CPA Review School of the Philippines ‘TAXATION (C. Llamado) PRE-WEEK BATCH 85 (4) Correction in Number $5 of the Final Pre-Board: © Cash 1P107,000 ‘Standard Input Tax 5,000 Sales 100,000 Outpor Tax 12,000 (@) PEZA- Philippine Economie Zone Authority (@) Macrohand Corporation received a FAN on November 22, 2016. It filed its protest Ow December 22,2016. The CIR, instead of issuing a decision, issued a Warrant of Distraint ‘andor Lexy (WDL") which was received by Macrobard on October 29, 2017, May the taxpayer appeal with the CTA, and ifso, when isthe last day to appeal? «) Yes, the WDL constitutes an act ofthe CIR of “other matters” arising under the tx laws which may be the subject of an apeal with the CTA. The last day to appeal is November 28, 2017 (CIR vs. Mannasoft, CTA Case No. 1637, June 19, 2018) 1) Not yet. The taxpayer must fst wat forthe Final Decision on Disputed Assessment of ‘the CIR before it can appeal wit the CTA. «) It depends ifa waiver is executed by the taxpayer to extend the period of assessment, and iff bond forthe corect amount of xis filed with the CTA. &) None of the above (4) LUGI Corporation, a domestic corporation, is being liquidated in order to settle all ofits corporate affairs. For this purpose, a liquidator was appointed by the court to liquidate LUGI’s remaining assets, Pursuant to the coun’s decision, LUGT's ordinary assets were ordered transferred to the liquidator, After 2 months, properties of LUGI were transferred to the shareholders as liquidating dividends. Is the transfer of LUGI’s properties to the liquidator subject to income tax, VAT, and donor's tax? 18) No,No,No. _ b) Yes, Yes, Yes.) No, Yes,No. —_ d) Yes, Yes, No. Is the transfer of LUGI’s properties to its shareholders as liquidating dividend subject to the ordinary income tex, and to VAT? 8) No, No, b) Yes Yes. ¢) No, Yes. d) No, Yes. (5) Pauline Company is engaged in job contracting and outsourcing of services to various clients for different industries. Is principal office isin Valenzuels City, where it secures its business permit. Itrendered services, which lasted for approximately one to two days, in the factory of one of its clients located in Tanausn, Batangas. Pauline Company does not ‘maitain an office in Batangas. Lee Conny ee » cues hss eta Tas, Dan whe + renders project-based services? “ ‘8) No. The taxpayer has no fixed business establishment (branch offic, sales outlet, Warehouse, ete) for Tanauan City to regulate and inspect and to which a business permit or icense may be issued. However, Tanuan may impose an oecupational fe for any worker employed in its jurisdiction, b) Yes. is within the powers of the City of Tanauan to impose a business permit on persons and entities wanting o engage in business within its territory 6) Tao not nove 4) None of the above, (6) Within 30 days from the deadline of filing their annual ITRs, what additional report should business entities (a) registered with an Investment Promotion Agency (ex. PEZA, BOI, TIEZA, SBMA, ets) and (b) availing of tax incentive, submit under R.A. No. 10708 (Tax Jncentives Management and Transparency Act (TIMTA)}? (a) Nothing (b) State of the Nation Report (6) Report Cant (©) Annual Tax Incemives Report — which shall contain complete information on income- based incentives, VAT incentives, duty exemptions, deductions, credits, exclusions, and ‘ther information needed to analyse and monitor the impact of the same to the Philippine economy. (7) mits first year, a domestic corporation did not derive any income nor any gain as ithad not yet started commercial operations in said year. However, it was assessed a deficiency tax by the BIR. The BIR found tha the cosporation overstated its pre-operating expenses, some of ‘hich were unsubstantiated. Should such disallowed expenses give rise o income tax? 18) Yes. The fact that pre-operating expenses were overstated should give rise to a penalty in the form of income tx thereon. 