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    Final Deptals BUSTAX

    Uploaded by

    Lizette Janiya Sumanting

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    © All Rights Reserved
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    of 7
    POLYTECHNIC UNIVERSITY OF THE PHILIPPINES College of Accountancy and Finance FINAL DEPARTMENTAL EXAMINATION ‘ACCO 20173: Business Tax 1st Scmester AY 2023-2024 Nimes umanies iluiey Touiga ¢_Compurand Section: _BSt- 34 Iasi General Instruction: Read the following questions very carefully and choose the best answer for every item. This ‘examination aims to test your understanding of the subject course. Please note that you are given three (3) hours to accomplish this Final Departmental Examination. ‘Theory: (1 point each) 1. Which ofthe following is subject to Donor’s Tax? Cancellation of debt ». Share of one ofthe heirs which was renounced in favor of the one ofthe remaining heirs «Transfer of property for less than adequate and full financial consideration 4 Allofthe above 2. Which of the following is nota deduction from the gross gifts? 2. Unpaid mortgage on the donated property assumed by the donee. 'b. Unpaid realestate tax on donated property assumed by the donee « Diminution on the property donated specifically provided by the donor. 4. Unpaid donor’s taxon the property assumed by the dance. 3. Statement I: Donor’s tax i imposed to all natural and artifical persons. ‘Statement II: Reciprocity clause is applied only to NRA-NETB donating intangible personal property. a. Tre, False ». False, True True, True «False, False 4. Donors taxis Indirect x . Local tx Excise tax <4. Property tax 5. Estate taxis imposed on: 1. The death ofthe decedent '. The making ofthe will of decedent ¢. The transfer of properties by the decedent to the The duration of the life ofthe decedent irs, legatces, or devisees. 6, What isthe rule in relation (o claims against insolvent persons? ‘4 The amount that is collectible must be included in the gross estate of the decedent, and the amount that is ‘uncollectible may be claimed as a deduction from gross estate. '. The amount that is collectible need not be included in the gross estate of the decedent, and the amount that is “uncollectible may be claimed as a deduction from gross estate. «. The full amount of the receivable must be included in the gross estate of the decedent, and the amount that is ‘uncollectible may be claimed as 2 deduction from gross estate 4. The fall amount ofthe receivable need not be included in the gross estate of the decedent, and the amount that is ‘uncollectble may be claimed as a deduction from gross estate. 7. Erik, Finny, and Gary all died in car accident on their way to Tagaytay. Rath of them own their respective hhomes. Erika and Finny are both single. Erika is living alone, while Finny i the head of her family, where she took her younger siblings as dependents. Gary, on the other hand, is matied, but he and his wife have no children yet. In ‘whose estat en a family home deletion be claimed? a. Finny only «. Gary only Gary and Finy ony. 4 Erika, Finny, and Gary 8. Which ofthe following transfers i subject to estat tax? a. Transfer passing under general power of appointment — GER yury ovelvded b Merger of wsufrut tothe owner of naked tile «Transfer of property from fiduciary her to fdeicommissary heir 1 lerevocable donation inter vivos 9. In which ofthe following cases will the proceeds be exempt from estate ax assuming that the beneficiary of the life insurance proceeds is neither the estate, the executor, nor the administrator of the estate? a. Designation of the beneficiary is revocabi Page 1 of 7-Campus Scanned with CamScanner ‘. Designation ofthe beneficiary i irrevocable. «Policy is silent as to whether the designation is revocable or irrevocable. {In all eases, the proceeds shal form part of the gross estate. 10, The estate administrator withdraws PS00,000 from his decedent’ bank deposit because the extate needs cash to settle some obligations. What isthe consequence of tis withdrawal? ‘a. Cash withdrawn shall be subject to final withholding tax of 6%. Cash withdrawn shall be subject to creditable withholding tax of 6%. ‘. Cash withdrawn shal form part ofthe gross estate. «.Itis subject to penalty and interest because such withdrawal is not allowed. 