09/18/10

FINAL PRE-BOARD EXAMINATION

September 18, 2010
1. A, B, and C are partners in a universal partnership of profits engaged in operation
of taxis. The partners contributed:
A- 100 Toyota Vios
B- 3,000 sqm land
C- Fuel and oils
Which of the ff. is correct?
a. In case of loss due to fortuitous event, the partnership bears the loss
b. The partnership becomes the owner of the things contributed to the
partnership
c. The partners retained the ownership over the things they contributed hence,
they will bear the risk of loss
d. The partnership begins from the moment of the execution of the contract,
except if stipulated otherwise
2. Which of the ff. statements is not correct?
a. The creditor acquires real right to the fruits of the thing from the time they
have been delivered
b. An oral sale of land made by its owner is unenforceable
c. The buyer acquires real right to the fruits of the thing from the perfection of
the sale
d. A sale of land made by an agent without a written authority from the owner is
void
3. A, 16 years of old sold his property to B who did not notice that A is a minor. One
year later, B sold the property to C who knew that A is a minor. Can A ask for
annulment of the sale?
a. Yes, because C is in bad faith
b. No, because B is in good faith
c. No, because B is not capable of returning the property
d. Yes, whether C is in good faith or bad faith because the title of B is voidable
4. A promissory note reads I promise to pay A,B,C and D P24,000. Sgd. E, F and G.
B can collect from E?
a. P24,000
b. P8,000
c. P6,000
d. P2,000
5. Today, S sold to B in Ss name the land of O, without authority from O. B bought
the land in good faith. The contract provides that the delivery will be 30 days from
today. The contract is
a. Valid if S owns the land on the day of the delivery
b. Void, because S was not the owner of the land when the contract is perfected
c. Unenforceable, because S had no authority to sell the land
d. Voidable, because S is guilty of fraud
6. A, B, and C are solidary debtors of D for P90,000 where the due date is on April 1,
2011. On January 1, 2011, A paid D P90,000. Later A demanded reimbursement
from B. If B effects reimbursement to A on July 1, 2011. Which of the ff. is correct?
a. B pays A P60,000 plus interest from Jan. 1, 2011 to July 1, 2011
b. B pays A P30,000 plus interest from Jan. 1, 2011 to July 1, 2011
c. B pays A P30,000 plus interest from Apr. 1, 2011 to July 1, 2011
d. B pays A P45,000 plus interest from Jan. 1, 2011 to July 1, 2011
7. S sold his agricultural land to B for P1M. The FMV is P1.5M. B paid S in counterfeit
peso bills. The sale is
a. Void, because the cause is illegal
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b. Valid, because the cause is the selling price of P1M
c. Rescissible, because of lesion w/c is more than of the value of the property
d. Voidable, because of the fraud committed by B.
8. As regards cash dividend, which of the ff. is correct?
a. Declared by the board by majority vote and ratified by the stockholders by
majority vote
b. Declared by the board by majority vote and ratified by the stockholders by 2/3
vote of the outstanding capital stock
c. Declared by the board by majority vote and need not to be ratified by the
stockholders
d. Declared by the board by 2/3 vote and need not to be ratified by the
stockholders
9. A borrowed from B P2M and to secure its payment, A orally agreed to deliver his 8
hectare agricultural land by way of antichresis and to pay 12% per annum. Which
is correct?
a. The contracts of loan and antichresis are both valid
b. The contracts of loan is valid but the antichresis is void
c. The contracts of antichresis is valid but the loan is void
d. Both are void contracts
10.
a.
b.
c.
d.

