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This Study Resource Was: Northern Cpa Review
This Study Resource Was: Northern Cpa Review
TAXATION
PERCENTAGE TAX QUIZZER
1. A tax on business is –
a. Direct tax b. Indirect tax c. Property tax d. None of
the above
2. A is the owner of a small variety store. His gross sales in any one year do not exceed
P1,500,000. He is not VAT registered. The following data are taken from the books of
the variety store for the quarter ending March 31, 2007:
Merchandise inventory, December 31, 2006 P100,000
Gross sales 450,000
Purchase from VAT-registered supplies 350,000
The percentage tax due is
a. P10,000 b. P13,500 c. P16,500 d. None
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3. In the third quarter of 2007, a tax payers engaged in the sale of services whose annual
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gross receipts do not exceed P1,500,000 has the following data
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Accounts receivable, beginning of the quarterP 50,000
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Sales during the quarter 100,000
Accounts receivables, end of the quarter 75,000
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Purchase of supplies, total invoice amount 11,200
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a. A taxpayers whose annual gross receipts/sales exceed P1,500,000 shall pay VAT
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b. A taxpayer whose annual gross receipts/sales do not exceed P1,500,000 but who is
VAT-registered shall pay VAT
c. Percentage tax maybe imposed together with VAT
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5. Which of the following taxes is not replaced by the value added tax law?
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Benny Transport Company is a transportation contractor. During the month, it had the
following gross receipts:
From transport of passengers P 485,000
From transport of cargo 220,000
From rental of its cargo trucks to individual lessees 33,000
From rental of its “rent-a-car” to balikbayans (with chauffeur) 30,000
Payments to VAT registered persons during the month amount to P 99,000
10.The percentage tax due is –
a. P22,740 b. P21,150 c. P7,590 d. P15,450
11.Assuming that the amounts given do not include the tax, the value-added tax due is –
a. P23,000 b. P18,480 c. P59,909 d. None
Pagong Lines is engaged in provincial transport operation. It has the following gross
receipts in June:
Bus 1 (carriage of goods, P8,000) P 100,000
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Bus 2 (carriage of goods, P3,500) 65,000
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Salaries of drivers an conductors 25,000
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Cost of oil and gasoline
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Taxi 30,000
Jeepney 22,000
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Cargo truck 45,000
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Sea vessel 250,000
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During the month, Bus 1 was bumped by another bus owned by D Tulak Lines and
paid Pagong Lines P20,000 for the damage done.
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Love Bus Transport Company operates ten (10) units of buses. During the month, it had
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Driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 4th Batch – Q13-2
Northern CPAR: Taxation – Quizzer on Percentage Tax
17.ABC Corporation is a holder of franchise to operate transporation units in land. The
records for the month show (net of any tax):
Cargo Passenger
Gross receipts from transporting P 2,000,000 P 3,000,000
VAT Supplier’s Non-VAT Supplier’s
Payments to P800,000 P300,000
The percentage tax due is
a. P150,000 b. P60,000 c. P90,000 d. P144,000
18.Using the preceding number, but the franchise is for air and sea transport, within the
Philippines, the VAT due is
a. P144,000 b. PP600,000 c. P468,000 d. P504,000
19.Using the preceding number, but the route is from the Philippines to foreign country,
which of the following is correct?
a. The corporation is exempt from VAT
b. The corporation is subject to percentage tax
c. The output VAT is 0, hence the corporation cannot claim input tax
d. May claim a refund or credit the input taxes against other internal revenue taxes
20.One of the following is subject to common carrier’s tax
a. Owners banca
b. Owners of animal-drawn two wheeled vehicles
c. Common carriers by land for transport of goods or cargoes
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d. Common carriers by land for transport of passengers
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21.A person whose business is to keep automobile for hire or keep them stored for use or
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order
a. Keepers of garage c. Taxicab operators
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b. Common Carrier d. Tourist bus operator
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22.What is the proper business tax for A and B who are both engage in keeping
automobile for hire.
Keepers of Garage A Keepers of Garage B with
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23.A, operates a ferryboat. During a particular quarter, its receipts consists of the
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following
Gross receipts: (without VAT)
Transport of passengers P 1,000,000
Transport of goods 1,500,000
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25.The franchise tax of grantees of radio and television broadcasting whose annual gross
receipts of the preceding year do not exceed P10,000,000 shall be
a. 2% of the gross receipts c. 4% of the gross receipts
b. 3% of the gross receipts d. 5% of the gross receipts
26.LAS Corporation is a common carrier operating several units of transportation by
land, air and sea. It had the following data on gross receipts for the month of April
(tax not included):
From To
Land Air Sea
Cargoes Passenger Cargoes Passenger
Cargoes Passenger
Phils Phils P400,000 P1M P800,000 P2M P1.6M
P1M
Phils Abroad P1.4M
P1.8M
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Driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 4th Batch – Q13-2
Northern CPAR: Taxation – Quizzer on Percentage Tax
Required: Determine the output VAT due for the month.
