Answer the following questions. Show your solutions and encircle/highlight your final answers.

1. Tyra Banks, a banking institution, had the following transactions for the taxable month:
Interest from loans, three years before maturity - P772,000
Interest from loans, seven years before maturity - P270,000
Dividends and equity shares in net income of subsidiaries - P856,000
Royalties received - P517,000
Rental payments received - P838,000
Net trading gains - P407,000
Compute for the bank's gross receipts tax.
Solution:

772,000 x 5% = 38,600
270,000 x 1% = 2700
856,000 x 0% = 0
517,000 x 7% = 36,190
838,000 x 7% = 58,660
407,000 x 7% = 28,490
Banks gross receipts tax = 164,640

 
2. Sabungan sa Garden, is operated by Alfred Hitchcock. During the first quarter of 2020, it had the
following receipts:
Entrance fees from audience - P5,150,000
Registration fees from cockfighters - P5,930,000
Receipts from restaurants owned by Hitchcock inside the cockpit - P3,580,000
Lease payments made by private concessionaires with places inside the cockpit - P4,270,000
Advertisement fees - P4,200,000
How much is the amusement tax due?
Solution:
5,150,000
5,930,000
3,580,000
4,270,000
4,200,000
23,130,000 x 18% = 4,163,400
 
3. Air Germany, an international carrier, had the following gross receipts for the taxable month of
September 2021:
Advance payments on delivery of mail from the Philippines to Germany - P1,080,000
Delayed payments from the previous taxable quarter for delivery of cargoes from the Philippines to Japan -
P6,940,000
Gross receipts from the sale of tickets to passengers heading to Japan originating from the Philippines -
P8,430,000
During the taxable month, Shell Pilipinas, a domestic corporation engaged in the extraction, processing,
and distribution of fuel, sold fuel to Air Germany, which Air Germany used exclusively in its international air
transport operations.
Compute for the common carrier's tax due.

Solution:

1,080,000
6,940,000
8,020,000 x 3% = 240,600
 
4. Radio Balita Company is a radio company granted franchise by the government. Radio Balita had the
following gross receipts related to its radio operations for three years. Radio Balita has been properly
registered with the BIR annually.
2019 - P1,500,000
2020 - P4,500,000
2021 - P10,500,000
How much is the franchise tax in 2019, 2020, and 2021?

Solution:

2019 - P1,500,000 x 3% = 45,000

2020 - P4,500,000 x 3% = 135,000
2021 - P10,500,000 x 0% = 0
180,000