Elements of contracts of pledge and mortgage, except

Both are accessory contracts
Both are real contracts
Both cannot exist without a valid obligation
In case of default, the creditors cannot appropriate the things pledged or
mortgaged

11.
Which of the ff. statements is not correct?
a. An agreement to constitute a commodatum is binding and is perfected from
the moment there is meeting of minds
b. Fixed, savings, and current deposits of money in banks and similar institutions
shall be governed by the provisions concerning mutuum
c. Precarium is a kind of commodatum where the bailor may demand the thing
loaned at will
d. In case of extraordinary expenses, the debtor in mutuum will shoulder 50% if
he is in actual use of the thing borrowed
12.
A contributed P1M, B contributed 1M, and C contributed services. They
agreed to divide profits and losses equally. In case of loss of P3M, for how much, if
any, is C liable?
a. Nothing, because an industrial partner is exempt from losses
b. P1M but with reimbursement from A and B equally
c. A and B shall shoulder the loss equally at P1.5M each
d. P1M as stipulated
13.
As regards the corporate by-laws, which of the ff.is true?
a. To adopt, amend or repeal, 2/3 of the outstanding capital stock is needed
b. To delegate to the BOD the power to amend, repeal or adopt new by-laws,
majority of the outstanding capital stock
c. To revoke the power delegated to the board to amend, repeal or adopt new bylaws, 2/3 of the outstanding capital stock
d. To amend, repeal or adopt new by-laws, majority of the outstanding capital
stock

14.

A contract of antichresis is
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09/18/10
a. A contract of mortgage whereby possession of the mortgaged property is
given to the creditor
b. A contract of loan secured by a real property, where possession is retained by
the debtor
c. A contract of loan without security
d. A consensual contract as it is perfected by mere consent
15.
A subscribed to 1,000 voting shares of stock of X corporation. She paid
25% of the said subscription. During the stockholders meeting, can A vote all her
subscribed shares?
a. No, because the subscription has not yet been fully paid
b. No, because As shares have become delinquent which cannot be voted
c. Yes, as to the paid % of subscription
d. Yes, because unpaid shares not delinquent can be voted
16.
To defraud his creditor, A sold his property to B(who was in good faith).
Later, B sold the property to C who was in bad faith. May the creditor rescind the
sale?
a. Yes, because C is in bad faith
b. No, because B is in good faith
c. No, because B is not capable of returning the property
d. Yes, because the contract is rescissible
17.
A was having his house repaired by B, who needed construction materials,
so A orally told the seller C. Give B the materials, I shall be responsible, I shall
pay in 30 days. C delivered the materials. As a result
a. The contract is unenforceable because A made an oral agreement to answer
for the debt of B
b. The contract is enforceable because A made did not make a special promise to
answer for the default of another person
c. The contract shall be enforceable if there is ratification by A
d. The contract shall be unenforceable if the value is at least P500.00
18.
Under the Negotiable Instruments Law, to be a holder in due course, the
holder must have acquired the instrument before it is overdue. Does this apply to
the payee to whom the maker issued an overdue note?
a. Yes, because the payee is still considered a holder
b. Yes, because issuance to the payee is not considered a negotiation
c. No, because the law does not distinguish between payee and subsequent
holder
d. No, because the payee is privy to the contract between himself and the maker
19.
In which of the ff. is demand necessary to make the debtor in delay in the
performance of his obligation?
a. When the time of performance is of the essence
b. When the time of performance has been stipulated
c. When the law so provides
d. When demand would be useless
20.
With written authority from his principal, the agent sold orally the land of
the principal. The sale is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
21.
Without authority from B, A orally sold Bs house in Bs name. The sale is
a. Rescissible
b. Voidable
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c. Unenforceable
d. Void
22.
S sold to B his land on September 19, 2010. On September 25, an absolute
deed of sale was executed and notarized. On September 30, the sale was
registered with the Registry of Deeds. On October 5, B took actual possession of
the land by building a fence thereon. When did B acquired ownership of the land
a. Sept 19
b. Sept 25
c. Sept 30
d. Oct 5
23.
S sold to B his car on September 19, 2010. On September 25, an absolute
deed of sale was executed and notarized. On September 30, the sale was
registered with the LTO. On October 5, B took actual possession of the car. When
did B acquire title to the car?
a. Sept 19
b. Sept 25
c. Sept 30
d. Oct 5
24.
A and B are co-owners of a parcel of land. A donated his share to C. Can B
redeem the said share from C?
a. Yes, because the law looks with disfavor at co-ownership
b. No, because legal redemption applies only in case of onerous transfers
c. No, unless he enforce his right through court action
d. Yes, but in proportion to his interest in the land as co-owner
25.
D owes C a sum of money with M as mortgagor of his land to secure the
loan. Is the mortgage valid even the mortgagor is not the debtor?
a. Yes, provided M is the absolute owner of the property mortgaged
b. Yes, provided it is in writing and registered
c. No, the mortgagor must be the debtor himself
d. No, unless the mortgagor is a co-debtor
26.
In three of the ff cases, the agency cannot be revoked without a just cause,
except
a. It is a means of fulfilling an obligation already existing
b. A bilateral contract depends upon it
c. It is coupled with interest common to the agent and principal
d. Partner is appointed manager in the articles of partnership
27.
P appoints A as guarantee commission agent to sell his products. A sold
them to B who failed to pay despite the diligent efforts of A in collecting. Is A still
liable for the purchase price?
a. Yes, because of the guarantee commission given to him
b. No, because he was not as fault in the collection
c. No, if he returns the guarantee commission
d. Yes, but he is not entitled anymore to commissions
28.
P appointed A1 and A2 as his agents for a common transaction and they
agreed that they shall be solidarily liable to P for damages in case of violation of
their obligations as such. When is the agent at fault the only liable for damages
even if solidarity has been stipulated?
a. If the other agent is not at fault
b. Both of them are always liable
c. If the one at fault shall answer for all the damages
d. If the one acted in excess of authority