'b) No. Income tax cannos be imposed in the absence af any gain of profit which is realized or received, actually or constructively. ) No, Assuming thatthe disallowance of the pre-operating expenses was proper, n0 income tax may rest therefmom Seceuse the taxpayer did not benefit from the deduction of the disallowed expenses, 8B) and ©. (8) Statement 1: Imported car assasories wich are non-mandatory, optional items that are separate aad ditinct from the base veel, do so ali within te pun iew ofthe definition of auomobles, acd hence, not subject he sicise 1 ‘Statement 2: However, the importation of ear accessories is subject to 8) Statement | is True ©) Bott statements ae Tree, by Stetement 2 is Tru. 4d) Both statements are Fase, (9) The Municipality of Oslob in the Province of Cvbu conducts Pewtkan Watching Activity operations for visting tourists. I also provides guides to assist the tourists, For such services, the municipality charges and collects fees fem the tourists. Are these fes taxable? (@) No. The manicipalty is » political subdivision of the Nstional Government and thus ‘exempt from taxes,(©) Yes. The income derived by the municipality is not in the exercise of its essential government functions, but pursuant to its proprietary function, The income decivcd therefrom is subject to both income tax and VAT. () It depends whether the fees received shall be used for the benefit ofthe residents of the municipal (4) None of the above. (10) What is a stops A “stop fle case” shall refer toa system-ereated case which arses when a taxpayer fils to. file a retum for « required tx type fora taxable period. (11) Th 2018, PhitJune Realty, Inc, a VAT-registered real estate development company, sold 4 residential lots valued at P1.3 Million each. It issued VAT official receipts to the buyers, but {filled to indicate therein the term “VAT-exempy Sale”. Are the 4 transactions VATeble or VAT-exempt? (9) VAT-exempt. In accordance with Section 1090), the sl fa sient lot flue at 1,500,000 and below shall be exempt from VAT. I (©) VAT-able. The sale of such real properties which all within the VAT-exempt threshold shall be subject to VAT if the VAT-registred seller fails to indicate the tom “VAT. ) VAT: P5300, Excise tax: P2,100 ©) VAT: PS.625: Excise wx: 2,232 {) None ofthe above. (20) My mother-in-law underwent an invasive cosmetic procedure which was done by a certain Dr, Miraculo, a VAT-rogistered self-employed doctor who practices his profession inside Beauifal Face Hospital in Makati City. The hospital billed my mother-in-law the following! the professional fee of Dr. Miraculo in the amount of #S0,000, inclusive of the 12% VAT but cexelusive ofthe excise tax, and other fees for the use of hospital facilites and supplies in the amount of P20,000, exclusive ofthe excise tax. (2) How much will the hospital collect from my motherin-law? 2) P7350 bb) 55,300 ©) P56.250 4) None ofthe above (b) If Dr. Miraculo is subject to the 10% CWT on professional income, how much will the hospital pay him? The excise ta is also withheld by the hospital.) a) PAS.804 4) None ofthe above,21) On December 2018, WTF Drugstore purchased drugs prescribed for diabetes, high cholesterol, and hypertension inthe amount of #300,000 which were sold on January 2619 with a 30% markup. As of December 31. 2018, the taxpayer's sucess input taxeg ‘mounted to P1S0,000, A summary of the taxpayer's inventory as of December 31,2018 Amount — Inpar VAT. Imaoced medicines: For diabetes. high-cholesterol, & hypeneasion| 300,000 -#36,000 Other imported medicines 700,040 84,000 Local purchas For diabetes, high-cholesterol & hypertension - : Other medicines 30.000 TOTAL 150,000. What is the total available excess creditable input taxes available to WTD Drugstore beginning January 1, 20197 a) 150,000 b) P 36,000 ©) PII4.000 of the above, (22) To comply with the decision of the cour i their annulment ease, former spouses Allan and Bessy submitted a Compromise Agreement involving the partition of their rel properties. Shall the partition and eventual transfer of the real properties based on such Compromise Agreement be subject to the donor's tax? a) Yes. There is donative intent 'b) Ne. The said adjudication, wansfer, or distribution is not subject to the donor's tax since there js no danative intent on the part of the parties. ‘The transfer is made only in compliance with the property seslement which was approved by the court. ©) Dalagang Pilipina. 