Chapter 5 - Tbt

Multiple Choice – Problems Part 1 1. Grace is a proprietor of a mini-store with sales in any 12-month period not exceeding P1,900,000. She shall pay a. percentage tax b. VAT c. excise tax d. percentage tax and excise tax 2. Tony, a VAT-registered taxpayer, reported P200,000 sales in the month of May. Tony’s annual sales never exceeded P1,800,000. Compute Tony’s percentage tax a. 0 b. 6000 c. 24000 d. 54000 3. Donnel, a non-VAT registered operator of jeepney, reported a total receipt of P200,000 during a month, including P20,000 rentals for cargo transport. Compute the percentage tax. a. 0 b. 5400 c. 6000 d. 6600 4. Mr. Ngina owns and operated a taxi unit. He also teaches as an accounting professor the University of Baguio and renders taxation advisory services to various clients. Mr. Ngina is registered as a VAT-taxpayer. In March 2015, he had the following receipts: Compensation income-teaching 200,000 Receipts from taxi 50,000 Receipts from professional practice 350,000 Total 600,000 Compute for the percentage tax payable of Mr. Ngina for March 2015. a. 0 b. 1500 c. 12000 d. 18000 5. In the immediately preceeding problem, compute the total receipts of Mr. Ngina subject to the VAT. a. 0 b. 350,000 c. 400,000 d. 550,000

6. Michael Jackson is an operator of a fleet of 10 taxis operated under the “boundary system”. A total of P150,000 “boundary” payments from chauffeurs were received in July 2015. A total of P20,000 is still receivable from chauffers for family advances. The percentage tax for the month is a. 360 b. 600 c. 4500 d. 5100 7. Mr. Pogi-it practices his profession as a medical practitioner. He registered as VAT taxpayer. Mrs. Pogi-it is nurse employed by a public hospital. Which statement is correct? a. mr. pogi-it shll pay percentage tax b. mrs. pogi-it shall pay percentage tax c. mrs. pogi-it is exempt from business tax d. mr. pogi-it is exempt from business tax 8. There are two competing keepers of garage with the following receipts: Parcorito P1,200,000 Parkodum P2,500,000 Which will pay 3% percentage tax? a. Parcorito b. Parkodum c. Both d. None of them 9. Mr. Conner has two taxis which were both grounded during the month of February 2014 because of technical problem. The applicable presumptive quarterly gross receipt for each taxi was P3,600. Compute the percentage tax due for February 2014. a. 0 b. 72 c. 108 d. 216 10. Mr. Frank Sinatra owns a cargo truck for rent. During the month, it generated a total receipt of P40,000 from various clients. The percentage tax is a. 0 b. 1200 c. 2000 d. 4800 11. Mr. Jackson Michael is an operator of four buses playing the route Baguio-Manila. During November 2014, the buses remitted a total of P320,000 including P30,000 freight and charges for the passenger baggage and mails. Compute Michael’s percentage tax if he is registered as a non-VAT taxpayer.

a. b. c. d.

0 8700 9600 10500 12. In the immediately preceding problem, compute the percentage tax if Mr. Michael is a VAT-registered taxpayer. a. 0 b. 8700 c. 9600 d. 10500 13. Cagayan Ferry Boats transport passengers and cargoes between the island of Palaui and Sta. Ana. It earned a total of P120,000 on March 2015 excluding P10,000 freight for cargoes. What is the percentage tax if Cagayan Ferry Boat is registered as a non-VAT taxpayer and a VAT-taxpayer, respectively a. 0; 0 b. 3600; 0 c. 3900; 3600 d. 3900; 0 14. Lavezares Ferries transport passengers and land vehicles between Samar and Sorsogon. Lavezares usually had an average annual receipts of P5,000,000. During the month, it earned a total of P400,000 from the customers. The percentage tax is a. 0 b. 12000 c. 138000 d. 150000 15. An operator of care for hire with chauffeur had the following financial results of operations during a month: Total collections 240,000 Less: Fuel 100,000 Other car supplies 24,000 Driver salaries 20,000 Net income 96,000 What is the percentage tax? a. 2880 b. 4200 c. 4320 d. 7200 16. DANUMI is a local water district with annual sales exceeding P10M a year. During the month, it collected P4,000,000 from sales of water. Compute the percentage tax. a. 0 b. 80000 c. 120000

d. 200000 17. Radyo Bolero had an annual sales not exceeding P10M a year. During the month, it posted revenue of P2,000,000 out of which P1,800,000 is collected. Compute the percentage tax. a. 0 b. 36000 c. 54000 d. 60000

