2.1bsa-Cy1 - Angela R. Reveral - Business - Taxation - Final - Task

Problem 1
Isarog is a common carrier with passenger buses and cargo trucks. For the month of
June 2018, it had the following data on gross revenues and receipts (exclusive of taxes):
For transporting passengers (receipts) 660,000

For transporting cargoes (revenues) 440,000
Actual receipts amounted to P400,000
For renting out to the MMDA its towing trucks (receipts) 100,000
P20,000 represents revenue from the first quarter
and the balance of 80,000 represents receipts
from income earned in June
Required:
1. Percentage Tax Due
2. Output VAT Payable
Receipts on transporting passengers 660,000

Multiply by OPT rate (Sec. 117) 3%
1 PERCENTAGE TAX DUE 19,800
Actual Receipts amounted to 400,000 on transporting 400,000

cargoes
Receipts on renting out the MMDA its towing trucks 100,000
TOTAL RECEIPTS 500,000
Multiply by VAT rate 12%
2 OUTPUT VAT PAYABLE 60,000
PROBLEM 2
Compute the OPT for each of the following independent cases:
A. JJ, non-vat registered taxpayer, operates a convenience store from which the gross
receipts from sales, and payments on purchases from VAT registered suppliers were
as follows (net of taxes):
Sales of processed food items 280,000

Sales of non food items 220,000
Purchases of processed food items 100,000
Purchases of non food items 80,000
Salaried of helpers 48,000
Solutions: A
Sales of processed food items 280,000
Sales of non food items 220,000
TOTAL SALES 500,000
Multiply by OPT rate 3%
PERCENTAGE TAX DUE 15,000
B. Star Bus Company (a domestic common carrier) has the following data for the first
quarter of the current year.
Gross receipts, passenger operations 8,000,000

Gross revenue from cargo operations 5,000,000
Expenses, passenger operations 4,750,000
Expenses, cargo operations 2,500,000
Gross receipts – rental of facilities 2,000,000
Additional information:
25% of its gross revenue from cargo operations were still outstanding as of the end of
the quarter
Solutions: B
Gross receipts, passenger operations 8,000,000
Multiply by tax rate under Sec. 117 3%
Common Carrier's Tax 240,000
C. Fly Away Air Lines (a resident international carrier) has the following data for the
current year:
Gross receipts, Philippines (passenger operations) 10,000,000

Gross receipts, Philippines (cargo operations) 6,000,000
Gross receipts, Japan (passenger operations) 8,000,000
Gross receipts, Japan (cargo operations) 5,000,000
Expenses, Philippines (passenger operations) 4,000,000
Expenses, Philippines (cargo operations) 2,000,000
Expenses, Japan (passenger operations) 4,500,000
Expenses, Japan (cargo operations) 1,250,000
Solutions: C
Gross receipts, Philippines (cargo operations) 6,000,000
Multiply by tax rate 3%
COMMON CARRIER'S TAX 180,000
D. Dreamland Company, a closely held corporation, has an authorized capital of

P1,000,000 with par value of 10 per share. As of December 31, 2017, outstanding
shares amounted to P250,000. The Company offered its shares to the public for the
first time on June 30, 2018. 10,000 were sold at initial public offering for P150,000. On
October 2018, Leonar, existing shareholder, sold his 1,000 shares for P20,000.
Solutions: D
Selling price
Dreamland Company (10,000 × 150,000) = 1,500,000,000
Leonar (1,000 × 20,000) = 20,000,000
TOTAL SELLING PRICE 1,520,000,000
Multiply by the percentage tax rate 0.006
PERCENTAGE TAX DUE 9,120,000
E. Mr. Talion operates a cockpit. Results of operations for 2018 were provided as follows:
Gross receipts:
Cockpit operations 4,000,000
Restaurant operations 1,850,000
Purchases:
Supplies for cockpit operations (net of vat) 750,000
Supplies for restaurant operations (invoice amount) 224,000
Solutions: E
Gross receipts:
Cockpit Operations (4,000,000 × 18%) 720,000
Restaurant Operations (1,850,000 × 18%) 333,000
TOTAL AMUSEMENT TAX 1,053,000
F. Meralco is a holder of franchise to sell electricity. It also leases its first class auditorium
and theatre. In a particular month, its gross receipts from sale of electricity amounted
to P10,000,000. The gross receipts from the lease of its auditorium and theatre
amounted to P2,000,000.
ANSWERS: F
The answer is 0, Because Meralco consumptions is subjected to VAT and not in the
Franchise Tax.
PROBLEM 3
Prosperous Bank has the following data for the 1st half 2018:
1st Quarter 2nd Quarter
Interest and commission income from lending activities with maturity of 3 4,000,000 2,800,000
years
years
years
Other income from rentals of facilities and other assets 775,000 825,000
Income from financial leasing (remaining maturity is more than 5 years) 1,200,000 950,000
Dividends and equity shares in net income of subsidiaries 500,000 400,000
Net trading gain (loss) ( 150,000) 325,000
Required:
1. Gross Receipts Tax for March 31, 2018
2. Gross Receipts Tax for June 30, 2018
REQUIRED: 1
Interest and commission income from lending activities with maturity of 3
200,000
years (4,000,000 × 5%)
175,000
years (3,500,000 × 5%)
60,000
years ( 6,000,000 × 1%)
Other income from rentals of facilities and other assets (775,000 × 7%) 54,250
Income from financial leasing (remaining maturity is more than 5 years)
12,000
(1,200,000 × 1%)
Dividends and equity shares in net income of subsidiaries (500,000 × 0%) 0
GROSS RECEIPTS TAX FOR MARCH 31,2018 P 501,250
REQUIRED: 2
140,000
years (2,800,000 × 5%)
165,000
years (3,300,000 × 5%)
72,000
years ( 7,200,000 × 1%)
Other income from rentals of facilities and other assets (825,000 × 7%) 57,750
Income from financial leasing (remaining maturity is more than 5 years)
9,500
(950,000 × 1%)
Dividends and equity shares in net income of subsidiaries (400,000 × 0%) 0
Net trading Gain (325,000－150,000= 175,000 × 7%) 12,250
GROSS RECEIPTS TAX FOR JUNE 30,2018 P 456,500

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Problem 1

For transporting passengers (receipts) 660,000

Receipts on transporting passengers 660,000

Actual Receipts amounted to 400,000 on transporting 400,000

Compute the OPT for each of the following independent cases:

Sales of processed food items 280,000

Gross receipts, passenger operations 8,000,000

Gross receipts, Philippines (passenger operations) 10,000,000

D. Dreamland Company, a closely held corporation, has an authorized capital of

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