Tax Quiz

DMC College Foundation’s In-house Review (TAX)
OPT and INCOME TAX (Individual)

1. J. Santos promoted a world boxing championship in Manila featuring Manny
Hakot, a Filipino champion. Gate receipts amounted to P3,000,000 and
additional receipts from TV coverage was P2,000,000. How much was the
amusement/percentage tax due?
a. P750,000 b. P500,000 c. P300,000 d. none
2. Agence France Press, a news service, has used communication facilities to
send its news to its head office in Paris, France. During the current month,
it paid a total of P500,000 for its overseas communications originating from
the Philippines. How much is communication/percentage tax due?
a. P60,000 b. P50,000 c. P20,000 d.None
3. In 2017, the gross sales of Jade, not Vat-registered, exceeds P 1,919,500.
To what business tax is she liable?
a. 3% - percentage tax c. 12% - vat
b. 3% or 12%, Jade’s option d. exempt
4. In addition to other administrative and penal sanctions provided for in the
tax code and implementing regulations, the Commissioner of internal revenue
or his duly authorized representative may order suspension or closure of a
business establishment for a period of how many days?
a. Not less than 15 days b. Not less than 7 days
b. Not less than 10 days d. Not less than 5 days
5. A large taxpayer subject to percentage tax has its principal office in
Makati City. Its president and CEO lives in Quezon City. Its warehouse is in
Pasig City. Where will the taxpayer file its consolidated monthly percentage
tax return?
a. AAB in Makati City c. RDO in Quezon City
b. RCO in Pasig City d. Any of the above as long as tax is correct
6. Any person retiring from a business subject to percentage tax shall notify
the nearest internal revenue officer, file his return and pay the tax
thereon within how many days after retiring the business?
a. 10 days b. 15 days c. 20days d.30 days
7. Mr. JR is an owner of a small sari-sari store. He is not a vat registered
person. The following data are taken from the 2017 books of Mr. JR’s sari-
sari store.
Inventory, end P10,000 Gross Sales P80,000
Purchases from Vat registered suppliers P45,000
How much is the percentage tax due?
a. P2,700 b. P2,400 c. P300 d. None
8. It shall be the duty of every stock broker who effected the sale subject to
the tax imposed under Sec 127 to collect tax and remit within the same:
a. 20 days after he end of the quarter
b. 10 working days after the end of the month
c. 5 days from the date of collection
d. 5 banking days from the date of collection
9. Under the train law, shares of stock held as investment when sold not traded
through local stock exchange shall be subject to:
a. Capital gains tax of 5-10%. c. Capital gains tax of .6 of 1%
b. Capital gains tax of 15% d. Any other answer
10. When is the amusement taxes under Sec 125 payable?
a. 30 days after the end of the month
b. 20 days after the end of the month
c. 20 days after the end of the quarter
d. 5 days after the end of the quarter
11. An individual taxpayer, married resident citizen, asked you to assist
him in the preparation of his tax return for his income in 2014.
He provided you the following information:
Gross Sales, Philippines P1,500,000 COGS, Phil. P500,000
Gross sales, Japan P7,000,000 COGS, Japan P2,000,000
Business expenses, Phil. P200,000
Business expenses, Japan P800,000
Other Income:
Interest income, Philippine peso bank deposit P20,000
Interest income, US dollar deposit under EFCDS P50,000
Yield on deposit substitute, Japan P100,000
Winnings, Japanese Sweepstakes P500,000
Interest on long-term deposit, certificate issued by
financial institution other than bank, Philippines P100,000
Gain from sale of shares of stock listed and trade but
the publicly listed is not compliant to the mandatory
minimum public ownership, Philippines P150,000
Tax payments, first three quarters is (if applicable) P1,000,000
The taxpayer had six dependents namely:
Jury, child, 25 years old, person with disability
Rich, child, 20 years, got married during the year to Dennis
Cha, niece, 21 years old, living with the taxpayer and dependent on him for
chief support
Aaron, senior citizen
Jayjob, child, born during the year
Diane, street child, naturally adopted by the taxpayer
How much was the taxable net income of the taxpayer?

a. P5,575,000 c. P5,450,000
b. P5,475,000 d. none of the choices
12. How much was the tax payable?
a. P749,000 c. P709,000
b. P717,000 d. none of the choices
13. How much the total final withholding taxes on certain passive income?
a. P42,750 c. P7,750
b. 27,750 d. none of the choices
14. How much was the taxable net income assuming the above taxpayer was
anon-resident, head of family with two qualified dependent brothers who are
persons with disability?
a. P850,000 c. P700,000
15. How much was the taxable net income assuming the above taxpayer was
non-resident alien engaged in business, single (his country does not allow
personal exemptions to Filipino not residing in that country).
a. P1,000,000 c. P750,000
16. A Chinese tourist comes in and goes out of the Philippines very often.
During the year 2015, he stayed in the Philippines for more than 180 days on
the aggregate. For Philippine income tax purpose, the Chinese citizen shall
be classified as:
a. Resident alien
b. Non-resident alien engaged in trade or business
c. Non-resident alien not engaged in trade or business
d. Not subject to Philippine income tax.
17. Which of the following is subject to final income tax?
a. Prize won by Filipino citizen in a professional golf tournament in the
USA.
b. Prize won by Japanese citizen in a professional tennis tournament held in
the Philippines.
c. Prize won by a Filipino citizen in a professional golf tournament in the
Philippines.
d. Prize won by a Filipino citizen in an amateur badminton tournament in the
Philippines.
18. Which of the following are taxes is a final capital gains tax?
a. Tax on sale of a subdivision lot by a real estate developer.
b. Tax on the sale of a personal computer.
c. Tax on the sale of unlisted/untraded shares pf stock.
d. Tax on sale on the merchandise of the store.
19. Rigeh, a Filipino widower living in Dipolog City, is the sole source
of support for his mother Nellosa and his son, Zobel. Nellosa maintain her
own household in Dapitan City. Zobel and his wife are living in a dormitory
in Manila near the university where both are studying. How much personal and
additional exemptions may Rigeh may Rigoberto claim for tax purposes?
a. None b. P50,000 c. P75,000 d. P100,000
20. Which of the following transactions is subject to capital gains tax?
a. Transfer through adjudication of real property to an heir as a result of
an extrajudicial partition.
b. Sale by a religious organization of a land and its improvements used for
religious purposes, and the proceeds thereof shall be used to purchase a
new church site and construction of a church building thereon.
c. Consolidation of more than on title owned by the same owner into one
mother title.
d. Sale by an individual of a condominium unit which is his principal place
of residence.

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DMC College Foundation’s In-house Review (TAX)

OPT and INCOME TAX (Individual)

How much was the taxable net income of the taxpayer?

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