27.Sealiner Ferries transports passengers, goods and cargoes between the islands of
Cebu and Bohol. During 2009, it disclosed the following gross receipts, net of any
business taxes:
Transport of passengers P2,000,0
00
Transport of goods 1,000,00
0
Transport of cargoes 500,000
Compute the Output Vat and the percentage tax respectively.
a. P420,000; P105,000 c. P180,000; P60,000
b. P0; P105,000 d. P420,000; P0
28.Congress enacted a law imposing a 5% tax on gross receipts of common carriers. The
law does not define the term ‘gross receipts’. Express Transport, Inc., a bus company
plying the Manila – Baguio route, has time deposits with ABC Bank. In 2005, Express
Transport earned P1,000,000 after deducting the 20% final withholding tax from its
time deposits with the bank. The BIR wants to collect a 5% gross receipt tax on the
interest income of Express Transport deducting the 20% final withholding tax. Is BIR
correct?
a. Yes, gross receipts mean cash collected whether actually or constructively without
any deductions.
b. Yes, gross receipts means all cash collections actually received without any
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deductions
c. No, gross receipts means actual receipts after deducting the withholding tax
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d. No, gross receipts means actual receipts after deducting tax credits.
29.One of the following is not subject to the 3% percentage tax
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a. International air carrier doing business in the Philippines
b. International shipping carrier doing business in the Philippines
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30.Franchise grantees of the city gas and water utilities are subject to franchise tax of
a. 2% b. 3% c. 4% d. 5%
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31.A, is a holder of franchise to sell electricity. In a particular quarter, its gross receipts
amounted to P2,000,000 from sale of electricity. It has also receipts from the lease of
its auditorium and theater amounting to P600,000. The percentage tax due for the
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quarter is
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32.A is a Radio-TV broadcasting franchise grantee. During the preceding year, its gross
receipts did not exceed P10,000,000. Durin gthe first quarter of the currents year, it
has the following data:
Gross receipts, sale of airtime P2,000,000
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Too Big Company, a public service company, is a holder of a franchise to engage in the
business of supplying water to several towns and cities in Luzon. As recorded in its books
during the month, its total gross receipts from the sale of water amounted to P
2,550,000, while the receipts from rental of equipments and other services was
P280,000. The operating expenses amounted to P2,000,000, 11% of which was paid to
VAT registered persons.
37.The percentage tax due is –
a. P51,000 b. P5,000 c. P16,500 d. P56,500
38.The value-added tax payable for the month is –
a. P33,600 b. P5,000 c. P16,500 d. P7,200
39.A tax on the right or privilege to enter places of amusement
a. VAT c. Amusement tax
b. Franchise tax d. Income tax
40.One of the following is not subject to amusement tax on gross receipts
a. Disco houses c. Professional basketball
b. Cockpits d. Bowling alleys
41.A operates a cockpit. Inside the cockpit, he also operates a restaurant. Data for the
particular quarter follow
Gross receipts:
Cockpit operations P 500,000
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Restaurant operation:
Sale of foods 100,000
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Sale of liquor
The amusement tax due from A is
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a. P90,000 b. P135,000 c. P225,000 d. P75,000
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42.Using the above data, except the restaurant is not owned by A but is owned by
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another person, B, not VAT registered and whose annual gross sales never exceeded
P1,500,000. The amusement tax due from A is
a. P90,000 b. P135,000 c. P225,000 d. P75,000
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45.Assuming that the above data is not a world championship but a Philippine national
boxing championship, how much is the amusement tax?
a. None b. P500,000 c. P300,000 d. P900,000
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Panda Hotel offers the following services to its guests and from which revenues were
derived for the month, as follows:
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Revenues Collections
Hotel rooms P1,250,000 P984,000
Dining hall:
sh
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Checks 45,000 34,600
Accounts receivable 25,200 58,900
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Payments of expenses to VAT businesses
Payment of expenses to non-VAT businesses
43,000
35,000
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The amounts indicated pertaining to VAT transactions do not include the value-added
tax.
