Department of Accounting, Law and Taxation Department of Accounting, Law and Taxation
University of the
University of the East-CaloocaEast-Caloocann Finals- Quiz 2
Finals- Quiz 2 Name:
Name: _____________________________________________________________________ ___ SubjecSubject t and and Section:Section: ___________________________ ___________________________ Profes Professor:__sor:____________________________________________________________ Date:_______________________________________________ Date:_______________________________________________ Multiple Coice Multiple Coice
Identify and encircle the choice that
Identify and encircle the choice that best completes the statement or best completes the statement or answers the question.answers the question. !eories "# point$:
!eories "# point$: !
! First Statement:First Statement: "ther percentage taxes are indirect taxes that can #e passed on #y "ther percentage taxes are indirect taxes that can #e passed on #y person re$uired to pay another person who shall #e #ear the #urden of the tax!
person re$uired to pay another person who shall #e #ear the #urden of the tax! Second statement:
Second statement: %ersons and transactions that are su#&ect to the other percentage %ersons and transactions that are su#&ect to the other percentage taxes are no longer su#&ect to t
taxes are no longer su#&ect to the value-added tax #ut may he value-added tax #ut may #e su#&ect to #e su#&ect to excisexcise tax!e tax! a!
a! 'ot'oth stah statemtementents ars are core correrect!ct! #!
#! 'ot'oth stah statemtementents ars are incoe incorrrrectect!! c!
c! "nl"nly the (y the (rsrst stat statemtement ient is cors correrect!ct! d!
d! "nly "nly the sthe seconecond stad statemetement is nt is corrcorrect!ect! )!
)! A seller of goods is not *AA seller of goods is not *ATT-re-registgistereered! +is annual grd! +is annual gross sales amooss sales amount to %,,unt to %,,.... /*AT threshold amount0! To what #usiness tax is he lia#le1
/*AT threshold amount0! To what #usiness tax is he lia#le1 a!
a! 23 ta23 tax on x on **AATT-ex-exempt empt perspersonsons #!
#! ))3 v3 valalueue-a-adddded ed tataxx c!
c! 23 c23 comommomon can carrrrieier4r4s tas taxx d!
d! 5ot s5ot su#&u#&ect tect to any po any perercencentagtage tae taxx 2!
2! 6hic6hich of the follh of the following is nowing is not su#&ot su#&ect to the 23 coect to the 23 common cammon carrirrier4s taer4s tax1x1 a!
a! Cars Cars for rfor rent or ent or hirhire drie driven #ven #y the y the lesslesseeee #!
#! TTransportation ransportation contractors, contractors, including pincluding persons who ersons who transport ptransport passengers assengers for hirfor hiree c!
c! "wne"wners ors of anf animalimal-dra-drawn twn two-whwo-wheeleeeled ved vehiclhiclee d!
d! DomesDomestic catic carrirriers #y laers #y land for the trnd for the transpansport of pasort of passengsengersers 7!
7! 6hic6hich of the follh of the following is sowing is su#&ecu#&ect to the 23 comt to the 23 common carmon carrierrier4s tax4s tax11 a!
a! "w"wneners rs of of #a#ancncaa #!
#! DomesDomestic catic carrirriers #y laers #y land for the trnd for the transpansport of goods oort of goods or cargr cargoesoes c!
c! DomesDomestic catic carrirriers #y aers #y air for thir for the trane transporsport of passt of passengeengersrs d!
d! 88eeeepepers rs of of gagararagege !
! First statement:First statement: The gross receipts of common carriers derived from their incoming and The gross receipts of common carriers derived from their incoming and outgoing freight shall #e su#&ect to
outgoing freight shall #e su#&ect to the local taxes imposed under the the local taxes imposed under the Local 9overnmentLocal 9overnment Code!
Code!
Second statement:
Second statement: The 23 common carrier4s tax is #ased on the actual $uarterly gross The 23 common carrier4s tax is #ased on the actual $uarterly gross receipts or minimum $uarterly receipts whichever is lower!
receipts or minimum $uarterly receipts whichever is lower! a!
a! 'ot'oth stah statemtementents ars are coe corrrrectect #!
#! 'ot'oth stah statemtementents ars are ince incororrerectct c!
c! "nl"nly the (y the (rst srst stattatemeement is cnt is cororrerectct d!
d! "nly "nly the the secosecond snd statemtatement ent is cis corrorrectect :!
