Professional Documents
Culture Documents
EXERCISE 21
1. The query should be addressed to the Commissioner of Internal Revenue
2. I will inform him that a compromise is not allowed anymore
3.
Piolo is correct.
4.
I will request for a compromise of the assessed tax on ground that the financial position of the
taxpayer demonstrates clear inability to pay the assessed tax.
5.
6. The Commissioner may not grant the refund when there is a deficiency tax assessment against the
claimant-taxpayer.
7.
Yes.
8.
a. The counting of the two (2) year period commences to run from the date of final payment.
b.
Augusto has thirty days from receipt of the decision of the CIR to file an appeal with the CTA
c.
He is given 30 days from receipt of the CIRs decision but not exceeding 2 years from the date
of final payment.
2.
3.
4.
5.
6.
7.
8.
9.
10.
PAGE 2
11
12.
13.
14.
15.
EXERCISE 2-3
1.
2.
3.
4.
5.
EXERCISE 24
The proper party to question, or seek a refund of an indirect tax is the
statutory taxpayer, the person on whom the tax is imposed by law and who paid the
same even if he shifts the burden thereof to another.
EXERCISE 3-1
1.
2.
3.
Income subject to tax/Fair discounted
value
b.
80,000
PAGE 3
Income subject to tax, 2011
10,000
P 10,000
5.
6.
Yes.
7.
Under the tax benefit rule, whenever a bad debt is claimed as deduction from
gross income and it resulted to a reduction in its tax liability, the recovery of
such is subject to tax.
8.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
9.
a.
b.
c.
d.
Value-added tax
Real property tax
Income tax
Stock transaction tax
Special assessment
Occupation tax
Estate tax
Income tax paid to a foreign
country
Community tax
Excise tax
not taxable
taxable
not taxable
not taxable
not taxable
taxable
not taxable
taxable if claimed as deduction
- taxable
- taxable
Yes,
subject to a final tax of 10%
They are not subject to tax.
both the stockholders who were paid stocks and cash dividends are subject to
final tax.
PAGE 4
10%.
12. a
.
P
48,000
P 100,000
74,00
0
26,000
703
48,703
Rent ( 4,000 x 6)
Leasehold improvement:
Cost
Less: Depreciation (7/1/09 6/30/10)
(100,000 / 25)
Book value upon termination
Less: Amount already reported as
income
Income of lessor in 2013
EXERCISE 3 2
1. T
2. T
3. T
4. T
5. F
6. T
7. F
8. T
9. F
10. T
11. F
12. F
13. F
14. T
15. F
24,000
P 100,000
4,0
00
96,000
703
95,29
7
119,29
7
PAGE 5
(1) ANSWER: D
33.3:
(2) ANSWER: D
(3) ANSWER: B
ANSWER: C
2.
ANSWER: C
3.
ANSWER: D
PAGE 6
EXERCISE 3-4
34.1:
LEASEHOLD
IMPROVEMENT
1.
ANSWER: B
2.
ANSWER: D
3.
ANSWER: A
4.
ANSWER: C
5.
ANSWER: B
6.
ANSWER: B
7.
ANSWER: C
PAGE 7
EXERCISE 3-4.2:
1.
ANSWER: A
2.
ANSWER: C
3.
ANSWER: C
EXERCISE 34.3:
ANSWER: B
EXERCISE 34.4
1. ANSWER: A
2.
ANSWER: C
PAGE 8
3.
ANSWER: D
EXERCISE 3-5
EXERCISE 35.1:
1.
ANSWER: D
2.
ANSWER: D
EXERCISE 35.2:
1.
ANSWER:
2.
ANSWER: B
EXERCISE 35.3:
1.
ANSWER: C
ANSWER: B
2.
ANSWER:
3.
ANSWER:
PAGE 9
4.
ANSWER: C
5.
ANSWER: B
6.
ANSWER: D
7.
ANSWER: C
8.
ANSWER: D
9.
ANSWER: C
1
0
ANSWER: D
1
1
ANSWER: B
1
2
ANSWER: C
1
3
ANSWER: A
PAGE 10
1
4
ANSWER:
1
5
ANSWER: C
1
6
ANSWER: D
1
7
ANSWER: A
1
8
ANSWER: D
1
9
ANSWER: A
EXERCISE 3 -7.
Yes.
PAGE 11
E
R
&
I
N
G
3
O
0
EXERCISE 4 2
1. T
2. F
3. F
4. F
5. T
6. F
7. T
8. F
9. T
10.
11.
12.
13.
14.
I
S
PAGE 12
15.
EXERCISE 4-3
1
.
a
.
b
.
c
.
d
.
e
.
f.
g
.
Interest on corporate
bonds
Salary
- Taxable
Tips
- Taxable
Winnings in lotto
Winnings in jueteng
Money stolen from
mothers purse
Rice subsidy of P325 per
month
- Taxable
2
.
