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Re SA B45 TAX First PB Exam - Questions, Answers
Accountancy (STI College)
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ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY
CPA Review Batch 45  May 2023 CPALE  12 February 2023  8:00 - 11:00 AM
TAXATION
FIRST PRE-BOARD EXAMINATION
INSTRUCTIONS: Select the correct answer for each of the questions.
Mark only one
answer for each item by shading the box corresponding to the letter of your choice on
the answer sheet provided. STRICTLY NO ERASURES ALLOWED. Use pencil no. 2 only.
SITUATIONAL
A VAT-registered exporter, who is also engaged in VAT-exempt sales, has the following VATexclusive data for the first calendar quarter of the current year:
Export sales
P4,000,000
VAT-exempt domestic sales
6,000,000
Purchases attributed to export sales
2,000,000
Purchases attributed to all sales
1,000,000
1.
How much is going to be reflected in Line 19 of BIR Form 2550Q (Total sales/receipts)?
a. P10,000,000
c. P4,000,000
b. P 6,000,000
d. Zero
2.
How much is the total VAT-subject sales?
a. P10,000,000
b. P 6,000,000
c.
d.
P4,000,000
Zero
3.
What amount of input tax is chargeable to cost or expenses?
a. P216,000
c. P120,000
b. P144,000
d. P 72,000
4.
What amount of input tax can be claimed as tax credit or refund?
a. P360,000
c. P240,000
b. P288,000
d. None
5. The gross estate of a decedent consists of registered and registrable properties
valued at P5,000,000. Which of the following statements is/are correct?
I - The estate of the decedent is required to submit notice of death.
II - The estate of the decedent is required to file an estate tax return.
III - The estate of the decedent is required to submit a statement certified
by a CPA.
a. Statements I, II and III
b. Statements II and III
c. Statement II
d. None of the statements
SITUATIONAL
The decedent is a married man with a surviving spouse with the following data died on
February 1, 2021:
Real properties received by decedent as inheritance during the
marriage (including land valued at P200,000 transferred
inter vivos by decedent to a son)
P10,000,000
Personal properties acquired during the marriage using common
fund (including car valued at P1,800,000 acquired for the
exclusive use of the surviving spouse)
6,000,000
Personal properties received as gift by the surviving spouse
during the marriage
5,000,000
Exclusive family home
5,200,000
Conjugal deductions claimed (including funeral expenses
amounting to P200,000; judicial expenses amounting to
2,600,000
P300,000 and medical expenses amounting to P100,000)
Exclusive deductions claimed (including unpaid mortgage of
P500,000 on the personal properties received as gift by the
surviving spouse during the marriage)
2,500,000
6. Using BIR From No. 1801 what amount shall be reflected in Line 34 page 2 (Gross
estate)
a. P26,200,000.
c. P21,000,000.
b. P21,200,000.
d. P16,000,000.
7. Using BIR From No. 1801 what amount shall be reflected in Line 35 page 2 (Ordinary
deductions)
a. P5,100,000
c. P4,600,000
b. P5,000,000
d. P4,000,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
8. Using BIR From No. 1801 what amount shall be reflected in Line 37D page 2 (Total
special deductions)
a. P10,200,000
c. P7,600,000
b. P10,000,000
d. P5,200,000
9. Using BIR From No. 1801 what amount shall be reflected in Line 40 page 2 (Net
taxable estate)
a. P10,900,000
c. P6,800,000
b. P 8,800,000
d. P4,800,000
10. Using BIR From No. 1801 what amount shall be reflected in Line 18 page 1 (Estate
tax due)
a. P654,000
c. P408,000
b. P528,000
d. P288,000
SITUATIONAL
On January 15, 2022, Daisy gave a piece of land to her brother-in-law who is getting
married on February 14, 2022. The assessed value and zonal value of the land were
P750,000 and P1,000,000 respectively. It was acquired by Daisy at a cost P1,500,000
in 2018. An adjacent lot to the donated property was valued at P2,000,000. The land
given as a gift had an unpaid mortgage of P200,000, which was assumed by the donee and
an unpaid realty tax of P10,000 which was also assumed by the donee. The donor and the
donee agreed that the latter will assume the donor’s tax amounting to P33,000.
Daisy donated other properties to her sister and brother on March 15, 2022. Gift to
sister had a zonal value of P500,000 and an assessed value P300,000. Gift to brother
was cash P300,000 of which she specially provided that 10% of the gift should be given
to the church where Daisy was a member.
