MOCK COMPREHENSIVE EXAMINATION

MULTIPLE CHOICE
Read each statement carefully. Shade the circle corresponding to the letter of your choice using a Mongol
#2 Pencil.

1. The excise tax on certain excisable goods is a tax on

a. Person – the owner or producer of certain goods
b. Property – the goods produced or manufactured
c. Privilege – the right to enter into a business of producing or importing certain articles
d. Privilege – the right to transport certain goods

2. Park, a Filipino-Korean actor, inherited a parcel of land located in Clark, Pampanga from his mother
Inday, a Filipino residing in Clark. Park sold the parcel of land to Nicanor, a Filipino residing in Manila as
evidenced by a deed of sale.
S1: The sale of land by Park is subject to 6% capital gains tax.
S2: The sale of land by Park is subject to regular income tax.
S3: The sale is subject to documentary stamp tax.
a. Only S1 is false.
b. Only S2 is false.
c. Only S3 is false.
d. All are true.

3. Upon registration with Securities and Exchange Commission in 2022, ABC Corp., a domestic
corporation, reported the following ownership structure:
Stockholder No. of Shares Par Value
DEF Corp. (DC) 10,000 1,000,000.00
GHI Corp. (RFC) 10,000 1,000,000.00
JKL Corp. (NRFC) 10,000 1,000,000.00
MNO Corp. (NRFC) 10,000 1,000,000.00
Assuming that all stockholders 25% of their respective shares and paid 25% thereof, the total
documentary stamp tax required to be paid is:
a. P6,250 c. P12,500
b. P25,000 d. P50,000

4. Gaganda Clinic is a dermatological clinic located outside a hospital which is operated by Gaganda
Medical Corporation. The following relates to its gross receipts for the month of June, 2021:
Diamond peel 100,000
Abdominoplasty 1,300,000
Oxygen treatment 200,000
Breast augmentation 1,500,000
Liposuction 2,000,000
Botox treatment 500,000
The above gross receipts are inclusive of VAT and the applicable excise tax, if any.
Determine the excise tax on excisable services of Gaganda Clinic for the month ended June 30, 2021.
a. P228,571 c. P128,571
b. P204,082 d. P124,827

5. Which of the following statements is/are correct?

Statement A: DORA filed her 2014 ITR (not fraudulent nor false) on March 20, 2015. The last day
for the BIR to collect the tax by judicial action if no assessment was made on April 15,
2018.
Statement B: DADA’s 2014 ITR was filed and paid on May 8, 2015. The last day for the BIR to
send an assessment is April 15, 2018.
Statement C: On July 20, 2015, DIDI filed an amended return which is substantially different from
the 2014 ITR which she filed on April 13, 2015. The last day to send an assessment is April 15,
2018.
a. Only statement A is correct.
b. Statements A and B are correct.
c. Statements A and C are correct.
d. Statements B and C are correct.

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

6. The President of the Philippines and the Prime Minister of Japan entered into an executive agreement
on a loan facility to the Philippines from Japan whereby it was stipulated that interest on loans granted by
private Japanese financial institutions in the Philippines shall not be subject to Philippine income tax laws.
What basic characteristic of taxation has been violated by this agreement?
a. Theoretical justice c. Legislative in character
b. Inherent limitation d. Constitutional limitation

For Questions 7-10:

A(50%), B(30%), and C(20%), all certified public accountants, formed a partnership called ABC CPA Firm
so that they can practice their profession as public accountants.

For the year 2021, ABC CPA Firm received earnings and paid expenses, among which are as follows:
Earnings:
Professional fees from various clients 50,000,000
Cash prize received from a religious society in
recognition of the exemplary service of ABC CPA Firm 5,500,000
Gains derived from sale of excess computers and laptops 4,000,000
Payments:
Salaries of office staff 10,000,000
Rentals for office space 7,500,000
Representation expenses incurred in meetings with clients 750,000

In addition, the partners’ personal income and expenses are as follows:

Partner A Partner B Partner C
Sales 6,000,000 5,500,000 10,000,000
Cost of sales 2,000,000 2,000,000 4,500,000
Gross income 4,000,000 3,500,000 5,500,000
Deductible expense 2,500,000 1,000,000 2,500,000
Dividend from domestic
Corporation 30,000 150,000 50,000
Dividend from foreign
Corporation 70,000 10,000 20,000
Prize, supermarket raffle 150,000 300,000 250,000
Royalty, books 50,000 20,000 30,000

