Tax

1. The following information are from the records of the Central Plain University, Inc., a private
educational institution, for the fiscal year ended May, 31, 2003:

Income: Miscellaneous fees P 362,600

Tuition fees 2,843,100
Income from rents 60,000
Net income, school canteen 36,200
Net income, book store 24,800
Dividends 15,000
Interest on time deposits 45,000
Expenses: Payroll and administrative salary 1,452,450
Other operating expenses 762,330
Interest on P750,000 bank loan 82,100
Depreciation, new six-room building 37,500

In the first month of the fiscal year, the school secured a loan from a bank in the amount of
P750,000. The proceeds of the loan were spent in the construction of a new six-room building.

How much is the income tax due from the Central Plain University, Inc. for the fiscal year ended
May 31, 2003?
a. P101,935
b. P 26,935
c. P105,685
d. P30,935
2. First statement: A donation on which the donor’s tax is net paid is a valid donation
Second statement: Title to a tax –exempt donation of a real property cannot be transferred to the
donee in the Register of Deeds unless the donor’s tax on the donation had been paid
a. True, True
b. False, False
c. True, False
d. False, True
3. Which of the following not a requisite to toll the collection of taxes to be made by the Bureau of
Internal Revenue, upon proof of the following to the Court of Tax Appeals:
a. It will jeopardize the interest of the taxpayer;
b. It will jeopardize the interest of the Government;
c. Filing of a bond double the amount of tax assessed;
d. The case is not dilatory.
4. An individual taxpayer is qualified to substituted filing of income tax return if he meets the following
requisites, except:
a. Pure compensation income earner
b. One employer in the Philippines.
c. Withholding tax is correct.
d. Minimum wage earner.
5. An owner of a warehouse, which used to be VAT-exempt because its annual receipts never exceeded
P1,500,000, decided to register under the VAT system on January 2, 2009. The following data were from
the first quarter ending March 31, 2009:
Rental from warehousing services, net of 12% VAT P 336,000
Purchases of supplies (February), gross of VAT 112,000
Inventory of supplies, January 1, 2008 100,000
VAT on the inventory of supplies, January 1, 2008 10,000
How much was the VAT payable for the quarter ending March 2009?
a. 14,000
b. 18,320
c. 58,000
d. 16,320
6. The Standard Electronic Services, VAT-registered taxpayer, has the following data for the last quarter
of 2008:
Cash sales, net of input tax P 3,000,000
Installment sales, net of input tax (collections) 1,200,000
Deferred input tax, third quarter 2008 22,000
Purchases, total invoice value 3,920,000
Monthly VAT payments (October and November,2008) 20,000
The tax payable on or before January 25, 2009 is:
a. P13,000. c. P42,000.
b. P28,000. d. P64,000.
7. A building contractor had the following receipts during the month:
Gross receipts on principal contracts completed P500,000
Gross receipts on sub-contracts completed 400,000
Receivables on principal contracts completed 80,000
Receivables on sub-contracts completed 50,000
The amount subject to business tax is __________.
a. 900,000
b. 1,030,000
c. 500,000
d. 580,000
8. Case 1 – Designation of the beneficiary is revocable. Case 2 – Designation of the beneficiary is
irrevocable. Case 3 – Policy is silent as to whether the designation is revocable or irrevocable.
In which of the cases above will the proceeds be exempt from estate tax? (Assume that the
beneficiary of the life insurance proceeds is neither the estate now the executor nor the
administrator of the estate)
a. Case 2 only
b. Case 2 & 3
c. Case 3 only
d. Case 1 & 3
9. Which one of the following is not subject to other percentage tax?
a. Proprietor of cockpits
b. Domestic common carrier by land transporting passengers
 c. Closely held corporations initially offering its shares to the public
d. Agricultural cooperative selling its produced in processed form
10. Jiji died leaving the following properties:
Stocks of King Corporation (2000 shares) – listed in the Phisex (highest – P40; lowest – P39)
Common stocks of Queen Corporation (1500 shares) – not listed in the stocks exchange. Cost –
P50 per share; book value – P45 per share
Car – Cost – P600,000; book value – P350,000; market value – P400,000
Real properties – Zonal value – P120,000; assessor’s value – P72,000
The gross estate of Jiji is
a. 666,500
b. 674,000
c. 667,500
d. 665,500