Multiple Choice – Problems Part 2 1. Regga Transporters, a transportation contractor, transport employees of Euro Textiles Industries to and from Cagayan de Oro City to a distant factory plant in Impasug-ong, Bukidnon. In March, Regga Transporters was paid P300,000 by Euro Textile Industries. The percentage tax is a. 0 b. 9000 c. 12000 d. 36000 2. Napartas is a transportation contractor of Haring Padala, a mail courier company. Napartas Company delivers the mails to adresee location specified in the mail. During the month, Napartas Company was paid P400,000 by Haring Padala. The percentage tax is a. 0 b. 12000 c. 24000 d. 48000 3. Malaysian Birdia, an international air carrier, collected a total of P30,000,000 from transport of passengers during the month. It also collected total of P5,000,000 from transport of mails and baggage. Compute for the percentage tax. a. 0 b. 150000 c. 900000 d. 1050000 4. Puro-Air is a domestic airliner with annual receipts exceeding P50,000,000. During a month, it generated the following receipt: Passengers 5,000,000 Cargoes and baggage 1,500,000 Total 6,500,000 The percentage tax is a. 0

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b. 45000 c. 150000 d. 195000 European Seagull, an international shipping carrier, had the following receipts on its Philippine operations: Gross receipts froms: Passengers Baggage Total Incoming voyage 2,000,000 1,500,000 3,500,000 Outgoing voyage 3,000,000 1,800,000 4,800,000 Total 5,000,000 3,300,000 8,300,000 How much is the percentage tax? a. 0 b. 54000 c. 99000 d. 144000 American Hawk, an international air carrier, recorded the following taxable receipts during a month for outgoing flights: Philippines Abroad Total Passengers 2,000,000 3,000,000 5,000,000 Mails and Baggage 500,000 1,200,000 1,700,000 Total 2,500,000 4,700,000 6,700,000 Compute for the percentage tax. a. 15000 b. 51000 c. 60000 d. 75000 DEF Insurance Corporation has the following receipts and receivables from its insurance products: Life Property Total Cash and check collections 1,000,000 500,000 1,500,000 Promissory notes 200,000 100,000 300,000 Total 1,200,000 600,000 1,800,000 Compute for the premiums tax. a. 20,000 b. 24,000 c. 30,000 d. 36,000 Bullion Bank reported the following receipts during the month: Interest Income: 1 to 3 year loan 1,200,000 3 to 5 year loan 800,000 6 to 8 year old 600,000 8 to 10 year loan 400,000 Total 3,000,000 Compute for the gross receipt tax.

a. 100,000 b. 110,000 c. 80,000 d. 70,000 9. Venture Bank had the following summaries of receipts: Interest income on short term loans 2,000,000 Interest income on long term loans 1,000,000 Rent income on ROPOA 80,000 Services fees and gains 200,000 Total 4,000,000 How much is the gross receipts tax? a. 220,000 b. 200,000 c. 180,000 d. 160,000 10. A quasi-bank receives the following from its short term placement of excess funds: Dividend income 500,000 Bank interest income, net of final tax 800,000 Total 1,300,000 Compute for the gross receipts tax. a. 0 b. 40000 c. 50000 d. 91000 11. A cellular company had the following receipts: 2,000,000 from domestic calls 3,000,000 incoming calls to the Philippines 2,500,000 outgoing calls abroad What is the percentage tax? a. 0 b. 75000 c. 165000 d. 250000 12. Boy Manok is an operator of cockpit. During the quarter, it collected P200,000 from gate receipts, P240,000 from tongs and P300,000 from business concessionaires inside the cockpits. Total winning on derby sets totaled P2,400,000. What is the amusement tax? a. 0 b. 74000 c. 111000 d. 133200 13. Borneo Corporation, a publicly listed company, is planning to increase its public ownership by issuing additional 1,000,000

shares for P10 per share. The new shares will increase the outstanding shares of Borneo to 2,500,000. Compute for the IPO tax. a. 0 b. 100,000 c. 200,000 d. 400,000 14. In a recently completed race, Sta. Ana Hippodrome noted the following winning tickets: Straight bets – P40,000, 20 ticket at P100 per ticket Combination bets – P20,000, 2 tickets at P200 per ticket Compute the percentage tax to be withheld on the winnings. a. 0 b. 3800 c. 4584 d. 5760 15. Mr. Magno owns 1,000,000 shares representing 40% of the outstanding stockes of Calatna Corporation, a closely held corporation, which is conducting an initial public offering. Mr. Magno sold 700,00 shares during the initial public offering for P100 per share. Compute the IPO tax due from Mr. Magno. a. 350000 b. 700000 c. 1400000 d. 2800000 16. Assuming further that Mr. Magno sold his remaining 300,000 shareholdings after the IPO for P90 per share, compute the IPO tax. a. 135000 b. 270000 c. 540000 d. 1080000 17. Helix Company is conducting an initial public offering of 2,000,000 shares. Helix Company already had 4,000,000 issued and outstanding shares. The new IPO shares shall be sold a P3 per share. What is the tax on the initial public offering? a. 0 b. 60000 c. 120000 d. 240000 18. Geneva Corporation, a non-VAT taxpayer, leases commercial spaces to various businesses. During a month, it receivd P142,500 rentals, net of 5% creditable withholding tax. Compute for the percentage tax. a. 0

b. 4061 c. 4275 d. 4500 19. Almendras Corporation sells bread to various stores and makes P150,000 monthly sales on the average. During the month it made total sales of P200,000 out of the which only P160,000 were collected. Compute the percentage tax. a. 0 b. 4500 c. 4800 d. 6000