1

CPA Review School of the Philippines

Manila

Final Pre-Board Examination September 16, 2023

Taxation Atty. Llamado/De Vera

1. Which is not an administrative collection remedies of the Government?

a. Distraint
b. Actual Levy
c. Tax Lien
d. Forfeiture of Property

2. Mr. Abraham Eugenio, a pawnshop operator, after having been required by the Revenue District
Officer to pay value added tax pursuant to a Revenue Memorandum Order of the Commissioner
on Internal Revenue, where will Mr. Eugenio file an action questioning the validity of the Revenue
Memorandum Order?
a. Regional Trial Court
b. Court of Tax of Appeals
c. Commissioner of the BIR
d. Supreme Court

3. The powers and duties of the Bureau of Internal Revenue comprehend the following, except?
a. Assessment and collection of all national and local revenue taxes.
b. Enforcement of all forfeitures, penalties and fines in connection connected with the collection
of national internal revenue taxes.
c. Execution of judgment in all cases decided in its favor by the Court of Appeals, and the
ordinary courts.
d. Effecting and administering the supervisory and police powers conferred to it by the Tax Code
or other laws.

4. CDE Corporation filed its income tax return for the calendar year 2023 on April 10, 2024. The
return was not false or fraudulent, the last day for the BIR to assess is
a. April 10, 2027 c. April 10, 2029
b. April 15, 2027 d. April 15, 2029

5. Using the preceding number, if assessment was made on April 10, 2027, the last day to collect is
a. April 10, 2030 c. April 10, 2032
b. April 15, 2020 d. April 15, 2032

6. The seizure by the government of personal property to enforce the payment of taxes to be followed
by its public sale if the taxes are not voluntarily paid
a. Assessment c. Levy
b. Delinquency d. Distraint

7. The seizure by the government of real property to enforce the payment of taxes to be followed by
its public sale if the taxes are not voluntarily paid
a. Assessment c. Levy
b. Delinquency d. Distraint

8. The power to decide disputed assessment is subject to the exclusive appellate jurisdiction of the
a. Commissioner of Internal Revenue
b. Regional Trial Court
c. Secretary of Finance
d. Court of Tax Appeals
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9. The prescription of check or warrant refund or tax credit shall be within:

a. 4 years from the date of issue
b. 5 years from the date of issue
c. 10 years from the date of issue
d. 12 years from the date of issue

10. 1st Statement - All violations of any provision of the National Internal Revenue Code shall
prescribe after four (4) years.
2nd Statement - Prescription shall begin to run from the day of the commission of the violation
of the law, even if the offender is outside the Philippines.
a. True; False c. False; True
b. True; True d. False; False

11. A suit questioning the validity of a tax statute or law is:

a. Taxpayer’s suit c. Class suit
b. Derivative suit d. Representative suit

12. 1st Statement – The BIR is authorized to collect estate tax deficiency through the summary
remedy of levying upon and sale of real properties of a decedent, without the cognition and
authority of the court.
2nd Statement – The CIR may examine the bank records of the deceased in order to determine
the latter’s taxable net estate.
a. True; False c. False; True
b. True; True d. False; False

13. 1st Statement: In general, no court shall have the authority to grant an injunction to restrain the
collection of any national internal revenue tax, fee or charge imposed by the National Internal
Revenue Code.
2nd Statement: The Court of Tax Appeals may issue an injunction to toll the collection of a tax.
a. True; False c. False; True
b. True; True d. False; False

14. 1st Statement – The taxpayer may claim his defense of prescription while the case is pending
before the BIR or in the Court of Tax Appeals.
2nd Statement – A compromise is not permitted in cases finally decided by the courts as there is
no longer any necessity or reason for the exercise of the power.
a. True; False c. False; True
b. True; True d. False; False

15. 1st Statement: Generally, internal revenue taxes shall be assessed within three years after the last
day prescribed by law.
2nd Statement: If the return was amended substantially, the counting of the period starts from the
date the amended return was filed.
a. True; False c. False; True
b. True; True d. False; False

