Professional Documents
Culture Documents
FALSE 1. Rank and file employees may be subject to fringe benefit tax.
TRUE 3. The personal expenses of employees shouldered by the employer are fringe benefits.
TRUE 5. The tax base of the fringe benefit tax is the grossed-up monetary value of the fringe benefit.
FALSE 6. The fringe benefit tax is a creditable withholding tax presumed to have been withheld at
source by the employer from the fringe benefits of supervisory or managerial employees.
FALSE 7. The taxable fringe benefit subject to the fringe benefit tax is the excess of the de minimis
FALSE 8. Half of the benefits that are necessary to the trade of the employer's business are subject to
TRUE 9. Benefits in the form of properties transferred to the name of the employee are subject to
TRUE 10. Benefits provided by the employer for his convenience are exempt from fringe benefit tax.
FALSE 11. The annual depreciation value of a real property is presumed to be 10% of the value of the
property.
TRUE 12. The monetary value of benefits given in cash is the cash paid.
TRUE 13. The monetary value of benefits given in kind is 100% of the value of the property given.
TRUE 14. The monetary value of fringe benefits in the form of free usage of property is 50% of the
FALSE 15. Employee benefits are employee expense by nature that are paid by the employer.
TRUE 16. The annual depreciation value of a movable property is 20% of the value of the property.
TRUE 17. When title over property is transferred, the monetary value is the fair value of the property
given.
TRUE 18. When the employer leases a house and lot as the usual residence of the supervisory or
managerial employee, the monetary value of the benefit is 50% of the rental payments.
TRUE 19. Educational assistance to the employee is exempt from fringe benefit tax if there is an
employee bond and the study is related to the trade or business of the taxpayer.
TRUE 20. Aircraft including helicopters are considered for business use and not subject to fringe
benefit tax.
TRUE 21. The monetary value of benefit from loans at less than market rate shall be the difference
FALSE 22. Lodging costs on foreign travel is a taxable fringe benefit regardless of amount.
TRUE 23. 30% of first-class tickets in foreign travel is a taxable fringe benefit.
TRUE 24. The expenses of family members of the employee shouldered by the employer constitute
FALSE 25. An employee expense receipted in the name of the employer is considered a business
3. Select the answer which more accurately completes the statement. The taxable fringe
c. the total of 13th month pay and other benefits not exceeding P90,000.
d. the total of 13th month pay and other benefits exceeding P90,000.
5. An employer transferred title over property to the employee. What percentage of the benefit
6. For purposes of computing the annual value of benefits involving the free use of movable
7. For purposes of computing the annual value of benefits involving the free use of immovable
d. Employees do not need to file income tax returns to report the fringe benefit.
10. The actual value of benefits realized by the managerial or supervisory employee is referred
to as the
d. Temporary housing
12. Which is not subject to fringe benefit tax?
a. Personal expenses receipted in the name of the employee paid by the employer
b. Employee personal expense receipted in the name of the employer paid by the employer
d. Personal expense receipted in the name of the employee reimbursed by the employer
13. ABC Company designated a residential property for the use of its managerial employee. The
lot has zonal value of P3,500,000 and P2,000,000 value per tax declaration. The assessed value
on the improvement on the lot was P1,500,000 . The lot was purchased at a cost of P2,000,000.
Compute the monetary value to be reported in the quarterly fringe benefit tax return.
14. Kalibo Company purchased a residential unit for P3,000,000 and transferred ownership to
its supervisory employee. The property has a zonal value of P3,500,000. Compute the monetary
value.
15. Celebes, Inc. owns a residential property it acquired for P 2,000,000. It transferred ownership
thereto to its managerial employee for P1,200,000 when its fair value was P 3,000,000. What is
16. Danao bought a car worth P800,000 and registered it in the name supervisory employee. It
was agreed that the same will be used partially for the business of Danao. Compute the monetary
value.
17. In the immediately preceding problem, what is the fringe benefit tax assuming the employee
is a non-resident alien?
18. In July 2019, Naga purchased a P 1,200,000 car for the use of its managerial employee.
Compute the monetary value to be reported respectively for the calendar quarters ending
19. Compute the fringe benefit tax if the employee is a resident citizen.
20. Maasin Carbon Plant acquired a PI,000,000-motor vehicle for the use of its field engineer,
a plant supervisor, assigned to a very remote facility from town. Compute the monetary value of
21. Dexter acquired a car for and transferred ownership to its supervisory employee for P400,000.
The car shall be used partly in the employer's business. Compute the monetary value.
22. As part of its employee benefits plan, Zarraga Realty Corporation acquired a piece of
residential lot worth P2,000,000 for its Director of Finance and constructed upon it a house at a
cost of P4,000,000. Ownership of the house and lot was turned over to the director upon
completion of the construction. 40% of the value of the house and lot will be deducted from the
TRUE 1. Capital gain is the gain derived from the sale or exchange of capital assets while capital
loss is the loss incurred from the sale or exchange of capital assets.
TRUE 2. In no case shall capital gains tax on stock transaction be allowed as deduction against
3. The Register of Deeds is prohibited from registering any document transferring real
representative has certified that such transfer has been reported and the tax imposed, if
FALSE? 4. When a natural person disposes of his principal residence, he is exempt from the
payment of the capital gains tax due on the sale if the proceeds from the sale or
disposition of the principal residence are fully utilized in acquiring or constructing a new
principal residence within 18 months from the date of the sale or disposition.
TRUE 5. Sales, exchange, or disposition of lands and/or building by domestic corporations which are not
actually used in the corporate business and are treated as capital assets is subject to 6% capital gains
tax.
FALSE 6. Ordinary loss is the excess of expenses and losses over the income of the taxpayer excluding
capital gains and capital losses, or the loss incurred from the sale or exchange of an ordinary asset.
7. The Revenue District Officer (RDO) of the revenue district where the property being
TRUE 8. Holding period is the duration for which the taxpayer held the capital asset.
FALSE 9. Expenses of disposition such as agent’s commission and other selling expenses are
TRUE 10. Capital gains realized during each taxable year by individuals or corporations from sale,
exchange or disposition of shares of stock in any domestic corporation not traded through a local stock
exchange are subject to final tax of 5% for the first P100,000 and 10% for amount in excess of P100,000
FALSE 11. The final capital gains tax shall be composed on the basis of the entire amount of gain
realized from the sale or disposition of shares of stock and the tax so computed shall be
FALSE 12. A final consolidated return or an adjustment return covering all the stock transactions for
the last quarter of the taxable year shall be filed on or before April 15 of the following
taxable year.
TRUE 13. Sales, exchanges or other dispositions of real property classified as capital assets,
including pacto de retro sales and other forms of conditional sale, by individuals,
including estates, and trusts, are taxed at 6% based on the gross selling price or current
14. Capital assets include all properties held by the taxpayer whether or not connected in
FALSE 15. The net capital gains realized on stock transactions shall be included in the gross
income of the seller in computing his normal income tax liability.
TRUE 16. As a general rule, the entire amount of gain or loss arising from sale or exchange of real
or personal property shall be recognized such that a gain is taxable while a loss is
deductible.
FALSE 17. An individual is qualified to account for his gain on installment basis if the initial payment
FALSE 18. Stocks held by dealers in securities are classified as capital assets.
FALSE 19. If the cost or value of the property cannot be convincingly shown by the taxpayer, then
TRUE 20. When disposing of a property, the nature of the same, i.e., a capital asset or an ordinary
asset, does not matter because capital and ordinary assets are given the same tax
treatment.