ANSWER KEY

I. Theory (MCQs)

1. True, False
2. Chief Commissioner and Four Deputy Commissioners
3. Both A and B
4. True, True
5. False, True
6. One which is generally no limit on the amount that maybe imposed
7. It should be exercised to promote public welfare
8. Superior to the non-impairment clause provisions on obligations and contracts
9. NIRC shall prevail over the GAAP
10. 25% of the basic income tax due
11. Failure to file certain information required by the Tax Code
12. False, True
13. On or before April 15 of the following taxable year
14. Basic income tax is over P2,000
15. Some individual taxpayers are taxed on their worldwide income while others are
taxable only upon income sources within the Philippines
16. A resident alien is taxed exactly in the same manner as resident citizen
17. An estate which is not under administration
18. NO to 1st question and YES to 2nd question
19. Prizes from a sports contest in the Philippines amounting to P10,000
20. Share in the net income of a general professional partnership
21. Share in net income of an ordinary partnership
22. Royalty income literary compositions
23. Either deductions from gross income or tax credit from income tax due
24. A resident of the Philippines and is Filipino
25. Income tax abroad
26. Philippine income tax due based on the taxable net income-world
27. None of the above
28. Both statements are correct
29. None of the above
30. Some individual taxpayers are taxed on their worldwide income while others are
taxable only upon income from sources within the Philippines
31. A gain from sale of real property in the Philippines, held as capital asset
32. Prizes from a sports contest in the Philippines amounting to P10,000
33. 15% on gross compensation income in the Philippines
34. Cost of living allowance of P24,000
35. Refund of overpaid rental expense in prior year
36. Resident alien is taxed exactly in the same manner as a resident citizen
37. All of the above
 38. On a quarterly and yearly basis, cumulative system
39. P90,000
40. 15% final tax
41. 12%
42. None of the above
43. On or before May 15 of the current taxable year
44. The state’s existence
45. Power of Eminent Domain
46. Progressive tax
47. Tax credit
48. Either allowed deduction or tax credit
49. On a quarterly basis, cumulatively
50. None of the above

II. Problem Questions

1. P722,500
2. P1,714,000
3. P628,750
4. P2,060,000
5. P1,130,000
6. P4,254,000
7. P422,250
8. P1,830
9. P808,900
10. P500,000
11. P11,000
12. P485,000
13. P14,500
14. P18,600
15. P77,650
16. P1,675,000
17. P165,300
18. P227,200
19. P10,800
20. P2,791,000
21. P1,491,000
22. P500,000
23. P55,000
24. P795,500
25. P16,280