ACC 180- BSMA4

P1 QUIZ

Name: Date:
Section: Score:

Multiple choice. Write your answer in CAPITAL letter before the number. Erasures in any for will mark
your answer wrong.

1. The following are secondary purposes of the power of taxation, except:

a. Raise revenue for the Government;
b. Reduction of social inequity;
c. Encourage economic growth;
d. Regulation

2. The following are the requisites of a taxpayer’s suit, except:

A. That public money, earned from taxes, are being spent on any improper purpose;
B. That the petitioner should assume the personality of a taxpayer to gain personality to file
the suit;
C. That the petitioner must be a citizen of the Philippines;
D. That the petitioner seeks to restrain the respondent from wasting public funds.

3. The following are agents and deputies for collection of National Internal Revenue taxes, except:
a. The commissioner of Customs and his subordinates with respect to the collection of national Internal
Revenue Taxes on imported goods.
b. The head of the appropriate government office and his subordinates with respect to the collection of
energy tax.
c. Banks duly accredited by the commissioner with respect to receipts of payments of internal revenue
taxes authorized to be made thru banks.
d. City treasurer with regard to collection of real estate tax.

4. As provided by the Tax Code, the chief officials of the BIR shall be composed of:
a. 1 Commissioner and 4 Deputy Commissioners
b. 1 Commissioner and 6 Deputy Commissioners
c. 1 Commissioner, 2 Assistant Commissioners and 2 Deputy Commissioners.
d. 1 Commissioner and 7 Deputy Commissioners.

5. Taxation is equitable in all of the following, EXCEPT:

a. Its burden falls on those better to pay.
b. It is based on ability to pay.
c. It is based on benefits received.
d. It is based on uniformity rule.

st
6. 1 Statement - Taxation and power of Eminent Domain may be exercised simultaneously.
nd
2 Statement - Taxation and Police Power may be exercised simultaneously.
a. true, true;
b. true, false;

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c. false, false;
d. false, true

7. Schedular system of income taxation means.

a. all types of income are added together to arrive at gross income.
b. Separate graduated rates are imposed on different types of income.
c. capital gains are excluded in determining gross income.
d. Compensation income and business income are added together in arriving at gross income.

8. Below are characteristics of a sound taxation system, EXCEPT

a. Administrative feasibility and compliance
b. Fiscal adequacy
c. Theoretical justice
d. Uniformity of taxation

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9. In every case of doubt, tax statutes are construed:

a. Strictly against the government and the taxpayer.
b. Liberally in favor of the government and the taxpayer.
c. Strictly against the government and liberally in favor of the taxpayer.
d. Liberally in favor of the government and strictly against the taxpayer.

10. In every case of doubt, laws granting tax exemption shall be construed.
a. Strictly against the government and the taxpayer.
b. Liberally in favor of the government and the taxpayer.
c. Strictly against the government and liberally in favor of the taxpayer.
d. Liberally in favor of the government and strictly against the taxpayer.

11. A law was passed by Congress which granted tax amnesty to those who have not paid income taxes for a
certain year without at the same time providing for the refund of taxes to those who have already paid them.
The law is:
a. valid because there is a valid classification.
b. not valid because those who did not pay their taxes are favored over
those who have paid their taxes.
c. valid because it was Congress which passed the law and it did not
improperly delegate the power to tax.
d. not valid because only the President with the approval of Congress may grant amnesty.

12. In case of conflict between tax laws and generally accepted accounting principles (GAAP):
a. both tax laws and GAAP shall be enforced.
b. GAAP shall prevail over tax laws.
c. tax laws shall prevail over GAAP.
d. the issue shall be resolved by the court.

13. The fair market value of real properties located in each zone or area, shall be subject to automatic
adjustment once every how many years through rules and regulations issued by the Secretary of Finance
based on the current Philippine valuation standards?
a. 3 years
b. 5 years
c. 7 years
d. 10 years

14. Which of the following cases may not be compromised?

a. Delinquent accounts
b. Cases under administrative protest after issuance of the Final
Notice of Assessment to the taxpayer still pending in the BIR
c. Civil tax cases being disputed before the courts
d. Criminal violations involving criminal tax fraud.