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52.Bayani’s ticket (daily double) won P42,000, gross of withholding tax and cost of ticket,
in a horse race in San Lazaro Hippodrome. His ticket had cost him P250. Bayani had
other non-winning tickets costing P2,500. How much tax was withheld on winnings in
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53.A horseracing enthusiast has the following winnings during a particular racing day
Total winnings (winner take all) P10,000
Cost of winning tickets 500
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27. Using the data above, but the total winnings came from double bet, the percentage
tax on winnings is
a. P1,000 b. P400 c. P950 d. P380
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54.All of the following except one are liable to ½ of 1% stock transaction tax. Which one
is not?
a. Individual tax payers, whether citizens or alien c. Estates and Trust
b. Corporate taxpayers, whether domestic or foreign d. Dealers in securities
55.One of the following statements is incorrect
a. The ½ of 1% tax shall be collected by the brokers who made the sale and shall be
remitted within 5 banking days from the date of collection
b. The tax paid on sale of shares through local stock exchange and initial public
offering and secondary offering shall not be allowable deduction for income tax
purposes
c. The ½ of 1% tax stock transportation is a final withholding tax on income
d. The ½ of 1% tax stock transaction is collected whether there is an income or loss
and is a percentage tax
56.Chess sold the following shares of stock thru his stock broker:
Selling Price Market Value
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Driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 4th Batch – Q13-2
Northern CPAR: Taxation – Quizzer on Percentage Tax
Ex Company, not traded P 123,670 P 114,850
Why Company, traded 65,980 62,540
See Company, traded 143,750 156,230
The percentage tax due on the above transactions is –
a. P1,667.00 b. P1,048.65 c. P1,093.85 d. P1,668.10
57.Stock Addict had the following transactions of shares of stock:
Selling Price Cost
Sales:
Bee Corporation, not traded P 32,450 P31,980
Cee Corporation, traded 69,780 64,321
Dee Corporation, traded 123,820 98,760
Purchases:
Eef Corporation, not traded 32,415
Gee Corporation, traded 48,657
The total percentage tax on the above transaction is –
a. P1,130.25 b. P724.89 c. P968.00 d. P815.40
58.Tito owns shares of stock of domestic corporations which are actively traded in the
Philippines Stock Exchange. Due to the unstable prices in the stock exchange, he
decided to sell the shares to the public. The data of which are as follows:
Selling Price Cost Gain/Loss
Vic Corporation P230,000 P220,000 P10,000
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Joey Corporation 360,000 395,000 (35,000)
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The stock transaction tax is –
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a. P2,950 eH w
b. P1,150 c. P50 d. Zero
59.Benzene Corporation, a closely held corporation, decided to open itself to the public.
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The initial public offering of its shares had a selling price of P6,250,000 which is
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22.5%of its total outstanding shares after the listing in the local stock exchange. The
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(IPO) of 500,000 shares. After the IPO, there were 800,000 shares outstanding. The
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a. P10 b. P8 c. P4 c. P2
61.RFB Corporation, a closely-held corporation, has an authorized capital stock of
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Mr. Conrado G. Cruz 5,000,00
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0
Mr. Benedict O. Sison 5,000,00
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Five years and less 700,000
More than five years 800,000
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The percentage or gross receipt tax for the month is
a. P0 c. P43,000
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b. P189,300 d. P104,500
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67.Big bank has the following income/loss for the months of March and April:
March April
Interest income maturity of less than 5 yearsP50,000 P 100,000
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The gross receipts taxes payable for March and April, respectively –
a. P500,000; P8,500 c. P6,000; P9,200
b. P6,000; P9,900 d. P5,300; P9,200
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68.Johnny executed on December 1, 2005 a long-term 10% loan from BPI amounting to
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P5,000,000 payable in 10 years with the first installment due on or before December
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1, 2006. On December 1, 2009, the loan was preterminated. Assuming that all
previous percentage taxes were correctly withheld by BPI, compute the percentage
tax on pretermination.
a. P80,000 b. P85,000 c. P100,000 d. P125,000
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https://www.coursehero.com/file/19088942/HQ13-2-Percentage-Tax-Quizzer/
8
Driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 4th Batch – Q13-2
Northern CPAR: Taxation – Quizzer on Percentage Tax
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https://www.coursehero.com/file/19088942/HQ13-2-Percentage-Tax-Quizzer/
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Driven for real excellence! TAX by Rex B. Banggawan, CPA, MBA TAX – 4th Batch – Q13-2
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