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29.
A, B, and C entered into an oral contract of partnership each contributing
P2M to the common fund but failed to register the partnership with SEC. Is the
partnership valid?
a. No, because every contract of partnership having a capital of P3,000 or more
in money or property must be in public instrument and registered with SEC
b. Yes, because public instrument is necessary only in case of contributions of
immovable
c. Yes, because a partnership contract does not require a specific form to be valid
d. No, because registration with the SEC is essential for a partnership to be valid
and acquire juridical personality
30.
A and B are co-owners of a parcel of land from where they share profits
equally as co-heirs in inheritance. Is there a partnership?
a. There is a prima facie presumption of partnership because of the equal sharing
of profits
b. There is no partnership because co-ownership by itself does not establish a
partnership despite the sharing of profits
c. There is no partnership since in partnership, division of profits is not always
necessary among partners
d. There is a prima facie presumption of partnership they being co-owners and
co-possessors
31.
A and B are partners in AB partnership. While A was performing his duties
as a partner in the course of business, he negligently caused damaged to X, a
third person. Who shall be liable to X and up to what extent?
a. Only the partnership shall be liable it being a juridical person separate and
distinct from the partners
b. Only A shall be liable for he is the only at fault
c. Both A and B are solidarily liable to XX
d. A, B, and the Partnership are all liable solidarily to X
32.
A, B, and C as partners in a partnership stipulated that A shall not share in
the profits and losses. Is the agreement valid?
a. Yes, among the partners but not to third persons
b. Yes, valid as long as third persons are not prejudiced
c. Not valid stipulation exempting a partner from sharing in the profits or losses
d. Not valid as against third persons or partnership creditors
33.
a.
b.
c.
d.

In the matter of management of the corporation, this is supreme

President
Chairman of the BOD
Stockholders
BOD

A promissory note reads:

I promise to pay P or order Php100,000. Sgd. M. The promissory note was
issued by M to P in payment of merchandise purchased from P. However, P
delivered only Php60,000. Later P made a qualified indorsement to A, who was
not aware of the partial absence of consideration. Thereafter, A made a special
indorsement to B, then B made a blank indorsement to C. Both B and C are
aware of the partial absence of consideration.
34.
In the hands of A, A can collect from M
a. P100,000
b. P60,000
c. P40,000
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d. P0
35.
a.
b.
c.
d.

In the hands of B, B can collect from M

P100,000
P60,000
P40,000
P0

36.
a.
b.
c.
d.

Using the preceding number, if M dishonors the note, B can collect from P
P100,000
P60,000
P40,000
P0

37.
a.
b.
c.
d.