11. An Excise tax i a tax impose on specific goods or services such as tobaco, fel and alcohol. Excise taxi luo known as tax on the production, sale or consumption of a commodity in a country, including certain services. Tt is ‘imposed on the following except? ‘2 Certain goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition. ‘b. Certain capital goods purchased in relation to the ordinary course of business €. Cerin gods imported d. Certain service performed in the Philippines 12. The following are example of Major classification of excisable Anticles. Which isnot? 2. Alcobol Products «Agricultural Products ’. Tobacco Products 4. Sweetened Beverages 13,1 DST doesnot apply to clestronic documents. TL An instrument, document, or paper which is required by aw to be stamped and which has been signed, issued, accepted of transferred without being duly stamped, shall not be recorded, nor shall it or any copy thereof or any record of transfer of the same be admitted or use in evidence in any court until the requisite stamp or stamps shall have been affixed thereto and canceled. a Troe, False ty False, Tree Trwe, True False, False 14, Bank deposit accounts without fxed term or maturity are subject a.DsT ‘OPT VAT a 12%. Noneof them 15. Which ofthe following income is subject to 0% gros receipts tx? a. Nettradng gains on debt instruments € Commissions from lending activtics Net ang exins om foreign currency Equity shares in net income of subsidiaries 16. Which ofthe following transaction is subject othe overseas communications ax? 2. Outbound calls €. Outbound payments to postal scrvices bs Tabound cals 4 Inbound payments to postal services 17. Which ofthe following is exempt from common carrier's tx? 1. Pediabs (Biycles with side carriages. for Trieyces psenger) 4 Jeepneys +. Animal-drawm two wheeled vehicles 18. Which ofthe folowing franchisees is not subject to franchise ax? 2. Radio franchises «. Elect uty franchisees Television anchises 4 Water ulity franchisees 19, Ast, ol vegetables in Manila wit otal gross receipts of 10,090,000, Ths, Asta is subject o ‘2. Exempt from business tax ©. VAT at 0% under Sec 108 b. VAT at 12%, since receipts exceeded 3M threshold . OPT at 3% under Sec 116 20, Shin Kingom operates night “Makati. For 2024, total receipts is P2,900,000 only. Thus, Shin is subject to a, See 125 at 18% b. VAT at 12% Since receipts exceeded 3M threshold VAT at O%under See 108, 4d. OPT at 3% under See 116 (since receipts do not exceed P3M threshold) 21, Academia Hero Airline, a corporation established in USA, opertes jn Philippines for carriage of passengers {from Manila to USA. In 2023, total receipts totalled P10, 000,000 Thus, the corpocation is subject to Page 2 of 7- Camps Scanned with CamScanner a. Exempt fom business tax VAT at 0% under Sec 108 b. VAT at 12%, since receipts exceeded 3M threshold OPT at 39% under See 117 22. Asa, employee of ABC Corp in Manila, sol his personal computer for 120,000 only. The sl ie subject: AVATatIM% —— bOPTSec 116 ©.OPT See 117 ‘4 None of them 231. The gross selling price includes excise tax, ifany, but excludes VAT. TL Tn the case of sale, barter, or exchange of real property subject to VAT, gross selling price shall mean the consideration stated inthe sales document or the far market value Whichever is lower. a. True, Tine b. False, False ¢. True, False 4. False, True 24.1. Sale of Real Property on Installment Plan means the sale of real property by a realestate dealer, the intial ‘eymens of which in the year of sale do not exceed renty-fve (25%) of the gross slling pice. TI. Consignment of goods if actual sale is not made within ninety (90) days following the date such goods were consigned ae transaction deemed sale a. True, Toe b.False,Falc —_¢, Tue, False 4. False, Tre 25.1, Proprietors or operators of restaurants, refreshment parlors, cafes and other eating places, including clubs and caterers are sale of