It is the governments duty to give taxpayers general advantages and protection in exchange for the

contributions that they have made. Which principle of taxation is described in this situation?
Benefit received principle
Which of these is a fee imposed on the right to exercise a professional practice or privilege?
License
This type of administrative tax remedy is used hen the government sei!es the personal property of a
delin"uent taxpayer to enforce payment of taxes.
#istraint
In this type of administrative tax remedy$ the taxpayers property is transferred to another ithout
compensation or consent of the rongdoer.
%orfeiture
In a compromise$ to parties agree to avoid litigation by reciprocal concessions. &ne party may demand
compliance of the other party$ ho ould then alter their demand to accommodate the compromise.
'tatement ( is correct hile statement ) is incorrect.
Which type of a situation allos compromise as a tax remedy?
The taxpayers financial position demonstrates an inability to pay tax
Which of these is *&T a re"uirement for ithholding tax?
Withholding exemption of the employee must be un+non
This type of ithholding income is applicable for the compensation and passive incomes.
%inal tax
In ithholding tax$ the employer must actually direct the or+ that the employee does. Withholding tax is
applicable only for the full,time employees.
There is no reasonable doubt as to the validity of the claim against the taxpayer
Which of the folloing best describes capital gains?
It is the sale or exchange of shares of stoc+
What is the main reason for setting up tax treaties?
To promote international trade
Which of the folloing is a tax exclusion obtained from the proceeds paid to beneficiaries upon the
death of an individual?
Life insurance
Which of these is *&T and alloable deduction t the estate of a citi!en or resident?
-xpenses from business
. person is insolvent hen his properties are not enough to pay his obligators. These claims ill be
paid out of the executors property.
'tatement ( is correct hile statement ) is incorrect.
Which of these is *&T re"uired for casualty losses to be deducible?
The loss has incurred not later than the last day for the payment of the estate tax
Which statement ould best describe the vanishing deduction?
It is a deduction for property previously taxed.
Which type of ordinary customs duty is applicable for items that are charged based only on some
standard of measurement?
'pecific
Imported vehicles are charged ith /0 of their mar+et value price$ plus 1/22 per metric ton. Which type
of ordinary customs duty is to be paid n this example.
.d valorem
The 1hilippine charges taxes on products delivered from 3hina in large "uantities ith abnormally lo
prices. What type of special custom duty does 3hina pay?
.nti,dumping duty
The ma+e,up company L&real failed to properly list all the chemicals in the delivery of cosmetic
products to the 1hilippines. Which type of customs duty must L&real pay?
4ar+ing duty
Which of these is *&T a characteristic of 5alue .dded Tax?
It is an e"ual amount imposed on firms
Which of these business activities may be included under the optional registration?
'ale of agricultural food products
Which of these statements best describes a 5.T,exempt sale?
The sale of goods and services hich are not sub6ect to output tax
If a person sells items that are 5.T,exempt$ he is re"uired to pay 5.T to the BI7. The seller of the 5.T,
exempt items may pass on the burden of the tax to the buyers.
'tatement ( and statement ) are both incorrect.
Which of these is *&T a violation of 5.T las?
%ailure to pass 5.T to buyers
What do value added taxes and percentage taxes have in common?
Both are business taxes.
1ercentage taxes cannot be passed on to the buyers. 8oever$ it is possible for the business to pass on
value added tax to buyers.
'tatement ( is incorrect hile statement ) is correct
Which of these is *&T an excisable product?
Imported goods
This classification of excise tax can capture increases in the volume of production.
'pecific tax
In this classification of excise tax$ only a shit in a products price can affect the excise tax imposed.
.d valorem tax
Which of these items have compounded excise taxes?
3igars
Which classification of excise tax is used for yachts and other vessels intended for pleasure or sports?
.d valorem tax
Which is the main purpose of documentary stamp tax?
To validate the authenticity of a document
The community tax is a form of residence tax used for documentation purposes. The community tax is
also applicable to documents that are going to be used as evidence in court.