11. Using BIR From No. 1801 to be filed for the donations dated March 15, 2022, what
amount shall be shown in Line 27 page 2 (Total gifts in this return)
a. P1,800,000
c. P800,000
b. P1,560,000
d. P600,000
12. Using BIR From No. 1801 what amount shall be shown in Line 33 page 2 (Total
deductions allowed)
a. P243,000
c. P30,000
b. P240,000
d. None
13. Using BIR From No. 1801 what amount shall be shown in Line 35 page 2(Total prior
net gifts during the calendar year)
a. P800,000
c. P540,000
b. P790,000
d. None
14. Using BIR From No. 1801 what amount shall be shown in Line 38 page 2 (Total net
gift subject to tax)
a. P1,590,000
c. P1,310,000
b. P1,560,000
d. None
15. Using BIR From No. 1801 what amount shall be shown in Line 18 page 1 (Tax payable)
a. P95,400
c. P78,600
b. P93,600
d. P46,200
16. A VAT-registered taxpayer service provider has the following data taken from the
books of account for the month of January 2021:
Accounts receivable, January 1, 2021
Sales on account for the month of January, VATinclusive
Services paid in cash for the month of January, VATinclusive
Accounts receivable, January 31, 2021
Cash purchases for the month of January 2021
P
560,000
1,120,000
336,000
784,000
448,000
How much is the output tax for the month of January, 2021 using 12% rate?
a. P201,600
c. P132,000
b. P147,840
d. P96,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
17. A lessor, not VAT-registered, rents his 5 commercial and 20 residential units for
monthly rent of P50,000 and P15,000 per unit, respectively. His accumulated gross
receipts during the taxable year amounted to:
Rent from 5 commercial units (P50,000 per unit x 12)
P3,000,000
Rent from 20 residential units (P15,000 per unit x 12)
3,600,000
Aggregate gross receipts
P6,500,000
What will be the business taxes consequences?
a. Both will be subject to VAT because the aggregate gross receipts exceed
the VAT threshold.
b. Both will be exempt from VAT because rent from commercial units did not
exceed the VAT threshold and rent from residential units shall be exempt
regardless of the gross annual receipts.
c. Only the rent from commercial units shall be subject to VAT
d. Only the rent from residential units shall be subject to VAT because
it exceeded the VAT threshold.
SITUATIONAL
A taxpayer is engaged in VAT-subject transactions but his annual gross sales do not
exceed the VAT threshold.
Hence, he did not register under VAT system.
However,
during 2022, his quarterly gross sales follow:
First quarter
Second quarter
Third quarter
Fourth quarter
P1,000,000
1,000,000
1,000,000
1,000,000
18. How much is the total percentage tax due for the first three (3) quarters?
a. P480,000
c. P90,000
b. P120,000
d. P30,000
19. How much is the VAT due?
a. P480,000
b. P120,000
c.
d.
P90,000
None of the choices
SITUATIONAL
A VAT-registered taxpayer is also engaged in VAT-exempt transactions.
VAT exclusive data are made available:
Domestic VAT-subject cash sales
VAT-exempt sales on account
Export cash sales
Cash purchases of supplies from VAT supplier used for all
transactions)
Purchase on account of merchandise from VAT-registered trader (for
VAT sales only)
The following
P1,000,000
500,000
300,000
150,000
200,000
20. How much is the amount reflected in line 22 BIR Form 2550Q (total available input
tax)?
a. P42,000
c. P34,000
b. P37,000
d. P24,000
21. How much is the amount reflected in line 24 BIR Form 2550Q (allowable input tax)
assuming the taxpayer decided to refund the input tax attributed to zero-rated
sales?
a. P42,000
c. P34,000
b. P37,000
d. P24,000
22. How much is the amount reflected in line 19A BIR Form 2550Q (total sales)?
a. P1,800,000
c. P1,300,000
b. P1,500,000
d. P1,000,000
23. How much is the VAT-subject sales?
a. P1,800,000
b. P1,500,000
c.
d.
