INSTRUCTION: This examination is good for three (3) hours. It consist of two (2) parts: Part 1.

(Multiple Choice Questions) has a weight of 40%, while Part 2 (Tax Practice) is 60%. Use PENCIL
in answering. SUBMIT THIS QUESTIONAIRE TOGETHER WITH THE ANSWER SHEET.

PART 1 – MULTIPLE CHOICE QUESTIONS (40%)

1. Effective December 1, 2018 the following expense is no longer deductible from the gross
estate of a non-resident not citizen decedent
A. Standard deduction C. Medical expenses
B. Family home D. Judicial expanses

2. Decedent, died January 10, 2018 had the following data:

Gross estate P 10,000,000
Funeral expenses 250,000
Judicial expenses 150,000
Claims against the estate 100,000
Transfer for public use 200,000
Losses 300,000
Hospitalization expenses 85,000
Unpaid taxes 20,000
Unpaid mortgages 50,000
Family home 2,500,000
RA 4917 300,000

The estate tax payable

A. P 91,800 C. P 133,110
B. 97,400 D. 141,230

3. Distinctions between donor’s tax and estate tax, except

A. Period for payment of tax C. Tax rate

B. Attachments to the tax return D. Cause of transfer

4. House Speaker Alvarez has introduced a bill in the Congress amending a certain provision of
the Family Code to the effects that in the absence of a pre-nuptial agreement, the property
relations of the spouses shall be governed by

A. Conjugal partnership of gains C. Absolute community of property regime

B. Complete separation property D. Co-ownership

5. The Tax Reform Acceleration and Inclusion Law is the short title for
A. RA 10693 C. RA 10369
B. RA 10936 D. RA 10963

6. The VAT rate is not

A. 12% C. 5%
B. 0% D. 10%

7. The following is a zero rated sale of services

A. Transport of passengers by Cebu Pacific from the Philippines to Singapore.
B. Transport of passengers by Cathay Pacific from the Philippines to Singapore.
C. Transport of cargo by Cathay Pacific from the Philippines to Singapore.
D. Transport of passengers by Singapore Airlines from Hongkong to Singapore.

8. Point-point Restaurant, non-VAT registered, had gross receipts during the year which amount
to P2,500,000. If the year of operation is 2017, It is

A. subject to Output VAT of P300,000.

 B. subject to Output VAT of P267,857.
C. subject to Percentage Tax of P75,000.
D. subject to Percentage Tax on the P2 million.
9. In the preceding problem, if the year of operation is 2018, it is subject to
A. Output VAT of P300,000. C. Percentage Tax of P75,000.
B. Output VAT of P265,857. D. Percentage Tax on the P2 million.

10. Renee Rentah owns an apartment house being leased to different tenants. The aggregate
annual rental is P1,300,000. For the year 2017, Renee is not subject to
A. Value-added tax C. Income tax.
B. 3% non VAT D. 3% non-VAT and income tax.

11. In the preceding question, suppose the monthly rental per unit in 2018 is P14,000 and the
aggregate annual rental is P3,200,000 the lessor is not subject to

A. Value-added tax. C. Income tax.

B. 3% non VAT D. 3% non-VAT and income tax.

12. In the preceding problem, assume that the property is a commercial building which is being
leased as offices of professional such as lawyers, accountants and engineers. If the monthly
rental per unit in 2017 is P12,000 and the aggregate annual rental is P3.5 million, Renee
Rentah is subject to
A. Value-added tax. C. Income tax.
B. 3% non VAT D. 3% non-VAT and income tax.

13. Sale or lease of goods or properties or performance of services the gross annual
sales/receipts amount to P2,500,000 by a non-VAT registered establishment is subject to

Until 12/31/17 Effective 1/1/18 Until 12/31/17 Effective 1/1/18

A. VAT Non-VAT C. Non-VAT non-VAT
B. VAT VAT D. Non-VAT VAT

14. Sale or lease of goods or properties or performance of services the gross annual
sales/receipts amount to P2,500,000 by a VAT registered establishment is subject to

Until 12/31/17 Effective 1/1/18 Until 12/31/17 Effective 1/1/18

A. VAT Non-VAT C. Non-VAT non-VAT
B. VAT VAT D. Non-VAT VAT

15. TRAIN Law: In proper cases, the Commissioner of Internal Revenue shall grant refund for
creditable input taxes within ____ from the date of submission of the official receipts or
invoices and other documents in support of the application fieldnin accordance with
regulations
A. 6 months C. 90 days
B. 3 months D. 60 days

16. An alien who shall come to the Philippines and stay for an aggregate period of one hundred
eighty (180) days or less during any calendar year.
A. Nonresident alien C. NRA not engaged in trade or business
B. Resident alien D. NRA engaged in trade or business

17. Which of the following is false about a Tax Identification Number?

A. An estate of a deceased person shall be supplied with a separate TIN.
B. Only one TIN shall be assigned to a taxpayer.
C. Any person who shall secure more than one TIN shall be criminally liable under the
provision of the NIRC.
D. If an employee owns a business in a city other than this place of employment, his TIN
shall be registered in the place where his place of employment is located.
18. The tax rate on fringe benefit tax is
A. 30% C. 25%
B. 68% D. 32%

19. If the fringe benefits is given in 2018, the tax rate is

A. 35% C. 25%
B. 65% D. 32%

20. Under the TRIN LAW, the following is subject to income tax
A. SSS C. Philhealth
B. GSIS D. Pag-ibig

21. The following pertains to the data of a resident alien:

Gross estate, Phil 2,000,000

Gross estate, abroad 3,000,000
FE, Phil 250,000
FE, abroad 200,000

How much is the deductible funeral expense?