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15. The following are instances when penalties and/or interest imposed on the taxpayer may be abated or
cancelled on the ground that the imposition thereof is unjust and excessive, except when the:
a. Filing of the return or payment of the tax is made at the wrong
venue.
b. Taxpayer’s mistake in payment of his tax is due to erroneous
written official advice of a revenue officer.
c. Assessment is brought about or a result of the taxpayer’s non- compliance with the law due to a difficult
interpretation of the
said law.
d. Taxpayer is declared insolvent or bankrupt.

16. First statement: In civil tax cases involving collection of internal revenue taxes, prescription is construed
strictly against the government and liberally in favor of the taxpayer.
Second statement: In criminal tax cases involving tax offenses punishable under the Tax Code, prescription is
construed strictly against the government.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct

17. If at any time prior to the consummation of the sale all proper charges are paid to the officer conducting the
sale, the goods or effects distrained:
a. shall be restored to the owner.
b. shall no longer be restored to the owner.
c. shall be brought to the Revenue District Officer.
d. shall be brought to the Regional District Officer.

18. If after review and evaluation by the Commissioner or his duly authorized representative, it is determined
that there exists sufficient basis to assess the taxpayer for any deficiency tax or taxes, the said Office shall
issue to the taxpayer the:
a. Notice of informal conference
b. Notice of discrepancies
c. Preliminary Assessment Notice
d. Formal Assessment Notice

19. For requests for reinvestigation, the taxpayer shall submit all relevant supporting documents in support of
his protest within how many days from date of filing of his letter of protest, other-wise, the assessment shall
become final?
a. Sixty (60) days
b. Thirty (30) days
c. Twenty (20) days
d. None of the choices

20. In 2018, Ms. Glai Espenilla Bangug, a financial comptroller of EB Company, earns annual compensation of

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P1,500,000, inclusive of 13th month and other benefits in the amount of P80,000 and mandatory SSS
contribution of P3,500 and Philhealth contribution of P2,000. Aside from her employment income, she owns a
convenience store, VAT-registered, with gross sales of P3,000,000. Sales discount amounts to P300,000; sales
returns and allowances amount to P150,000. Her cost of sales and operating expenses are P1,000,000 and
P600,000 respectively and with non-operating income of P100,000. Payments for the first three (3) quarters
amount to P300,000.

Can she avail of the 8% income tax rate?

a. Yes, because her gross sales do not exceed the VAT threshold.
b. No, because she is VAT- registered.
c. Yes, because she is a mixed income earner.
d. No, because her total income including compensation income exceed the
VAT threshold
21. Miss Cruz had recently joined the MMC as sales executive. She was advised to be retrenched because the
company was losing heavily, but that she would be given a substantial separation pay. The general manager,
however, suggested to Miss Cruz to file a letter of resignation from the company, instead of having been
involuntarily separated as the latter would have implications of inefficiency on her part. Miss Cruz chose to
resign from the company and received the sum of P100,000 as separation pay. The above amount is _.
a. Exempt from income tax
b. Taxable in full
c. Non-deductible expense on the part of the company
d. Partially taxable

22. ABC Company purchased a residential house and lot with a swimming pool in an upscale subdivision and
required the company president to stay there without paying rent; it reasoned out that the company president
must maintain a certain image and be able to entertain guests at the house to promote the company's business.
The company president declared that because they are childless, he and his wife could very well live in a
smaller house. Was there a taxable fringe benefit?
e. There was no taxable fringe benefit since it was for the convenience of the employer and was
necessary for its business.
f. There was a taxable fringe benefit since the stay at the house was for free.
g. There was a taxable fringe benefit because the house was very luxurious.
h. There was no taxable fringe benefit because the company president was only required to stay there
and did not demand free housing.

