INCOME TAX QUIZZER

-ATTY. MACMOD
1. Which is not included in the classification of income taxpayers?
a. ndi!iduals c. Corporations
". #artnerships d. $state % Trusts
&. All are sources of income except'
a. Capital c. (ale or exchan)e of assets
". *a"or d. +ifts, "e-uests or de!ices
.. The follo/in) indi!iduals are taxa"le on their income from #hilippines only except'
a. 0esident Alien c. 1on-resident Alien-$T2
". 0esident Citi3en d. 1on-resident Alien-1ot $T2
4. (ame choices in the precedin) -uestion-/ho is )o!erned "y +ross ncome Taxation
only? 5555555555555555555.
6. A taxpayer, unmarried "ut /ith & minor children li!in) /ith him, pro!ided the
follo/in) data'
#hil. A"road 7819#6:;
Compensation ncome #&::,::: 8&,:::
2usiness ncome 6::,::: 6,:::
Other ncome 1::,::: 1,:::
<ealth nsurance #aid 6,:::
2usiness $xpenses 16:,::: 1,6::
a. f he is a resident citi3en, his T1 is 55555555555555555.
". f he is a non-resident citi3en, his T1 is 55555555555555555.
c. f he is a resident alien, his T1 is 55555555555555555.
d. f he is a non-resident alien, $T2, T1 is 55555555555555555.
e. f he is a non-resident alien, not-$T2 his income
tax due is 55555555555555555.
f. f he is a (pecial, Alien, $mployee, disre)ardin)
2usiness and other income, his income tax due is 55555555555555555.
). =nder letter D 710A-$T2; "ut /ith reciprocity
la/, T1 is 55555555555555555.
h. f he is a resident citi3en "ut assumin) he has only
compensation income in #hilippines as income for
the /hole year, and no other income, his T1 is 55555555555555555.
i. =nder letter A, "ut assumin) he has paid income
tax a"road amountin) to 81,6::, his income tax
credit is 55555555555555555.
>. =nder letter A a)ain "ut assumin) he opts to claim
the O(D, his T1 is 55555555555555555.
?. @ had the follo/in) data for taxa"le year &::6' 7$xchan)e rate 819#4:;
#hilippines A"road
(alaries #1?6,::: 8&,:::
ncome from merchandisin) 46:,::: ?,:::
2usiness $xpenses 1&:,::: 1,6::
nterest ncome'
#ersonal recei!a"les 1:,:::
Arom expanded ACD( 8 &,6::
On "anB deposits 7&:C lon)term; # &6,::: .,:::
Di!idend ncome'
Arom domestic corporation D,:::
Arom resident corporation 6,:::
Arom non-resident E,:::
Winnin)s from charity s/eepstaBes E:,:::
(hares of stocBs of domestic corporation
sold to a "uyer 7cost #1:,:::; .:,:::
@ is married /ith the follo/in) children as dependents'
0, "orn March 16, 1FF&, (, "orn April 6, 1FF., T % =, "orn May ?, 1FF6, % G, "orn
Ae"ruary &D, 1FFD. <e also sold a condominium unit in Manila 7residential; for
#&M althou)h its AMG is #.M "ut /ith a 3onal !alue of #4M.
A. The taxa"le income of @ is'
a. #EE4,::: ". #EF&,::: c. #D&4,::: d. #D1?,:::
2. @Hs total final taxes on his passi!e income is'
a. #1?,1?: ". #1?,:&: c. #16,4?: d. #E,6&:
C. <is total capital )ainHs taxes is'
a. #&41,::: ". #&61,D&: c. #&4:,::: d. #&6D,:::
D. f he is a 10C, his total final tax on passi!e income'
a. #1?,:&: ". #E,6&: c. #1?,1?: d. #E,??:
$. f he is a 10A-not $T2 his total com"ined taxes on all income from #hilippines is'
a. #E.,::: ". #&41,::: c. #.&4,::: d. #.4:,:::
D. Mr. % Mrs. #, "oth C#AHs % residents of the #hilippines had the follo/in) data for
taxa"le year &::6'
(alaries 16:,:::
2onus 71.
th
month pay; Mrs. #. 4&,:::
ncome from practice of profession, Mr. % Mrs. #.
