This document contains 20 multiple choice questions related to taxation in the Philippines. The questions cover a range of tax topics including: dividends received from domestic corporations; capital gains tax; taxation of foreign income; final withholding tax; taxation of prizes, awards and winnings; and principal residence exemption.
This document contains 20 multiple choice questions related to taxation in the Philippines. The questions cover a range of tax topics including: dividends received from domestic corporations; capital gains tax; taxation of foreign income; final withholding tax; taxation of prizes, awards and winnings; and principal residence exemption.
This document contains 20 multiple choice questions related to taxation in the Philippines. The questions cover a range of tax topics including: dividends received from domestic corporations; capital gains tax; taxation of foreign income; final withholding tax; taxation of prizes, awards and winnings; and principal residence exemption.
This document contains 20 multiple choice questions related to taxation in the Philippines. The questions cover a range of tax topics including: dividends received from domestic corporations; capital gains tax; taxation of foreign income; final withholding tax; taxation of prizes, awards and winnings; and principal residence exemption.
One of the following dividends received from a domestic corporation is not subject to final tax Cash dividends received by resident foreign corporation Q2. Mr. Ravenclaw, not a dealer in securities, had the following transaction of common shares of stock of Slytherin Co. a resident corporation: Purchases on February 14, 2018 0f 300 shares 30,000 Purchases on March 11, 2018 of 200 shares 21,000 Purchases on July 10, 2018 of 120 shares 13,200 Sale on July 30, 2018 of 320 shares 26,500 The taxpayer uses weighted average method in determining the cost of the stocks sold How much is the cost of the stocks sold? 33,136 Q3. If an account in an depository bank under the foreign currency deposit system is jointly in the name of a non-resident citizen such as an overseas contract worker, or a Filipino seaman, and his spouse or dependent who is a resident of the Philippines, the interest on such deposit shall be: 50% exempt and 50% subject to final withholding tax of 15% Q4. On the following dividends received from a domestic corporation is not subject to final tax Cash dividends received by resident foreign corporation Q5. Which of the following share in the net income received by an individual shall not be subject to final tax but to regular income tax for individuals? Share of an individual from a GPP None of the choices Q6. Mr. Ravenclaw, not a dealer in securities, had the following transaction of common shares of stock of Slytherin Co. a resident corporation: Purchases on February 14, 2018 0f 300 shares 30,000 Purchases on March 11, 2018 of 200 shares 21,000 Purchases on July 10, 2018 of 120 shares 13,200 Sale on July 30, 2018 of 320 shares 26,500 The taxpayer uses weighted average method in determining the cost of the stocks sold The amount of loss not recognized on the sale of July 30, 2018 is? 2,489 Q7. Interest income received by an individual from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates in such from prescribed by the Bangko Sentral ng Pilipinas (BSP) shall be: Exempt from the tax Q8. The taxpayer had the following income in 2018: This study source was downloaded by 100000843801811 from CourseHero.com on 03-20-2022 04:15:41 GMT -05:00
https://www.coursehero.com/file/69968522/intaxdocx/ 1. Interest on bank deposit 2. Philippine peso deposit, gross P 400,000 3. US dollar deposit, gross US $ 160,000 (Rate of Exchange 1 US $ - Php 50.00) 1. Royalty 2. Philippines P 1,000,000 3. USA US $ 20,000 (Rate of Exchange 1 US $ - Php 50.00) 4. Winning from Raffle – Jhonny’s Supermarket 5. Dividends from Resident Foreign Corporation. The gross income from the Philippines for the past 3 years is 60% P80,000 6. Dividend from Domestic Corporation P40,000 If the taxpayer is a resident foreign corporation, determine the final tax due 880,000 Q9. On July 1, 2018, Ms. Umbridge sold shares of stock for P200,000. The shares, acquired on June 1, 2016 at a cost of P150,000, were held as investment, and were sold directly to a buyer under the following terms: Down payment, July 1, 2018 P20,000 Installment due, October 10, 2018 30,000 Installment due, October 10, 2019 75,000 Installment due, October 10, 2020 75,000 Determine the capital tax due in 2018? 1,875 Q10. A resident citizen received a price of P40,000. Which of the following statements is correct in connection with the imposition of final tax on prize? The whole amount of 40,000 shall be subject to 20% final tax Q11. Ms. Minerva sold her residential house under the following terms: Cash received, January 10, 2018 P100,000 Amount received, June 10, 2018 100,000 Installment due, June 10, 2019 600,000 Additional information: Cost of land 150,000 Mortgage assumed by the buyer 200,000 How much is the capital gains tax due in 2018? 60,000 Q12. Mr. Avenido acquired his principal residence in 2016 at a cost of P1,000,000. He sold the said property on January 1, 2018, with a fair value of P5,000,000 for a consideration of P4,000,000. Mr. Avenido Acquired his This study source was downloaded by 100000843801811 from CourseHero.com on 03-20-2022 04:15:41 GMT -05:00
