TO INTERNAL REVENUE TAXES Problem 1-1 1.. True – as a general rule, except if the merchandise is sold outside the Philippines not subject to business tax in the Philippines.. False – bus
Trang 1CHAPTER 1
INTRO TO INTERNAL REVENUE TAXES
Problem 1-1
1 True – as to the object of tax
2 True – as a general rule, except if the merchandise is sold outside the Philippines not subject
to business tax in the Philippines If the resident Filipino citizen is within the subsistence livelihood earnings, tax-exempt
3 False – business tax is another Internal Revenue Tax distinct from income tax
4 True
5 False – it is the other way around
6 True
7 True
8 True
9 True
10 False – citizens, resident or nonresident are subject to transfer tax for transfers within
11 False – on the 20th of the month following the taxable month
12 True
13 False – only income earned within will be taxable against resident alien
14 False – should be at least P1,000,000 per year
Problem 1-2 Problem 1-3
1 A 1 D
2 A 2 A
3 C 3 C
4 B 4 A
5 A 5 C
6 B 6 A
7 A 7 D
8 D 8 A
9 C 9 C
10 A 10 C
11 D 11 D
12 A 12 D
13 C 13 A
Problem 1–4
Subject to business tax is P6,000,000 Only sales within are subject to business tax
Subject to income tax:
Total sales (P6,000,000 + P4,000,000) P10,000,000
Total cost of sales (P2,000,000 + P1,500,000) ( 3,500,000)
Gross income P 6,500,000
Trang 2Subject to transfer tax (P3,000,000 + P2,000,000) P 5,000,000
Since the donor is a citizen, all of his properties donated within and without is subject to donor’s tax
Subject to business tax is P6,000,000 Only sales within are subject to business tax
Subject to income tax:
Sales – within P6,000,000
Cost of sales – within (2,000,000)
Subject to transfer tax (P3,000,000 + P2,000,000) P5,000,000
Since the donor is a citizen, all of his properties donated within and without is subject to donor’s tax
Problem 1–5
1 B 6 B
2 O 7 B
3 O 8 O
4 O 9 T
5 O 10 T
Problem 1–6
Taxable Amount Within Without Res Citizen Res Alien Non-Res
Alien Sales 3,000,000 2,000,000 3,000,000 3,000,000 3,000,000 Gross income 600,000 400,000 1,000,000 600,000 600,000
1 Taxpayer is a resident citizen
a P1,000,000 = [P5,000,000 – (P5,000,000/1.25)]
b P3,000,000
2 Taxpayer is a resident alien
a P600,000 = [P3,000,000 – (P3,000,000/1.25)]
b P3,000,000
3 Taxpayer is nonresident alien
a P600,000 = [P3,000,000 – (P3,000,000/1.25)]
b P3,000,000
Problem 1–7
1 P720,000 = (P600,000 x 1.2)
Trang 32 P180,000 = (P720,000 – P600,000) + (P660,000 – P600,000)
Problem 1–8
1 Tax returns:
a BIR Form 2551 – for business tax
b BIR Form 1701Q – for quarterly income tax return
c BIR Form 1701 – for annual income tax return
2 Dates of filing and payments:
a On or before the 20th of each month (BIR Form 2551)
b April 15, August 15, and November 15 for the first 3 quarters and April 15 of the
following year for the annual tax return