4) Sa ialim ng puting ia: 23) Ina decision granting the annulment of the marriage of the spouses Reyes, the RTC approved an “Agreement on Custody and Support, and Liquidation. Dissolution, anal Separation of the Property Regime” entered into by the former spouses, Section 6 of the said agreement provides that a residential house in Fosbes Park Village in Makati City shall be donated to the common child of the spouses. Did the agreement, entered into by the spouses pursuant to an annulment of ther marriage, give rise toa donation which shall be subject to a donor's tax? a) Yes. There was a donation subject to a donor's tax. Even granting thatthe donation ‘was made for the purpose of complying with the legal requirements ofthe dissolution of the property relations between the spouses, the same does not negate the presence of donative iment. Considering that the former spouses gave the real property 0 their, common child without any material consideration, there arises an implication wo do an act of liberality or animus donandi by No, Thete is no doaative intent©) Dalagang Pitipina, yeah, 4) Sailalim ng puting law. Sa dilaw na buvan, individual Return: (24) For each month of taxable year 2018, Chris Masaya, single, Filipino with 1 dependent child, received the following as professional fees as a CPA and consultant: “Monthly Fees Plus VAT | Less 5% CWT | = Net Montiily Fees Received | £250,000 | 30,000 P12,500 267,500 He was VAT-registered, and chose the 40% OSD instead of itemizing deductions in his first quarterly ITR, Aside from his CPA/consultaney business, he was also a faculty wate of Belt University from which he received the following employment income for the same year: Gross pay | Less CWT | Les SSS premiums and] Ne ‘union dues | Bi jelt University | 900,000 | _P75,000 75,600, [1P819,400 | ‘The amount he received from Belt University was inclusive of 13° Month Pay and Other Benefits of P65,000. During the yoar he also received £5,000 interest income fom his BPI deposi, and 250,000 in royalties fom the publication of his book ented “The Hungry Eyes” He had excess tax credits from the prior year of P15,S00. During the year he paid the following quarerly income taxes: Th the Quarter ro Tn the 2 Quarterly TR ws00, Inthe 3” Quarterly TR 97.500} Total 167.000, (8) What annual retum should he file before April 15, 20197 ‘A) BIR Form No, 1701 - Individuals (Including Mixed Income Famers), Estates, and Trusts) B) BIR Form No. 1701A - Individuals Eaming Income Purely from Business/Profession (Those under the graduated income tax rates with OSD as ‘mode of deduction OR those who opted to avail ofthe 8% flat income tax rate) © BIR Form No. 1700 - Individuals Earning Purely Compensation Income D) None of the above, (©) How much is Masaya’s taxable compensation income and where will he indicate it in his annual ITR? (A) P900,000; Part V, Schedule 2, Item 4 (B) P829,400; Part V, Schedule 2 item 6 (©) 3,000,000; Part V, Schedule 3A, Item 8 (D) P1,800,000; Part V, Schedule 3A, Item 23,(6) How much is Masaya’s taxable income from business, trade, or practice of profession and where will he indicate iin his annual ITR? (A) 7900000; Pat V, Schedule 2, Item 4 (B) 829,400; Pat V, Schedule 2, lem 6 (C) 3,000,000; Part ¥, Schedule 3, tiem 8 (D) 1,800,000; Part V; Schedule 3. Items 18 and 23 (@) How much is Masaya’s income tax due for 2018, and where will he indicate it in his annual ITR? (A) P691,408; Part V, Schedule 3A, Item 25; Part VI Items 1 and $; Par If, Item 22. (B) P407,$00; Part VIL, Item 10; Part I, Item 23 (C) P283,908; Part I, tems 31 and 32. (D) None of the above. (©) How much is Masaya’s total income tax credits for 2018, and where will he indicate itn his annual TTR? (A) P691,408; Part V, Schedule 34, lem 25; Part VI, Items 1 and 5; Part I, Item 22. (B) P407,500; Part Vi, Jtem 10; Part I, lem 23 (C) P283,908: Part, eras 31 and 32. (D) None of the above. (0 How mach is Masaya’s income tax payable, and where will he indicate it in his annul