:! ;nternation;nternational caral carriers driers doing #usinoing #usiness in ess in the %hithe %hilippines lippines is su#is su#&ect to<&ect to< a!
a! 23 per23 percentcentage taage tax of theix of their $uarr $uarterlterly groy gross ress receipceiptsts
=>=D
=>=D
#! 23 percentage tax on their actual gross receipts or minimum gross receipts whichever is higher
c! )3 value-added tax on their gross receipts
d! .3 percent value-added tax on their gross receipts
?! 6hich of the following franchise grantees is su#&ect to the )3 percentage tax on franchise1
a! @ranchise on radio andor television #roadcasting companies the gross annual receipts in the preceding year do not exceed %.,...,...
#! @ranchise on gas and water utilities c! @ranchise on toll road operations
d! %A9C"> and its licensees and franchisees
B! First statement: >adio and television #roadcasting companies whose annual gross receipts of the preceding year do not exceed %.,...,... shall have the option to #e registered as a value-added taxpayer and pay the tax due thereon!
Second statement: "nce radio and television #roadcasting companies $uali(ed to optionally register exercise the option, said option shall #e revoca#le within three /20 years from date of registration!
a! 'oth statements are correct #! 'oth statements are incorrect c! "nly the (rst statement is correct d! "nly the second statement is correct
! +ow much tax shall #e collected upon every overseas dispatch, message or conversation transmitted from the %hilippines #y telephone, telegraph, telewriter exchange, wireless and other communication e$uipment service1
a! 23 on gross receipts #! 3 on gross receipts
c! .3 on the amount paid for the services d! )3 on the amount paid for the services
.! The tax on #ans and non-#an (nancial intermediaries performing $uasi-#aning functions on interest, commissions and discounts from lending activities as well as income from (nancial leasing on instruments from which such receipts are derived with a remaining maturity of years or less is<
a! ?3 on gross receipts c! 3 on gross receipts #! 3 on gross receipts d! .3on gross receipts
! First statement: The tax on life insurance premium applies to every person, company or corporation doing life insurance #usiness of any sort in the %hilippines, except purely cooperative companies and associations!
Second statement: A person engaged in non-life insurance #usiness is su#&ect to value-added tax!
a! 'oth statements are correct #! 'oth statements are incorrect c! "nly the (rst statement is correct d! "nly the second statement is correct
)! 6hich of the following shall not #e included in the tax #ase of tax on life insurance premiums1
a! %remiums refunded within six /:0 months after payment on account of re&ection of ris or returned for other reason to a person in&ured!
#! >einsurance #y a company that has already paid the tax!
c! %remiums collected or received #y any #ranch of a domestic corporation, (rm or association doing #usiness outside the %hilippines on account of any life insurance of the insured who is a non-resident, if any tax on such premium is imposed #y the foreign country where the #ranch is esta#lished!
d! All of the choices!
)
13. First statement: All boxing exhibitions held in the hilippines shall be sub!ect to amusement tax.
Second statement: Admission charges to amusement places are required for the imposition of amusement tax.
a! 'oth statements are correct #! 'oth statements are incorrect c! "nly the (rst statement is correct d! "nly the second statement is correct
7! "ne of the following is correct amusement tax rate! a! 2.3 on &ai-alai and racetracs
#! B3 on #oxing exhi#itions
c! 3 on cocpits, ca#arets, night and day clu#s d! .3 on professional #aset#all games
! 6hich of the following is not su#&ect to the .3 tax on winnings1 a! 6innings on horse races
#! %rie received #y an owner of winning race horses
c! 6innings from dou#le, forecast$uinella and trifecta #ets d! 5one of the choices
Problems "2 points$:
Show your solution on separate sheet of paper.
:! =r! aime >odrigue is the owner of a small variety store! +is gross sales in any one year do not exceed the *AT threshold amount! +e is not *AT-registered! The following data are taen from the #oos of the variety store for the month ending 5ovem#er 2., ).<
=erchandise inventory, "cto#er 2, ). %.,...
9rosssales 7,...
%urchases from *AT-registered suppliers 2,...
+ow much is the percentage tax due and paya#le1
a! %,:. c!%2..
#! ,2. d! 5one
/?-B0 U#e %aspas 'us is a common carrier #y land! During a particular month, it has the following gross receipts<
Transport of passengers %,...,...
Transport of goods ,..,...
Transport of cargoes ..,...
?! +ow much is the common carrier4s tax paya#le1
a! %).,... c!%:.,...
#! .,... d! 2.,...
B! +ow much is the *alue-Added Tax1
a! %2:.,... c! %).,...
#! )7.,... d!2.,...
/-).0! ! Fantos promoted a world #oxing championship in =anila featuring =anny +aot, a @ilipino champion! 9ate receipts amounted to %2,...,... and additional receipts from television coverage was %),...,...!
! +ow much was the amusement tax due1
a! %?.,... c! %2..,...
#! ..,... d!5one
).! Assuming the #oxing exhi#ition was for a %hilippine national championship, how much was the amusement tax1
a! %?.,... c! %2..,...