16. When is 25% surcharge imposable, EXCEPT?

a. Failure to file the required tax return deliberately;
b. Filing a return with the wrong internal revenues office;
c. Failure to pay the deficiency tax within the time prescribed;
d. Failure to pay the full amount of tax shown on the return within the time prescribed.
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17. When may the BIR terminate taxing period, EXCEPT?

a. When the taxpayer is retiring from business subject to tax;
b. When the taxpayer went abroad;
c. When the taxpayer removes his property from Philippines;
d. When the taxpayer hides or conceals his property;

18. Which of the following transactions is exempt from value- added-tax?

a. Sale of books, newspaper and magazines.
b. Sale of work of art.
c. Sale of literary works
d. Sale of musical composition

19. Which of the following transactions is subject to value-added- tax?

a. Services subject to other percentage tax.
b. Educational services duly approved by Department of Education, CHED and TESDA or those
operated by the Government.
c. Sale of coal and natural gas.
d. Lending activities by credit cooperatives.

20. Which of the following transactions is subject to value-added- tax?

a. Sale of petroleum products.
b. Sale of fertilizer, seeds including their ingredients.
c. Sale by agricultural contract growers.
d. Sale of goods, services or importation, the annual gross receipts do not exceed P3,000,000.

21. Which of the following transactions is subject to zero-rated value-added-tax?

a. Services rendered to persons engaged in international shipping or air transport operations.
b. Services rendered by banks, non-bank financial intermediaries.
c. Generation, transmission and distribution of electricity.
d. Services rendered by professionals such as CPAs, Physicians and Lawyers.

22. Which of the following is not exempt from VAT?

a. Services rendered by school duly accredited by Philippine Government.
b. Sale of digital or electronic books as well as Journals covered by UNESCO.
c. Sale of medicines for cancer, mental illness, tuberculosis and kidney disease.
d. Sale of capital equipment for COVID response.

23. Taxes are:

a. Retroactive c. Generally proportional
b. Prospective d. Personal to the taxpayer

24. It refers to a fraudulent act of minimizing taxes:

a. Tax avoidance c. Tax minimization
b. Tax dodging d. Tax splitting

25. A PEZA registered enterprise operating in the Philippines for the year 2022 was given an Income
Tax Holiday for 4 years, however, this year it opted the Gross Income Tax. Presented below are
the following financial data:
Sales to registered activities P5,000,000
Sales to non-registered activities P1,000,000
Cost of sales P3,000,000
Administrative expenses P1,200,000
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How much is due to National Government?

a. P125,000
b. P157,500
c. P165,000
d. P150,000

26. Ang marketing incurred the following expenses in relation to its business during the taxable year:
Provision for bad debts P15,000
Research and development cost, treated as deferred expense 500,000
Contributions during the year:
The government for priority 50,000
The government for public purposes 10,000
To the Catholic church for charitable purposes 25,000
Additional Information:
A. Allowance for doubtful accounts per aging of accounts receivable revealed a beginning and
ending balances of P20,000 and P30,000, respectively.
B. Accumulated depreciation on machine at the beginning and end of the year amounted to
P100,000 and P110,000, respectively.
C. During the year, the firm sold a machine with a cost and accumulated depreciation of P300,000
and P30,000, respectively.
D. The research and development cost was incurred in the preceding year but the benefit was
received during the taxable year
E. Taxable income before a to d and contributions amounted to P300,000
If Ang marketing is a sole proprietor, the allowable deductions for contributions are:
a. P80,000
b. P85,000
c. P57,000
d. P65,500