A. 450,000 C. 250,000
B. 200,000 D. 100,000

23. BIR Form No. 1702-RT must be filled-up in

A. Duplicate copies C. Quadruplicate copies

B. Triplicate copies D. Quintuplicate copies

24. A husband and wife with five (5) qualified dependent children shall maximum basic personal
and additional exemption of

A. P 100,000 C. P 200,000
B. 150,000 D. 225,000

25. In the preceding question, if the taxable year is 2018 the maximum personal and additional
exemption is

A. P 150,000 C. P 125,000
B. 100,000 D. None

26. Which statement is false? The certificate of zonal values of real properties for donor’s tax,
estate tax and capital gains tax purposes

A. shall be issued by the Revenue District Offices.

B. must be issued by the Regional Office.
C. may be issued by the Assessment Performance and Monitoring Division of the
national office.
D. is subject to a Certification Fee of P100 and P15 documentary stamp tax.
27. A non-stock and non-profit educational institution is subject to

A. income tax on income of activities that are not related to educational purpose.
B. customs duties on importation of equipment that are used in the exercise of its
educational function.
C. real property tax on land, buildings and improvements that are being used actually
Directly and exclusively for educational purpose.
D. Income tax on interest income on bank deposits that are reserve to fund the
construction of school buildings.
28. If the receipt is issued by a VAT seller thru a cash register, the receipts does not include

A. number of the machine used in printing

B. description of goods and service, quantity, unit and total cost.
C. value-added-tax amount
D. the buyer’s name, address and TIN.

29. Not subject to 6% capital gains tax

A. issuance of tax declaration without any sale, exchange or disposition
B. transfer the ownership that resulted from sale, disposition of real property
C. pacto de retro sales and other forms of conditional sales
D. conveyance of real property located in the Philippines

30. The version of the Bicameral Conference Committee on a bill which has been approved by
the Senate and the House of Representatives and submitted to the office of the President is
called

A. Bill approved on 3rd reading C. Law

B. Proposed law D. Enrolled bill

31. Mr. A, government employee, has retired from service. Which of the following amounts he
received is taxable to him?

A. P 730,000 – money value of the accumulated leave credits.

B. 210,000 – lump-sum retirement pay for GSIS.
C. 150,000 – return of insurance premiums payments from a private insurance
Company
D. 34,000 – salary on his last month of service.

32. In accomplishing of BIR Form 2316 (Certificate of Compensation Payment/ Tax Withheld) of
an employee, which of the following is not include in the Non-Taxable/Exempt
Compensation Income?

A. 13th month pay and other benefits

B. Employee’s share contribution to Social Security System
C. Employee’s share contribution to Philhealth
D. Employer’s share contribution to GSIS

33. Your clients are planning to put up a business partnership in Sorsogon City. They showed to
you a shortlist of government offices that they are planning to register the proposed
business. Which of the following offices will not register the proposed business?

A. Bureau of Internal Revenue C. Securities and Exchange Commission (SEC)

B. City Government of Sorsogon D. Department of Trade and Industry (DTI)

34. Your VAT registered client will file an Application to Print Receipts with the BIR and is being
asked to submit a sample of the receipt. If you are consulted on the sample O,R., which of
the following data should not appear in the Official Receipt?

A. VAT Registration with Tax Identification Number

B. O.R. Number
C. Authority to print Number and Expiration Date
D. The phrase “This documents is not valid for claiming input taxes”.

35. Which of the following information does not appear in a VAT Official Receipt printed in a
cash register machine?

A. Name and address of seller.

 B. O.R. Number
C. Name of Customer
D. Items purchased

36. An invoice or official receipt shall be valid for a period of ___years from the date of ____

A. 3 years; printing
B. 3 years; permit to use
C. 5 years; printing
D. 5 years; permit to use

37. Payments by local government units to government constructors or seller of office suppliers
are subject to 5%

A. final withholding tax

B. creditable withholding tax
C. withholding tax on compensation
D. expanded withholding tax

38. An associate has applied for registration with the Bureau of Internal Revenue. After
submission of the requirements, it was issued a certificate of Registration which is otherwise
known as BIR Form____

A. 2316 C. 2303
B. 2803 D. 1703

39. A business establishment becomes subject to VAT if its gross receipts during the 12- month
period exceeds

A. P 1,500,000 C. P 3,000,000
B. 2,500,000 D. 9,191,500

40. Camelle owns a condominium unit in Makati. In 2017 she was paying monthly association
dues of P2,240, inclusive of tax. If there is no increase in 2018, she will pay monthly dues of

A. P 2,240 C. P 2,500
B. 2,000 D. Cannot be determined