form of ad valorem tax.
f.
B. The excise tax on local products shall be paid before the release of such goods from the customs warehouse.
a. True, true
b. False, true
c. False, false
d. True, false
e.
33. A. The excise tax on locally produced goods shall be payable before the removal of the products from the place of production.
f.
B. The excise tax maybe computed based on a specified value of the taxable articles.
a. False, true
b. True, true
c. False, false
d. True, false
e.
34. A. The excise taxes on goods maybe due although the goods have not yet been sold or consumed.
f.
B. The specific tax refers to a form of excise tax which shall be computed based on the selling price of the goods.
a. False, false
b. True, true
c. True, false
d. False, true
e.
35. A. The excise tax applies to all locally produced goods that are removed from the place of production for purposes of domestic
consumption or sale.
f.
B. The excise tax shall apply to goods imported from abroad into the Philippines.
a. True, false
b. False, false
c. False, true
d. True, true
e.
36. In general, except as provided by the rules and regulations promulgated by the Secretary of Finance, upon recommendation of the
Commisioner, the tax return prescribed in Section 200 (Payment of Documentary Stamp Tax) shall be filed within
a. 20 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
b. 15 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
c. 10 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
d. 5 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
f.
37. In number 36, payment shall be made within
a. 20 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
b. 15 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
c. 10 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
d. 5 days after the close of the month when the taxable document was made, signed, issued, accepted, transferred.
g.
38. Failure to stamp a taxable instrument, document or paper will a. Declare the document void.
c. Require to pay penalties and surcharges.
b. Have no effect.
d. Not be admitted in court as evidence.
e.
39. The stamps tax on all bills of exchange or drafts is
a. 0.20 on each P200.00
b. 0.30 on each P200.00
c. 0.40 on each P200.00
d. 0.50 on each P200.00
e.
40. The stamp tax on Bank Checks, Drafts, Certificates of deposit not bearing Interest, and other instruments a. P 1.00
b. P 1.50
c. P 2.00
d. P 2.50

e.

f.

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