In the hands of C, C can collect from M

P100,000
P60,000
P40,000
P0

38.
a.
b.
c.
d.

Which of the ff. is not negotiable?

I promise to pay P or order P100,000, 30 days after date.
Sgd. M
I promise to pay P or bearer P100,000.
Sgd. M
Pay to P or order P100,000 on Dec.25, 2010.
Sgd. M
Pay to P or bearer P100,000 and charge the same against my deposit with you.
Sgd. M to Y

39-40. M made a negotiable promissory note payable to the order of P. Later, P

made a special indorsement to A. Then B stole the note from A and indorsed it
to C who received the note in good faith. Later C indorsed the note to D.
39.
Which of the ff.is correct?
a. D can collect from M but not from A
b. If M will not pay, D can collect from P
c. A can collect from M
d. C can collect from indorsers P and B
40.
Using the preceding number, if M pays D in good faith, which of the ff. is
correct?
a. The obligation of M is extinguished
b. A can collect from M
c. The obligation of P is extinguished
d. A should collect from B, the thief
41.
When a property is transferred during lifetime to relieve the transferor from
the burden of management of such property, and the transfer is subject to tax,
the basis of tax is
a. The FMV at the time of donation
b. The FMV at the time of the death of the donor
c. The FMV at the time the donor required the property
d. The cost of the property in the hands of the donor
42.
Which of the ff. taxes had been replaced by the VAT?
a. Percentage tax on international air and shipping carriers doing business in the
Philippines
b. Tax on life insurance premium
c. Caterers tax on operators of restaurant and eating places
d. Tax on agents of foreign insurance companies
43.
The DOC restaurant, a VAT registered taxpayer, issued the ff. official receipt
dated September 18, 2010:
2 pcs. Crispy chicken
P200.00
Siomai special
45.00
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Sago-gulaman
85.00
Mushroom and chicken soup
100.00
Braised beef with cauliflower
240.00
Coke light in can (2xP40)
80.00
P750.00
Local tax
15.00
Service charge
60.00
Total
P825.00
The output vat on the sale is:
a. P99.00
b. P88.39
c. P80.36
d. P90.00
44.
Mr. and Mrs. A donated a conjugal agricultural land to their son who is
getting married with 10 months after the date of donation. The FMV at the time of
marriage was P800,000 but its FMV at the time of donation was P600,000. The
donated property was subject to P100,000 mortgage which was assumed by the
donors. The taxable net gift of Mr. A is?
a. P240,000
b. P290,000
c. P390,000
d. P340,000
45.
An individual taxpayer is qualified to substituted filing of ITR if he meets
the ff. requisites, except
a. Pure compensation income only
b. One employer during the calendar year
c. Creditable withholding tax is correct
d. Should be a minimum wage earner

46.
A taxpayer received as assessment notice on February 14, 2010. He filed a
motion for reconsideration with the BIR on February 22, 2010. The submission if
necessary documents to support his motion for reconsideration is
a. Mar. 14, 2010
b. Apr. 23, 2010
c. Apr. 15, 2010
d. Mar. 22, 2010
47.
Under the absolute community of property, which of the ff. is a community
property?
a. Property inherited by the surviving spouse during the marriage
b. Property bought during the marriage using the money inherited of the
decedent before marriage
c. Personal belongings bought during the marriage for the exclusive use of the
decedent
d. Jewelry inherited by the decedent during the marriage
48.
Which of the ff. properties owned by a non-resident alien decedent is not
subject to the rule of reciprocity?
a. Shares of stock in a Philippine domestic corporation
b. Investment in stock in a US corporation 80% of the business of which is in the
Philippines
c. Investment in bonds in a US corporation that have acquired business situs in
the Philippines
d. 40% share in a Philippine partnership
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49.
Which of the ff. shall not be exempt from VAT?
a. Sales by agricultural cooperatives duly registered and in good standing with
the Cooperative Development Authority (CDA) to their members, as well as
sale of their products, whether in its original state or processed form, to nonmembers.
b. Gross receipts from lending activities by credit or multi-purpose cooperatives
duly registered with the Cooperative Development Authority whose lending
operation is limited to their members.
c. Sales by non-agricultural, non-electric and non-credit cooperatives duly
registered with the CDA if the capital contribution of each member does not
exceed Fifteen Thousand Pesos (P15,000.00)
d. Sales of electric cooperatives duly registered with the CDA relative to the
generation and distribution of electricity
50.
A common carrier by land is engaged in the transport of passenger, goods
and cargoes. As gross receipt amounted to P3M, 50% of which came from
transport of passengers. He is not VAT-registered. What business taxes will A pay?
a. 12% VAT
b. 3% common-carriers tax
c. 3% tax on VAT-exempt persons on gross receipts from transport of goods and
cargoes and 3% common carriers tax on gross receipts from transport of
passengers
d. 12% VAT on gross receipts from transport of goods and cargoes and 3%
common carriers tax on gross receipts from transport of passengers
51.
A keeper of garage whose gross receipts for the year exceed P1,500,000 is
subject tp
a. VAT
b. Common carriers tax
c. Excise tax
d. Franchise tax