ITR? (A) P601,408; Part V, Schedule 3A, Item 25; Part VI, Items 1 and S; Part, Item 22. (B) 407,500; Part VI, Hem 10; Part Hl, Item 23 (C) 283,908; Part, items 31 and 32. (D) Nox of the above. (25) Chris Masaya in the preceding number cancelled his VAT registration effective January 1, 2019, He received the following professional fees as a CPA. Mouthiv tes [Les Si 0v7 He also resigned fiom Bel University fective Yaruary 1, 2018. ‘During 2019, he contivued to receive P3,000 interest income from his BPI deposit, and £250,600 in royalties from the publieaton of his book entitled “The Hungry Eyes”. He chore to avail of the 8% income tax rate in his frst Quarterly ITR During the year he shall have paid the following quarterly income tes:(ay BIR Form No. 1701 = Individuals Inching Mixed Income Earners) Estates, and Trusts) (a) BIR Ton No. 170A = Individuals Earning Income Purely, ors Bir acbrofession (Those under the graduated income tax rates with OSD wax ange of deduction OR those who opted to avail of the 8% flat ies rae) (C) BIR Form No, 1700 - Individuals Earning P\ (D) None of the above surely Compensation Income asaya's taxable income from business, trade, or practics_of (b) How much is M in his annual ITR? profession and where will he indicate it 50,000; Part IV. Schedule IVB. 0,000; Part IV, Schedule IVB, Item $6: Part Il Item 20. {C) 202.000; Part 1V, Schedule IVC, lem 64; Part I, Item 21 (D) P18,000; Part Il, tems 22, 23, 29, and 30. {) How much is Masaya’s income tax due for 2019, and where will he indicate 1119 his annual TR? (A)P2,730,000; Part IV, Schedule IVB, Item 35. (B)P220,000; Part IV, Schedule IVB, Item 56; Part I, Item 20. (C) #20,000; Part IV, Schedule IVC, lem 64; Part Il, lem 21 (D) P18,000; Part Ul, tems 22, 23, 29, and 30, (@) How much is Masaya’s toial income tax eredits for 2019, and where will he indicate it i his annual TTR? (AP P2, 750.000; Part IV, Schedule IVB. Item 55. {B) P220.004; Part IV, Schedule IVB, Item $6: Part, Item 2 (C) 202,000: Part 1V, Schedule IVC, ftem 6, Part, Hem 21 (D) P18,000; Part Il, tems 22, 23, 29, and 30. {) How much is Masaya’s income tax payable, and where will he indicate it in is annual ITR?” (AYP2,750,000; Part IV, {B)P220.000; Part IV, Schedule IVB, Item $6: Part I, Item 20. (C)P202,000; Part IV, Schedule IVC. Hem 64: Part I, Hem 21 (D)P18,000; Part Hl, Items 22, 24, 29. and 30. Schedule £VB, ftem 95, ‘Corporate Returns: (26) A domestic corporation (on calendar year basis), which started operations in 2010, has the following date in 2018: Sales, net of sales discounts of 550,000 25,000,000 Cost of Sales 15,000,000 Gross income 12,000,000 Cost of sale of goods 7 4.000.000 Salaries of employees (net of payroll deductions) 5,000,000 Fringe benefits given to: Rank and file employees 520,000 ‘Managerial employees 630.000 ‘Representation and entertainment expenses (business connected) 145,000Rent expenses 200,000 Depreciation expenses 400,000 Bad debt expenses (12 charged off during year) 50,000 Payroll deductions CWT on compensation 600,000 SSS premiums 40,000 Philhealth contributions 60,000 Pag-ibig contributions 12,000 Union dues 5,000 Lactation station expenses 100,000 Other Income: Cash dividend received from: 1) Domestic corporations 4) 70% ofits income came from Philippine sources 90.000 +) 30% of ts income came from Philippine sources 90,000 2) Resident foreign corporations 4) 70% of ts income came from Philippine sources 40,000 ') 30% of ts income came from Philippine sources 40,000 3) Non-resident foreign corporation 20,000 Tas withheld by customers/clients during frst 3 quarters (BIR Form 2307) 90,000 ‘Tax withheld by custome jens in 4h Quarter (BIR Form 2307) 30.000 Taxes paid in first 3 quarters: — Ist Quarter (RCIT less credits) 230,000 2nd Quarter (MCIT less eredits)) 330,000 31d Quarter (RCIT less credits) 44,900 (a) What annual return should it have filed before April 15, 2019? (A) BIR Form No. 1702-.RT ~ for Corporations, Partnerships. and Other Non- Individial Taxpayers Subject Only to Regular Income Tax Rate (B) BIR Form No. 1702-EX ~ for Comperations. Partnerships and Other Non Individual Taxpayers EXEMPT