P1,300,000
P1,000,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
24. How much is the amount reflected in line 25 BIR Form 2550Q (Net VAT payable)
assuming the taxpayer decided to refund the input tax attributed to zero-rated
sales?
a. P96,000
c. P83,000
b. P86,000
d. P78,000
SITUATIONAL
An operator of domestic common carrier by land, not VAT-registered, presented the
following data for the first calendar quarter of the year 2022. His VAT-subject gross
receipts do not exceed the VAT threshold in any given year.
Gross receipts transport of passengers by land
Gross receipts transport of goods
Gross receipts transport of cargoes
Cost of services, transport of passenger
Cost of services, transport of goods and cargoes
Operating expense, transport of passenger
Operating expenses, transport of goods and cargoes
P
25. How much is the common carrier’s tax?
a. P105,000
b. P70,000
c.
d.
P35,000
None
26. How much is the output VAT?
a. P180,000
b. P120,000
c.
d.
P60,000
Exempt from VAT
27. How much is the percentage under Sec. 116?
a. P21,000
b. P14,000
c.
d.
P7,000
None
3,500,000
500,000
200,000
800,000
300,000
100,000
50,000
28. Can the taxpayer avail of the 8% income tax rate?
a. Yes. Because his total gross receipts do not exceed the VAT
b.
c.
d.
threshold as long as he signifies his intention when he files
his first quarter return.
No. Because he is VAT-registered and therefore not qualified to
avail of the 8% income tax rate.
Yes. Because taxpayers with various business is qualified as long
as he signifies his intention when he files his first quarter
return.
No. Taxpayers who are subject to Other Percentage Taxes, except those
under Section 116 are not qualified to avail of the 8% income tax
option.
29. If the taxpayer avails of the 8% tax on his gross receipts how much is the
percentage under Sec. 116 due and payable for the quarter
a. P21,000
c. P7,000
b. P14,000
d. None
Over
P
250,000
400,000
800,000
2,000,000
8,000,000
But not over
P 250,000
400,000
800,000
2,000,000
8,000,000
The tax shall be
0%
20%
P30,000
130,000
490,000
2,410,000
30. When shall the Percentage Tax Return be filed?
a. April 25, 2022
c.
b. April 24, 2022
d.
Plus
Of excess over
P
25%
30%
32%
35%
250,000
400,000
800,000
2,000,000
8,000,000
April 21, 2022
April 20, 2022
SITUATIONAL
ABS-GMA, VAT-registered, is a radio-TV broadcasting franchise grantee. The previous
year, its gross receipts did not exceed P 10,000,000. In the first quarter of the
year 2022, it had the following data:
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
Gross receipts, sale of airtime
Payments received from user of radio station’s
communications facilities for overseas communications
Rentals of office spaces
Business expenses
31. How much was the franchise tax?
a. P60,000
b. P50,000
c.
d.
500,000
3,500,000
700,000
P40,000
None, not subject to franchise tax
32. How much was the overseas communications tax?
a. P250,000
c.
b. P200,000
d.
P75,000
P50,000
33. How much is output VAT, if any?
a. P720,000
b. P660,000
P420,000
None
c.
d.
P 2,000,000
34. When shall the Quarterly VAT Return (2550Q) be filed?
a. April 25, 2022
c. April 15, 2022
b. April 20, 2022
d. Not applicable
35. When the overseas communications tax be paid?
a. April 25, 2022
c.
b. April 20, 2022
d.
April 15, 2022
Not applicable
36. A proprietor of bowling alleys has the following gross receipts during the month
of July, 2022:
Gross receipts from bowling operation
Gross receipts from sale of food and drinks inside the
bowling alley
Gross receipts from rental of stalls inside the bowling alley
How much is the amusement tax?
a. P1,050,000
b. P630,000
c.
d.
P2,000,000
1,000,000
500,000
P525,000
None
37. A nonresident citizen arrives in the Philippines on July 31, 2022 to reside here
permanently after many years of living abroad. The following data for the year
2018 on his income are made available:
Gross income, foreign sources (in Philippine pesos)
January 1 to July 31
Gross income, Philippine sources, August 1
to December 31
Gross income, foreign sources, (in Philippine pesos)
August 1 to December 31
P500,000
300,000
400,000
For Philippine income tax purposes, how much is his taxable gross income in 2022?
a. P800,000
c. P400,000
b. P700,000
d. P300,000
SITUATIONAL
In 2022, Mr. Kris Manuel owns a nightclub and videoke bar, with gross
sales/receipts of P2,500,000.00.
