CPA Review School of the Philippines Manila OTHER PERCENTAGE TAXES Dela Cruz / De Vera / Lopez / Llamado 2 1. Ais the owner of a small ‘variety store. His gross sales in any one year do not ex 19,500. He is not vat- registered, The following data are taken from the books of the variety store for the quarter ending March 31, 2014: Merchandise inventory, December 31, 2013 P 100,000 Gross sales. 450,000% 3°). - (3,500 Purchase from VAT-registered suppliers 350,000” ‘The percentage tax due is .P10,000 b. P1300. P16,500 dd. None 2. In the third quarter of 2013, a taxpayer engaged in the sale of services whose annual gross receipts do not exceed 1,919,500 has the following data counts receivable, beginning of the quarter P 50,000 7 Sales during the quarter 100,000 | cry 99, = 2.250 Accounts receivable, end of the quarter _75,000)' : Purchase of supplies, total invoice amount 11,200 ‘The percentage tax due for the quarter is P2250 b.P3,000 «P7500. P6,500. 3. A, operates a ferryboat. During a particular quarter, its receipts consist ofthe following Gross receipts: (without VAT) ‘Transport of passengers 1,000,000 ‘Transport of goods 1,500,000 ‘Transport of cargoes 500,000 | ‘The common carrier’s tax payable is BMX 129, = a, P30,000 b. P9000, P100,000-—d. None 4, Using the data above, the output VAT is, ‘a, P360,000b. P90,000 —«. P100,000—d. P240,000 A ‘5. A person whose business is to keep automobiles for hire or keep them stored for use or order a. Keepers ofgarage , —¢. Taxicab operators b. Common carrier 4, Tourist bus operator 6. Which of the following statements is incorrect?” a. A taxpayer whose annual gross reccipts/sales exceed P1,919,500 shall pay VAT only if he is VAT registered b. A taxpayer whose annual gross receipts/sales do not exceed P1,919,500 but who is VAT-registered shall pay VAT cc. Excise tax maybe imposed together with VAT 4d. Percentage tax maybe imposed together with excise tax + 7. One of the following is subject to common carrier's tax a Owners of banca b. Owners of animal-drawn two wheeled vehicles c. Common carriers by land for transport of goods or cargoes 4, Common carriers by land for transport of passengers p 8. 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 >1OM wotable a. 2% of the gross receipts ©. 4% of the gross receipts, b. 3% of the gross receipts 4 5% of the gross receipts v 9. One of the following is not subject to the 3% percentage tax ‘a. Intemational air carrier doing business in the Philippines 'b. International shipping carrier doing business in the Philippines ©. Domestic carriers and keepers of garage 4. Franchise grantee of electric utilities \ 10. Franchise grantees of city gas and water utilities are subject to franchise tax of 3.2% 6.3% 64% 4.5% Tax 76-14 111, Amounts received for overseas dispatch, message or conversations originating from the Philippines are subject to a. 3% franchise tax ©. 2% franchise tax b. 10% overseas communication tax 12% VAT 12, A tax on the right or privilege to enter places of amusement a VAT b, Franchise tax. Aimusement tax Income tax 13. One of the following is not subject to amusement tax on gross receipts 4. Disco houses b.Cockpits c, Professional basketball d. Bowling alleys 14, All of the following except one are liable to %4 of 1% stock transaction vax. Which one is not? a. Individual taxpayers, whether citizens or alien ¢. Estates and Trust b. Corporate taxpayers, whether domestic or foreign 4. Dealers in securities 15. ABC Insurance Corporation, a domestic corporation, received the following premiums (net of any tax): INSURANCE Pl Life Fire" Marine Cash received 400,000 P 300,000 200,000 Promissory notes 100,000 Totals P 500,000 300,000 + _P 200,000 3 a, The amount subject to percentage tax is Soo X12 a, P400,000 'b, P500,000 ©. 900,000 4. P1,000,000 b. The output tax is a. P36,000 b. P24,000 1. P60,000 . P120,000 16. ABC Corporation is a holder of franchise to operate transportation units on land. The records for the month show (net of any tax): Passenger Gross receipts from transporting P 3,000,000 * Non-VAT Supplier Payments to p 300,000 ‘The percentage tax due is ; Wt a. P150,000 . P60,000 ©. P90,000 4. P144,000 17. Using the preceding number, but the franchise is for air and sea transpo:t, within the Philippines, the VAT due is a P144,000 b. P600,000 c. P468,000 4. PS04,000 18, Using the preceding number, but the route is from the Philippines to Zorcign country, which of the following is correct? ‘The corporation is exempt from VAT ‘The corporation is subject to percentage tax ‘The output vat is 0, hence the corporation cannot claim input tax May claim a refund or credit the input taxes against other internal revenue taxes oe 19. A, is a holder of franchise to self electricity. In a particular quarter, its gross receipts amounted to P2,000,000 from sale of electricity. It has also receipts from the lease of its auditorium and theater amounting to P600,000. ‘The percentage tax due for the quarter is a. P40,000 b,P60,000 ¢, P100,000 —d, None 20, A operates a cockpit. Inside the cockpit, he also operatss a restaurant, Data for the particular quarter follow Gross receipts: Cockpit operations 500,000 Restaurant operations: ase Sale of foods 10,000 * © * ° Sale of liquor 150,000" The amusement tax due from A is a P90,000 —b. P135,000«. P225,000 d. P75,000 21. Using the above data, except that the restaurant is not owned by A but is owned by another person, B, not VAT registered and whose annual gross sales never exceeded P1,919,500. The amusement tax due from A is a. P90,000 —b. PI35,000 ©. 