27. Total allowable deductions:

a. P210,500
b. P220,500
c. P202,750
d. P225,000

28. Furthermore, the amount of taxable income

a. P220,000
b. P89,500
c. P97,250
d. P115,000

29. A, single, had the following from January 1 to June 30, 2023
Compensation income (net of payroll deductions) P360,000
Deductions made by the employer:
SSS housing loan 48,000
SSS premiums contributions 7,200
Philhealth contributions 4,800
Pag-ibig contributions 3,600
Union dues 4,400
Premiums payments on Life insurance policy 6,000
Health insurance policy 4,800
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The taxable compensation income is

a. 292,000
b. 340,000
c. 418,800
d. 370,800

30. Which of the following are basic principles of a sound tax system?
a. Fiscal Adequacy, Economic Feasibility and Theoretical Justice
b. Fiscal Adequacy, Administrative Feasibility and Theoretical Justice
c. Progressive Taxation, Ability to Pay, Symbiotic Relationship
d. Fiscal Deficit, Administrative Feasibility and Ability to Pay

31. How much discount is granted to a senior citizen on his purchase of basic and prime commodities,
subject to limitation?
a. 20%
b. 15%
c. 10%
d. 5%

Buenos Corporation, a real estate dealer and lessor, on its first year of operation, has
received a Letter of Authority from the BIR. As a revenue officer, you were assigned to
audit the Corporation’s income tax for taxable year 2018. The audited financial statements
show the Corporation’s income statement as follow:

Revenues:
Rental income 2,800,000
Interest from bank 24,000
Gain on sale of land 500,000
Total 3,324,000

Expenses:
Depreciation 800,000
Salaries and wages 200,000
Taxes and licenses 180,000
Entertainment and representation 40,000
Interest expense 60,000
Office supplies 20,000
Total 1,300,000

Net income before income tax 2,024,000

Income tax expense 450,000
Net income 1,574,000

Income tax due for the year is computed as follows:

Net income before income tax 2,024,000

Less : Interest from bank 24,000
Gain on sale of land 500,000 524,000
Net taxable income 1,500,000
Multiply by: corporate income tax rate
30%
Income tax expense 450,000
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After a detailed examination of the Corporation’s books, you have noted the following:
• Balance sheet as of December 31, 2018 showed an outstanding balance of deferred rent income
amounting to P200,000, representing advance rent payments by tenants.
• Interest from bank is net of 20% final withholding tax
• Gain on sale of land, represents gain on sale of residential lot with selling price, amounting to
P2,000,000

Taxes and licenses in the Notes to Financial Statements

showed the following breakdown:
• Withholding tax on sale of land, P120,000
• Documentary stamp tax on sale of land, P30,000
• Surcharge and penalties on late payment of tax, P10,000
• Permits and licenses, P20,000

Interest expense includes interest on late payment of tax, amounting to P5,000.

32. How much should be reflected as net sales and revenue in the annual income tax return of the
Corporation?
a. P3,000,000
b. P5,000,000
c. P4,800,000
d. P3,300,000

33. How much should be the deductible taxes and licenses?

a. P20,000
b. P180,000
c. P30,000
d. P50,000

34. How is the deductible entertainment and representation expense?

a. P40,000
b. P33,333
c. P38,000
d. P34,000

35. How much is the basic deficiency income tax due?

a. P250,770
b. P252,200
c. P253,770
d. P250,800

36. The following are excluded from the gross estate of a decedent except:
a. Transfers before the decedent’s death, not in contemplation of death.
b. Property which is the object of a bona fide sale for an adequate and full consideration in money
or money’s worth before the decedent’s death.
c. Proceeds of life insurance where the designation of the third party beneficiary is irrevocable.
d. None of the above.
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37. One of the assets left by J. Cruz when he died is 100,000 shares of stock of Walt Stick Company
with a par value of ₱4.00 per share. The company has an authorized capital stock of 1,200,000
shares. Unissued shares total 400,000 shares. Retained earnings amount to ₱600,000. The shares
of stock of the company are not traded in the stock exchange. How much will be included in the
gross estate of J. Cruz?
a. ₱475,000
b. ₱316,667
c. ₱400,000
d. None of the above.