His cost of sales and operating
expenses are P1.000,000.00 and P600,000.00, respectively.
38. Can the taxpayer avail of the 8% income tax rate?
a. Yes. Because his gross receipts do not exceed the VAT threshold.
b. No. Because he is subject to percentage tax under Sec. 125.
c. Yes. Because night club and videoke bar owners are always allowed
to avail of the 8% income tax rate.
d. No. Because he did not express his intention to be taxed at 8%.
39. How much is the income tax due?
a. P200,000
b. P198,000
c.
d.
P190,000
P160,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
40. How much is the percentage tax due?
a. P750,000
b. P450,000
TAX First Pre-Board Exam
c.
d.
P375,000
P250,000
41. Foreign nationals or non-Filipino citizens, regardless of their residency, term and
class of working or employment permit or visa, who are employed and assigned in the
Philippines by an Offshore Gaming Licensee (OGL) or its Accredited Service Provider
shall have Taxpayer Identification Number (TIN) and shall be subject to a:
a. final withholding tax of 25% on their gross income.
b. creditable withholding tax of 25% on their gross income.
c. final withholding tax of 20% on their gross income.
d. creditable withholding tax of 10% on their gross income.
42. A non-VAT registered taxpayer who initially opted to avail of the 8% option but has
exceeded the VAT threshold during the taxable year, shall be subject to:
I – 3% percentage tax on the first P3,000,000 under Section 116
II – Without imposition of any penalty if payment is timely made on the following
month when the threshold is breached.
a. I and II and correct
c. Only II is correct
b. Only I is correct
d. Both and I and II are incorrect
43. One of the following can avail of the 8% income tax rate option:
a. VAT-registered seller of goods
b. Taxpayer subject to franchise tax under Section 119
c. Partners of general professional partnerships
d. Taxpayer subject to Percentage Tax on VAT-exempt persons (Sec. 116)
44. With respect to optional Standard Deductions (OSD) allowed to individual taxpayers,
which of the following statements is incorrect?
a. In lieu of the deductions allowed (itemized), an individual subject to
tax under Section 24, other than a nonresident alien, may elect a
standard deduction in an amount not exceeding forty percent (40%) of his
gross sales or gross receipts, as the case may be.
b. Unless the taxpayer signifies in his return his intention to elect
the optional standard deduction, he shall be considered as having
availed himself of the itemized deductions allowed.
c. An individual who is entitled to and claimed for the optional standard
deduction shall still be required to submit with his tax return such
financial statements required under the Tax Code.
d. The said individual shall keep such records pertaining to his gross
sales or gross receipts.
45. The gross estate of the following decedents shall include all properties wherever
situated, except which one?
a. Resident citizen
b. Resident alien
c. Non-resident citizen
d. Non-resident alien
46. Mr. Julian Cruz procured a life insurance upon his own life. He designated his
estate’s executor as an irrevocable beneficiary.
For estate tax purposes, the
proceeds of life insurance is:
a. included in the gross estate of Mr. Julian Cruz because when the executor
of the estate is a beneficiary the proceeds are included in the gross
estate regardless of the designation.
b. not included in the gross estate of Mr. Julian Cruz because the
designation of the beneficiary is irrevocable.
c. included in the gross estate of Mr. Julian Cruz because proceeds of life
insurance are always subject to estate tax.
d. not included in the gross estate because, as a rule, proceeds of life
insurance are generally not subject to estate tax.
47. (Phil. CPA)
The following are the requisites in order for claims against the
decedent’s estate to be deductible, except which one?
a. They must be existing against the estate.
b. They must be reasonably certain as to amount.
c. They must have been prescribed.
d. They must be enforced by the claimant.
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
48. Which of the following statements is incorrect?
A claim against an insolvent
person, which is not collectible in full:
a. is included in the gross estate.
b. is not included in the taxable net estate.
c. must be notarized if arising out of a debt instrument of the insolvent.
d. needs no preliminary filing of a case against the insolvent.
49. Kenneth sold a residential lot for P1,500,000. The fair market value of the
residential lot at the time of sale was P2,000,000. The sale of property was
made in the ordinary course of business which was a bona fide transaction, at
arm’s length, and was free from any donative intent. How much was the donor’s
tax due?
a. P120,000.00
c. P30,000.00
b. P 90,000.00
d. None, not subject to donor’ s tax.
