Undeclared Sales P 1,282,341.

00
Multiply by: Gross Profit Ratio 18%
Additional Taxable Gross Income 230,821.38

Undeclared Purchases P 2,321,402.00

Divide by: Cost of Sales Ratio 82%
Related Undeclared Sales 2,830,978.00
Multiply by: Gross Profit Ratio 18%
Additional Taxable Gross Income 509,576.04

Taxable Income Per Return P 120,000.00

Add: Additional Taxable Gross Income
Undeclared Sales P 230,821.38
Undeclared Purchases 509,576.04 740,397.42
Total 860,397.42
Multiply by: VAT Rate 30%
Output Tax Due 258,119.22
Input Tax on Total 3,235.22
VAT Due on Total 254,844.00
Surcharge 127,442.00
Interest 12,744.20
TOTAL DEFICIENCY INCOME TAX DUE P 395,070.20

Undeclared Sales P 1,282.341.00

Undeclared Purchases 2,830,978.00
Total 4,113,319
Multiply by: VAT Rate 12%
Output Tax Due 493,598.28
Input Tax on Total -
VAT Due on Total 493,598.28
Surcharge 246,799.14
Interest 14,807.96
TOTAL VAT DEFICIENCY DUE 755,205.38
TOTAL DEFICIENCY INCOME TAX DUE 395,070.20
TOTAL DEFICIENCY TAX DUE P 1,150,275.58