38. Mr. A died leaving a gross estate of ₱870,000. Among the assets are: (1) a receivable from B,
businessman, in the amount of ₱40,000; and (2) another receivable from C, a cousin, in the amount
of ₱30,000.
B was declared an insolvent by a court. The court determined that B’s assets that were available
for payment to his creditors totalled ₱60,000, while his total liabilities totalled ₱100,000.
On the other hand, C, without properties, was able to pay only ₱10,000.
How much can the estate deduct as claims against insolvent persons for purposes of computing the
net estate?
a. ₱70,000
b. ₱36,000
c. ₱58,000
d. None of the above.

39-40) J. Cruz, Filipino, single, died on December 24, 2018 leaving the following properties and
expenses:
Apartment unit ₱ 500,000
Toy collection 300,000
Shares of San Miguel Corp. 300,000
Land 100,000
Jeep 20,000

The last 3 properties, namely the SMC shares, the land, and the jeep were acquired by the
decedent by gratuitous title with the following fair market values:
Date FMV on FMV in estate
Acquired date acquired of J. Cruz

San Miguel shares (donated) July 1, 2012 ₱ 400,000 ₱ 300,000

Land (inherited) October 1, 2016 50,000 100,000
Jeep (inherited) October 1, 2013 100,000 20,000
Expenses:
Funeral expenses ₱ 50,000
Mortgage paid on apartment unit 300,000
Loss of jeep 20,000
Other information:
a. The land which J. Cruz inherited had a mortgage of ₱30,000 which he paid before he died.
b. The amount of ₱70,000 of the mortgage on the apartment unit remained unpaid upon his death.
c. The jeep was carnapped on July 5, 2019.
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39. Compute the vanishing deduction that may be availed of in computing the estate tax.
a. ₱22,230
b. ₱11,115
c. ₱18,525
d. None of the above.

40. Compute the vanishing deduction assuming J. Cruz paid only the amount of ₱20,000 of the
mortgage on the inherited land.
a. ₱27,541
b. ₱16,525
c. ₱18,361
d. None of the above.

41. Which of the following does not escape the estate tax?
a. Devise of real property in favor of St. Francis Church
b. Merger of usufruct in the owner of the naked title to the property
c. Transmission via a special power of appointment of personal property to the City of Manila.
d. Legacy transmitted by the fiduciary heir to the second heir in a fideicommissary substitution.

42-43) J. Cruz, Filipino, married, died testate on January 10, 2018. Records show the following assets
and deductions on the date of death:

Condominium unit in Makati (family home) ₱ 40,000,000

Apartment in HongKong 300,000
Y Corporation shares (domestic shares), exclusive 250,000
Note receivable from insolvent debtor residing in Manila 60,000
Note receivable from insolvent debtor residing in HongKong 40,000

Deductions claimed:
Cost of cemetery lot 35,000
Expenses of internment 25,000
Note payable, contracted 2017, not notarized 30,000
Note payable, contracted 2016, notarized, paid on Jan. 22, 2018 100,000
Note payable, contracted 2016, notarized, paid on Jan. 4, 2018 50,000
Mortgage on condominium unit in Makati 100,000
Mortgage on apartment in HongKong 50,000
Legacy of Y shares to J. Cruz's brother 40,000
Legacy of Y shares to Municipality of Orani, Bataan for
schoolhouse 100,000
Legacy of Y shares to a social welfare organization which uses
35% of bequests/gifts it receives to cover administration costs 30,000
42. Determine the gross estate of J. Cruz.
a. ₱40,300,000
b. ₱40,250,000
c. ₱40,350,000
d. None of the above.

