Write the letter that pertains to the best answer.

1. Which of the following associations is subject to corporate income tax?

(a) General professional partnership
(b) Joint venture or consortium agreement for construction projects
(c) Joint venture or consortium agreement for petroleum, coal, geothermal and other
energy operations pursuant to an operating or consortium agreement under a
service contract with the government
(d) Co-ownership where the property that is not under administration proceedings or
trust remains undivided for more than ten (10) years

2. X, Y and Z are lawyers who practiced their legal profession in the same building.
They hired a common secretary and shared equally for her salary as well as the
rental and electricity expenses of their offices. However, they have their own
clients and individually collect their respective fees, except in some court cases
handled by the two or three of them where they ratably share their professional
fees.
Which of the following statements is true?
a) X, Y and Z will file a quarterly corporate ITR and report their incomes and
expenses jointly therein as partners
b) X, Y and Z will file an annual corporate ITR and report their incomes and
expenses jointly therein as partners
c) X, Y and Z will file an annual Information Return for the partnership and report
their incomes and expenses separately in their respective individual ITRs
d) X, Y and Z will file their annual individual ITRs and report their incomes and
expenses separately therein

3. X and Y, both Civil Engineers by profession, executed an Articles of Partnership

wherein they would engage in the business of supplying building construction
materials. X provided the necessary cash and equipment for the firm’s capital
while Y would solely provide his services as an expert engineer. X and Y would
share their profits in the ratio or 4-1, respectively
The association of X and Y, for income tax purposes, will be classified as:
a) Taxable business partnership
b) Exempt general professional partnership
c) Exempt joint venture
d) None of the foregoing

4 Which of these statements relative to a general partnership is false?

a) The firm shall file an information return but the partners shall file their individual
ITRs and separately pay their income tax liabilities thereon
b) The firm may claim as a deduction any contributions which are deductible with
limit, whereas the individual partners may claim as a deduction any contributions
which are deductible in full
c) The distributive shares of the partners shall be subject to 10-15% creditable
withholding tax
d) Any partnership loss may be claimed by the partners proportionately in their
respective

5 X and Y inherited a piece of agricultural land from their recently deceased

parents. The last will and testament of the decedent provided that the said
property shall not be partitioned and should remain jointly owned by the siblings
for a period of twenty (20) years
What organization is deemed to exist for income tax purposes
a) Corporation
b) Unregistered partnership
c) Co-ownership
d) Trust

6 Which of the following contributions may be claimed as a deduction by a

business partnership?
a) Donation to street beggars
b) Donation to Parish Church
c) Both (a) and (b)
d) Neither (a) nor (b)

7 Which of the following contributions may be claimed as a deduction by a general

professional partnership?
a) Donation to Rotary Club
b) Donation to the city
c) Both (a) and (b)
d) Neither (a) nor (b)

8 A taxable partnership shall adopt as its taxable year the:

a) Calendar year
b) Fiscal year
c) Either (a) or (b)
d) Neither (a) nor (b)
9 A taxable business partnership which does not keep any books of accounts to
record its transactions shall adopt as its taxable year the:
a. Calendar year
b. Fiscal year
c. Either (a) or (b)
d. Neither (a) nor (b)

10. An exempt general professional partnership shall adopt as its taxable year the:
a. Calendar year
b. Fiscal year
c. Either (a) or (b)
d. Neither (a) nor (b)