23. XYZ Corporation assigned Mr. Passo one of its employees in the head office in Manila to manage their
branch office in Dagupan. The company provided for the residential house of the manager paying a monthly
rental of P 34,000. The monthly fringe benefit tax thereon is _.
a. P8,000
b. P9,154
c. P18,308
d. P26,154

24. Based on the same data in the preceding item, the deductible expense from the gross income of XYZ
Corporation is _.
a. P26,154
b. P28,166
c. P42,000
d. P43,154

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25. Which of the following is subject to income tax?

i. SSS and GSIS
j. Philippine Health Insurance Corporation (PHIC)
k. Local water districts
l. Philippine Amusement and Gaming Corporation (PAGCOR)

26. Power Corporation is registered under the laws of Queensland. It has extensive operations in Southeast
Asia. In the Philippines, its products are imported and sold at a mark-up by its exclusive distributor, Solo's
Trading, Inc. The BIR compiled a record of all the imports of Solo from Power and imposed a tax on Power net
income derived from its exports to Solo. Is the BIR correct?
a. Yes. Power is a non-resident foreign corporation engaged in trade or business in the Philippines.
b. No. The tax should have been computed on the basis of gross revenues and not net income.
c. No. Power is a non-resident foreign corporation not engaged in trade or business in the Philippines.
d. Yes. Power is doing business in the Philippines through its exclusive distributor Solo's Trading. Inc.

27. B&B Corporation is a foreign corporation which is not engaged in trade or business in the Philippines. In
2022 it had a gross income of P1,500,000 and expenses of P650,000 on its isolated transaction in the
Philippines.

The income tax due is _.

a. P212,500
b. P300,000
c. P375,000
d. P450,000

28. ABC Company, a domestic corporation has the following data:

Income tax for 2022 P1,100,000

Less: Tax credits 1,250,000
Excess tax credits 150,000

2023 1st quarter

Income net of 1% withholding tax P4,950,000
Deductions 4,600,000
For the 1st quarter of 2023, the corporation will report:
a. Excess tax credit of P100,000
b. Tax payable of P7,000
c. Excess tax credit of P8,000
d. Tax payable of P2,000

29. The Bicol School of Business and Arts (BSBA), is a private educational institution recognized by the
government. The following are the financial data for its fiscal year ending June 30, 2022:

Tuition fees P13,800,000

Miscellaneous fees 2,800,000
Interest on bank deposits 12,300

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Rent income of school facilities to outsiders 450,000

Salary and bonuses, all personnel 7,500,000
Other operating expenses 3,500,000
Repayment of loan 400,000
Quarterly (three quarters) income tax paid 4,800

A building was constructed on April 2, 2022 at a cost of P2,000,000 with a depreciable life of 50 years.

Assuming the cost of construction is treated as an expense, the income tax payable by the school for the
fiscal year ended June 30, 2022 is
a. 31,700
b. 35,700
c. 36,500
d. 40,500

30. What shall be the tax treatment for dividends received by a domestic corporation from a resident foreign
corporation (RFC)?
a. The dividends shall be subject to regular corporate income tax.
b. If the ratio of the gross income of the RFC within the Philippines to its world gross income for the
three- year period ending with the close of its taxable year preceding the declaration of such
dividends is at least 50%, the dividends shall be exempt from income tax.
c. The dividends shall be exempt from income tax.
d. The dividends shall be exempt from income tax provided the domestic corporation complies with
certain requirements set by the CREATE law for its exemption.

31. Which of the following statement is wrong?

a. An essentially mortis causa transfer which has been titled as inter vivos shall be subject to donor’s tax
b. Estate tax is more of a revenue tax rather than a special tax
c. If the decedent died September 5 2017, but the actual transfer of possession of the property to the heirs
took place on June 5 2019 the estate tax will be computed based on the prevailing law on September 5,
2017.
d. Under the Benefit Received Theory in estate taxation, the estate is a partner of the decedent in the
distribution of the latter’s estate.

32. Philip and Ella are married. They have legitimate children Lory and Paul. Philip died, survived by Elle, Lory
and Paul. His estate of P12,000,000 should be divided as follows:
Ella Lory Paul Free
portion
A. P3M P4.5M P4.5M None
B. 3M 3M 3M 3M
C. None 6M 6M None
D. 2.25M 4.5M 4.5M 2.25M

33. Kale died leaving the following properties:

Stocks of Hamada Corporation (2,000 shares Listed in the PSE (Highest P40; Lowest - P39)
Common stocks of XYZ Corporation (1,500shares) not listed in the stock exchange. Cost - P50 per share;
Book value –P45 per share

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Car (cost - P600,000; book value P350,000; market value - P400,000)

Real properties (zonal Value – P320,000; assessed value at 20% - P72,000)

The gross estate of Kale is _.

