PAMANTASAN NG CABUYAO

INCOME TAX - SPECIAL PROBLEM

LUCARIO - Seller of Goods

BUSINESS
1Q 2Q 3Q 4Q Total Per ITR Disallowed/Subject to other type of taxes
Sales 1,250,000.00 1,500,000.00 2,000,000.00 1,000,000.00 5,750,000.00 5,750,000.00 -
Cost of Sales 625,000.00 750,000.00 1,000,000.00 500,000.00 2,875,000.00 2,875,000.00 -
Expenses (Income):
Other expenses 25,000.00 30,000.00 25,000.00 10,000.00 90,000.00 90,000.00 - Sales 5,750,000.00
Charitable Contributions 250,000.00 250,000.00 200,625.00 49,375.00 Other Income 100,000.00
Representation 70,000.00 70,000.00 28,750.00 41,250.00 Expenses before charity (3,843,750.00)
Gain from disposal of ordinary asset (100,000.00) (100,000.00) (100,000.00) Taxable income before charity 2,006,250.00
Gain from disposal of capital asset (150,000.00) (150,000.00) (150,000.00) Rate 10%
Salaries and wages 200,000.00 200,000.00 200,000.00 250,000.00 850,000.00 850,000.00 Limit 200,625.00
Net Income per Books 400,000.00 620,000.00 775,000.00 70,000.00 1,865,000.00 1,805,625.00 59,375.00

Capital Ordinary Other Data:

Acquisition Cost 200,000.00 1,000,000.00 Capital Gains Tax
Depreciation 850,000.00 Assessed Value:
Net Book Value 200,000.00 150,000.00 Capital Asset 200,000.00 350,000.00
Ordinary Asset 300,000.00 6% Cost of Sales 2,875,000.00
Selling Price 350,000.00 250,000.00 21,000.00 Other expenses 90,000.00
Gain on Sale 150,000.00 100,000.00 FMV: Allowed EAR 28,750.00
Capital Asset 300,000.00 Via BIR Form 1706 Salaries and wages 850,000.00
Ordinary Asset 385,000.00 Total 3,843,750.00
COMPENSATION
Per Actual Per ITR Disallowed/Exempted/Taxable other type of taxes
Basic Pay net of SSS, PHIC and HDMF 2,520,000.00 2,520,000.00 FBT:
13th Month Pay 210,000.00 210,000.00 100,000.00
Other benefits 80,000.00 80,000.00 153,846.15
90K Threshold (90,000.00)
Other benefits exclusive to Managers 100,000.00 100,000.00 35%
Receipts from accident - hospitalization 250,000.00 250,000.00 53,846.15
Receipts from accident - loss profit 50,000.00 50,000.00
Total 3,210,000.00 2,770,000.00 350,000.00 Via BIR Form 1603Q

Income Tax Computation:

1Q 2Q 3Q ANNUAL
Sales 1,250,000.00 1,500,000.00 2,000,000.00 5,750,000.00
Other Income 100,000.00 100,000.00 Expenses before charity 3,843,750.00
Taxable compensation Income 2,770,000.00 Allowed charitable expense 200,625.00
Deductible expense 1,225,000.00 4,044,375.00 Total Deductible Expense 4,044,375.00
Total 1,250,000.00 1,600,000.00 775,000.00 4,575,625.00
Add: Taxable Income previous quarter 1,250,000.00 1,020,000.00
Taxable Income 1,250,000.00 2,850,000.00 1,795,000.00 4,575,625.00
100,000.00 Payment via 1701Q 1Q
128,000.00 Payment via 1701Q 2Q
Tax Due 100,000.00 228,000.00 428,500.00 1,314,200.00 200,500.00 Payment via 1701Q 3Q
Less: Tax paid previous quarter 100,000.00 228,000.00 508,500.00 80,000.00 Taxes deducted by Employer via BIR Form 2316
Tax due and payable 100,000.00 128,000.00 200,500.00 805,700.00 508,500.00

Via BIR Form 1701Q Via BIR Form 1701