EXERCISE 19~1 1, a Goods temporarily imported for repair, renovation, -No modification of processing Goods in PEZA, Cavite -No ©. Goods entered for transit -No d. Goods deposited in a bonded warehouse -No 2, The Court of Tax Appeals held that as evidenced by commercial invoices, the local buyers, not the Philippine branch of the nonresident corporation are the importers who are liable for VAT on such importation (Kanematsu Corp., Manila Branch vs, CIR, CTA Case 4875, Feb. 12, 1997). 3. Importation for resale, for use as raw material in the manufacture of a finished product, or for personal use. 1. Value of goods per Bureau of Customs 250,000 Freight 20,000 Insurance 75,000 Bank charges 4,000 Customs duties 75,000 Arrastre charges 5,000 Wharfage dues 3,600 Brokerage fee aii ‘Total 437,100 Rate Rk VAT payable 52452 Note: The usual basis in computing the VAT is the dutiable value. However, if customs duties is computed based on volume or quantity the proper basis is the invoice value. 2. ‘The importation of the goods is subject to VAT. ‘The amount of VAT payable on the importation is P52,452. 3. If Atayza is a tax exempt person, he shall not be subject to VAT. However, Mr. Pusogac shall be liable to pay the VAT because he shall be considered as the importer thereof.EXERCISES 23- 1. DISCUSSION QUESTIONS / PROBLEMS 1. Yes, The exemption from imprisonment refers to non-payment of poll tax. A poll tax is a tax imposed on residents of a certain territory, without regard to his property or the ‘occupation in which he may be engaged. The additional community tax is not a poll tax because it is based on earnings derived from business, exercise of profession or pursuit of an occupation. 2. No. An individual is not required to pay the community tax until he/she reaches the age of 18. Considering the Daisy Saez is only 16 years old, she is not yet liable to pay the said tax. a No. In practice, government employees usually refuse to accept payments below P5.00. This practice is not proper because if individuals are not yet required to pay the tax but they want to secure a community tax certificate, they should not be required to pay PS. b, PL only. This is the amount required by law to be collected on individuals who are not yet required by law to pay the tax but wanting to secure a Community Tax Certificate, 3. Basic tax Pos Additional tax: Income from profession (355,500/1,000 = 355.50 xP1) 355 Income on lease of car (89,500/1,000 = 89.50 x Pl) 39 444 Total community tax payable 44g. 4. Community tax payable by Rolanda Matubis: Basic tax o Community tax payable by Juan Matubis: Basic tax 5 Additional tax: Sales (1,578,912 x (100% - 38%) /1,000 = 978 978,925.44 / PL) Salaries and allowances (144,590/1,000 = 144.59 x 144 P1) Income on land (132,650/1,000 32.65 xP) a 2 Total community tax payable wba’ 5. a. No. Section 160 of the Local Government Code is explicit that “the community tax shall be paid in the place of residence of the individual, or in the place where the principal office of the juridical entity is located. Thus, Marie should have paid the tax in Buhi, Camarines Sur. b, The code is silent in this point. However, it is submitted that since the provisions of Sec. 160 is mandatory in implementation the payment of the community tax in Legazpi City is not valid EXERCISES 23 - 2. MULTIPLE CHOICE QUESTIONS 1. Answer: 2. Answers: B 9210 cre 2 13, Answer: Answer: Answer: oo0n Answer: Answer: Answer: A Answer: B Answer: Basic tax 5 Additional community tax: Salary ( 352,225/1,000 = 352 x 3520 - Pu) Business: Dormitory 100,500 Jeepney 150,550 Total 251,150 (251,150/1,000 = 251 x P1) 252 Total community tax payable eBu8 Answer: D Basic tax Additional community tax: Gross receipts, Manila 4,055,015.2 Gross receipts, Quezon City 3:264,980.6 Total Faiagas a (7,319,995.80/1,000 = 7,319 7319 x PI) Limit 5,000, Total tax payable 5,005. Answer: ¢ Answer: Tax due until February 28, 2007 5,005.0 ‘Add: Interest (5,005 x 24% x 1/12) —100.10, Tax due as of March 31, 2007 S7L05.10 9314. 15. 16. vv. 18 19 20 Answer: Additional tax (2,654,951/1,000 = Pu) answer: Answer: Answer: Answer: Answer: Answer: c 8 054 x 94