A. 818,500
B. 824,000
C. 906,500
D. 1,067,500

34. The following transactions and acquisition exempt from transfer tax, except _.
A. Transmission from the heir or donee in favor of another beneficiary in accordance with the desire of the
predecessor
B. All bequests, devisees, legacies or transfers to social welfare, cultural and charitable institutions
C. Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the
fideicommissary
D. The merger of usufruct in the owner of the naked title

35. What is the tax implication if a corporation condones the debt of a stockholder because of a good thing done
by the latter to the corporation?
A. The condonation is based on the liberality of the corporation, therefore, it is subject to donor's tax
B. It is tantamount to a declaration of dividend. Therefore, it is an income which is subject to 10% dividend
tax on the stockholder. However, it is not subject to donor's tax on the corporation
C. The condonation is subject to donor's tax on the corporation because it is based on its liberality.
Moreover, it is equivalent to a payment of dividend to the stockholder which is, therefore, subject to a
dividend tax of 10%
D. It is just a simple case of extinguishment of an obligation which is neither subject to income tax on the
stockholder not subject to donor's tax on the corporation.

36. One of the following is a valid donation.

A. Oral donation of a cellular phone worth P4,500.
B. Oral donation of a passenger jeepney worth P150,000.
C. A parcel of land worth P500,000 in a private document.
D. A house worth P500,000 in a private document
37. Brian wrote a letter to Lamont on December 31, 2017 donating his car worth P350,000. The letter was
received by the latter on January 7, 2018 who accepted the donation. The letter of acceptance was received
only by Brian on January 15, 2018.The donor's tax was not paid until May 22, 2019. The donation was
consummated on _.
A. January 7, 2018
B. January 15, 2018
C. May 22, 2019
D. December 31, 2017

38. Shanee donated a 1,000 square meter land to Mark with a condition that within two (2) years from the date
of donation, Mark will construct a two-storey building thereon, and that failure of the donee to comply with the
condition shall be sufficient ground for the revocation of the donation.

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Statement I:There shall be donor's tax on the donation even if it may be revoked in case of non-
fulfillment of the donation.
Statement II: In case of revocation of the donation, the donor's tax paid to the government may be
refunded to the donor.

Which of the above statements is correct?

A. Both statements are correct
B. Both statements are wrong
C. Only statement 1 correct
D. Only statement 2 correct

39. Meriam made the following donations of cash to his son on account of marriage on October 2019 as follows:
January 15, 2019 P 75,000
March 10, 2019 50,000
July 15, 2019 50,000
September 10, 2019 100,000

The tax due on September 10, 2019 donation is _.

A. 780
B. 1,700
C. 1,500
D. Exempt

40. In value-added taxation, this is not a requirement for taxability of service:

A. In the course of business
B. Consideration received actually or constructively
C. Supply of service is not exempt from VAT
D. Performed within or outside the Philippines

41. Which statement is FALSE under the VAT law?

A. A VAT-registered person will be subject to VAT for his taxable transactions, regardless of his gross
sales or receipts.
B. A person engaged in trade or business selling taxable goods or services must register as a VAT person,
when his gross sales or receipts for the year 2019 exceed P3,000,000.
C. A person who issued a VAT-registered invoice or receipt for a VAT- exempt transaction is liable to the
12% VAT as a penalty for the wrong issuance thereof.
D. Once a doctor of medicine exercises his profession during the year, he needs to register as a VAT
person and to issue VAT receipts for professional fees received.

42. The following importations are exempt from VAT. Which one is not?
A. Importation of professional instruments and implements, tools of trade, occupation or employment,
wearing apparel, domestic animals, and personal and household effects belonging to persons coming
to settle in the Philippines, in quantities and of the class suitable to the profession, rank or position of
the persons importing said items, for their own use arriving within a reasonable time.
B. Importation of drugs and medicines prescribed for diabetes, high cholesterol and hypertension.