52.
The ff. are related to the tax assessment of a taxpayer
Assessment received
January 5, 2010
Petition for reconsideration filed with BIR
February 1, 2010
Documents supporting the petition filed with BIR
February 7, 2010
Decision of BIR denying the petition received by the taxpayer
March 22,
2010
Second request for reconsideration filed with BIR
March 30, 2010
Decision of denial of 2nd request for reconsideration was received
April 12,
2010
Last day to appeal to the Court of Tax Appeals:
a. May 12, 2010
b. July 4, 2010
c. May 4, 2010
d. June 4, 2010
53.
Which of the inherent powers may be exercised even by public service
corporations and public utilities?
a. Taxation
b. Eminent domain
c. Police power
d. A and B

09/18/10
54.
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 Congress provided for 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 Congress has the sole discretion of determining whom to tax
d. Not valid, because only the grant amnesty is the sole prerogative of the
precedent
55.
How long must the books of account be kept?
a. Beginning of preceding taxable year to last day of current taxable year
b. Beginning of current taxable year to last day of the following taxable year
c. Beginning from the last entry in each book until the last day prescribed within
which the commissioner is allowed to make an assessment
d. 3 years beginning from the current taxable year to last day of third taxable
year
56.
Due to financial difficulties, ABC Corp. requested that its 2009 income tax
liability of P400,000 be paid in 4 equal monthly installments, starting April 15,
2010. Its request for installmaent payments was approved April 8, 2010. The tax
due on May 15, 2010 is
a. 100,000
b. 101,667
c. 105,000
d. 106,667

57.
Which of the ff. is not correct?
a. A tax credit certificate validly issued by the BIR maybe uses as credit against
internal revenue taxes except against withholding tax
b. All taxes imposed and collected by the BIR are internal revenue taxes
c. Public officials who acquire information on violation of internal revenue laws in
the performance of their duties during their incumbency are entitled to
informers reward
d. The proceeding on the protest in the BIR is an administrative proceedings
58.
On March 31, 2010. A received 100 shares of stock with a FMV of
P120/share as of March 31, 2010. The shares of stock were intended to pay the
services rendered by A on November 20, 2009. At which the FMV was P100/share.
The par value per share is P50. The income of A is
a. P12,000
b. P10,000
c. P5,000
d. P7,000
59.
Which of the ff. is not correct?
a. An article subject to excise tax maybe exempt from VAT
b. An article subject to excise tax maybe subject to VAT
c. A taxpayer may have two businesses where one is subject to VAT and the
other is subject to OPT
d. Manufacturers and importers of goods are subject to excise tax

