EASY 1.

The following are powers of the Commissioner of Internal Revenue:

I. To compromise tax liabilities of taxpayers

II. The power to recommend the promulgation of rules and regulations to the Secretary of Finance.

III. To accredit and register tax agents

IV. To terminate tax period.

Which of the following may not be delegated? I, II

2. The pre- dominance test applies to:

A. Non-resident foreign corporations

B. Resident foreign corporations

C. Non-resident aliens

D. Either a or b B

3. ABC had the ff data for the month:

Sales within the Philippines 200,000

Sales outside the Philippines 400,000

Cost of sales( 40% is for sales within the Phils) 400,000

Business expenses for sales within the Philippines 10,000

Business expenses for sales made outside the Phils 30,000

If ABC is a resident foreign corporation, the taxable income would be?

4. These are issuances that provide directives or instructions; prescribe guidelines; and outline
processes, operations, workflows necessary for the implementation of stadted policies, goalls,
objectives, plans and programs of the BIR in all areas except auditing. RMO

5. Select the correct statement:

A. The benefit received theory explains that the govt is obliged to serve the people since it is
benefiting from the tax collections from its subjects.

B. The lifeblood theory underscores that taxation is the most superior power of the state.

C. The police power of the state is superior to the non-impairment clause of the constitution.

D. The power of taxation is superior to the non-impairment clause of the constitution. C

Anita, wife

Renita, daughter, minor

Donita, daughter, gainfully employed

Renato, son, 7 y/o.

For his 2015 ITR, how much can Mr. A claim as total personal exemption?

7. an individual taxpayer must file his income tax return for the third quarter of 2019 on or before?

8. Statement 1: inidv with high income are subject to higher tax rates.

Statement 11. corps with higher income are subject to higher tax rates.

Which is correct?

A. 1 onnly

B. 2 only

C. Both

D. Neither

9. A 6 year deposit was preterminated 2 years and 2 months before maturity. The applicable final tax
rate for the pretermination is? 12%

10. tax exemption bills are approved by

A. Majority of all members of congress

B. Solely by the president of the republic

C. 2/3 of all members of congress

D. Majority of the representatives constituting a quorum d.

Average.

1. Mani pakyaw failed to pay his income tax return for the year 2019 which should have been filed on
or before April 15, 2020. the BIR sent him a notice to file his return and pay his tax on or before july
18, 2020. Mani pakyaw filed a return showing a basic tax due of 1,000,000. Compute the total interest
penalty. 30904.
2. Mrs. Kapalong has several interests in various businesses and partnerships. He received the
following income during the year:

Dividends from a domestic corp 120000

Dividends from a resident foreign corporation 80,000

Share in net income of business partnership 200,000

Share in net income of professional partnership 100,000

What is the total income to be reported in gross income?

3. the theory of taxation is the?

4.

5. The statutory minimum wage is

A. The amount fixed by the Regional Tripartite wage and productivity board

B. The rate fixed by the regional tripartite wage and productivity board which must not exceed 5,000
a month or 60,000 annually

C. The higher between 5,000 a month or 60,000 annually or the rate fixed by the regional tripartite
wage and productivity board

D. 5,000 a month or 60,000 annually unless it exceeds the rate fixed by the regional tripartite board
wage and productivity board.

5. an employee received the ff compensation during the year:

Gross compensation ( 11,000x13) 143000

Overtime pay 12,000

Less:

SSS, PHIC, HDMF and union dues 15200

Withholding tax 10,000

Net pay 139,800

Compute the taxable compensation income.

6. A managerial employee received the ff remunerations:

Gross salaries net of SSS, PHIC and HDMF 1,090,000

SSS maternity benefits 30,000

13th month pay 95,000

Determine the taxable compensation income.

7. Juanito had the ff income in 2019:

Compensation income, net of 77,000 SSS, PHIC and union dues 300,000

Supplemental compensation income 30,000

13th moth pay and OB 25,000

DETERMINE THE TAXABLE COMPENSATION INCOME.

DIFFICULT.

1. Henson electronics employs primarily women. Henson installed a lactation station for its
employees as follows:

Remodeling of a space for lactation station 80,000

Tables and comfortable chairs 40,000

Refrigerator 12,000

Manual and electric breast pumps 10,000

Supplies( sterile milk containers, sopas, etc) 8000

How much amount of deduction can Henson claim?

2. The total assets of a BMBE excluding land shall in no case exceed?

3. Merville is a delaer in real properties. Merville requires 20% downpayment, and the balance is
payable over 36 monthly installments starting on the last day of the month following the month of
sale. Merville sold properties in 2019 and 2020 with terms as follows:

House and lot 1 was sold for 1,350,000 on Nov. 11, 2019

House and lot 2 was sold for 1,800,000 on July 5, 2020.

Both properties were sold at a gross profit rate of 40% based on selling price.
Compute merville’s gross income subject to income tax in 2020.

4. An analysis of the recipients of the dividends is as follows:

Shareholders

Resident aliens and citizens 500,000

NRAs engaged in trade/ business 100,000

NRAs not engaged in trade 50,000

Non resident corporations 100,000

Total 750,000

How much final tax should be withheld?

5. Royalties on cinematographic films and similar works paid to NRA-ETB, NRA NETB or NRFCs is
subject to a final tax of?