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C. Importation of engine equipment of cargo vessels or aircraft for domestic or international transport
operations.
D. Importation of vehicles, vessels, aircrafts, machineries and other similar goods for use in manufacture.

43. Tsukuba Company, a VAT-registered business, had the following data during the quarter:

Zero-rated export sales P 1,815,000

Domestic sales (tax included) 1,232,000
Purchases of goods for export, gross of tax 672,000
Purchases of goods for domestic sales, tax inclusive 323,120
Purchases of supplies on domestic sales, net of tax 124,850

Assuming that the input taxes paid on purchases of goods for export are claimed as tax credit, the VAT
payable by Tsukuba Company is _.
A. 10,398
B. 12,895
C. 84,895
D. 177,895

44. Amie sold goods at a total price of P123,200 to Betty on account. Betty sold the same goods to Candy for
P143,000 (exclusive of tax) on cash. All of them are VAT registered taxpayers. Assuming that Candy is not
subject to VAT while Betty is VAT registered. In the sale of the goods by Betty to Candy _.
A. Betty should debit Cash of P125,840
B. Betty should debit Cash of P143,000 in her books.
C. Candy should debit Purchases of P125,840 and a debit Input tax of P17,160.
D. Candy should debit Purchases of P 160,160.

45. Input tax is available to a VAT-registered buyer, provided that _.

A. The seller is a VAT-registered person
B. The goods or service is subject to or exempt from VAT, but the sale is covered by a VAT invoice or
receipt issued by VAT-registered person
C. The seller issues a VAT invoice or official receipt, which separately indicates the VAT component
D. The name and TIN of the buyer is not stated or shown in the VAT invoice or receipt

46. For 2019, input tax is not available as a credit against the output tax of the buyer of taxable goods or
services during the quarter, if _.
A. The VAT invoice or receipt of the seller does not separately indicate the gross selling price or gross
receipts and the VAT component therein
B. The VAT invoice or receipt of the seller is registered with the BIR
C. The VAT invoice or receipt is issued in the name of the VAT-registered buyer and his TIN is shown in
said invoice or receipt
D. The VAT invoice or receipt issued by the seller shows the Taxpayer Identification Number plus the word
"VAT" or "VAT registered person

47. At the time of retirement, Tyre had 500 pcs of merchandise which was deemed sale at a value of P150,000
with an output tax of P18,000 After retirement, Tyre sold to Rey 100 pieces for P35,000. In the contract of sale

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Rey can claim an input tax of _.

A. 3,600
B. 5,000
C. 18,000
D. None

48. Statement 1: Inventories of goods for sale which are exempt from value-added tax may be subject to
transitional input tax when the seller becomes liable to VAT for the first time, or when he voluntarily registers
under the VAT system even if his annual turn-over does not exceed P3,000,000.
Statement 2: When a transitional input tax is created, the taxable person shall make a journal entry
debiting "Transitional input tax and crediting "Merchandise inventory."
Statement 3: The purchase of fish to be processed into sardines shall entitle the manufacturer of
sardines to a 4% presumptive input tax.
Statement 4: A person who sells his riceland because he needs money for the hospitalization of his
child is subject to VAT on the sale of real property

Which of the following options is wrong?

A. Statement 1 is true, while statement 4 is false
B. Statements 2 and 3 are false
C. Statements 1 and 2 are true
D. Statements 3 and 4 are false

49. Honiko bought five (5) units of Sweet television set with home theatre system from Hubby with a list price of
P52,500. Trade discount is 10%, purchase discount is 3/10, n/30. Cost of freight as reflected in the bill of lading
of the forwarder is P1,344 per set, FOB shipping point, freight collect. What is/are the entry/entries in the books
of Honiko on the purchase transaction?
A. Purchases P210,937.50
Input tax 25,312.50
Accounts payable P236,250.00
B. Purchases 234,375.00
Input tax 28,125.00
Cash 262,500.00
C. Purchases 210,937.50
Input tax 25,312.50
Accounts payable 236,250.00
D. Purchases 210,937.50
Input tax 25,312.50
Accounts payable 236,250.00
Freight-in 6,000.00
Input tax 720.00
Cash 6,720.00