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60.
Mr. Araki, a non-resident alien stockholder, received a dividend income of
P300,000 in 2010 from a domestic corporation whose gross income from within
and without the Philippines for three years preceding 2010 show:
Source of Income
2007
2008
2009
From within the Philippines
16M
12M
24M
From without the Philippines
18M
14M
16M
How much of the individual income received by Mr. Araki is considered income
from sources within the Philippines?
a. 0
b. 156,000
c. 300,000
d. 144,000
61.
Which of the ff. is not a condition imposed by the Constitution for the
exercise of the power of eminent domain?
a. The consent of the owner of the private property to sell the same to the govt.
b. The payment of just compensation
c. The observance of due process in taking of private property
d. The existence of public use for the taking of a private property
62.
Mr. Bagongbahay acquired his old principal residence in 1990 at a cost of
P4M. He sold the said property on January 1, 2010 for P16M, although the FMV on
that date was P20M. Within the reglementary period, Bagongbahay acquired his
new principal residence for P12M. Which of the ff. is incorrect?
a. He has to pay CGT of P300,000
b. The cost basis for the new principal residence is P3.2M
c. The utilized amount of the gross SP is P12M
d. If the proceeds were not used to by a new principal residence, the CGT should
have been P1.2M
63-64. For the months of Aug. and September 2010, ABC Bank has the ff.
income/loss
Interest income with maturity
August
September
-of less than 5 years
P800,000
P1M
-of more than 5 years
P800,000
P1M
Rentals
P400,000
P800,000
Net trading gain (loss)
(100,000)
P200,000
63.
The gross receipts tax of ABC Bank for August is
a. P76,000
b. P68,000
c. P69,000
d. P63,000
64.
a.
b.
c.
d.

The gross receipts tax of ABC Bank for September is

P125,000
P130,000
P116,000
P123,000

65.
a.
b.
c.
d.

Which of the ff. is not subject to VAT?

Non-life insurance premiums
Non-life reinsurance premiums
Non-life insurance commissions
Non-life reinsurance commissions

66.
to
a.
b.
c.

It is an aspect of taxation that is administrative in character and the power

exercise it is vested on the Department of Finance
Levying
Collection
Imposition
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d. Legislation
67.
a.
b.
c.
d.

For donors tax purposes, this is a stranger to the donor

Daughter of a brother
Son of an uncle
Grandson of sons granddaughter
Granddaughter of mothers sister

68.
A, a caregiver, is under a three year employment contract with a hospital in
USA. His wife, B and a minor child live in the Philippines. He earns P70,000 a
month. For the annual income of P840,000. A shall pay income tax
a. For the entire amount it being taxable in the Philippines
b. Of nothing because as OFW, he is considered a nonresident citizen
c. For half the full amount because the other half pertains to his wife
d. For the share of his wife because the wife is a resident citizen
69.
Using the above data, if A puts 30% of his earnings in a dollar deposit
account with a local bank, interest income therein
a. Is taxable for the full amount at 7.5% final withholding tax
b. Of 126, 000, shall be taxed at 7.5% final withholding tax
c. Maybe exempt from income tax provided he presents proof of nonresidency to
the bank
d. Of 840,000, shall be taxed at 7.5% final withholding tax
70.
If the dollar deposit account above is joint (withB) with the same
percentage of earning invested, interest income is that account
a. Is taxable for the full amount at 7.5% final withholding tax
b. Of 126, 000, shall be taxed at 7.5% final withholding tax
c. Maybe exempt from income tax provided he presents proof of nonresidency to
the bank
d. Of 840,000, shall be taxed at 7.5% final withholding tax
71.
A filed his ITR for calendar year 2007 on March 20,2008. When is the last
day for the BIR to collect assuming A did not pay the tax due upon filing?
a. March 20, 2011
b. April 15, 2011
c. April 15, 2013
d. March 20, 2013
72.
Furthermore, assuming A filed his ITR on April 20, 2008 and the return is
not fraudulent, when is the last day for the BIR to make an assessment?
a. April 20, 2011
b. April 15, 2011
c. April 20, 2013
d. April 15, 2013
73.
on
a.
b.
c.
d.