under the Tax Code (See. 30 and those cexempied in Sec. 21(C)) and Other Special Laws. with NO Other Taxable Income (©) BIR Form No, 1702-MX ~ for Corporations, Partnerships, snd Other Non- Individual Taxpayers with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rates (D) None of the above, (8) How much isthe corporation's total gross sales. and where will it be indicated in the annual [TR? (A) P25,550,000; Part IV, Item 27 {B) 12,100,000: Par TV, Item 33 (©) P8.187,000; Part LV, Item 37 * «D) P242,000; Par TV, Item 42, (©) How much is the corporation's total gross taxable i indicated in the annual ITR? ome, and where will it be 10(A) 25,550,000; Par TV, Item 27 (B) 12,100,000; Past 1V, fem 33 (C) 8,187,000; Part IY, item 37 (D) 242,000; Part TV, tem 42 ns, and where will it be (@) How much is the corporation's total allowable dedu indicated inthe annual ITR? (A) P25,550,000; Part IV, Item 27 (B) P12,100,000; Part IV, Item 33 (C) P8.187,000; Part IV, Item 37 (D) £242,000; Past IV, Item 42 (©) How much is the corporation's net taxable income, and where will it be indicated in the annual ITR? ij (A) 93,913,000; Part IV, Item 39 | (B) 1,173,900; Part IV, Items 41 and 43; Part I Item 14 (©) 1,104,900; Part TV, item $5; Part, Item 15 | (D) P69,000; Par IV, em $6; Par I, Item 16 (®) How much is the corporation's RCIT, and where will it be indicated in the annual TTR? (A) P3,913,000; Part IV, ttem 39 (B)P1,173,900; Part IV, ltems 41 and 43; Part I, ftem 14 (©) P1,108,900; Past IV, Item 55; Part I, Kem 15 (D) 769,000; Part IV, item 56; Part I, Item 16 (g) How much is the corporation’s MCIT, and where will it be indicated in the annual TTR? (A) 25,550,000; Part IV, Item 2 (B) P12,100,000; Part IV, tem 33 (©) 8,187,000; Part I, item 37 (D) £242,000; Part IV, tem 42 (h) How much is the corporation’s total available credits, and where will it be indicated in the annual ITR? (A) P3,913,000; Part IV, Item 39 (B) 1,173,900; Par IV, Items 41 and 43; Part I, Item 14 (© P1,108,900; Part IV, Item $5; Part I, Her 15 (D) P69,000; Part TV, Item 56; Part If, Item 16 (How much isthe corporation's income tax payable, and where will it be indicated in the annual ITR? (A) P3,913,000; Par IY, ltem 39 (B)P1,173,900; Part IV, Items 41 and 43; Part I tem 14, (©)P1,108 900; Part IV, Item 5; Peet, em 1S (D) #69,000; Part TV, tem $6; Part I, Item 16VAT-registere, bad & January Feb sales to private 000 Exemps Sales Sales to the government 100,000 100,000 500,000 Purchase of goods from VAT suppliers January related to: VATable sues to private entities 40,000 Exempt s 30,000 Purchase of services from VAT suppliers related to: ‘VA\Table als to private entities Exempt Sales Sales to the government Export (O-ated) sles 100,000" 000 3,000,200 Purchase of Gynlitey ¢ int erste the prevows. eli, computed following data (net of V 200,000 0900 February 2,000,00 AT forthe fist 1" quarter March 300,000 100,000 50,000 50,000 Mareh 50,000 50,000 Quarterly Totals 700,000 300,000 200,000 50,000 1,350,000 Totals 0,000 80,000 20,000 nouat of P3900, othe amount of P2000. rch? 869005 14.200; andJanuary 2019 Output VAT Ire 1) Purchases for VATable and O-ated | ‘sales (40,000 +P20,000) x 12% 2) Unattributed input VAT allocated to VATable sales and export sales ((P360,000/36)*(300,000/500,000) 3) Excess ITC from prior period VAT Payable 7,200 6,000 00 17,100) ae: February 2019 Oupat VAT Ire: 1) Purchases for VATable and Oted sales (P20,000 920,00) x 12% 2) Unattibuted input VAT allocated to VATable sales anal expor sales £14,000 x 200,000400,000) 3) Excess ITC fom prior period 4) Less application for 1FC refund/TCC VAT Payable 24,000 4,800 Quarter (Cumulative) Ouput VAT: Me: 1) Purchases for VATable and O-rated sales (P110,000 + 40,000) x 12% 2) Unattsibuted input VAT allocated to VATable sales and export sales £238,000 x (2.00,000/400,000) 3) Excess ITC from prior period 4) Less application for ITC refund/TCC VAT Payable for Quarter Less: VAT paid previous 2 mooths AT still payable 84,000 18,000 23,926 3,900 Qu (43,826) 40,174 21,100) 1907 3(©) How do we compute the VAT payable in the BIR Forms? Step ts Step 2: Step 3: Step 4 