;2

,1l 6. Emi.r-ates Airlrriesr dR i:lterna-.iona I air carrier, lifted passengers,

:\ \ excess baggage, cargo anci/or rnai I f rom Pjani la . I t had a sj^ap_o_ygr in
Dgbai. The .passengers r.Jere trans ferr:ed to another plane belonqring to
fr-iiit"" whj ch brought t-he pdSSr:'.rig€IS to Rome. In computing the Gross
rhl lippine billinqs, j-t
1- shal1 incl-ude the gr(,ss of revenue on its flight from Manila
to Rome.
II - -ehal1 include tite (';ross of revenue on its flight from Manila
to Dubai.
rrv'.. F"Drb,\".91 a. only r is correct
\.+U0frq
' Sf0h,t9ib. onry rr is correct.
c. Both I and II are cori:ecrt
d- Either 1 or II is correct
n-1 International carrier:s that do no.t. have f light to aFd f rom the
'f philippirres but nonetlre'-ess earn j.ncome from ot-her activities in the
country:
a. wilt be subject tc 2 \4 Z spec-ial race.
b. will be subject. tc l0ji i:eguJ,ar rate.
c. will be subject to iicl--Li 2 4 ea special rate and 30? regular rate.
d. wil} not be subjecl t-o t,nj.l-ippi.ne income tax.
n8
t, The following are p€j4e__€egl:- instances of accumulation of profits
v Dgygna Jhg-reas+o3Cp.*|e.- needs of a business and indicative of purpose to
avoid income tax upon sfiareho-Lders exceptr:
a. Inve-stnqnt of substanlial. earrrings and profits of the corporation in
,r-riirelalespbusiness
'- or irr sr-ock or securities of unrelated business
b . G-ve s tment i r<6"1r,gt an<l c the r rISlg-=lS sS s e cu r i t i e s
c. Accumulation of earrrings in e.xqgsjl__9I.--i;QO-a-s!_!gig.qp gg.p"LL,aJ--, not
otherwise intendeci for the reasonable needs of the business as
defi-ned in the Rer;ulatiot-rs
d. None of the choices
v v. A non-stock, non-profit organization that enjoys exemptLo;t from income
tax is required:
a. to file and annualriglgr11g! under oath on or before April
1q
b. to file quarterly ancJ annual return just like any other
corporations.
c. not to file any r:et-urn whatsoever.
d. file annual returrr orrly.
^1 10 Any amount paid specifically, either as advances or reimbursements
for traveling, representation and other bona fide ordinary and
necessary expenses incurred or reasonably expected to be i,ncurred by
the employee ln the performance of his duties are not compensation
i r4tti\.,, subject tso withholding if:
i',t',,'/.'" -rT\ I - It is ordinary and necessary travel.ing and representation or
entertainment expenses p;rid or incurred by the employee in the
pursuit of the trade, business or professi.on-
rtctli/]Piini II The employee i s required to account or liquidete for the
expenses in accordance with specific requirements of
substantiation for eich category or expenses pursuanc to
provision of Lhe Tax Code.
a. Only I is correct
l^ Only I1 is correct
Both I and II are r:or:rect
d- Neither f n.or II is co-r-'rect

nnn nn nnr\ Fviii-lllmTnll /Dnm^u a, \ /f-,\