Exam - Tax - 2019 - Key.docx

INTERMEDIATE EXAMINATION TAXATION 1. In what doctrine does the proscription to seek immediate judicial recourse as regards tax disputes finds legal basis? a. Doctrine of poisonous tree b. Doctrine of exhaustion of administrative remedies c. Doctrine of res ipsa loquitor d. Doctrine of strictissimi juris 2. The Dark Princess & Co. received a final assessment notice last June 15, 2018 for deficiency income taxes for covered period 2015, 2016, and 2017. After 20 days from such receipt, the CFO filed a motion to the CIR. As of the present day, the latter is yet to issue a decision on the protest. Considering the lapse of time since the date of protest, the CFO now asks for your advice whether he can still file protest before the CTA. a. Yes, protest is still allowed since the BIR has not yet acted on the protest. b. Protest to the CTA is no longer allowed. As a rule, protest must be made only within the jurisdictional 180-day period to file an appeal to the CTA. c. Yes. Protest is a matter of right to the taxpayer. He has the option to exercise the right anytime he deems it proper. d. Protest is not allowed. More than 180 days have lapsed since filing of protest. The inaction of the CIR is a “deemed denial” which should have been the proper subject of appeal. 3. The RATE program of the BIR stands for? a. Run After Tax Evaders c. Remedy Against Tax Exemptions b. Run Against Tax Evaders d. Right Against Tax Exemptions 4. These are administrative rulings, more specific and less general interpretations of tax laws issued from time to time by CIR. a. BIR Ruling c. Revenue regulation b. Revenue Orders d. Revenue Memorandum Circulars 5. Princess KT has been assessed deficiency income tax P1,000,000, exclusive of interest and surcharges, for the taxable year 2018. The tax liability has remained unpaid despite the lapse of June 30, 2020 (442 days), the deadline for payment stated in the notice and demand issued by the Commissioner. Payment was made by the taxpayer on February 10, 2021; 225 days past due date. Compute the total tax due. a. P1,498,530 c. P1,799,448 b. P1,395,315 d. P1,492,192 6. Princess KT has been assessed deficiency income tax of P1,000,000, exclusive of interest and surcharge, for taxable year2015. The tax liability has remained unpaid despite the lapse of June 30, 2017, the deadline for payment stated in the notice and demand issued by the Commissioner, Payment was made by the taxpayer only on February 10, 2018. Compute the amount due on February 10, 2018. a. P1,491,644 c. P1,662,141 b. P1,762,963 d. Some other amounts 7. Examine the following statements: Statement 1: Protest against PAN is allowed through a motion for reconsideration only. Statement 2: Protest against FAN is allowed either through a motion for reconsideration or reinvestigation. Statement 3: Protest against Final Decision on Disputed Assessment (FDDA) is either through a motion for reconsideration or reinvestigation. Which is legally incorrect? a. Statement 1 is correct. b. Statement 2 is correct. c. Statement 3 is correct. d. Not all statements are correct. 8. Examine the following statements: Statement 1: As regards inaction of a representative, the appeal should be made directly to the CTA and not to the CIR. Statement 2: As regards denial of a representative, the appeal should be made to the CTA or to the CIR. Statement 3: Only VAT zero-rated transactions are allowed tax credit, refund, and carry-over options. Which is correct? a. Only statements 2 and 3 are correct. b. Only statements 1 and 2 are correct. c. Statement 1 is correct; statement 3 is incorrect. d. All statements are correct.

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ADMISSION YEAR 2018 - 2019 | 2ND SEMESTER

INTERMEDIATE EXAMINATION TAXATION Items 9 – 13. A PEZA-registered entity reported the following items: Details Registered Activities Unregistered Activities Gross sales P 121,700,000 P 10,425,000 Cost of sales 103,400,000 7,297,500 Gross income P 18,300,000 P 3,127,500 Other income 550,500 Total gross income P 18,300,000 P 3,678,000 Operating expense (90% allocated to registered activities and the rest P9,890,100 to unregistered activities) CWTs from the first 3 quarters amounted to P98,000 (including P10,000 dated 2019) while CWTs for the 4th quarter totaled P33,600 (excluding P5,000 CWTs not in the name of the company). 9. Determine the 2% MCIT a. P439,560 b. P62,550

c.

P73,560

d.

None of the choices

10. Determine the 30% RCIT a. P0 b. P1,103,400

c.

P806,697

d.

None of the choices

11. Income tax still due a. P0 b. P685,097

c.

P675,097

d.

None of the choices

12. How much tax has been paid to the provincial government where the PEZA entity is located? a. P0 b. P366,000 c. P364,022 d. P915,000 13. How much income tax should be remitted to the BIR? a. P1,234,097 b. P1,224,097 c. P1,600,097

d.

None of the choices

14. Lagrio, a Filipino resident and single, owns a restaurant in Session Road, Baguio City and in Dagupan, Pangasinan. In 2016, it had the following data: Gross receipts P 4,055,015.20 3,624,980.60

Baguio City Dagupan, Pangasinan

Expenses P 3,296,423.10 3,025,114.80

In 2017 the total basic and additional community tax payable by Lagrio is a. P7,074 c. P1,363 b. P7,699 d. P5,005 15. Helen Corporation, a domestic corporation had the following data for 2016: Cash sales Sales on accounts Cost of sales Expenses Dividend from Zeus Corporation Interest income Real properties Land Building

P

P

3,954,245 1,689,341 3,453,957 1,142,190 43,096 950

Zonal value 1,234,590 2,985,043

Assessed value P 945,687 2,545,890

The total community tax to be paid by Helen Corporation in 2017 is a. P2,994 c. P4,170 b. P3,494 d. P3,033 Items 16 – 20. Enumerate at least five (5) taxes which are not allowed to be imposed in local government units. Include the exceptions, if there is any.

--- end of intermediate examination in taxation ---

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ADMISSION YEAR 2018 - 2019 | 2ND SEMESTER