InTax Quiz 11

1. Exempted from donor’s taxation are gifts made

a. For the use of the barangay.
b. In consideration of marriage.
c. To a school which is a stock corporation.
d. To a for-profit government corporation.

2. In 2017, Moscov earned P500,000 as income from his beauty parlor and received P250,000 as Christmas gift
from his aunt. He had no other receipts for the year. He spent P150,000 for the operation of his beauty parlor. For tax
purposes, his gross income for 2017 is
a. P750,000 c. P350,000
b. P500,000 d. P600,000

3. The BIR is assessing deficiency withholding tax on total Repairs and Maintenance claimed by non-stock non-
profit organization. The BIR alleges that foundation failed to withhold the correct amount of the 2% expanded
withholding tax due on the Repairs and Maintenance expense. As a CPA assisting the foundation in the BIR tax
investigation, you can reason that ___.
a. The BIR should have considered the 1% expanded withholding tax instead of the 2%in determining the
deficiency tax.
b. The foundation is exempt from the tax and hence is not liable to the deficiency withholding tax.
c. The foundation is exempt from tax and hence is not required to withhold tax on its expenses.
d. The BIR should have considered both the 1% and 2% withholding tax in determining the deficiency tax.

4. An examination of a calendar year corporate taxpayer’s records shows that it filed its final adjustment income
tax return on February 15, 2016 for its 2015 income. It subsequently filed an amended income tax return March
21, 2016. Up to what date is the Bureau of Internal Revenue (BIR) within which to issue a formal letter of
demand and final assessment notice (FLD/FAN)?
a. December 31, 2018 c. March 21, 2019
b. February 15, 2019 d. April 15, 2019

5. Esmeralda donated P110,000.00 to her friend Khalid who was getting married. Esmeralda gave no other gift
during the calendar year. What is the donor's tax implication on Esmeralda’s donation?
a. The P100,000 portion of the donation is exempt since given in consideration of marriage.
b. A P10,000 portion of the donation is exempt being a donation in consideration of marriage.
c. Esmeralda shall pay a 30% donor's tax on the P110,000 donation.
d. The P100,000.00 portion of the donation is exempt under the rate schedule for donor's tax.