Step S: 28) Compute for Ouput VAT from all VATable sales including sales to the government Compute for all Input VAT paid by adding (1) all creditable input VAT arising during the period; (2) and any amount of input tax carried over from the preceding peried including excess input tax eredits and unamortized input tax credits, Reduce the total Input VAT computed in Step 2 by (1) any input tax on sale to government closed to expense; (2) input tex allocable to VAT-exempt sales; and (3) amount of claim for VAT refund or TCC. The result shall be the total allowable input tax credits (Allowable ITC). Total Output VAT - Allowable ITCs = Net VAT Payable, Net VAT Payable ~ Credits (which include Advance VAT paid, VAT withheld by the Govecament, and VAT paid in previous 2 months (if computing Quarterly VAT payable)) = VAT still payable. (@) In BIR Form No. 2550M for January 2019 of Domestic Inc, how much is its total Output Tax, and where will it be indicated? (2) £36,000; Part, tem 168, (B) ¥386,700; Pare, tem 19. ‘ (C) ¥24,100; Par I, Hem 200 () P11,900; Part, tem 22 (®) In BIR Forma No. 2550M for January 2019 of Domestic Ine, how much is its total Taput ‘VAT, and where (A) £36,000; liebe indicated? Part I, ova 168 (B) P386,700; Put 1, tem 19) (C) 24,100; Port tem 25 (D) P11,s00, Part, Mem 22 (© InBIR Foam No, 2550M for Jactsry 2018 of Domest’: Ine, how much is its total allowable (creditable) I7Cs, and where will ibe indicated? (B) P38 100: Past, Narn 19 (©) P24,100; Pact, Stem 2 (D) Pi1'900: Part, rem 22 (@) In BIR Form No. 285044 for Jamuary 2019 of Domestic Ine, how rach is the VAT withheld fon Sales tothe Government aud where will tbe indicated” (A) £36,000; Patt I tems 168 (B) 2386,700; (©) ¥24,100; Par B, tim 21 (D) P5900: ‘Schedule 8; Past If, len Pau, Hea: 19oo 1) © a c} ln BIR Form No. 2SS0M for January 2019 of Domestic tne, how much is its VAT still payable afer credits, and where wil it be indicated? (A) 36,000; Part I, Hem 1688 (B) 386,700; Part I, Item 19 A&C) P24, 100), Part, tem 21 (D) P6900, Part Ul, Item 26. {In BIR Form No. 2SS0M for February 2019 of Domestic Ine., how much is its Output Tax from VA Table sites oeeipts (private), and where will it be indicated? (A) #24000, Schedule 1; Part, ltem 2B (8) P380,000; Part I, tem 17B. (€) 597,200; Part H, Hm (9 (D) 576,000; Sehedule 3; Parc em 208 Ln BIR Form No, 28S0M tor February 2019 of Domestic Ine., how much isthe unamortized Input Tas eartied over from the previous period, and where will it be indicated? (A) P24,000; Schedule ts Pant I Hem 128 (8) 350,000; Pat Hl, Hem 17 «C) 597,200; Part I Hens 19 (D) 576.000; Schedule 3: Part I, Kem 20 Jn BIR Form No, 2550M for February 2019 of Domestic ine, how much sits Input VAT from domestic purchases oF gaxls other than capital goods, and where will tbe indicated? (A) P24,000; Schedule 1; Pant U Hem 12 (8) 350,000; Pat I, Hem 1788 ¢C) P2,4000; Part H, tem 18F ¢D) 576,000; Schedule 3; Part I, Item 204, In BIR Form No. 2550M for Febewary 2019 of Domestic Inc., how much isthe unamortized Input Fan to be carried over to the next period, and where will it be indicated?” (A) 24,000, Shedle 1; Part I, tern 128 ¢B) 350,000; Par i, Kem 178. «C) 2,400; Parc item 18F ¢D) P576,000; Schedule 3; Part Il, em 204, In BIR Form No. 2550M for February 2019 of Domest allocable to exenapt sales, and where will tbe indicated? Inc, how much is the input tax (A) 9.400; Schedule 5; Part ML, Item 20 1 Hem 178 Hi tem SF (D) PS76,000; Schedule 3, Part IL, Hem 208 In BIR Foray No, 28500 for 1" Quarter of 2019 of Domestic Inc, how much is input VAT from domestic purchases of servis, and where will it be indicated” (A) P31.200; Schedule 1; Part I, tem 215 (08) PIS.630, Schedule 4: Part If, tem 238Part Hh, Hem 23¢ ) In BIR Form No. 25500 for 1" Quarter of 2019 of Domestic In., how much isthe input VAT on sale fo the government closed fo expense , and where wil it be indicated! A) 31.200; Schedule 1; Part Hl, Mem 21 B) 15.630, Schedule 4; Part I, Kem 238, (C) 20-444, Scheclule 5, Part Il tem 23C (D) P21,100; Par I, See. 26 (©) In BIR Form No, 28500 for 1 Quarter of 2019 of Domestic Ine. how much is input