43. Determine the net estate of J. Cruz subject to the estate tax.
a. ₱40,050,000
b. ₱ 5,175,000
c. ₱ 5,145,000
d. None of the above.
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44-46. Martin Marietta Ramsey, single, died on December 15, 2022, leaving the following assets,
expenses, charges, and obligations:
Assets:
Domestic shares ₱ 5,000,000
Foreign shares, U.S. Company has 80% business in the Phils. 700,000
Investment in a domestic partnership 1,000,000
Cash in bank, Manila 1,200,000
Account receivable from a debtor residing in the U.S. (The
account is worthless. Debtor is fully insolvent.) 100,000
Car, model 2021 630,000
Expenses, charges, and obligations:
Funeral expenses 150,000
Judicial expenses incurred in settlement of the estate 100,000
Unpaid income tax for 2020 160,000
Loss through robbery 2 months after death 200,000
Loss in business 80,000
Cash legacy in favor of Philippine National Red Cross 50,000
Cash legacy to City of Makati for basketball court 100,000

44. Compute the taxable net estate and the estate tax due if decedent was a resident of the Philippines
at the time of his death.
a. ₱3,020,000; ₱181,200
b. ₱3,120,000; ₱187,200
c. ₱2,840,000; ₱170,400
d. None of the above.

45. Compute the taxable net estate and the estate tax due if decedent was a non-resident alien, and there
was no reciprocity.
a. ₱7,723,103: ₱463,386
b. ₱3,090,000; ₱185,400
c. ₱6,820,000; ₱409,200
d. ₱6,853,372; ₱411,202

46. In which of the following cases will filing an estate tax return be necessary?
a. When the gross estate does not include any registrable property and is valued at ₱640,000.
Total deductions amount to ₱530,000.
b. When the gross estate consists of the following properties: Cash, ₱40,000 and jewelry worth
₱4,730,000. Standard deduction of ₱5,000,000 was claimed.
c. When the gross estate, which does not include any registrable property, is valued at ₱450,000.
Standard deduction is claimed.
d. None of the above.
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47. Where property is transferred for less than an adequate and full consideration in money or money’s
worth, then the amount by which the fair market value of the property exceeded the value of the
consideration shall be deemed a gift, and shall be included in computing the amount of gifts made
during the calendar year. The legislative intent of the deemed gift provision under Section 100 of
the Tax Code is to discourage parties in a transaction from controlling their selling price in order
to reduce their income taxes to be paid to the government.
The deemed gift provision therefore should apply to:
a. Sale by individual taxpayers of real property located in the Philippines and classified as capital
asset.
b. Sale thru the stock exchange of listed domestic shares.
c. Property dividends.
d. Sale by foreign corporations of real property located in the Philippines and classified as capital
asset.

48. In 2018, Alberto sold a printing press to Bimbo, his cousin, the particulars of which are as follows:
Market value of the printing press ₱ 230,000
Selling price 130,000
Cost in 20015 160,000
Book value in 2018 140,000
Which statement/s is/are true?
a. Seller Alberto is deemed a donor and buyer Bimbo a donee by operation of law.
b. The loss on the sale is fully deductible in the ITR of the seller, Alberto.
c. All of the above.
d. None of the above.

49. Ivy de la Cruz believed in the ability of Chris Llamado, a candidate in the May 2022 elections for
Senator. Ivy donated the amount of ₱500,000 to the campaign of Llamado. Llamado spent only
₱100,000 of the ₱500,000 for his campaign. He eventually lost because of his incompetence in
managing his campaign.
a. All of the ₱500,000 donated by Ivy is subject to donor’s tax, and the same can be used as a
deduction in Sarah Joy’s ITR.
b. ₱400,000 of the donation is subject to donor’s tax, and ₱100,000 of the donation can be used as
a deduction in Ivy’s ITR.
c. All of the ₱500,000 donation is not subject to donor’s tax, but only ₱100,000 can be used as a
deduction in Ivy’s ITR.
d. None of the above.