The value of the free meals and lodging is not taxable to Yaya
3
.
4
.
No..
The free parking and courtesy discounts are subject to fringe benefit tax
The excess of the laundry allowance in the amount of P450 (P750300) is part of gross compensation income if such excess is beyond the
P30,000 ceiling for other benefits.
The rental value of the residential property is subject to fringe
benefits tax which is subject to final tax. .
6
.
EXERCISE 4 4
1.
ANSWER:
PAGE 13
2.
ANSWER:
3.
ANSWER:
4.
ANSWER:
EXERCISE 4-5
1.
ANSWER: B
2.
ANSWER: B
3.
ANSWER:
PAGE 14
4.
ANSWER:
EXERCISE 4-6
1.
ANSWER: C
2.
ANSWER: C
3.
ANSWER: D
4.
ANSWER: D
5.
ANSWER: D
6.
ANSWER: D
7.
ANSWER: B
8.
ANSWER: B
9.
ANSWER: D
10 ANSWER: D
.
EXERCISE 4-7
1.
ANSWER: C
PAGE 15
2.
ANSWER: A
3.
ANSWER: B
4.
ANSWER: D
5.
ANSWER: D
6.
ANSWER: B
7.
ANSWER: C
PAGE 16
8.
ANSWER: A
9.
ANSWER: D
10.
ANSWER: A
11.
ANSWER:
12.
ANSWER:
PAGE 17
EXERCISES 5-1
1.
None.
2.
a.
None.
b Fernando must report P20,000 [(P12,000 x 10) 100,000] as income.
.
c No.
.
3.
None
4.
5.
a.
c.
Taxable.
d.
Not taxable.
e.
6. 6. No, because all the requisites for exemption from income tax are
present:
7.
8.
a.
Taxable.
b Taxable.
PAGE 18
.
c Not taxable.
.
9.
taxable.
10.
Answer: P38,000
EXERCISES 52.1:
1.
ANSWER:
2.
ANSWER: B
3.
ANSWER: C
4.
ANSWER:
Prob 5-2.2
1.
ANSWER: C
PAGE 19
2.
ANSWER: D
Prob 5-2.3
ANSWER: D
Prob 5-2.4:
ANSWER:
Prob 5-2.5:
ANSWER:
Prob 5-3.1
ANSWER:
Prob 5-3.2
ANSWER:
Prob 5-3.3
ANSWER: B
Prob 5-3.4
ANSWER: D
Prob 5-3.5
ANSWER: A
PAGE 20
Prob 5-3.6
ANSWER: D
EXERCISES 54.
Prob 54.1
ANSWER: C
Prob 5-4.2
ANSWER: A
Prob 5-4.3
ANSWER: C
Prob 5-4.4
ANSWER:
EXERCISES 55
EXERCISE 5
5.1:
ANSWER:
EXERCISES 55.2
a. The P350,000 value of the car is subject to a final tax of 20%.
PAGE 21
return.
The cash prize and the equivalent amount of the 100 shares are subject
to 20% final tax.
EXERCISES 5-5.3
a.
The income of $75,000 is taxable to her unless she has acquired the
status of a contract worker.
PROBLEM 5-6.1
ANSWER:
EXERCISE 5 7
1. None.
2 P147,500
.
EXERCISES 5 8
PAGE 22
1.
ANSWER:
2.
ANSWER:
3.
ANSWER:
4.
ANSWER:
5.
ANSWER:
6.
ANSWER:
7.
ANSWER: C
8.
ANSWER: D
9.
ANSWER: A
10.
ANSWER: C
11.
ANSWER: C
12.
ANSWER: D
13.
ANSWER: D
PAGE 23
14.
ANSWER: D
15.
ANSWER: B
16.
ANSWER: D
17.
ANSWER: A
EXERCISES
6-1
1.
CLASSIFICATION
SITUS
OF
TAXABLE
INCOME
a. Nonresident citizen
Within only
b. Nonresident
alien
Within only
(NETB)
c. Nonresident citizen
Within only
d. Resident alien
Within only
e. Nonresident
alien
Within only
(NETB)
f. Nonresident
alien
Within only
(ETB)
2. a. No.
b. No. .
c. Yes.
d. Yes.
e. No.
3. a. In the absence of an agreement, John has the right to claim the
additional exemption.
b. If Marsha could prove that she provided chief support over the
PAGE 24
d.
Income tax
7. a. Taxable income
35,000
175,0
00
PAGE 25
P
11,500
31,250
42,750
8. a.
2.00
b.
500
c.
Income tax
d.
724.54
50,000
e.
Income tax due
112,034
324,440.
41
9 a. Salary
.
b. Interest on bank deposit
- Compensation
f.