7net of 1:C /ithholdin) tax; 46:,:::
$xpenses-professional practice 1&:,:::
0ental income 7net of 6C /Itax; 1F:,:::
0ental expenses E:,:::
Other income, Mr. #. E:,:::
&:C of the other income is non-taxa"le /hile 16C of the professional expenses is non-
deducti"le. They ha!e 1& minor children.
The taxa"le income of Mrs. # is'
a. #&6F,::: ". #&D6,::: c. #&??,::: d. #&.4,:::
E. The taxa"le income of Mr. # is'
a. #.EF,::: ". #.6D,::: c. #41F,::: d. #41:,:::
F. #u)o and #o)i are partners /ho pro!ided the follo/in) data a"out their partnership
and their o/n data in their separate "usinesses'
#artnership #u)o #o)i
+ross ncome #&,:::,::: #1,:::,::: #6::,:::
Deductions 6::,::: .::,::: 1::,:::
#%* 0atio 4'?
(tatus (in)le Married
Dra/in) Account &::,::: 1::,::: 1::,:::
Other ncome : &::,::: .::,:::
a. f the partnership is a +##, the taxa"le income of the partnership is 55555555555.
". And the T1 of #u)o is 5555555555555.
c. And the T1 of #o)i is 5555555555555.
d. f the partnership is an Ordinary #artnership its income tax due is 555555555555.
e. And the T1 of #u)o is 555555555555.
f. And the T1 of #o)i is 5555555555555.
). =nder letter 2 "ut #u)o opts to claim the O(D, his T1 is 555555555555555555.
1:. Mr. Aernando $strada, a resident citi3en died li!in) a net estate of #4,:::,:::. <is
estate is under administration. The net estate /hich included an apartment, reali3ed a
)ross income of #.::,::: 7)ross of 6C tax;. The executor distri"uted #D6,::: and
#F6,::: to the dau)hter and son respecti!ely. The estate also incurred expenses
amountin) to #1::,::: "ut &6C of /hich is a non-deducti"le expense. The estate ha
#1M cash in "anB /hich also earned an interest of #1::,:::, 7#12 Mla.;
0e-uired' T1 for the follo/in)'
a. T1 of the estate is 5555555555555555.
". T1 for the dau)hter is 5555555555555555.
c. T1 for the son is 5555555555555555.
11. The 0ain"o/ Corp. pro!ided the follo/in) data for calendar year endin) Decem"er
.1, &::A' 781-#6:;
#hilippines A"road
+ross ncome #4,:::,::: 84:,:::
Deductions &,6::,::: 16,:::
ncome tax #aid .,:::
A. f it is a domestic corporation, its income tax after tax credit is'
a. #D.:,::: ". #E.&,::: c. #EE:,::: d. #?D6,:::
2. f it is a resident corporation, its income tax is'
a. #D.:,::: ". #1,&E:,::: c. #EE:,::: d. #46:,:::
C. f it is a non-resident alien corporation, its income tax is'
a. #D.:,::: ". #1&E,::: c. #EE:,::: d. #1,&::,:::
D. =nder letter A, "ut it opts to claim the tax paid a"road as deductions from )ross
income, its income tax is'
a. #D.:,::: ". #E.&,::: c. #EE:,::: d. #DE:,:::
$. f it is a pri!ate educational institution liBe A$=, its income tax after tax credit is'
a. #D.:,::: ". #E.&,::: c. #&D6,::: d. #16:,:::
A. f it is a non profit hospital, its income tax after tax credit is'
a. #D.:,::: ". #E.&,::: c. #&D6,::: d. #16:,:::
+. f it is a resident international carrier, its income tax is'