https://www.coursehero.com/file/69968522/intaxdocx/ new principal residence within the 18-month reglementary period but did not utilize the entire proceeds of the sale in acquiring his new principal residence. How much is the capital gains tax? 75,000 Q13. The taxpayer had the following income in 2018: 1. Interest on bank deposit 2. Philippine peso deposit, gross P 400,000 3. US dollar deposit, gross US $ 160,000 (Rate of Exchange 1 US $ - Php 50.00) 1. Royalty 2. Philippines P 1,000,000 3. USA US $ 20,000 (Rate of Exchange 1 US $ - Php 50.00) 4. Winning from Raffle – Jhonny’s Supermarket 5. Dividends from Resident Foreign Corporation. The gross income from the Philippines for the past 3 years is 60% P80,000 6. Dividend from Domestic Corporation P40,000 If the taxpayer is a non-resident citizen, determine the final tax due
290,000 Q14. Hagrid. A non-resident alien not engaged in trade or business, received the following during the year: Interest Income received from bank, foreign currency P80,000 Royalties from Books P150,000 Lotto winnings from Japan P50,000 Royalties from Licensing Agreement P100,000 PCSO winnings P300,000 Prize from singing competition P9,000 Winning from Nobel peace prize P15,000 Other prizes earned P15,000 Prizes and awards received as best athlete in the Palarong Pambansa P10,000 Compute the final tax
163,400 191,333 Q15. Final tax is generally withheld: I – on passive income. II – from Philippine sources. Only II is correct Q16. When is the capital gains tax return filed by a natural or juridical person, resident or nonresident, who is not exempt under existing laws for the sale, barter, exchange or other onerous disposition intended to transfer ownership of shares of stocks in domestic corporation classified as capital assets, not traded through the local stock exchange. I. Within 30 days after each sale, barter, exchange, or other disposition of shares of stock not traded through the local stock exchange. II. In case of installment sale, the return shall be filed within 30 days following the receipt of the first down payment and within 30 days following each subsequent installment payment.
Only II is correct This study source was downloaded by 100000843801811 from CourseHero.com on 03-20-2022 04:15:41 GMT -05:00
https://www.coursehero.com/file/69968522/intaxdocx/ Q17. Under this system, the amount of income tax withheld by the withholding agent is constituted as a full and final payment of the income tax due from the payee on the said income. Final Withholding Tax Q18. Hagrid, A resident alien, received the following during the year Interest income received from bank, foreign currency P80,000 Royalties from books P150,000 Lotto winnings from Japan P50,000 Royalties from Licensing agreement P100,000 PCSO winnings P300,000 Prize from singing competition P 9,000 Winnings from Nobel Peace Prize P20,000 Other prizes earned P15,000 Prizes and awards received as best athlete in the Palarong Pambansa P10,000 Compute the final tax 155,368 Q19. The commissioner of the internal revenue shall be duly notified by the taxpayer within how many days from the date of sale or disposition of the principal residence through a prescribed return of his intention to avail of the tax exemption from capital gains tax? 30 days Q 20. The taxpayer had the following income in 2018: 1. Interest on bank deposit 2. Philippine peso deposit, gross P 400,000 3. US dollar deposit, gross US $ 160,000 (Rate of Exchange 1 US $ - Php 50.00) 1. Royalty 2. Philippines P 1,000,000 3. USA US $ 20,000 (Rate of Exchange 1 US $ - Php 50.00) 4. Winning from Raffle – Jhonny’s Supermarket 5. Dividends from Resident Foreign Corporation. The gross income from the Philippines for the past 3 years is 60% P80,000 6. Dividend from Domestic Corporation P40,000 If the taxpayer is a Domestic Corporation, determine the final tax due
1,480,000 Q 21. Which of the following is not subject to the 6% capital gain tax? None of the choices Q22. The deadline for filing the quarterly final income tax withheld by Dumbledore on March 15, 2019 is on? April 30, 2019