Using the data above, if the BIR issued a deficiency income tax assessment
March 10, 2010, when is the last day for the BIR to collect?
March 10, 2013
April 15, 2013
March 10, 2015
April 15, 2015

74.
A filed his ITR for 2008 on April 15, 2009 and will pay his tax liability in
installment. The return shows an income tax due of P100,000 and income tax
withheld of P60,000. If A pays the 2nd installment only on October 15, 2009, the
amount to be paid (excluding compromise penalty) is
a. P26,000
b. P35,000
c. P55,000
d. P37,500
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75.
On April 15,2010, A filed his ITR for his 2009 income and paid the tax due
thereon. In 2011, A discovered that he made an overpayment in his ITR. He filed a
written claim for refund of tax erroneously collected with the CIR on October 1,
2011. On April 14, 2012, without receiving a decision on his claim for refund, A
filed in the CTA a petition for review on his claim for refund of tax erroneously
collected. Which of the ff. is correct?
a. The CTA did not acquire jurisdiction over the petition for review because the
appeal is premature, there being no decision yet on said claim for refund
b. The CTAs jurisdiction is to review by appeal decisions of the BIR Commissioner
so if there is no decision, there is nothing to review
c. The CTA acquired jurisdiction over the petition since it is the right of a
taxpayer to go to the CTA with or without decision rendered by the BIR
Commissioner
d. The CTA acquired jurisdiction over the petition since as the peremptory period
of 2 years within which a claim for refund is about to expire and the failure of
the CIR to act on the claim is tantamount to denial of a claim
76.
a.
b.
c.
d.

One of the ff. is not exempt from VAT

Lease of residential units with a monthly rental not exceeding P10,000
Services subject to percentage tax
Services rendered by individuals pursuant to employee-employer relationship
Export sales by persons who are vat-registered

77.
A sold a personal property held as capital asset he acquired 9
years ago with an acquisition cost of P150,000 for P270,000. The payment shall
be made in the ff. terms. Cash down payment of P40,000 and additional P10,000
at the end of the year of sale. The property sold has been mortgaged for
P160,000 which is assumed by the buyer. The buyer issued a note payable for the
balance which is to be paid equally in two years following the year of sale. The
contract price is
a. P270,000
b. P110,000
c. P120,000
d. P130,000
78.
a.
b.
c.
d.

The taxable profit for the year is

P120,000
P60,000
P30,000
P15,000

79.
XYZ filed its ITR and paid the tax due for calendar year 2008
showing a tax liability of P175,000. However, upon audit, it was discovered that
its ITR was false/fraudulent because it did not report other taxable income. Per
investigation the correct income tax due is P350,000. The corporation was duly
informed of this finding through a preliminary assessment notice. Failing to
protest on time against the preliminary assessment notice, a formal letter of
demand and assessment notice was issued on May 31, 2010 calling for payment
of the deficiency income tax on or before July 15, 2010. The amount due on July
15, 2010 is
a. P306,250
b. P437,500
c. P240,625
d. P612,500
80.
Where no notice or audit or investigation of tax return,
statement or declaration has been actually served upon the taxpayer, the tax
12

09/18/10
return maybe modified, changed or amended by the taxpayer from the date of
such filing, within:
a. 30 days
b. 180 days
c. 3 years
d. 5 years

13

09/18/10

ANSWERS: (SEPTEMBER 18, 2010)

1. D
2. C
3. A
4. C
5. A
6. C
7. B
8. C
9. B
10.B
11.D
12.D
13.D
14.A
15.D
16.B
17.B
18.D
19.B
20.C

21.C
22.B
23.B
24.B
25.A
26.C
27.A
28.D
29.B
30.B
31.D
32.C
33.D
34.A
35.A
36.A
37.B
38.C
39.C
40.B

41.A
42.C
43.C
44.B
45.D
46.B
47.B
48.B
49.D
50.C
51.B
52.C
53.B
54.A
55.C
56.C
57.C
58.B
59.D
60.C

14

61.A
62.B
63.A
64.D
65.B
66.B
67.D
68.B
69.C
70.B
71.B
72.A
73.C
74.C
75.D
76.D
77.C
78.C
79.A
80.C