🏆QUESTION NO.

1️⃣

In case of every doubt, tax exemptions 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

🏆 QUESTION NO. 2️⃣

The Corporate Income Tax Return consists of 4 pages and contains the following except:

I. Allowable Deductions

II. Gross receipts or income

III. Corporate profile and information

IV. Income tax due and payable

🏆 QUESTION NO. 3️⃣

KimSooHyun earned compensation income amounting to P150,000 and self-employment income

amounting to P800,000 in tax year 2018. He elected to use the 8% flat rate option at the beginning of
the year. He also has one (1) qualified dependent in 2018. Compute the annual income tax due of
KimSooHyun for tax year 2018.

🏆 QUESTION NO. 4️⃣

Which of the following are currently VAT-exempt transactions under TRAIN Law?

I. Sale of Gold to BSP

II. Sale of drugs prescribe for hypertension

III. Transfer of Property pursuant to Section 40(C)(2) of the Tax Code, as amended

IV. Membership fees of condominium corporations

🏆 QUESTION NO. 5️⃣

An importer wishes to withdraw its importation from the Bureau of Customs. The imported goods were
subjected to 10% customs duty in the amount of P12,500 and other charges in the amount of P9,500.
The value added tax due is:

🏆 QUESTION NO. 6️⃣

Under the TRAIN Law, which of the following lessors of residential units is/are subject to VAT?

No. of apartment units:

A - 25

B - 30

C - 15

D - 20

Monthly rent/unit:

A - 12,000

B - 13,500

C - 16,500

D - 15,200
🏆 QUESTION NO. 7️⃣

A store building was constructed on January 2, 2014 with a cost of P570,000. Its estimated useful life is
16 years. In January 2019, replacement of some worn-out parts of the building costing P50,000 was
spent. After the repairs, the building was appraised with a fair market value of P770,000.

The allowable deduction for depreciation for the year 2019 is?

🏆 QUESTION NO. 8️⃣

AERON Corporation was dissolved and liquidating dividends were declared and paid to the stockholders.
What tax consequence follows?

A. AERON Corporation should withhold a 10% creditable tax.

B. The dividends are exempt from tax.

C. The stockholders should declare their gain from their investment and pay income tax at ordinary
rates.

D. AERON Corporation should deduct a final tax of 10% from the dividends.

🏆 QUESTION NO. 9️⃣

Gross receipts tax is a business tax paid by a:

A. Hotel operator

B. Insurance company

C. Franchise holder

D. Bank

🏆 QUESTION NO. 10️⃣

After two years from the death of her husband, Nancy Matyas received the proceeds of life insurance of
her husband amounting to P1,254,400 including 12% compounded interest per year. How much is the
taxable amount?

🏆 QUESTION NO. 11️⃣

A test applied in the realization of income and expenses by an accrual basis taxpayer is called
____________?

🏆 QUESTION NO. 12️⃣

CYPHER Airways, a resident international carrier, had the following receipts during the month of
August:

A. Incoming flights

1. From passengers------80M

2. From cargoes------------60M

A. Outgoing flights

1. From passengers------50M

2. From cargoes------------20M

Assuming there is no reciprocity, how much is the percentage tax due? _____________

🏆 QUESTION NO. 13️⃣

Mr. Mime, a chief accountant of Pokemon Company, earned an annual compensation in 2021 of
P1,500,000 inclusive of 13th month and other benefits in the amount of P120,000 but net of mandatory
contributions to SSS and Philhealth. Aside from employment income, he owns a coffee shop with gross
sales of P2,400,000. His cost of sales and operating expenses are P1,000,000 and P600,000 respectively,
and with non-operating income of P100,000. If he opted to be taxed at 8% income tax rate on his gross
sales for his income from business, his tax due for 2021 is?

🏆 QUESTION NO. 14️⃣

Chespin Insurance Corporation furnished us its data shown below:

- Insurance premiums collectible is P3,750,000

- 75% of the above premiums is attributable to life insurance, while the 25% is for Non-life
insurance.

- During the month, 70% of collectible life insurance premiums and 50% of collectible non-life
insurance premiums were collected. The total business taxes should be?

🏆 QUESTION NO.15️⃣

Atty. Anita Lucenariois employed as a corporate-lawyer of FLP, International. In 200B, he received the
following from his employment.

Salary ................ P300,000

One thousand corporate shares of stock for special service rendered in October 200A:

- FMV per share - 200A ..... 100

- FMV per share - 200B ..... 125

Cancellation of debt in lieu of service rendered ......... 50,000

Insurance (the company is the beneficiary) .......... 20,000

Profit sharing ........... 40,000

Compute for the gross taxable compensation income of Mr. Thomas for year 200B.

🏆 QUESTION NO.16️⃣
Crisnalyn Bernardo engaged in business of processing, sale and export of animal feeds and effected
registration as VAT registered taxpayer. For the month of August 2020 (net of VAT), Crisnalyn had the
following data:

A. Export sales of feeds for animals

1. For human consumption--------2.3M

2. For race horses and

fighting cocks---------------------------700K

B. Domestic sales of feeds for animals

1. For human consumption--------1.5M

2. For race horses and

fighting cocks---------------------------500K

C. Input tax which cannot

be directly attributed to any

of the above sales--------------------150K

Compute the VAT payable / (excess input VAT) ____________

🏆 QUESTION NO. 1️⃣7️⃣

Date of tax erroneously paid - June 10, 2016

Date of claim for refund was filed with BIR - March 3, 2018

Date of BIR decision of denial was received - April 5, 2018

When is the last day to appeal to the Court of Tax Appeals?

🏆 QUESTION NO. 18️⃣

A PEZA-registered entity engaged as an export enterprise provided you with the following information
for the taxable year:

Export Sales...............P45,500,000

Direct Costs .................27,000,000

Administrative Expenses ................5,650,000

Marketing Expenses ..........2,720,000

Other Operating Expenses ..................1,330,000

Incidental Losses ............320,000

Additional Information:

Domestic sales at P24.5 million with direct costs at P17.4 million. Other expenses related to the sale
incurred amounted to P3,206,400. Its PEZA Letter of Authority NO. 18-ERD-LS-FP/EE-0001 provides a
domestic sales limitation at 30%. Determine the income tax still due to the BIR?

🏆 QUESTION NO. 19️⃣

Chikapu, vat-registered, made the following purchases during the month of February, 2018:

Goods for sale, VAT inclusive . . . . . . . . . . . . . . . . . . . . . . . . P346,455

Supplies, exclusive of VAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,321

Packaging materials, total invoice amount . . . . . . . . . . . . . . . . 86,000

Home appliances for residence, gross of VAT . . . . . . . . . . . . . . 17,920

Office Machines (5pcs), 8 years useful life, net of VAT . . . . . 2,000,000

Creditable input taxes are?

🏆 QUESTION NO. 20️⃣

The ABC Company is a PEZA-registered manufacturer entitled to Income Tax Holiday (ITH) incentive for
CY 2018. It is the company’s 5th year of operations. The following information pertain to the CY 2018
activities of the company:

Registered activities:

Gross sales............121,700,000

Cost of sales ..........103,400,000

Unregistered activities:

Sales ........................ 10,425,000

Cost of sales ...............7,297,500

Other income (net gain on disposal of office PPE)...............550,500

Operating expenses of P9,890,100 (use 90%-10% allocation between registered and unregistered
activities). Creditable withholding taxes (CWTs) from the first three (3) quarters amounted to P98,000
(including CWTs of P10,000 dated 2019) while CWTs for the fourth quarter total P33,600 (excluding
CWTs not in the name of ABC Company). How much is the income tax still due?