VAT allocable to exempt sales, and where wil it be indicated? (A) P31.200; Schedule 1; Part Il, hem 215 (B) P1S,630, Schedule 4: Part IT tem (€) P2044; Schedule 5, Par I, tem 23C {D) P21.100; Part I, See 268 (d) Im BIR Form No. 28800 for 1" Quarter of 2019 of Domestic Ine., how much is the VAT months ofthe quartet . and where will ithe indicated? (A) 31,200; Schedule Is Par Tl, tte (B) PIS(030, Schedule 4 Par 444: Schedle 8. Parc H hem rat H, See. 26 Form No, 2550 for 1 Quarter of 2019 of Domestic Ine, iow much is the VAT sill payable, and where will it be indicated? (A) P19.074; Par I, tem 29, (B) P15,630; Schedule 4; Par Il, tem 238 (C) P2044; Schedule 5, Part Il, Item 23 (D) P21,100; Part I, See. 26 Estate Tay Gi) Don lulo, single, head of family, Filipino, and resident of Makati City, die intestate on November 15.2018, He left the following properties and interests: House and lo (Family home) in Makavi City » 800,000 ‘Vacation house in Beverly Hills, California, USA 5,300,000 ‘Commercial land ia Makati donated by his father in 1980 2,000,000 ‘Mustang car located in Makati being used by his girlfiend 00,000 Proceeds of life insurance where the beneficiary is his giltrend (revocable) 1,000,000 Collectible oy ollestion 1,000,000 Claims against an insolvent person (Filipino resident) hove assets total 10,000 and whose Vabiities total P100,000 100,000 Shares of tack in AB Corp (domestic, not listed) With Book Value of 100,000 BPI Peso bank account assigned vo da 5,000,000The expenses and charges on the estate are as follows: Puneral expenses P 250,000 Accountant's fees 600,000 Medical expenses of last illness 800,000 (Claims against the estate 310,000 ‘What isthe gross estate, allowable deductions, and estate tax? 8) P11,000,000; 3,500,000; P840,000 _¢) 5,500,000; P3,500,000; 0 b) 11,000,000; 6,800,000; #252,000 —_) None ofthe above (G2) Ifthe decedent in number 31 was a non-resident alien, wat would be the gross estate for Philippine estate tax purposes, the allowable deductions, and estate tax? 4) 11,000,000, 600,000 «) 5,500,000; 600,000; P4S4,000 ') 5,500,000; P1,000,000; 270,000 «) None of the above. | (G3) Mr. Amold Reyes, Filipino citizen, mated to Bettina, died on February 14,2017, leaving the following properties: (@) House and fot in Mania ~ exclusive (Zonal Value - 3,000,000; Assessor's Value ~ 2,500,000) (©) Real property in Q.C acquired during marriage ~ soniugal (Zonal Value - P1500, Assessor's Value - P3000,000) (©) Family home in Makati City acquired during mariage - conjugal (Zonal Value - 2,200,000; Assessor's Value -P2,100,000) (@) Car acquired during mariage ~ coniygal. (FMV- P1,400,000) (©) Commercial building in Makati sequired during mariage ~ exclusive (Zonal Value ~ ¥2,000,000; Assessors Value -P1,900,000) ( Proceeds of life insurance where esate is beneficiary conjugal (1,000,000) (€) 1,000 shares of ABC Corporation (domestic, not traded in stock exchange) ~ exclusive (NAVistare-PI00, Book valuelsbare- P50) Deductions claimed by the estate of Mr. Reyes: Legacy given in favor of Philippine government 300,000 (Claims against the estate 100,000 Funeral expenses 180,000 Judicial expenses 600,000 Mortgage attaching to house and lot in Manila, 100,000 (@) Whats the total gross estate, and where will it be indicated in BIR Form No, 1801? (A) P11,700,000; Part I, Item 21 (B) P1,280,000; Part I, tem 22C (©) P2,860,000; Part I, Item 29 (D) P5,360,000; Part I, Item 30 (E) P549,000; Part I tem 31 (©) What isthe total amount of ordinary deductions, and where wil it be indicated in BIR Form No, 18017 ”(A) 11,700,000; Part I, tem 21¢ (B) P1,280,000; Part, item 22C (C) 2,860,000; Par I Item 29 (D) P5,560,000; Part U, Item 30 (E) P549,000; Part I, Item 31 (©) What isthe share ofthe surviving spouse in the not estate, and where will it be indicated in BIR Form No. 1801? (A) PI1,700,000, Parc, Kem 21C (B) 1,280,000; Part I, item 22C (C) P2}860,000; Part I, tem 29 (D) 25,560,000; Part I tem 30 (E) 549,000; Part H, lem 31 (@ What is the total net taxable estate, and where will it be indicated in BIR Form No. 1801? (A) 911,700,000; Part, Item 216 (B) 1,280,000; Part I