225,000 d.P75,000 Sco iy, 207 22, Continuing the preceding number, the percentage tax due from B is a, P90,000b. PI35,000 «. P225,000 d. P7,500 : Tax 76-14 223. A, a resident citizen, promoted a world boxing championship)in Manila featuring B, a Filipino champion. Gate /) receipts amounted to P3,000,000 und additional receipts fiom television coverage was P2,000,000, The amusement tax due is a. Noneb. P500,000 c. P300,000 4. P900,000 9 24. Assuming that the above data is fot a world championship but a Philippine national boxing championship, how ‘much is the amsement tax? Meas a, Noneb, P500,000 ¢, P300,000 4, P900,000 25. A is a radio-tv broadcasting franchise grantee, During the préceding year, its gross receipts did not exceed 10,000,000, During the first quarter of the current year, ithas the following data Gross receipts, sale of airtime P 2,000,000) 9 ay Gross receipts, use of radio station’s communication facilities s00,000!% 2% = 25 Business expenses 700,000 ‘The franchise tax due for the first quarter is a. P60,000 —b. P40,000-—«. P75,000—33% ual oninter AM/soot = £ atc So eal ere 2931. ABC Corporation, a closely held corporation has an authorized capital stock of 1,000,000 shares with a par value of P100/share as of January 1, 2014, Of the 1,000,000 authorized shares, 250,000 thereof is subscribed ‘and fully paid by the following stockholders: FL; £151, equity 4% A - 150,000 PO) og-a3n 24 - 50,000 32% in - 25,000 - 12,500 - 12,500 Total shares outstanding 250,000 moow On March 1, 2014, ABC Corporation finally decides to conduct an IPO and initially offers 250,000 of its unissued shares to the investing public at P150.00/share. At the IPO, two of the existing stockholders, A and B likewise decided to sell their entire 150,000 and 50,000 shares respectively to the public also at P150,00/share. A a, The percentage tax due for the primary offering is, 2501/6001 = 50% |asorx T190= 6 a. P375,000 ’b. P750,000 ¢. P1,500,000 4.P0 x B b, The percentage tax due for the sale of A’s shares is : a. P225,000 , 450,000 c, P900,000 apo 2hx29,5 @ ©. The percentage tax due for the sale of B's shares is, Sota”! a. P75,000 ’, P150,000 c. P300,000 apo anxd 30, Later, on August 1, 2014, another stockholder C, sold his 25,000 shares to the public subs P200.00/share, The percentage tax due is a. P25,000 . P50,000 .P100,000 4. P200,000 juent to the IPO. )\ 31. Using the preceding number, on September 1, 2014 ABC Corporation again decides to increase capitalization by offering another 300,000 of unissued shares to the public at P200,00/share consequently bringing the total issued shares to P800,000 shares, the percentage tax duc is ‘a, P600,000 'b. P1,200,000 . P2,400,000 PO 3001 4, 200'x2c0= Gow" Tax 76-14 332. A Realty Corporation in the course of business sells real property. During the month of January 2014, it had the following data per sales document (VAT excluded): Cash Sales P 800,000. Sales on installment payment basis (initial payment is 25% of the selling price) 500,000 The real property sold for cash had a zonal value of P700,000 (excluding VAT) and the property sold under the installment payment basis had a fair market value of P600,000 (excluding VAT). How much is the output _val/percentage tax on the sale of real property? a, P101,000 .P114,000, ©. P108,000 4. P156,000, 67 P"24925% 33. A, provided the following data for the 1* quarter of the year 2014: Gross Receipts, Taxi 1, Plying Manila 100,000 2, Plying Manila 80,000 96 0c 3, Plying Provincial routes 70,000 4, Plying Provincial routes 60,0006 Bus 1, Plying Manila (25 seater) 100,000 2, Plying Manila (95 seater) 450,000-19,7°° 3, Plying Provincial routes (50 seater) 180,000 Car for hire with chauffeur 100,000 Car for hire, without chauffeur 40,000 Jeepney 1, Plying Manila 100,000 2, Plying Manila £60,000 65,200 3, Plying provincial route 50,000 4, Plying provincial route 30,000 ‘The composite price index for 1978 = 6.38; 2014 = 174.60 | a. The total percentage tax due for the taxis 10,027 b, The total percentage tax due for the buses P1512 ©. The total percentage tax due for the cars forhireP 4 479 4. The total percentage tax due for the jeepneys P 2.45 34. LAS Corporation is a common carrier operating, several units of transportation by land, air and sea. It had the following data on gross receipis for the month of April (tax not gone From To mn EEE 0p si Si sea yu et Chtgoes Passenger Cargoes Pettheer Caljoes Passenger Phils Phils P400,000 PIM —P800,000 P2M -PI6M PIM Phils. Abroad PI4M —-PL8M Determine the vat/percentage tax due for the month. 35. A Company engaged in stockbrokerage and dealership in securities provided the following data for the 2" quarter of 2014 Commission received (net) 150,000 Commission uncollected but earned 250,000 Stock transactions are (VAT excluded): Price Cost A Stock 500,000 P 350,000 B Stock {600,000 | 9», 500,000) sy C Stock 800,000. 650,000 - ‘Supplies bought P88,000, VAT included a. The percentage tax due is b. The vat of A is Ioorxiog, = eT The End Tax 76-14 4