REQUIRED: Compute for the following:

7. What are the items in the above mentioned earnings which should be included in the computation of
ABC CPA Firm’s gross income?
a. P50,000,000 c. P54,000,000
b. P55,500,000 d. P59,500,000

8. What are the items in the above-mentioned payments which may be considered as deductions from the
gross income of ABC CPA Firm?
a. P18,000,000 c. P18,250,000
b. P17,500,000 d. P10,000,000

9. If ABC CPA Firm earns net income in 2021, what is the net income of the entity for the year assuming
the entity elected to use
(1)Itemized deduction; (2)Optional standard deduction?
a. (1)P38,000,000 ; (2)P33,300,000 c. (1)P40,000,000 ; (2)P30,000,000
b. (1)P35,750,000 ; (2)P32,400,000 d. (1)P41,500,000 ; (2)P35,700,000

10. What, if any, is the tax consequence on the part of A as an individual partner, insofar as the payment
of income tax is concerned assuming the partnership elected OSD and partner A opt to use (1)Itemized
deduction; (2)Optional standard deduction?
a. (1)P6,407,000 ; (2)P7,142,000 c. (1)P5,829,500 ; (2)P6,564,500
b. (1)P5,987,000 ; (2)P6,722,000 d. (1)P5,409,500 ; (2)P6,144,500

11. A compromise for a tax liability on the ground of financial incapacity to pay shall still involve a payment
of tax from the taxpayer at a minimum compromise rate of
a. 10% of the basic assessed tax b. 20% of the basic assessed tax

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

c. 30% of the basic assessed tax d. 40% of the basic assessed tax

12. If the estate consists of registrable property, such as real property, motor vehicle, shares of stock or
other similar property from which a clearance from the BIR is required as a condition for the transfer of
ownership, an estate tax return should be filed under oath
a. If the gross estate exceeds P200,000
b. If the gross estate exceeds P500,000
c. If the gross estate exceeds P1,000,000
d. Regardless of the value of gross estate

13. B was employed by A Corp. on the first working day of January 2018 on a part-time basis with a
salary of P10,000 a month. He then received his 13th month pay. In September 2018, he accepted
another part-time job from B Corp. from which he received a total compensation of P408,000 for the year
2018. The correct total taxes were withheld from both earnings. With regard to the filing of the income
tax return (ITR) for the year 2018, which of the following is true?
a. B is exempt from filing his ITR because the correct total taxes have been withheld.
b. B is not exempt from filing his ITR because his total compensation income for 2018
came from more than one employer.
c. B is exempt from filing his ITR because his total income for 2018 came from an
employer-employee relationship.
d. B is not exempt from filing his ITR because his income came from an employer
– employee relationship.

14. Which of the following are basic principles of a sound tax system?
a. Fiscal deficit, Administrative feasibility and Ability to pay
b. Progressive taxation, Ability to pay, Symbiotic relationship
c. Fiscal adequacy, Economic feasibility, Theoretical justice
d. Fiscal adequacy, Administrative feasibility, Theoretical Justice

For Questions 15-18:

XYZ Pharmaceuticals is engaged in the business of providing services and selling of drugs and
medicines. The following data were made available for the first quarter of 2019:
Revenues 20,000,000
Cost of goods sold 5,000,000
Cost of services 12,000,000
Operating expenses 3,000,000
Receivables: December 31, 2018 448,000
Receivables: March 31, 2019 336,000
In addition, the following information was provided:
- All sales for the first quarter were cash and credit card sales.
- Sales of goods made to senior citizens are cash sales.
- Sales are net of senior citizens discount amounting to Php 400,000.
- Receivables at the beginning and ending of first quarter are outstanding receivables from credit
card companies.
- The amounts of receivables are VAT inclusive.
- Sales are inclusive of sales of medicines prescribed for diabetes, high cholesterol, and
hypertension to non-senior citizens amounting to Php 600,000.
- Included in the operating expenses are entertainment, amusement, and recreational expenses
amounting to Php 300,000.
- Input tax credit from purchase of goods and services for the first quarter amounts to Php 600,000.
- Other sales made to non-senior citizens were composed of services.