a. #1::,::: ". #1:,::: c. #.D,::: d. #1&6,:::
<. f it is a non-resident cinemato)raphic film o/nerIlessor, its income tax is'
a. #1,:::,::: ". #1::,::: c. #.::,::: d. #1&E,:::
. f it is a non-resident lessor of !essel its income tax is'
a. #1::,::: ". #1E:,::: c. #.::,::: d. #1&E,:::
J. f it is a non-resident lessor of aircrafts, machineries and e-uipment, its income tax is'
a. #1::,::: ". #1E:,::: c. #.::,::: d. #1&E,:::
K. f it is a resident corporation "ut its expenses /ithin and /ithout is #.M, unallocated
7disre)ard ori)inal data on expenses;, its income tax is'
a. #D::,::: ". #.&:,::: c. #4E:,::: d. #?::,:::
*. f it is a resident corporation and it remitted ?:C of its net profit to its head office
a"road, its total tax lia"ility if 7Ori)inal data;
a. #4E:,::: ". #6D1,E:: c. #1F?,::: d. #644,6::
M. f it is a pri!ate educational institution "ut #..6M of its total )ross income is from
lease and restaurant "usiness, its income tax is'
a. #D.:,::: ". #&D6,::: c. #16:,::: d. #?D6,:::
1. f it is a domestic corporation "ut its total expenses is #6,E::,::: 7disre)ard ori)inal
data on expenses;, its income tax is'
a. #D.:,::: ". #?4,::: c. #1&:,::: d. #E6,:::
O. =nder letter 1, "ut the domestic corporation is a non-profit hospital, 7disre)ard tax
paid a"road; its income tax is'
a. #&:,::: ". #?4,::: c. #1:,F:F d. #1&:,:::
#. f the corporation is a non-stocB educational institution /hich uses all its re!enues or
income for educational and charita"le purpose, its income tax is'
a. # : ". #D.:,::: c. #1&:,::: d. #?4,:::
1&. A domestic corporation pro!ided the follo/in) data'
1FFE 1FFF &::: &::1
+ross (ales #&,:4:,::: #&,E::,::: #.,:::,::: #.,:::,:::
(ales 0eturns 4:,::: 1::,:::
CO+( 1,:::,::: D::,::: 1,6::,::: 1,6::,:::
2usiness $xp. F6:,::: &,1::,::: 1,&::,::: 1,&::,:::
The income tax due after tax credit, if any for the taxa"le year &::: is'
a. #&1,::: ". #4:,::: c. #?4,::: d. #4?,:::
1.. Aishah =ni!ersity, a domestic corporation, had the follo/in) data for taxa"le year
&::6'
(ales #6,:::,:::
Cost of +oods (old &,:::,:::
+eneral, (ellin) and Adiministrati!e $xpenses 6::,:::
nterest ncome from #hil. 2anB Deposit 1::,:::
0ental ncome 7net of 6C /ithholdin) tax; 1F:,:::
Di!idend ncome' Arom domestic corporation ?:,:::
Arom forei)n corporation 6:,:::
Winnin)s from charity s/eepstaBes 1,:::,:::
Capital )ains from sale of domestic share of stocBs
(old directly to "uyer D6,:::
Di!idend declared and paid durin) the year 6::,:::
0etained earnin)s, "e). of the year 7su">ected to
A$ tax last year; 1,:::,:::
1ote' The "oard of directors appro!ed a resolution reser!in) #1,6::,::: of its net
profit for the year for plant expansion.
The income tax due after credit if any is'
a. #EE:,::: ". #ED:,::: c. #F?&,6:: d. #E16,:::
14. 2ased on the fore)oin) pro"lem, the A$ tax if any is'
a. #&:E,1&6 ". #F.,ED6 c. #&:D,1&6 d. #11.,?&6