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https://www.coursehero.com/file/69968522/intaxdocx/ Q23. First statement: The tax on interest income from foreign currency deposit shall be imposed unless the depositor who is a non-resident citizen or non-resident alien can present documentary evidence that he is not a resident of the Philippines Second statement: To be entitled to an exemption from the tax on interest income on foreign currency deposit, the Foreign Currency Bank Account shall be in the name of the non-resident individual or non-resident corporation Both are correct Q 24. The term shall mean an alternative form of obtaining funds from the public other than deposits, through issuance, endorsement or acceptance of debt instruments for the borrowers own account, for the purpose of relending or purchasing of receivables and other obligations, or financing their own needs or the needs of their agent or dealer. Deposit substitute Q 25. Which of the following shall be exempt from income tax? I – Philippine charity sweepstakes winnings and lotto winnings II – Interest income from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment managements accounts and other investments evidenced by certificates in such form prescribed by Bangko Sentral ng Pilipinas (BSP) Neither I or II Q 26. A non-resident alien not engaged in trade or business derived P50,000 interest income from the long-term bank deposit here in the Philippines. How much is the income tax due of the said alien? 12,500 Q 27. First statement: If the property was acquired by devise, bequest, or inheritance, the basis shall be the fair market value of such property at the time of death of the decedent. Second statement: If the property was acquired by gift, the basis shall be the same as it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, except that if such basis is greater than the fair market value of the property at the same time of the gift, then for the purpose of determining the loss, the basis shall be such fair market value Both statements are correct Q28. Which of the following shall not be subject to the 20% final tax? Prizes amounting to 10,000 or less Q 29. An individual taxpayer owns several pieces of land which are classified as capital assets. He has the following data for the current year: M- million Lot 1 Lot 2 Lot 3
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https://www.coursehero.com/file/69968522/intaxdocx/ Selling Price P 3M 4M 5M Less cost (1.5M) (3M) (6.5 M) Gain (loss) 1.5 M 1M 1.5M FMV, time of sale 2.5 M 5M 7M Selling price of an adjacent 2M 6M 8M lot
Lot A= 180,000 Lot B=300,000 Lot C= 420,000
Q30. Which of the following cash and/or property dividends actually or constructively received by an individual shall not be subject to final tax but to regular income tax for individuals. Cash or property dividends from NRFC
Q31. Interest income derived by a resident foreign corporation from a depository bank under the expanded foreign currency deposit system shall be subject to a final income tax at the rate of: 7.5% of such interest income Q 32. Which of the following passive income from the Philippines sources is exempt from Philippine income tax when received by non-resident aliens and non-resident citizens? Interest income received from a depository bank under EFCD system
Q33. An individual taxpayer held shares of stocks as investments. During the current year, he sold the shares he bought for P100,000 to a direct buyer for P180,000. He incurred P30,000 selling expense in connection with the sale. How much was the capital gains tax of the sale if any? 7,500 Q34. The taxpayer had the following income in 2018: 1. Interest on bank deposit 2. Philippine peso deposit, gross P 400,000 3. US dollar deposit, gross US $ 160,000 (Rate of Exchange 1 US $ - Php 50.00) 1. Royalty 2. Philippines P 1,000,000 3. USA US $ 20,000 (Rate of Exchange 1 US $ - Php 50.00) 4. Winning from Raffle – Jhonny’s Supermarket 5. Dividends from Resident Foreign Corporation. The gross income from the Philippines for the past 3 years is 60% P80,000 This study source was downloaded by 100000843801811 from CourseHero.com on 03-20-2022 04:15:41 GMT -05:00
https://www.coursehero.com/file/69968522/intaxdocx/ 6. Dividend from Domestic Corporation P40,000 If the taxpayer is a resident citizen, determine the final tax due 1,490,000 Q35. On July 1, 2018, Ms. Umbridge sold shares of stock for P200,000. The shares, acquired on June 1, 2016 at a cost of P150,000, were held as investment, and were sold directly to a buyer under the following terms: Down payment, July 1, 2018 P20,000 Installment due, October 10, 2018 30,000 Installment due, October 10, 2019 75,000 Installment due, October 10, 2020 75,000 Determine the documentary stamp tax in 2018? 1,125
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