You are on page 1of 3

DE LA SALLE UNIVERSITY (DLSU) Short Quiz 4

Taxation (INTAXTN) Second Term 2018-2019


Set A January 29, 2019

Name: ________________________________________________________________ Section: __________

Answers
1. 6. 11. 16.

2. 7. 12. 17.

3. 8. 13. 18.

4. 9. 14. 19.

5. 10. 15. 20.

Instruction: Choose the letter of the best answer from the given choices. University policies on academic
honesty as stated and inferred in the student handbook are strictly enforced.

1. Which of the following expenses incurred by the employees will be subject to FBT?
a. Taxi fare for client meeting supported by official receipt issued in the name of the employer.
b. Dinner meeting with prospective customer supported by official receipt issued in the name of the employee for
the account of the employer.
c. Lunch meeting with team members supported by official receipt issued in the name of the employer.
d. Lease payment for rental of car used by employees during business convention supported by official receipt in
the name of the employee.

2. The following housing benefits are exempt from FBT, except:


a. Housing unit located within the company’s factory premises.
b. Condominium unit leased by the employer which is 500 meters away from the company.
c. Rental of apartment as temporary housing for two months.
d. Townhouse used as temporary housing of employees during factory visits lasting for a maximum of two weeks.

3. Which of the following foreign travel expenses may be subject to FBT?


a. Hotel expenses amounting to USD400 per day during business trip.
b. Economy round-trip airline ticket to London via Singapore Airlines costing USD1,000 for business trip.
c. Cost of food and local transportation of USD350 per day during business convention supported by official
invitation.
d. Business class round-trip airline ticket to Paris via Emirates costing USD3,000 for business trip.

4. The following individuals will be taxed on income from sources within and outside the Philippines, except:
a. Filipino citizen employed locally but temporarily assigned for two years to a foreign branch in Cape Town, South
Africa of his Philippine employer.
b. Spanish citizen employed by the Philippine branch of a Spanish corporation.
c. A Brazilian who obtained Filipino citizenship employed by a Brazilian corporation’s Philippine branch.
d. Filipino citizen who is employed by the Philippine branch of a Greek company.

5. The following individuals are taxable in the Philippines except:


a. An American engineer who makes the Philippines his residence because of the nature of his work.
b. A Japanese visiting professor who occasionally teaches at one of the leading universities in the Philippines, and
stays for an aggregate of 185 days.
c. A Taiwanese singer who performs in one of the hotels in the Philippines for one (1) week, and then leaves after
he is through with his performances.
d. A Filipino residing and working in America who comes to visit his relatives in the Philippines.

6. Which of the following income items of a resident alien individual is subject to Philippine income tax?
a. Dividend from domestic corporation.
b. Winnings from PCSO amounting to P5,000.
c. Dividend from foreign corporation.
d. Compensation income earned in Italy.

7. When is the deadline for electronic payment of withholding tax on compensation for the month of December?

a. January 10
b. January 15
c. January 20
d. January 31

8. Which of the following individuals is allowed to adopt the 8% income tax?


a. Non-VAT registered lessor with gross receipts of P2,000,000.
b. Non-VAT registered trader with gross sales of P8,000,000.
c. VAT registered service entity with gross receipts of P2,500,000.
d. Non-resident alien deriving gross receipts of P1,000,000.
9. Maria Clara, a CPA professional, rendered various accounting services to its clients. She generated gross receipts of
P10,000,000 for the year ended December 31, 20A1. For income tax purposes:
a. She will be subject to the graduated income tax rates based on taxable income.
b. She will be subject to the 8% income tax based on gross receipts.
c. She has the option to be taxed at graduated income tax rates based on taxable income or 8% income tax based
on gross receipts.
d. She will be subject to the graduated income tax rates based on gross receipts.

10. Which of the following individuals will be allowed to claim income tax paid in foreign countries as tax credits?
a. Overseas Filipino worker deriving compensation income abroad and business income in the Philippines.
b. Swiss citizen who obtained Filipino citizenship deriving business income in the Philippines and Switzerland.
c. Portuguese citizen living and deriving compensation income in the Philippines.
d. Norwegian citizen married to a Filipino deriving business income in Norway.

11. Mr. Kuting, is a Vice President of Pusa and Daga Corporation. In addition, he is also engaged in the business of
selling school and office supplies. For the year ended December 31, 20A1, he generated gross sales of P2,000,000
and opted for the 8% income tax. His income tax on business income will be calculated:
a. Based on taxable income (Gross sales – cost of sales – deductible expenses) multiplied by graduated income
tax rates.
b. Based on gross income (Gross sales – cost of sales) multiplied by graduated income tax rates.
c. Gross sales multiplied by 8% income tax rate.
d. Gross sales less P250,000 multiplied by 8% income tax rate.

12. The deadline of payment for the second installment of income tax due of individuals is on or before:
a. April 15.
b. July 15.
c. October 15.
d. December 31.