goods, and thus VAT is computed based on Gross Selling prce.. TL Sale of goods to a registered export enterprise is subject to VAT at 12% 2. True, True False, False True, False False, True 26.1. Effectively zero-ated sales ae sales to persons or entities whose exemption from direct and indirect taxes ‘under special laws or iternational agreements to which the Philippines isa signatory effectively subjects such sales to 12% rate, TI, Excess VAT input from sales subject to 12% canbe claimed by taxpayer for tax ered o refund. a. True, True ‘.False, False. True False 4. False, True 27.1. Hospital and veterinary services is VAT exempt under Sec 109 (a-bb}. I, Educational services are VAT exempt under Sec 109 (a-bb) a. Trae, Troe b.Falte, False, Truc, Falac False, True 28,1 Sale of gold to BSP is covered by See 109, VAT exempt. I, Real properties not primarily held forsale to customers or held for lease in the ordinary course of trade or business are subject to VAT at 12% a, True, True b False, False «Truc, False 4. False, True 29.1, Sale of House and lot, and other residential dwellings with a selling price of not more than Two Million Pesos (F 2,000,000, as adjusted to P3,199,200, are not subject to VAT at 12%, TL The VAT exemption does not apply tothe services rendered by individuals pursuant to an employer-employee relationship. Tr, True b.False,False 6. Tru, False 4. False, Tre 304. The Input VAT on depreciable goods purchased on or after January 1, 2022 shall be fully recognized outright and may be claimed as input tax credits against output ax. UL. Persons or firms engaged inthe processing of sardines, mackerel and milk, and in manufacturing refined sugar, special calamres and cooking oil, shall be allowed a presumptive input tax, creditable against the output tax, ‘equivalent to four percent (4%) ofthe gross value in money of ther purchases of primary agricultural products, ‘hich are used a inputs otheie production. Thee, True False, Fale 4. False, True Problem Solving: (2 points each) 231. Asta, resident citizen, disposed a certain property (ordinary asset) for 8,000,000 when its fair value was 720,000,000. The property was previously purchased for P7,000,000. What isthe donor's tax due? 0. F765,000 ‘b.P720,000 ©. P705,000 <4. 1,200,000 32, In 2023, Miss Namie donated a 2023 Isuzu mu-X ear valued at P400,000 to her boyftiend, Mr. Shin (of Hi Shin ‘Unit. The car had an unpaid mortgage of P180,000, which Ms. Namie agreed to assume payment for. How much is the Donor’ tax due from Miss Namie? 2. P66,000, .P120,000 .P9,000 Po 33. The Roman Catholic Church accepted a donation ofa real property located in Lipa Cty, The zonal value of the eal property amounted to 1,000,000 white its fur value based on tax declaration was P1,300,000. A deed of Page 3 of 7-Campus Scanned with CamScanner doraton was eset, ined by he anor, Don Marin, ah oes he Chacha reeset by Dani Before the deed could be notarized, Don Mariano died. How much should be reported as gross gift? » P1500000 Pao PSI0000 ao 14. mations were made as fl * Cash in the Philippines to illegitimate son on account of marriage, PS00,000 + Cash (US Dollars) in Foreign Bank to a legitimate son, worth P100,000 -) + Cash (US Dollars) in Foreign Bank to the Quiapo Church, worth P60,000 (-) ‘+ Cash to the Paco Catholic Church, 50,000 “Land n Malaya to end (bathe fend wil sue a morgage on the land o 200000), P500.000 (~) ‘* Car in the Philippines to a brother (with assumed mortgage of P150,000), P500,000 + Car in the Canada to a sister (with assumed mortgage of P250,000), P800,000 WY + Cash tothe Philippine National Government, 150,000 + Cash tothe Pilipine National Red Cross, 200, How much is the deductions from gross gifts if the donor was a non-resident alien? a. P550,000 ‘b. P450,000 -c. P300,000 PO 135. With no moce money lef, the hers of Vina Bangko were left with no recourse but to withdraw from the bank account of Vina who ded one month ago. Vina's bank deposits amount to 2,400,000. Vinas net taxable estate ater deducting special deductions and the share of the surviving spouse is P12, 500,000, excluding the amount withdrawn. Pending the payment of estate taxes tothe BIR, what isthe maximum amount thatthe heits of Vina can reeive fom the bank in elation to Vin's bank account? 