50. (Phil. CPA) The common characteristic of transfer taxes is the transfer of property:
a. is onerous.
b. takes effect during the lifetime of the transferor.
c. takes effect upon the death of the transferor.
d. is gratuitous.
51. A VAT-registered owner of a shoe store wants to replace the old display cabinets
in the store. He decides to sell them. He asks whether or not the sale of display
cabinets used in his store is subject to VAT. What answer will you give him?
a. No, the sale of display cabinets used in the shoe store is not subject
to VAT because it is not considered his regular conduct or pursuit of
commercial or economic activity.
b. Yes, the sale of display cabinets used in the shoe store is subject to
VAT because it is considered an incidental transaction to his regular
conduct or pursuit of commercial or economic activity.
c. No, the sale of display cabinets used in the shoe store is not subject
to VAT because he is not a dealer of display cabinets.
d. Yes, the sale of display cabinets used in the shoe store is subject to
VAT because, as a rule, such sale is always subject to VAT.
52. Which of the following statements is incorrect?
a. A zero-rated sale of goods or properties (by a VAT-registered person) is
a taxable transaction for VAT purposes, but shall not result in any
output tax.
b. The input tax on purchases of goods, properties or services, related to
zero-rated sales, shall be available as tax credit only in accordance
with the Regulations.
c. The input tax on purchases of goods, properties or services, related to
such zero-rated sale, shall be available as tax credit or refund in
accordance with the Regulations.
d. Any enterprise whose export sales exceed 70% of the total annual
production of the preceding taxable year shall be considered an exportoriented enterprise.
53. Which of the following is subject to Value-Added Tax?
a. Medical, dental, hospital and veterinary services
b. Laboratory services
c. Sale of drugs and medicine in the hospital’s pharmacy or drug store
d. Medicines administered to a patient confined in the hospital
54. Which one of the following is VAT-exempt?
a. Export sale by a non-VAT person
b. Foreign currency denominated sale
c. Sale of services to entities duly registered with PEZA
d. Sale of services to Ramon Magsaysay Awards Foundation
55. Mr. Juan Cruz, VAT-exempt, issued VAT invoice to Mr. S. Santos, VAT-registered
trader. As a consequence:
A. Mr. Juan Cruz would be liable to percentage tax, VAT, and a surcharge of 50%.
B. Mr. S. Santos can claim input tax on his purchase provided the requisite
information required under the Regulations is shown on the invoice or receipt.
a.
b.
Both A and B are correct
Both A and B are incorrect
c.
d.
Only A is correct
Only B is correct
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
SITUATIONAL
A manufacturer purchased capital goods on different occasions as follows:
12%
No. of
Month of Purchase
Input
Useful
Monthly
Life
Amount
Tax
Amortization
January 2018
P8,500,000
P1,020,000
6 years
60
February 2018
8,500,000
1,020,000
4 years
48
December 2021
10,000,000
1,020,000
5 years
60
January 2022
10,000,000
1,020,000
5 years
56. When is the last month of amortization of the capital good purchased on January
2018?
a. December 2022
c. November 2026
b. January 2022
d. None of the choices
57. When is the last month of amortization of the capital good purchased on February
2018?
a. December 2022
c. November 2026
b. January 2022
d. None of the choices
58. When is the last month of amortization of the capital good purchased on December
2021?
a. December 2022
c. November 2026
b. January 2022
d. None of the choices
59. When is the last month of amortization of the capital good purchased on January
2022?
a. December 2022
c. November 2026
b. January 2022
d. None of the choices
60. International carriers doing business in the Philippines is subject to the:
a. 3% percentage tax on gross receipts derived from the transport of cargo
and/or mail from the Philippines to another country.
b. 3% percentage tax on gross receipts derived from the transport of cargo,
mail and passenger from the Philippines to another country.
c. 12% value-added tax on their gross receipts derived from the transport
of cargo from the Philippines to another country.
d. 0% percent value-added tax on their gross receipts derived from the
transport of cargo and passenger from the Philippines to another country
61. A VAT-registered telephone company provides services for domestic and overseas
calls. What business taxes are due from the services offered?
I - Value-added tax for domestic calls of which the taxpayer is the
person
using the communications facilities
II - Overseas communications tax for overseas calls originating from the
Philippines of which the taxpayer is the owner of the communications
facilities
a. Yes to I and II
c. Yes to I only
b. No to I and II
d. Yes to II only
62. The lease of property, real or personal, by a bank is subject to:
a. 5% gross receipts tax.
c. 12% VAT.
b. 7% gross receipts tax.
d. none of the choices.