BONUS 13. Mr. Uno, a manager of Unan Corporation, received the following benefits during the taxable year ended December
31, 20A1: (1) Cash and travel allowance amounting to P 34,000; (2) House and lot, the ownership of which was
transferred to Mr. Uno costing P1,476,000 but with FMV of P1,544,000; (3) Car, the ownership of which was
transferred to Mr. Uno, amounting to P680,000 with 10 years estimated useful life but already used for one year at
date of transfer. How much is the monetary value of fringe benefits granted to Mr. Uno for the year ended December
31, 20A1?
a. P2,122,000.
b. P2,190,000.
c. P2,226,000.
d. P2,294,000.

14. Karina, a Vice President of Maya Corporation was granted 1,000 stock options five years ago with exercise price of
P100 per share. These were exercisable on January 1, 20A1. She exercised her option to purchase the shares on
January 1, 20A1 when the shares have fair market value of P180 per share. How much is the FBT on the stock
options granted to Karina? (Assume 20A1 is 2018).
a. P37,647.
b. P43,077.
c. P53,846.
d. P96,923.

15. On December 1, 20A1, Mrs. Granate, a resident of South Africa was sent to the Philippines to render consultancy
services to Malaginto Corporation, a domestic corporation, for a period of five months. In consideration for said
services, Malaginto paid Mrs. Granate consultancy fees of P300,000 monthly. In addition, during December 20A1,
Mrs. Grantate also derived other professional fees for services rendered to the affiliates of Malaginto located in the
Philippines amounting to P200,000. How much is Mrs. Granate’s income tax liability for the year ended December
31, 20A1.
a. P5,000.
b. P55,000.
c. P75,000.
d. P125,000.

16. During 20A1, Mrs. Begonia won P10,000,000 lotto and house and lot worth P3,000,000. She also received interest
income of P50,000 on its bank deposit under the foreign currency deposit of the bank, dividend income from her
investment in domestic corporation of P100,000. How much is Mrs. Begonia’s income tax liability from her various
income items for the year ended December 31, 20A1? (Assume 20A1 is 2018)
a. P2,607,500.
b. P2,613,750.
c. P2,615,500.
d. P2,617,500.

17. Mr. and Mrs. Bulalakin are engaged in the practice of their profession. During 20A1, Mr. Bulaklakin derived gross
receipts of P1,500,000 while Mrs. Bulaklakin derived gross receipts of P2,000,000. Their net profit margin on the
practice of profession was 65%. In addition, they also leased their land which is a conjugal property. They generated
rental income of P800,000 for the year ended December 31, 20A1. Expenses associated with the leased land
amounted to P100,000. They both opted to pay the 8% income tax. How much is the income tax liability of Mr.
Bulaklakin for the year ended December 31, 2018?
a. P120,000.
b. P148,000.
INCORRECT c. P152,000.
d. P192,000.
18. Mr. Masigasig is an individual engaged in the sale of goods. For the year ended December 31, 20A1, he derived
gross sales of P2,500,000 before deduction for sales returns of P100,000 and sales discounts of P180,000. The
sales discounts consist of trade discounts of P80,000, additional discounts of P60,000 granted to its loyal customers
for meeting certain sale volume, and discounts granted to customers who paid within 15 days from the date of sale of
P40,000. The trade discounts were explicitly indicated on the face of the invoice at the time of sale. With respect to
additional discounts and discounts granted for payments made within 15 days, these are supported by credit memos.
His cost of sales amounted to P800,000 while his deductible expenses amounted to P400,000. He opted to pay the
8% income tax when he filed his first quarter income tax return. However, he amended his first quarter income tax
return before filing the second quarter income tax return and indicated that the graduated income tax rates will be
applied. How much is Mr. Masigasig’s income tax liability for the year ended December 31, 2018?
a. P157,600.
b. P165,600.
c. P196,000.
d. P226,000.

Use the following problem for the next two numbers:

Mrs. Maja Blanca, a minimum wage earner, received the following compensation for the year ended December 31, 20A1:

Basic compensation income, includes 13th month pay of P12,000 P156,000


Overtime pay 20,000
Hazard pay 30,000
Night shift differential 24,000
Holiday pay 10,000
Transportation allowance 36,000
Productivity incentive 5,000
Uniform allowance 10,000
Performance bonus 80,000

19. How much is Mrs. Maja Blanca’s compensation income exempt from tax as minimum wage earner? (Assume 20A1
is 2018)
a. P228,000.
b. P240,000.
c. P319,000.
d. P329,000.

20. How much is Mrs. Casablanca’s taxable compensation income subject to income tax? (Assume 20A1 is 2018)
a. P6,000.
b. P42,000.
c. P186,000.
d. P270,000.

Graduated income tax table (TRAIN Law: 2018 to 2022)

Over But not over The tax shall be Plus of excess over
P250,000 0%
P250,000 P400,000 20% P250,000
P400,000 P800,000 P30,000 25% P400,000
P800,000 P2,000,000 P130,000 30% P800,000
P2,000,000 P8,000,000 P490,000 32% P2,000,000
P8,000,000 P2,410,000 35% P8,000,000

You might also like