2,112,000 '.2,256,000 2,332,000 42,400,000 36, The decedent obtained a life insurance with value of P5,000,000 from Moon Life Corporation. He paid a ‘premium of P10,000 to obtain the policy. He designated his favorite son and daughter as the beneficiaries. The ‘designation i irevocale. Upon the death ofthe decedent, how mach canbe included in his gross estate? 2.P53900,00 6.100000 «. PIOO00 4.0 137, A resident decedent married under the Absolate Community of Property (ACOP) regime, passed away in 2023, leaving behind a family home valued at P10,000,000. The family home consists of « house worth P4,000,000 and & Tot valued at P6,000,000. The house was constructed at a cost of 15,000,000 using the community funds of the spouses; whereas the decedent inherited the lot where the house stands from his father four and 2 half years before the marrage, and its fair market valoe at that time was P4,000,000. He also assumed an unpaid mortgage of 600,000 on the day of the transfer. ‘AdGitionally, there are other exclusive propertic ofthe decedent with a fair market value of P7,500,000 at the time of his death. The unpaid mortgage on the inherited land from his father amounted to P100,000 atthe time of the fecedent’s death. Furhermore, there are unpaid taxes and claims against the esiate and community totaling 1,500,000. How much i the vanishing deduction?” 2. P1272,000 b. P78 186 ©. P636,000 4.548.254 38. Aresident citizen decedent, martied, had the following information: oa ‘© Conjugal real properties P6,000,000 ‘Conjugal family lot 4,000,000 Exclusive family house 3,000,000 Other excasve properties 7,000,000 Serva eriary dedsions (lading 7200000 finer expenses and FSO0,00 judal expenses) ‘+ Exclusive ordinary deductions 1,000,000 ‘* Medical expenses 700,000 How mich is the share ofthe surviving spouse in the net conjugal estate? 8.75250,000 6.428000" P400,000 «73,900,000 39, A non-resident alien decedent, single, did leaving the following properties: UCP Philippines Japan Gross estate lo,000000 15,000.00 (Oediary Deductions 2,000,000 3,000,000 state tax paid : 20,000 “our snch tthe estat tax payable? 4. P430,000 ‘450,000 Pa#0,000 6,460,000, Page 4 of 7- Campus Scanned with CamScanner 40. Shin Kingdom, resident citizen, died in 2024. Avaitabl data are as follows: Conjugal property of P20,000,000; «xclusive propery of surviving spouse of Pé,000,00; Conjugal ordinary deductions of 2.500,000 (aching funeral expenses of 300,000), What isthe exable net eat of Shin? 2. P3,900,000 'b. P4,500,000 ‘¢. P9,900,000 d. None of them: 41. bought liquors and cigarettes amounting to 1,000 exclusive of any tax) from Y, 2 VAT registered (12% VAT rate) producer in Manila. X later on, sold them to Z worth 2,000,exclusive of any tax. Assuming that X is a NON-VAT registered taxpayer (3% OPT) and the excise tax on these sin products is 10%. How rmuch cash must be collected by ¥ from X? PLDI b.PI.I120 .P1,100 4. None of the above 42. Ri Shin Company imports and manufactures various automobile models. During the month it had the following data on its operation: Total Selling Price Cars purchased from Pasig City 12,500,000 Cars produced in San Mateo 31,000,000 Total 43,500,000 ‘These sales ofthese cars are subject to 10% excise tax. Compute the excise tx. .P4,350,000 . PI 250,000 «.P3,100,000 4.70 43. X Conp issued (original issuance) 10,000 shares (with par value of 10 per share) for isue price of 18 per share. ‘ow much isthe DST? (DST rate is 1% of total par valve) 10,000 b.1,800 ©. 18,000 4.1000 44, Fighting fr a boxing tile, the most awaited boxing match between Jet Lee, known Chinese featherweight boxer, ‘witha record of 24-0-0, with 18 knockouts, end Cardo Dalisay, 2 famous Filipino boxer, with a record of 28-0-0, ‘with 22 knockouts, was held on July 8, 2023, The promoter, Bottom Rank, Inc, leased the venue for a cost of 8,000,000, and was able to generate revenues amounting to P24,000,000 from ticket sales and advertising, ‘generating profits of P16,000,000. Compute for the amusement tax due assuming the boxing match is for the Philippine Bantomueight Bel sr y71600000——«.F2400000 4. 