50-53. Donor gave the following donations in 2021:

April 12 To M, legitimate child, a lot with an
unpaid mortgage of ₱30,000 assumed
by M, and with a fair market value of ₱ 600,000

To the campaign of politician C 500,000

Note: C only used ₱250,000 of the ₱500,000
in the campaign

June 6 To B, brother, on account of marriage

on October 8, 2021 20,000

July 30 To Y, brother-in-law 40,000

November 24 To X, legitimate child, as birthday gift 10,000

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To the Philippine National Red Cross ("PNRC") 50,000

50. Compute the donor's tax and the donor’s tax payable on April 12, 2021.
a. ₱34,200; ₱34,200
b. ₱34,200; ₱19,200
c. ₱19,200; ₱0
d. None of the above.

51. Compute the donor's tax and the donor’s tax payable on June 6, 2021.
a. ₱20,400; ₱1,200
b. ₱35,400; ₱1,200
c. ₱20,400; ₱20,400
d. None of the above.

52. Compute the donor's tax and the donor’s tax payable on July 30, 2021.
a. ₱37,800; ₱2,400
b. ₱22,800; ₱2,400
c. ₱2,400; ₱590,000
d. None of the above.

53. Compute the donor's tax and the donor’s tax payable on November 24, 2021.
a. ₱38,400; ₱600
b. ₱23,400; ₱600
c. ₱22,800; ₱600
d. None of the above.

54-55. J. Cruz, resident citizen, gave the following donations to his son:
August 1, 2021:
Land, Philippines ₱ 1,500,000
Land, U.S.A. 4,500,000
Gift tax paid in U.S.A. 450,000

November 1, 2021:
Land, Philippines 2,000,000

54. Compute the donor’s tax payable on August 1, 2021.

a. ₱345,000
b. ₱ 86,250
c. ₱258,750
d. None of the above.

55. Compute the donor’s tax payable on November 1, 2021.

a. ₱465,000
b. ₱117,188
c. ₱115,234
d. None of the above
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56. Statement 1: A separate return shall be filed by each donor for each gift or donation made on
different dates during the year. Any previous gifts made in the same calendar year shall be
reflected in each return. The tax due shall be computed based on the total net gifts made during
the calendar year.
Statement 2: Only one return shall be filed for several gifts or donations by a donor made on the
same date to different donees.
a. Both statements are true.
b. Statement 1 is true. Statement 2 is false.
c. Statement 1 is false. Statement 2 is true.
d. Both statements are false.

57. Statement 1: If the gift or donation involves conjugal/community property, each spouse shall file
a separate return corresponding to his/her respective share in the conjugal/community property.
Statement 2: If the gift or donation involves co-owned property, each co-owner shall file a
separate return corresponding to his/her respective share in the co-owned property.
a. All statements are true.
b. Statement 1 is true. Statement 2 is false.
c. Statement 1 is false. Statement 2 is true.
d. All statements are false.

58. Totopick Corporation is a VAT-registered domestic corporation engaged in the manufacturing and
selling of refrigerator spare parts in Manila. It owns cars which are used by its executives for
business travel.
In 2021, it sold two of its fully-depreciated cars: one to its manager, and the other to its CFO. In
the same year, it also sold one of its warehouses in an effort to streamline its supply chain.
a. Only the sale of the spare parts is subject to output VAT.
b. Only the sale of the spare parts and the 2 cars are subject to output VAT.
c. The sale of the spare parts, the 2 cars, and the warehouse are all subject to output VAT.
d. None of the above.

59. The following is a characteristic of VAT:

a. Direct tax
b. Final withholding tax
c. Consumption or end-user tax
d. None of the above

60. Statement 1: A person who imports VATable goods, whether or not in the course of trade or
business, is subject to VAT.
Statement 2: If the importer is a non-VAT person, and the importation of VATable goods is not
in the course of trade or business, such person is not required to register for VAT.
a. Both statements are true.
b. Statement 1 is true. Statement 2 is false.
c. Statement 1 is false. Statement 2 is true.
d. Both statements are false.
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61. J. Lakad operates 9 passenger jeeps, a limousine service, a car detailing shop, and a store selling
car and jeep parts and accessories. His sales and receipts during the year are shown below:
Receipts, passenger jeeps ₱ 3,500,000
Receipts, limousine service 1,560,000
Receipts, car detailing shop 2,000,000
Sales, store 900,000
Total ₱ 7,960,000
a. Mr. Lakad is required to VAT-register.
b. Mr. Lakad is not required to VAT-register.
c. Mr. Lakad may optionally register his VAT-exempt businesses under the VAT system.
d. None of the above.