REQUIRED: Compute for the following items:

15. How much is the output tax due for the first quarter of 2019?
a. P2,088,000 c. P2,136,000
b. P2,148,000 d. P2,160,000

16. How much is the deductible creditable input tax for the first quarter of 2019?
a. P600,000 c. P523,902
b. P522,000 d. P533,333

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

17.How much is the income tax due for the first quarter of 2019, assuming itemized deduction was used?
a. P7,171 c. P630,000
b. P39,571 d. P1,560,000

18. How much is the income tax due for the first quarter of 2019, assuming OSD was used?
a. P39,571 c. P1,560,000
b. P630,000 d. P3,690,000

19. Which of the following shall not be exempt from donor’s tax?
a. Donation to the Integrated Bar of the Philippines (IBP) request for reinvestigation
b. Donation of parcels of land to the Government made by a Philippine Corporation to be
used as relocation sites for the less fortunate.
c. Donation to parish church where not more than 30% of the said gifts shall be used by the
parish church for administration purposes
d. Donation to a political party which failed to file a return of contributions with the
COMELEC

20. Cities are allowed to impose rates that exceeds those imposed by provinces and municipalities but
not exceeding ____ thereof
a. 50% c. 10%
b. 100% d. 25%

21. Where is the tax situs of a business permit?

S1: LGU where the sales outlet or business is located.
S2: If there is no sales outlet, the LGU where the principal office is situated.
S3: If the manufacturer's principal office and factory outlet are within the same LGU where the
manufacturer's principal office is situated.
S4: If the manufacturer's office is different from the factory outlet, 30% of business permit tax will
go to the LGU where the manufacturer's office is situated and the 70% goes to the LGU where
the factory is located.
a. All are correct. c. Only S1 is correct.
b. Only S1 and S2 are correct. d. Only S1 and S3 are correct.

22. PEZA issued working visas are renewable every ____.

a. Quarter c. Two years
b. Six months d. Five years

23. What taxes are covered by Philippine Tax Treaties?

I. Income tax
II. Business tax
III. Transfer tax
IV. Documentary stamp tax
a. Only I c. I, II and III
b. Both I and II d. All of the above

24. Mrs. Diana Zubiri is the operator of Price Hotel and Restaurant. The restaurant is open to the public.
The food and soft drinks served to the hotel guest come also from the restaurant. The following data are
for the first quarter of 2028
Gross receipts - room rentals P154,000
Gross receipts - foods/soft drinks served to hotel guests P46,000
Gross receipts foods/salt drinks from other customer P360,000
The business taxes due and payable on the gross receipts of the first quarter of 2028 is
a. P16,800 c. P67,200
b. P56,000 d. P60,000

25. African International Carrier reported the following gross receipts from tickets sold:
Outside for trip-Manila to USA P1,000,000
Outside for trip-USA to Manila P1,200,000
In the Philippines for trip - USA to Manila P1,500,000
In the Philippines for trip - Manila to USA P1,100,000
The Philippine business tax to be paid is

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

a. P63,000 c. P78,000
b. P490,000 d. P144,000

26. Generally, the following individuals are required to file an income tax return. Who is the exception?
a. Every Filipino citizen residing in the Philippines.
b. Every Filipino citizen residing outside the Philippines, on his income from sources
outside the Philippines.
c. Every alien residing in the Philippines on income derived from sources within the
Philippines.
d. Every non-resident alien engaged in trade or business in the Philippines.

27. The taxpayer timely filed his ITR, and paid the tax due as shown therein on April 15, 2017. The BIR
subsequently determined that a deficiency tax of ₱100,000 was still due. The BIR sent a letter of demand
and assessment notice asking to pay the deficiency income tax plus interest by July 15, 2017. The
taxpayer paid only on August 15, 2018. The total amount due on August 15, 2018 (excluding
compromise penalty) is:
a. P157,917 c. P175,345
b. P159,583 d. None of the above

For Questions 28-31:

Mr. A, is the finance manager of XYZ Corp, a corporation engaged in the business of providing
back-office support, accounting outsourcing, payroll and legal administration and compliance services.
The following data were taken from the monthly pay slip of Mr. A:
Monthly salary P100,000
SSS contribution P900
Pag-Ibig contribution P100
PhilHealth contribution P900
Rice subsidy P1,500
Transportation allowance P2,000
At the end of the year, Mr. A received 13th month pay of P100,000 and performance bonus
amounting to P150,000. He also received P20,000 for the 6 unutilized vacation leaves. Total taxes
withheld on compensation by his employer amounted to P174,957.30.
28. What is the total compensation income?
a. P1,474,000 c. P1,300,000
b. P1,200,000 d. P1,450,000