item 22C (C) #2,860,000; Pert If Item 29 (D) 5,560,000; Part I, tem 30 (8) P549,000; Part H, Item 31 (©) What isthe esta tax due, and where will it be indicated in BIR Form No. 1801? (A) P11,700,000; Par If, Item 21¢ (@) Pi 280.000; Port I, item 226 (C) P2.860,000; Part If tem 29 (D) P5,S60,000; Part I, tem 30 (&) ¥549,000; Part H, Item 31 G4) Ifthe decedent in number 33 died on February 14, 2018: () Whatis the tial gross estate, and where will ibe indicated in BIR Form No. 1801? (A) P11,650,000; Par If, lem 21C (B) $00,000; Pac I, item 22C (©) ¥3,280,000; Parti, en 29 (©) Pi 800.006; Par Item 30 (©) PLOR.00G, Pert I hem 31 (b) Whot isthe tofat amount of ordinary decuctions, ond where will it be indicated in BIR Fora No. 18017 (A) P1,950,000; Part H, Item 21 (B) 500,009: Par M, tem 22C (C) 93,250,000; Part it em 29 (D) 1,809,000; Pari I, em 30 (©) P108,000; Pact if ter 31 ee and where will itbe indicated (©) What isthe share of te surviving spouse in the net BIR Form No. 1801? (A) P1,650,000; Part, Item 23¢ (B) £500,000; Par I, fem 220 (©) 3,250,000; Part I, itera 29 {D) P1.800,000, Patil, item 30 (©) £108,000; Pest fem 31 18(4) What is the total net taxable estate, and where will it be indicated in BIR Form No. 18017 (A) P11,650,000; Part I, em 21C (B) 500,000; Part 1, tem 22C (C) 3,250,000; Part, Item 29 (D) PI,800,000; Part I, item 30 (©) 108,000; Part, tem 31 (©) What is the estate tax due, and winere will itbe indicated in BIR Form No. 1801? (A) P11,650,000; Par I, Item 21C (B) PS00,000; Par Ii, lem 22C (C) P3,250,000; Part I, Item 29 (D) 1,800,000; Par II, tem 30 (E) 108,000; Part 1, Iter 31 Donor's Tax (35) Me. and Mrs. Kalaw made the following donations of conjugal properties tothe following Persons in 2014: February 14 - to Larry legitimate son, a piece of land with FMV of P400,000 on, account of Larry's graduation. May 14 = ToMary, legitimate daughter, « house and lot with FMV of 'P1,000,000 on account of her marriage to be celebrated on December 25 ofthe same year December25— ‘To Roden, legitimate soo, a house and lot with FMV of 1,200,000 but with Robert assuming the mortgage indebtedness of 400,000, Mr. Kalaw paid donor's aves inthe ammount of ®2,000 and 23,400 forthe February 14 and May 14 donations, respectively (@) Whot is the amouct of the net gift made by Mr, Kalays on December 25, and where will {tbe indicated in BIR Form No. 18007 (A) 400,000; Part Ui, Lem 228 (B) 1,090,000; Part, torn 248 (© PS1,200; Parti, tem 258 (D) 25,800; Part Ii, tems 27 and 29. (b) What is the amount of otal net gifts made by Me, Kulaw as of December 25, and where will itbe indicated in BIR Form No, 1800? (B) P400,000, Par I, tem 228 (B) P1,090,000, Part, ten: 240 (©) PS1.206; Par Ul, ltem 258 (D) P25,800; Pert I, items 27 and 29, (6) Whatis the amouat of donor's tnx of Mr. Kalaw on the total net gifts as of December 25, and where will tbe indicated in BIR. Forma No. 18007 (A) 600,000; Part, tera 22 (@) P1 090,000, Part, Ieem 2B (©) 951,200; Pact tern 258 (D) #25,800; Part I hems 27 and 29. 19(4) What is the donor’s tay payable of Mr. Kalavy on indicated in BIR Form No, 1800? (A) P400,000, Par Th, em (B) 1,090,000; Parti I (C) PS1,200; Par Tl item 25 (D) P25.800; Part ems 27 and 29, Pecember 25, and where will it be (30) gis in number 35 were made in 2018, what would be the ammount of donor's taxes Payable on each of the dates of donation? (A) M0; £27,000; 24,000 (B) PO; 35,000; 43,000 (©) 0; P34,000: 45,000 (D) Po, 23,000, 23,000 ESTATE TAX Pre-TRAIN) fae net estate i ‘Thetwsshallbe Plus Of excess over Over But not ove P 200,000 Exempt P 200,000 $00,000 % P 200,000 500,000 2,000:000 P 13,0008, 500,000 2.000.000 5,000,000 135,000 11% 2,000,000 000,000 10,000,000 465,000 138% 5,000,000 10,000,000 1,215,000 2098 10,000,000 DONOR'S TAX a is ‘Thetmxshall be Plus Of excess over Our not over P 100,000 Exempt P 100.000, 200,000 % P 100,000 200.000 500,000 P 2,000 4% 200,000 500,000 1,000,000 14,000 6% 500,000 £000,000 3,000,000 44,000 39%, 1,000,000 £000,000 5,000,000 204,000 10%, 3,000,000 5.000,000 10.000 404,000 1296 5,000,000 10,000:000, 1,005,000 15% 10,000,000, ‘The End Good Lusk!