Week 11 Quiz – Income Taxation

  1. Assuming that the island of Luzon is still in enhanced community quarantine on April 15, 2020 (the deadline of filing of annual Income Tax Return [ITR]), BIR offices will still be closed, and the BIR WON’T EXTEND the deadline. You reside in Quezon City.
    a) How would you be able to file your ITR on time?
    b) What are your penalties should you fail to file your Income Tax Return on or before April 15, 2020?
  2. Differentiate ROHQ from RHQ. Explain how its employees are being taxed before the TRAIN Law took effect on 2018.
  3. Define FBT and cite the items of fringe benefits are subjected to tax
  4. Given the following data for a “domestic corporation”, ABS-CBN Corporation, for the year 2018:
    Gross income, Philippines: Php 40,130,000,000.00
    Expenses, Philippines: Php 8,053,000,000.00
    Gross income, Cayman Islands: Php 1,000,000,000.00
    Expenses, Cayman Islands: Php 2,000,000,000.00
    Interest on bank deposits: Php 25,000,000.00
    Compute for the income tax due.
  5. What will happen to inherited properties undivided for more than ten (10) years and no attempt was ever made to divide the same among the co-heirs?
  6. XYZ University is a private educational institution. It owns a ten (10) storey building where the first 4 floors are being used for its operations and the remaining 6 floors are being leased by BPO (Business Process Outsourcing) companies.
    For the taxable year 2018, its income and expenses are as follows:
    Gross income from tuition fees: Php 250,000,000.00
    Gross rental income: Php 300,000,000.00
    Operating expenses: Php 200,000,000.00
    Solve for the income tax due of XYZ University.
  7. For taxable year 2019, XYZ University’s gross income from tuition fees went up to Php 300,000,000 while the gross rental income went down to Php 250,000,000. If operating expenses for the year 2019 is still Php 200,000,000.00, how much income tax will XYZ University pay?
  8. Explain the main reason why XYZ University paid a higher income tax on 2018 than on 2019.
  9. Are de minimis benefits always subjected to income tax? Explain.
  10. In 2019, a JKL corporation paid for the monthly rental of a residential house of its branch manager, Dr. Peter Yap, amounting to Php 200,000. (Assume there is no transfer of ownership). Determine the total amount deductible by the employer from its gross income.
  11. Enumerate the classification of corporations for tax purposes.
  12. Mr. Tik (single) formed a partnership with Ms. Tok (married with one dependent child), participating equally in the partnership’s income and expenses. The following are the data for the partnership and the partners in 2019:
    TikTok Partnership:
    Gross income: Php 20,000,000.00
    Operating expenses: Php 5,000,000.00
    Mr. Steve Tik:
    Gross income: Php 10,000,000.00
    Operating expenses: Php 2,000,000.00
    Ms. Paula Tok:
    Gross income: Php 15,000,000.00
    Operating expenses: Php 7,000,000.00
    a) Assuming the partnership is a GPP (General Professional Partnership), how much is distributive share of Mr. Tik in the income of the partnership?
    b) How much is the taxable income of Mr. Tik?
    c) Assuming the partnership is a general partnership, how much is the taxable income of Mr. Tik?
  13. Are churches, mosques and religious cemeteries exempted to pay real property taxes? Justify.
  14. Is transfer tax an income tax? Why?
  15. Cathay Pacific, Hong Kong’s home air carrier, provided the following data of their operations in the Philippines for the year 2019:
    Gross receipts – transport of passengers: Php 2,800,000,000.00
    Gross receipts – transport of cargoes: Php 750,000,000.00
    Other income (demurrage and other inbound/outbound charges): Php 550,000,000.00
    Operating expenses: Php 1,900,000,000.00
    How much is the income tax due of Cathay Pacific?