29. What is the total taxable income?

a. P1,474,000 c. P1,361,200
b. P1,451,200 d. P912,800

30. What is the total income tax due?

a. P442,200 c. P298,360
b. P909,360 d. P130,000

31. What is the total income tax payable?

a. P123,402.70 c. P734,402.70
b. P267,242.70 d. P0

32. The Commissioner of BIR may compromise any internal revenue tax in the following instances,
except:
a. A reasonable doubt as to the validity of the claim against the taxpayer exists
b. The financial position of the taxpayer demonstrates a clear inability to pay the assessed
tax
c. The tax or any portion thereof appears to be unjustly or excessively assessed
d. The taxpayer has been granted by the SEC or by any competent tribunal a moratorium or
suspension of payments to creditors, or otherwise declared bankrupt or insolvent

33. S1: The CIR may refund a tax even without a claim for refund from the taxpayer where
on the face of the return upon which the payment was made; such payment clearly appears to
have been erroneously made.
S2: When 2 years are about to expire from the date of payment and no decision has yet been

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

received by the taxpayer on his claim for refund filed with the BIR, the taxpayer may appeal to the
CTA even without waiting for the decision of the BIR on his claim for refund.
a. True, true c. False, true
b. True, false d. False, false

34. Which of the following is generally not a taxable entity or least likely to be a taxable entity.
a. Partnership c. Foreign Corporation
b. Joint Venture d. Co-ownership

35. The point at which tax is levied

a. Incidence of Taxation c. Situs of Taxation
b. Impact of Taxation d. Theory of Taxation

36. Which theory in taxation states that without taxes, a government would be paralyzed for lack
of power to activate and operate it, resulting in its destruction?
a. Power to destroy theory c. Sumptuary theory
b. Lifeblood theory d. Symbiotic doctrine

37. A revocable transfer with the following circumstances: Fair market value at time of transfer -
P300,000; fair market value at time of death P180,000; consideration received when transferred –
P200,000
a. Shall be included in the gross estate at P180,000
b. Shall be included in the gross estate P200,000
c. Shall be included in the gross estate at P100,000
d. Shall not be included in the gross estate

38. The decedent is a citizen and resident of the Philippines:

Gross estate P10,000,000
Claims against the estate P3,000,000
How much is the net taxable estate if the decedent was single?
a. P7,000,000 c. P6,000,000
b. P9,000,000 d. P2,000,000

39. Jerwin, a surviving spouse, renounced his share in the conjugal partnership
a. Renunciation is subject to donor’s tax
b. Renunciation is subject to estate tax
c. Renunciation is exempt from donor’s tax
d. Renunciation is void

40. The following donations were made by Don Lopot during the taxable year:
Donation to TESDA- priority project P900,000
Revocable donation of car to his son P800,000
Inadequate consideration of real property sold to his friend P700,000
Donation to his wife P300,000
Donation to his unborn grandchild P200,000
How much is the amount of donation subject to donor’s tax?
a. P2,000,000 c. P900,000
b. P1,800,000 d. P200,000

41. The following transactions are VAT taxable, except

a. Importations
b. Sale of goods from the Philippines to foreign country
c. P 2,000,000 domestic sales for the year of a non-VAT business
d. Sale of scrap materials by a VAT registered business

42. D’ Tiger Transport Corporation has land, sea and air transport operations. To improve its services,
which of the following imports is subject to VAT?
I. 20 units of air – conditioned buses
II. 12 units of life-saving, safety and rescue equipment for shipping transport operation
III. 12 airplanes
IV. 8 ships
Which of the following imports is subject to VAT?

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

a. I only c. II only
b. I and II only d. All of the above

43. Genson Distribution Inc., a VAT taxpayer, had the following data in a month:
Cash sales P 200,000
Open account sales P 500,000
Consignment:
0 to 30 days old (include remittances of 200,000) P 600,000
31 to 60 days old P 700,000
61 days old and above P 900,000
How much is the Output tax?
a. P 348,000 c. P 216,000
b. P 264,000 d. P 108,000

44. BOI-Registered entities with a pioneer status may avail of the income tax holiday for how many
years?
a. 5 years c. 7 years
b. 6 years d. 8 years

For Questions 45-47:

ITSMARKMARQUEZ IG Corporation, a VAT registered company engaged in the lease of residential
properties. During the first quarter of 2017, the following information were made available (all amounts are
exclusive of VAT):
- Rental income with monthly rental of P15, 000 per unit,800,000
- Rental income with monthly rental of P13,000 per unit, 600,000
- Rental income with monthly rental of P10,000 per unit, 400,000
- Receivable from tenants as of December 31, 2016, 200,000(60% is VAT Exempt)
- Receivable from tenants as of March 31, 2017, P300,000 (40% is VAT Exempt)
- Deferred rent income as of December 31, 2016, P200,000 (60% is VAT Exempt)
- Deferred rent income as of March 31, 2017, P250,000 (40% is VAT Exempt)
- Input tax credit on purchase of goods and services for the 1st quarter of 2017, P80,000
45. How much is the output tax due for the 1st quarter of 2017?
a. P164,400 c. P92,400
b. P171,600 d. None

46. How much is the creditable input tax credit for the 1st quarter of 2017?
a. P35,200 c. P62,629
b. P80,000 d. P61,838

47. Assuming that on April 5, 2017, ITSMARKMARQUEZ IG Corporation sold a residential house and lot
for P3,000,000 (VAT exclusive).How much is the output tax due on its sale of real property, assuming the
zonal value of the property sold is P3,248,000?
a. P348,000 c. None
b. P389,760 d. P360,000

48. All criminal violations may be compromised:

A) Except those already filed in court
B)Except those involving fraud

a. True, true c. False, true

b. True, false d. False, false

49. The taxpayer did not file his ITR for calendar year 2016. He was notified by the BIR of his failure to
file the tax return, for which reason he filed his tax return and paid the tax only after said notice on
October 15, 2018. The tax due per return is P100,000. The total amount due on October 15, 2018
(excluding compromise penalty) is:
a. P173,667 c. P180,000
b. P155,000 d. None of the above

50. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other
charges, penalties imposed in relation thereto, or other matters arising under the Tax Code or
other laws administered by the BIR is vested with

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

a. The Commissioner of the BIR c. The Secretary of Finance
b. The Court of Tax Appeals d. The Regular Courts

51. Which of the following will not interrupt the running of the prescriptive period for assessment
and collection of taxes?
a. When the Commissioner is prohibited from making the assessment or beginning
distraint and levy or a proceeding in court and for thirty (30) days after
b. When the taxpayer requests for the reinvestigation which is granted by the Commissioner
c. When the taxpayer is out of the Philippines
d. When the taxpayer cannot be located in the address given by him in the return

52. Starting August, 2008, ABC Corporation changed its accounting period from a fiscal year ending
every June 30 to the calendar year. Which statement is correct?
a. ABC Corporation should file an adjustment return on April 15, 2009 covering the
period of July 1, 2008 to December 31, 2008.
b. ABC Corporation should file an adjusted return on April 15, 2009 covering the period of
August 1, 5 2008 to December 31, 2008.
c. ABC Corporation should file an adjustment return on October 15 covering the period of
January 1, 2008 to June 30, 2008
d. ABC Corporation need not file an income tax return until April 15, 2009

53. A corporation organized and created under the laws of a foreign country and is authorized to do
business or trade in the Philippines is.
a. Domed corporation
b. Government-owned and controlled corporations.
c. Resident Foreign Corporation
d. Non-resident Foreign Corporation

54. On April 15, 2017, Yummerz Corporation paid cash dividends to its stockholders, as follows:
Cash dividends paid
1) Resident Citizens P1,800,000
2) Resident Aliens 600,000
3) Non-resident Citizens 300,000
4) Non-resident aliens
a. Engaged in business in the Philippines 320,000
b. Not engaged in business in the Philippines 120,000
5) Domestic Corporations 1,400,000
6) Foreign Corporations
a. Resident 600,000
b. Non-resident 85,000
How much should Delicious remit to the BIR as final withholding tax on the dividends paid to its
stockholders?
a. P376,750 c. P435,000
b. P389,500 d. P509,000

For Questions 55-56:

The following information pertains to the business equations of a taxpayer in 2019:
Gross Income:
From business P2,200,000
Rent P1,500,000
Cost of Sales P1,000,000
Operating Expenses P700,000
Real properties P18,000,000
55. How much is the additional community tax, if individual?
a. Php 3,700 c. Php 4,700
b. Php 5,600 d. Php 21,700