'tatement ( is correct hile statement ) is incorrect
Which of these is *&T an example of a situation here community tax must be presented?
.n individual sells real property
1roblem solving
(. 4s. -lsa #elgado is a resident citi!en of the 1hilippines$ single$ ith no legal dependents. 'he
earned an annual income of 1 )9/$222 for the year )2(9. 'he also the sole oner of a business that
earned a depreciation expense of 1 :2$222. What is her income after tax?
). 4r. Brad #icarpio is a resident alien$ married ith to dependent +ids. 8e and his ife agreed that
any income tax deductions ould be subtracted to his on income. What is his income after tax?
%or the year )2(:$ he earned;
Income .mount
Income from business 1)</$222
3ompensation for in6uries 1 (2$222
7etirement and benefits 1 (2$222
Business expenses 1 :/$222
%ree legal services 1 )/$222
:. 'tar+ manufacturing is a foreign resident corporation that speciali!es in innovative technologies.
What is the income after tax?
%or the year )2(:$ it earned;
Income .mount
Income from business 1($()2$222
Business expenses 1 )22$222
7esearch and development expense 1 =2$222
Losses 1 (/$222
Bad debts 1 )/$222
9. 4r. 3lar+ >ent$ a resident citi!en of the 1hilippines passed aay and left his estate to his heirs. .fter
valuation$ it amounted to;
%or the year )2(:$ it earned;
Income .mount
?ross estate 19$/22$222
War damage payments 1 /22$222
Transfers to 1hilippine government 1 /22$222
%air mar+et value of family home 1 </2$222
8o much is the value of the estate after taxes?
/. Bara+o coffee shop is a 1hilippine corporation that has several locations ithin 4etro 4anila. %or the
year )2(:$ their sales and purchases amounted to;
%or the year )2(:$ it earned;
Income .mount
?ross sales 19$/22$222
1urchases of ra materials 1 /22$222
7ent expense to 5.T,registered businesses 1 /22$222
'alaries expense 1 </2$222
8o much is the 5.T payable?
'olution@@
(. ?ross income 1 )9/$222
Less; alloable deductionsA itemi!ed or optionalB 1 :2$222
*et income 1)(/$ 222
Less; personal and additional exemptions 1 /2$222
*et taxable income 1 (=/$222
Tax rate 1 ))$/22 CA )/0 of excess over
(92$222 D 1 =$ )/2B 1 )E$</2
Income after tax 1 (:=$)/2
). ?ross income 1 )</$ 222
Less; alloable deductions 1 <2$222
*et income 1 )2/$222
Less; personal and additional exemptions 1 (22$222
*et taxable income 1 (2/$ 222
Tax rate; 1 E$/22 C A)20 in excess of 1 <2$222B 1 (/$ /22
Income after tax 1 EF$ /22
:. Income tax for corporation
?ross income 1 ($()2$222
Less; itemi!ed deductions or (20 standard deduction 1 :22$222
Taxable income 1 E)2$222
4ultiplied by; tax rate A:20B 1 )9=$222
Income after tax 1 /9<$222
9. Item
?ross estate 1 9$ /22$ 222
Less; alloable deductions 1 ($ )/2$ 222
*et estate 1 :$ )/2$ 222
Less; exemptions nGa
Taxable *et -state 1 :$ )/2$ 222
4ultiplied by; Tax 7ate A((0 of excess over 1)4B 1 (:<$ /22
-state Tax 1ayable 1 )<)$ /22
-state after tax A gross estate less estate tax payableB 1 9$ ))<$ /22
/. ?ross sales 1 )$ 2/2$ 222
4ultiplied by; ()0 2.()
&utput tax 1 )9=$ 222
1urchase of ?oodsG 1ropertiesG services 1 /E2$ 222
4ultiplied by; ()0 .()
Input tax 1 =F$ =22
&utput tax 1 )9=$ 222
Less; input tax =F$ =22
5.T 1ayable 1 (<=$ 922

-xplain the method of payment for the excise taxes. A/,(2 sentencesB