50. Alexis is a real estate dealer. During the month of November 2022, he sold three (3) lots under the following
terms:

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Lot 1 Lot 2 Lot 3

Selling price P 350,000 P 240,000 P300,000
Cost 150,000 130,000 175,000
Gain/loss 100,000 70,000 125,000
Terms:
Downpayment, November 5 35,000 60,000 40,000
Due -
December 5 25,000 20,000 20,000
Jan. to Dec. 2023 200,000 130,000 240,000

All amounts indicated above do not include the tax.

The value-added tax in November is _.
A. ZERO
B. 16,200
C. 31,800
D. 37,800

51. Statement 1: There is a VAT on importation by an importer-merchant even if he does not intend to sell
the imported article.
Statement 2: A person who is exempt from VAT may register under the VAT system.
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true

52. A VAT-registered contractor performed services for his customer in 2021 and billed him P11.2 Million, broken
down as follows: P10 Million services, plus P1.2 Million, 12% VAT. Of the contract price of P10 Million, only P8
Million plus VAT thereon was received from the customer in 2021 and the balance of P2 Million plus VAT was
received by the contractor in 2022. How much is the taxable gross receipts of the contractor for 2021, for VAT
purposes?
a. P8 Million, the amount received from the customer in 2021.
b. P8 Million plus VAT received from the customer in 2021.
c. P10 Million, the total cost of services performed in 2021.
d. P11.2 Million, the total cost of services performed plus 12% VAT.

53. RST Corporation is a VAT Registered dealer of appliances. The following data are for the month of October:

Sales, total invoice value P 5,800,000

Purchases, net of input taxes 2,820,000

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Sales return, gross of tax 200,000

Purchases return, net of input tax 300,000
Deferred input taxes (carried over from the third quarter) 9,500
The value added tax payable for the month of October by RST Corporation is _.
A. 80,000
B. 288,100
C. 285,500
D. 320,500

54. Taxpayers who became VAT registered persons upon exceeding P3,000,000 in sales/gross receipts in any
12-month period, or who voluntarily registers even if their turnover does not exceed P3,000,000 shall be entitled
to a transitional input tax on the inventory on hand as of the effectivity of their VAT registration on the following,
except _.
A. supplies for use in the course of taxpayer's trade or business.
B. goods which have been manufactured by the taxpayer.
C. goods in process for sale
D. capital goods being used in the operation of the business.

55. Rapid is a contractor. She entered into a contract on March 1, 2019 which was completed on March 31,
2019. She received the total value of the contract amounting to P550,000 on March 31, 2019. Rapid spent for
the materials used in the contract which she acquired from value-added registered suppliers costing P150,000.
All amounts are exclusive of VAT. The value-added tax payable by Rapid for the month of March is _.
A. 15,000
B. 40,000
C. 48,000
D. 59,500

56. Mr. Wang, rents his 12 residential units for P14,800 per month. During taxable year 2022, his accumulated
gross receipts amounted to P2,131,200. He is subject to _.
VAT 1% percentage tax
A. Yes Yes
B. Yes No
C. No Yes
D. No No

57. Converge Company operates two lines of business. Business 1 is subject to VAT, while Business 2 is not.
Data for the month are as follows:

Sales
VAT business, VAT included P 560,000
Non-VAT business 100,000
Purchases
Merchandise, VAT business, VAT included 154,000
Merchandise, Non-VAT business 67,100
Capital goods, VAT business, VAT included 34,776

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Capital goods, Non-VAT business 27,500

Capital goods, for use in both business, VAT included 56,000
Rent of store space, VAT business, VAT included 14,560
Rent of warehouse, VAT & Non-VAT business, VAT excluded 6,200
Freight of goods, VAT & Non-VAT business, VAT included 2,576
Telephone and broadband bills, VAT and Non-VAT, VAT included 1,624

The input tax on Business 1 is _.