62. Mr. Lakad, in the preceding number, is also engaged in the exportation of toy cars with total export
sales during the year of ₱1,000,000.
a. Mr. Lakad is required to VAT-register.
b. Mr. Lakad is not required to VAT-register.
c. Mr. Lakad may optionally register his VAT-exempt businesses under the VAT system.
d. None of the above.

63. Can Mr. Lakad, in number 62, after registering under the VAT system, optionally VAT-register
any of his VAT-exempt businesses?
a. Yes.
b. No.
c. It depends.
d. None of the above.

64. Statement 1: Importation of fuel, goods, and supplies by persons engaged in

international shipping or air transport operations is exempt from VAT, provided said
fuel, goods, and supplies shall be used exclusively or shall pertain to the transport
of goods and/or passengers from a foreign port directly to another foreign port.
Statement 2: The sale of goods, supplies, equipment, and fuel to persons engaged in
international shipping or international air transport operations is 0-rated if the
seller is VAT-registered and if such goods, supplies, equipment, and fuel shall be
used exclusively for international shipping and air transport operations.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.

65. The financial records of Larry Corporation, a VAT-registered domestic corporation, show the
following for the 4th Quarter of 2023:
VATable sales, net of VAT ₱2,000,000
0-rated sales 600,000

Input VAT on purchases attributable to VATable sales 350,000

Input VAT on purchases attributable to 0-rated sales 450,000

Amount of input VAT attributable to 0-rated sales

applied to output VAT. 50,000
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How much may the corporation claim for refund/TCC?

a. ₱110,000
b. ₱560,000
c. ₱160,000
d. ₱400,000.

66-70) Finale Corporation is in the food retail business with total assets of ₱40,000,000, excluding
the land on which its business is situated. It has the following data for the year 2021:

Gross Income, Philippines P1,000,000

Gross income, USA 500,000
Gross income, Japan 500,000
Expenses, Philippines 300,000
Expenses, USA 200,000
Expenses, Japan 100,000

Other Income:
Dividend from San Miguel Corp. 70,000
Dividend from Ford Motors, USA 120,000
Gain, sale of San Miguel shares directly to buyer 150,000
Royalties, Philippines 50,000
Royalties, USA 100,000
Interest income (other than from bank deposit) 60,000
Rent, land in USA 250,000
Other rental income (Phils.) 100,000
Prize, contest in Manila 200,000
Interest income ($ deposit in BDO) 50,000

If Finale is a domestic corporation, what is its tax due in its 2021 annual ITR?
a. ₱446,000 c. ₱557,500
b. ₱486,000 d. None of the above

67. If Finale is a domestic corporation, what is the total amount of final taxes to be withheld from its
income in 2021?
a. ₱42,500 c. ₱35,500
b. ₱40,000 d. None of the above.

68. If Finale is a resident foreign corporation, what is its tax due in its 2021 annual ITR?
a. ₱212,000 c. ₱228,750
b. ₱265,000 d. None of the above.

69. If Finale is a resident foreign corporation, what is the total amount of final taxes to be withheld
from its income in 2021?
a. ₱42,500 c. ₱35,500
b. ₱40,000 d. None of the above.

70. If Finale is a non-resident foreign corporation, what is the total amount of final taxes to be withheld
from its income in 2021?
a. ₱412,500 c. ₱385,500
b. ₱430,000 d. None of the above.

END