PAGE 26
term)
- Compensation income
- Ordinary business income (not exceeding
P10,000)
e. Lotto winnings
- Tax exempt
f. Income from farming
- Business income
g. Royalties on books
- Passive income (10%)
h. Dividends from domestic - Passive income (10%)
company
i. 13th month pay
- Exempt up to P 30,000
j. Interest on preterminated - Passive income (12%)
deposits
c. Honorarium
d. Prizes
10 a. Juan
.
( 6,6
00)
b. Maria
( 6,600
)
( 5,50
0)
(12,10
0)
PAGE 27
11 a
.
.
Deductible health insurance premium
1,800
2,400
b
.
c
.
None.
d
.
Deductible health insurance premium
1
2.
1,600
a
.
14,50
0
b
.
1,500
PAGE 28
1
3.
Taxable income
EXERCISE 6 2
1. ANSWER: B
2. ANSWER: D
3. ANSWER: B
14,50
0
Case 1
186,6
00
Case 2
155,00
0
PAGE 29
4. ANSWER: B
EXERCISE 6 - 3
Resident
or citizen
20%
NRA
ETB
20%
Tax table
20%
20%
10%
Tax table
20%
Exempt
20%
Exempt
5%
10%
10%
Not taxable
20%
20%
10%
Tax table
20%
Exempt
20%
Exempt
5%
20%
20%
7.5%
Exempt
INCOME
1. Interest on bank deposit with Banco de
Oro- Php
2. Interest on bank deposit with a bank in the
United States in U.S. dollar
3. Earnings from interest on money market
4. Royalties on inventions
5. Royalties on books
6. Prizes amounting to P7,500
7. Prizes amounting to P20,000
8. Winnings in lotto Philippines
9. Winnings in lottery
10. Interest on long-term investment
11. Interest on deposit for 4 years
12. Cash dividends domestic corp.
13. Share of partner in net income of taxable
partnership
14. Interest income under expanded foreign
currency deposit system
EXERCISE 64.1
1.
ANSWER:
EXERCISE 64.2
INCOME
RC
YES
RA,
NRC
YES
Phils.
2. Rent on apartment in
YES
NO
NO
NO
Canada
3. Dividend-domestic
YES
YES
YES
YES
corporation
4. Dividend-foreign corporation
5. Lotto winnings in the Phils.
6. Lotto winnings in U.S.A.
7. Cash prize on contest, Phils.
8. Cash prize on contest, U.S.A.
9. Interest, bank deposit in
YES
NO
YES
YES
YES
YES
NO
NO
NO
YES
NO
NO
NO
NO
NO
NO
NO
NO
NRA(ETB NRA(NET
)
B)
YES
YES
YES
YES
NO
NO
NO
NO
PAGE 30
U.S.A.
10. Interest bank deposit Phils.
Problem 6
4.3
1.
ANSWER: C
2.
ANSWER: C
3.
ANSWER: A
YES
YES
YES
YES
PAGE 31
4.
ANSWER: B
5.
ANSWER: A
6.
ANSWER: B
7.
ANSWER: D
8.
ANSWER:
EXERCISE 65.1
ANSWER:
PAGE 32
EXERCISE 65.2
ANSWER:
PROBLEM 6-5.3
1.
ANSWER: A
2.
ANSWER:
PAGE 33
PROBLEM 6-5.4
1. ANSWER:
2. ANSWER:
ANSWER:
2.
ANSWER:
3.
ANSWER:
4.
ANSWER:
5.
ANSWER:
PAGE 34
6.
ANSWER:
7.
ANSWER:
8.
ANSWER:
9.
ANSWER:
10.
ANSWER:
EXERCISES
6.2
6-
1.
ANSWER:
2.
ANSWER:
3.
ANSWER:
PAGE 35
4.
ANSWER: C
5.
ANSWER: D
6.
Answer: A
7.
Answer: C
8.
Answer: C
PAGE 36
ANSWER:
.
2.
ANSWER:
3.
ANSWER:
4.
ANSWER:
5.
ANSWER:
6.
ANSWER:
7.
ANSWER: C
EXERCISES
68.1.
PREMIUM
PAYMENTS
ON
HOSPITALIZATION INSURANCE
1.
ANSWER:
2.
ANSWER:
3.
ANSWER:
HEALTH
AND/OR
PAGE 37
EXERCISE 6.8.2
Case
1:
None.
Case
2:
None..
Case
3:
Case
4:
P1,200.
EXERCISES 6-9
1.
ANSWER:
2.
ANSWER: D
3.
ANSWER: D
4.
ANSWER: C
PAGE 38
5.
ANSWER: D
6.
ANSWER: A
7.
ANSWER: D
8.
ANSWER: A
PAGE 39
9.
ANSWER: B
10
.
ANSWER: B
11
.
ANSWER: B
PAGE 40
12
.
ANSWER: B
13
.
ANSWER: A
14
.
ANSWER: C
15
.
Answer: B
EXERCISE 6-10.
The petition has merit.
Cooperatives are not required to withhold taxes on interest from savings and time deposits of their
members based on a BIR Ruling.