63. Which of the following items is subject to VAT or percentage tax under Sec. 116
when received by a person engaged in life insurance business?
a. Investment income realized from the investment of funds obtained from
others allowed and approved by the Insurance Commission
b. Premium on Health and Accident Insurance
c. Re-issuance fees, reinstatement fees, renewal fees as well as penalties
paid to the life insurance company which are incidental to or in
connection with the insurance policy contracts issued
d. Other income earned which can be pursued independently of the insurance
business activities
64. A boxing exhibition featuring two (2) Filipino boxers in a Philippine championship
is held in a stadium in Pasig. It is promoted by a domestic corporation at least
60% of the stock of which is owned by Filipinos. The following data are presented
to you:
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
Gross receipts
Cost of services
Gross income
Less: Expense
Net loss
P 5,000,000
3,000,000
2,000,000
(2,500,000)
(P500,000)
How much is the amusement tax?
a. None, because the boxing exhibition resulted in a loss.
b. None, because the boxing exhibition is exempt from the tax.
c. P500,000
d. P200,000
65. Using the same data in the preceding number and assuming it is a world championship,
how much is the amusement tax?
a. None, because the boxing exhibition resulted in a loss.
b. None, because the boxing exhibition is exempt from the tax.
c. P500,000
d. P200,000
66. Tax on winnings shall be withheld by the operator, manager or person in charge of
the horse races before paying the dividends or prizes and shall be remitted to the
BIR within how many days from the date the tax was deducted and withheld?
a. 30 days
c. 20 days
b. 25 days
d. 15 days
67. Excise taxes are:
I - considered taxes on production
II - directly levied upon the manufacturer or importer
III - actually passed on to the end consumer
a. I, II and III are correct
b. I, II and III are incorrect
c. Only I and II are correct
d. Only II III are correct
68. First statement: Every fractional part of a proof liter equal to or greater than a
half liter in a cask or package containing more than one liter shall be taxed as a
liter, and any smaller fractional part shall be exempt.
Second statement: Any package of spirits, the total content of which are less than
a proof liter, shall be taxed as one liter.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first is correct
d. Only the second statement is correct
69. Which of the following statements is incorrect?
a. Excise tax on nonmetallic mineral or mineral products, or quarry resources
shall be due and payable upon removal of such products from the locality
where mined or extracted.
b. With respect to the excise tax on locally produced or extracted metallic
mineral or mineral products, the person liable shall file a return and
pay the tax within fifteen (15) days after the end of the calendar quarter
when such products were removed subject to such conditions as may be
prescribed by rules and regulations to be promulgated by the Secretary of
Finance, upon recommendation of the Commissioner.
c. The taxpayer shall file a bond in an amount which approximates the amount
of excise tax due on the removals for the said quarter.
d. For imported mineral or mineral products, whether metallic or nonmetallic,
the excise tax due thereon shall be paid after their removal from customs
custody.
70. How much excise tax shall be levied, assessed and collected on sweetened beverages
using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix of
caloric and non-caloric sweeteners?
a. P12 per liter of volume capacity
b. P10 per liter of volume capacity
c. P6 per liter of volume capacity
d. P5 per liter of volume capacity
END OF EXAMINATION
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
ANSWERS & SOLUTIONS/CLARIFICATIONS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
A
C
D
B
C
C
D
A
D
D
C
C
B
C
D
C
B
D
B
A
C
A
C
B
A
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
D
C
D
D
A
D
D
B
A
B
D
B
B
D
B
A
A
D
C
D
A
C
C
D
D
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
B
B
C
A
A
A
B
C
D
A
B
B
D
C
B
C
A
A
D
C
1.
Export sales
VAT-exempt domestic sales
Total
P4,000,000
6,000,000
P10,000,000
2.
Export sales
P4,000,000
3.
6,000,000/10,000,000 x 120,000
P72,000
4.