56. How much is the additional community tax, if a corporation?

a. Php 1,480 c. Php 1,888
b. Php 8,680 d. Php 9,080

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

57. An heir to particular real property given by virtue of will.
a. devise c. devisee
b. successor d. legate

For Questions 58-60:

Liwayway died leaving the following properties:
- House and lot in the Philippines (mortgaged for P300,000) 1,250,000
- Condominium unit in Hongkong 1,000,000
- Car in Philippines 70,000
- Car in Hongkong 60,000
- Franchise exercised in the Philippines\ 300,000
- Franchise exercised in New York, USA\ 25,000
- Domestic shares, certificate kept in New York, USA 55,000
- Foreign shares, 90% of business in the Philippines 60,000
- Foreign shares, 30% of business in the PH, business situs in PH 15,000
58. The gross estate if the decedent was a resident citizen, resident alien or a non-resident citizen is
a. 2,910,000 c. 1,770,000
b. 1,620,000 d. 1,750,00

59. The gross estate if the decedent was a non-resident alien (no reciprocity) is
a. 2,910,000 c. 1,750,000
b. 1,825,000 d. 1,320,000

60. The gross estate if the decedent was a non-resident alien (with reciprocity) is
a. 2,910,000 c. 1,750,000
b. 1,825,000 d. 1,320,000

For Questions 61-64:

Juan, married to Juana, died. The following properties were left upon his death:
- Durian plantation in Davao, brought into marriage by H 3,000,000
- Income of plantation in Davao earned during marriage 250,000
- Shares of stocks with Aga corp. earned by Juana during marriage 420,000
- Dividends from Aga Corp. earned during marriage 52,000
- Bus in Cebu, inherited by Juan during the marriage 760,000
- Income of passenger bus earned during the marriage 23,000
- Riceland in Legazpi, inherited by Juana before marriage 460,000
- Income of Riceland in Legazpi earned during the marriage 50,000
- Underwear(panties, brassiere) of Juana brought into Juana 85,000
- Cash, unidentified when and by whom acquired 55,000
- Jewelries inherited by Juana during marriage from her mother 320,000
61. The exclusive properties of Juan under conjugal partnership of gains
a. 5,475,000 c. 3,815,000
b. 3,760,000 d. 4,610,000

62. The gross estate of Juan if the spouse were under conjugal partnership of gains
a. 5,475,000 c. 4,610,000
b. 4,560,000 d. 3,975,000

63. The community property of the spouses under absolute community of property regime
a. 4,287,000 c. 5,475,000
b. 4,560,000 d. 3,975,000

64. The gross estate of Juan if the spouses were under the absolute community of property regime
a. 5,070,000 c. 5,475,000
b. 4,287,000 d. 4,610,000

65. A citizen of the Philippines who works abroad and whose employment requires him to be physically
present abroad most of the time during taxable year is
a. Taxable on income within and without the Philippines
b. Taxable on income within the Philippines
c. Taxable on income without the Philippines

Prepared by: Junior Philippine Institute of Accountants and Auditors - United

d. Exempt from income tax

66. Who shall have the main authority to grant tax incentives under the CREATE Act?
a. President of the Philippines
b. Board of Investments
c. National Economic Development Authority
d. Fiscal Incentives Review Board

67. The special corporate income tax is:

a. Five percent based on gross income
b. Five percent based on taxable income
c. Ten percent on gross income
d. Ten percent on taxable income

68. McDonalds sold BTS meals amounting to PHP 1,164.80 to a senior citizen who presented a senior
citizen identification card. The senior citizen was accompanied by his three (3) Armies grandchildren.
Compute the amount of VAT due from the above transactions.
a. P93.60 c. P124.80
b. P1,081.60 d. P1,164.80

69. Which of the following is the required attachment to the Annual ITR of entities availing of income tax
holiday?
a. Certificate for Entitlement to Income Tax Holiday
b. Certificate of Residency for Tax Treaty Relief
c. Certificate of Registration
d. Certificate of Entitlement to Tax Incentives

70. Which of the following is true regarding barangay micro-business enterprise (BMBE)?
a. A BMBE is exempt from the payment of excise tax.
b. A BMBE shall always be a non-VAT registered taxpayer.
c. A BMBE is exempt from the coverage of the minimum wage law.
d. A BMBE is exempt from the payment of documentary stamp tax.

Prepared by: Junior Philippine Institute of Accountants and Auditors - United