Strategic Tax Management

Final Assignment Quiz

a. The following are the financial data culled from the book of Mr. Billy who has FOUR (4)
sources of income as of Dec. 31, 2021.
Folio Compensation Profession Motorcycle Rice & Corn
Farming
As Manager As Engineer Trading

Receipts/Net Sales P900,000 1,200,000 3,200,000 800,000

Cost of services/sales 0 400,000 1,000,000 200,000
Gross Profit 900,000 800,000 2,200,000 600,000
Allowable Deductions 56,000 200,000 600,000 100,000
Net taxable Income P844,000 P600,000 1,600,000 500,00

Income Tax Business Tax Business Tax Income Tax

Business
Withholding
TAX Tax
Registration Local Tax Local Tax
Fee
IMPOSED
Business Business
Registration Registration
Fee Fee

As Strategic Tax Manager, Mr. Billy asked you what are his tax obligations and which of
the sources of income or revenue should be imposed such tax?
a. Income Tax -10%
b. Business Tax-10%
c. Local Tax-10%
d. Business Registration Fee-10%
e. Withholding Tax-5%
b. The following are the financial data culled from the book of Mulberry Corporation and
the has the following sources of income as of Dec. 31, 2021.
Folio Lending Dealer in Real Direct Export Rice & Corn
Business Estate Farming

Receipts/Net Sales P1, 900,000 3,200,000 4,200,000 2,800,000

Cost of 900,000 1,400,000 2,000,000 1,200,000
services/sales
Gross Profit 1,000,000 1.800,000 2,200,000 1.600,000
Allowable 256,000 600,000 900,000 600,000
Deductions
Net taxable Income P744,000 P1,200,000 1,300,000 1,000,00
Business Tax Business Tax Income Tax Income Tax
Business Business Business
Documentary
Registration Registration Registration
Stamp Tax
Fee Fee Fee
TAX Documentary Documentary
IMPOSED Stamp Tax Stamp Tax
Withholding
Local Tax
Tax
Local Tax
As Strategic Tax Manager, Mulberry Corporation asked you what are the tax obligations
and which of the sources of income or revenue should be imposed such tax?
f. Income Tax -10%
g. Business Tax-10%
h. Local Tax-10%
i. Business Registration Fee-10%
j. Withholding Tax-5%
k. Documentary Stamp Tax -10%
In answering prepare the following tabulation to facilitate the checking of your response.
A. Individual
COMPENSATION PROFESSION TRADING FARMING

Not subject
Subject to Income Not subject to Subject to
Income Tax to Income
Tax Income Tax Income Tax
Tax
Subject to
Not subject to Subject to Not subject to
Business Tax Business
Business Tax Business Tax Business Tax
Tax
Not subject to Not subject to Subject to Subject to
Local Tax
Local Tax Local Tax Local Tax Local Tax
Subject to Subject to Subject to
Not subject to
Reg. Fee Registration Registration Registration
Registration Fee
Fee Fee Fee
Not subject
Not subject to Not subject to
Withholding Subject to to
Withholding Withholding
tax Withholding Tax Withholding
Tax Tax
Tax

B. In answering prepare the following tabulation to facilitate the checking of your

response. Corporation.
DEALER IN RICE &
LENDING DIRECT
REAL CORN
BUSINESS EXPORT
ESTATE FARMING

Income Tax Not subject Not subject to Subject to Subject to

to Income Income Tax Income Tax Income Tax
 Tax
Not subject
Subject to Subject to Not subject to
Business Tax to Business
Business Tax Business Tax Business Tax
Tax
Subject to Subject to Not subject to Not subject
Local Tax
Local Tax Local Tax Local Tax to Local Tax
Subject to Subject to Not subject to Subject to
Reg. Fee Registration Registration Registration Registration
Fee Fee Fee Fee
Not subject Not subject
Subject to Not subject to
to to
Withholding tax Withholding Withholding
Withholding Withholding
Tax Tax
Tax Tax
Not subject
Subject to Subject to Subject to
Documentary to
Documentary Documentary Documentary
Stamp Tax Documentary
Stamp Tax Stamp Tax Stamp Tax
StampTax