A. 18,875
B. 23,267
C. 23,747
D. 27,781

58. All persons subject to internal revenue tax shall, at the point of each sale, transfer of merchandise or for
services rendered issue duly registered receipts or sale or commercial invoice if the amount involved is at least
A. 25
B. 50
C. 100
D. 125

59. A residential condominium unit in Makati was sold on March 20, 2022 in a pacto de retro sale for
P2,100,000. Market value in the tax declaration is P2,155,600 while the zonal value is P1,890,200. The
documentary stamp tax due is _.
A. 32,325
B. 32,334
C. 32,340
D. None

60. Don donated a parcel of land to the government for exclusively public use. Market value per tax declaration
is P1 million while the zonal value is P800,000. The documentary stamp tax is _.
A. 15,000
B. 12,000
C. 45,000
D. None

61. Exempt from excise tax:

A. Hybrid vehicles
B. Purely electric vehicles
C. BMW
D. Toyota Innova

62. To improve her body shape. Miss Annie decided to undergo liposuction procedure and sought the services of
Pampaganda Cosmetics , a clinic operated outside a hospital and owned and operated by Ganda Medical Group
Inc. Dra, Ganda charged Miss Annie an amount of P50,000 (inclusive of 12% VAT, but exclusive of 5% excise
tax) for the service rendered Based on the foregoing, the total amount to be collected from Miss Annie is _.
A. 46,875

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B. 50,000
C. 50,268
D. 52,500

63. Based on the foregoing, how much is the VAT to be recognized by Pampaganda?
A. 5,357
B. 5,625
C. 6,000
D. 6,300

64. A parcel of land located in a province was assessed as commercial with a fair market value of P4,000,000.
How much would be the highest possible amount of annual basic real property tax that can be collected from the
owner?
A. 8,000
B. 16,000
C. 20,000
D. 40,000

65. A registered BMBE shall be entitled to the following incentives and benefits, except _.
A. Zero-rated value-added tax
B. Income tax exemption
C. Exemption from the coverage of the Minimum Wage Law.
D. Priority to a special credit window set up specifically for the financing requirements of BMBES

66. To be entitled to registration under the Investment Priorities Plan, an applicant must satisfy the Board of
Investments that the applicant is, except _.
A. Filipino citizen
B. It if is a partnership or association, that it is organized under the laws of the Philippines and that at least
60% of its capital is owned or controlled by Filipinos.
C. If it is a corporation, it is organized under Philippine laws and that at least sixty 60% of the capital stock
outstanding and entitled to vote is owned and held by Philippine nationals, and at least 60% of the
members of the Board of Directors are citizens of the Philippines.
D. If it is a corporation, it is organized under Philippine laws and that at least 60% of the authorized capital
stock is owned and held by Philippine nationals.

67. The following are Board of Investments' preferred areas of investment, except _.
A. foreign employment
B. agriculture
C. business process outsourcing
D. shipbuilding

68. Special Corporate Income Tax is _.

A. 5% of gross income earned effective July 1, 2020, in lieu of all national and local taxes
B. 5% of taxable income effective July 1, 2020, in lieu of all national and local taxes
C. 5% of taxable income effective April 11, 2020, in lieu of all national and local taxes
D. 5% of gross income earned effective January 1, 2021, in lieu of all national and local taxes

This document is the property of PHINMA EDUCATION

 ACC 180- BSMA4
P1 QUIZ

69. The following types of tax incentives, except one, may be granted to domestic market enterprises.
A. Enhanced Deductions
B. Income Tax Holiday
C. Special Corporate Income Tax
D. Importation of Covid-19 vaccines

70. Showie Tym Company, a domestic market enterprise located in a metropolitan area, is engaged in
generation of new knowledge and intellectual property registered in the Philippines (Tier 3). It has been
granted tax incentives by the Fiscal Incentives Review Board.
Assuming the company is no longer on an ITH, the income tax rate on the income of Showie Tym Company
is _.
A. 5%
B. 10%
C. 20%
D. 25%

INCOME TAX TABLE FOR INDIVIDUALS (2018-2022)

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