14320.000 45. ABC Bank, a bakin Interest fom ozo, thee yar bore matty Pio (5K oo Ise Teter fo lan, even yar before mauty zraa0e C116 feo Wyo Royalties recived srr alge Dividends and equity shares in net income of subsidiaries 856000 (8) an Rena payments recived 38000 > (9% cee Netading gine ; amen? (30 aelyeo Compute fo the bank's gross eet tx. “uy 2. Pl6s,540 1. P173,200 PITS 440 4.Piso080 46. ABC Broadcasting Company, a non-VAT holder of a franchise to operate a radio and television network reported the following gross receipts (net of tx): Yeur Gross Receips 2m 3,000,000, 20s 12,000,000, ‘he busines ax ability is: y 22 2023 a F270 ——_P360,000 6 {osoo0o 1,440,000 e 77.00 1,440,000 C 1,080,000 360,000 47, Sports Coporation i opertng shooting range and an archery 9 nga shooting range and an archery range. This year, it was able to generate sles of 480.00 from is shooting range and PSS, 000 from is archery range In additon in arestaurant that he company operating ies aes, wat able to generat reventes of F200,00. How much the perceaage tx? 3.733.500 P65, 500 €-P203 400, Pai9,400 ‘48. Inthe second quarter of 2023, 2 non-VAT registered taxpayer engaged in the sae of services and whose annual 708s receipts do oot exceed the vat threshold has the following data ‘Accounts reeivabtc, beginning of quater 50,000 Sales during the quater 100,000 ‘Accounts receivable, end of quarter 75,000 Page $ of 7 Campus Scanned with CamScanner Purchase of supplies, total invoice amount 14,2001 “The percentage due for the quarter is: 0PI50 | BPISIA 72,250 42,664 49 Listed aethe calls of Luffy From Manila to Cebu: Long distance ell paid by Luffy; $0,000 (Tax not included. ‘What isthe business tax payable of Ltt? 2.78000 wepnzT «79,600 4.2210 (otalled P20M, What is '50. A, operator of Araneta Coliseum, conducted a Korean Musical concert in 2024, R the business tax due? 2.300.000 6.P3,000,000«.P2,400,000 Zero 51, Luffy purchased inventory goods from X Supplier worth 100,00, net of any tax. Later, Luffy sold the goods to ‘Y Comp at 40% mark-up based on cost (cast per books). All amounts are net of taxes. Luffy and Y Corp are NON ‘VAT. But, X Supplier is VAT registered (12%). What is the OPT (3%) of Luffy (Year 2024)? 1. P4704 b. P4,200 c. P5,600 4. P3,750 52. ABC Transporation Company is a holder of a franchise to operate five (5) units of passenger buses (Seating capacity is 44 passengers) in the Bicol Region. It also owns a gasoline station which is used exclusively to fon buses with dicsel fuels, and a garage with service shop exclusively to its own buses although in rare instances its accepting repair jhs from outsiders. During the month of December, ithad the following gross receipts: «From the buses P 380,000 + From the gasoline station (in loading its own buses) 400,000 ‘© From the garage 20,000 ow much isthe common cartier tax payable? a. P12,000 “b.PIL 400 ©. 24,000, <4. None of them '53. Xin Kingdom, engaged in various business transactions in 2024. Data are as follows: sales of fertiizers of 'P2,000,000; sale of computers of 800,000 and veceips fxn his restaurant of 2,000,000. Purchases of Xin totalled 1,600,000. Whiat isthe business tax due of Xia? 8.PS76,000 VAT b.P384,000 VAT ©. 84,000 44. None of them ‘54. Shin Kingdom Corporation processes sardines. During the month, it had the following ingredients in processing, ‘of eanned sardines. ‘* Sardines P800,000 ‘© Tomatoes 500,000 ‘© Rock Salt 20,000 + Tin can and Wrapper 200,000 How much is subject o presumptive input tax? P!,320,000 .P500,000 © P520,000 4.1,300,000 ‘55, Kyokai Company (used to be VAT Exempt) decided to register under the VAT system on January 2, 2023. It had the following data in the frst quarter ending March 31, 2023, Sales, P5,000,000 ‘Current Purchases, 72,000,000 Beginning inventory (Actual VAT paid is P10,000) From VAT sd person ‘500,000 From non VAT registered person 500,000 ‘Compute the transitional input tx. 820,000 ‘bP 10,000

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