Passed-on VAT on purchases attributed to export sales
(2,000,000 x 12%)
Ratable portion passed-on VAT attributed to all sales
(4,000,000/10,000,000 x 120,000)
Total
P240,000
6-10
Gross estate
Less: Deductions
Net estate before
special deductions
Less: Special deductions
Family home
Standard deduction
Net estate after special
deductions
Less: Share of surviving
spouse (1/2 x
4,000,000*)
Net taxable estate
Tax rate
Estate tax due
48,000
P288,000
Exclusive
P15,000,000
(2,000,000)
Common
P6,000,000
(2,000,000)
Total
P21,000,000
(4,000,000)
13,000,000
4,000,000*
17,000,000
Page 10 of 13
(5,200,000)
(5,000,000)
6,800,000
(2,000,000)
P 4,800,000
6%
P
288,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
11-15
16.
TAX First Pre-Board Exam
27 Total gifts in this return (March 15, 2022)
33 Total deductions (Diminution 10% x 300,000)
34 Total net gifts in this return
35 Add: Total prior net gifts during the calendar
year(1,000,000 – 200,000 – 10,000)
36 Total net gifts
37 Less: Exempt gift
38 Total net gift subject to tax
15 Applicable donor’s tax rate
16 Total donor’s tax due
17 Less: Tax payments/ credits
Payments for prior gifts during the calendar
year(790,000 – 250,000 = 540,000 x 6%)
18 Tax payable
Services paid in cash for the month (336,000/1.12
Account receivable beginning (560,000/1.12)
Add: Sales on account (1,120,000/1.12)
Total
Less: Accounts receivable, ending (784,000/1.12)
Collections
Total
Tax rate
Output tax
P 800,000
30,000
770,000
790,000
1,560,000
250,000
1,310,000
6%
78,600
32,400
P46,200
P 300,000
500,000
1,000,000
1,500,000
700,000
800,000
1,100,000
12%
P132,000
18.
First quarter
Second quarter
Third quarter
Total gross sales
Tax rate
Percentage tax
P1,000,000
1,000,000
1,000,000
3,000,000
1%
P
30,000
19.
Gross sales (fourth quarter)
Tax rate
Value-Added Tax
P1,000,000
12%
P
120,000
20.
Cash purchases of supplies from VAT supplier (used for
all transactions) (150,000 x 12%)
Purchase on account of merchandise from VAT-registered
trader (for VAT sales only) (200,000 x 12%)
Total available input tax
21.
Total available input tax
Less: Input tax attributed to exempt sale
(500,000/1,800,000 x 18,000)
Input tax to be refunded (300,000/1,800,000 x 18,000)
Allowable input tax
P18,000
24,000
P42,000
P42,000
(5,000)
(3,000)
P34,000
22.
Domestic VAT-subject cash sales
VAT-exempt sales on account
Export cash sales
Total
P1,000,000
500,000
300,000
P1,800,000
23.
Domestic VAT-subject cash sales
Export cash sales
Total
P1,000,000
300,000
P1,300,000
24.
Output tax (1,000,000 x 12%)
Less: Allowable input tax
VAT payable
25.
Gross receipts transport of passengers by land
Rate
Common carrier’s tax
Page 11 of 13
P120,000
34,000
P 86,000
P3,500,000
3%
P
105,000
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TAXATION
ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
27.
TAX First Pre-Board Exam
Gross receipts transport of goods
Gross receipts transport of cargoes
Gross receipts
Tax rate
Percentage tax (Sec. 116)
Over
29.
P
250,000
400,000
800,000
2,000,000
8,000,000
But not over
P 250,000
400,000
800,000
2,000,000
8,000,000
P500,000
200,000
700,000
1%
P7,000
The tax shall be
0%
20%
P30,000
130,000
490,000
2,410,000
Plus
P
25%
30%
32%
35%
32.
Payment received for the use of facilities (overseas comm)
Tax rate
Overseas communications tax
33.
Gross receipts, sale of airtime
Rentals of office spaces
Gross receipts
Tax rate
VAT
36.
37.
39.
40.
Of excess over
250,000
400,000
800,000
2,000,000
8,000,000
P 500,000
10%
P 50,000
P 2,000,000
3,500,000
5,500,000
12%
P660,000
Operators of bowling alleys are not subject to amusement tax.
Gross income, Philippine sources, August 1 to December 31
Gross income, foreign sources, (in Philippine pesos) August
1 to December 31
Taxable gross income
Gross Sales
Less: Cost of sales
Gross income
Less: Operating expenses
Taxable income
Tax due Sec. 24 (A) 800,000
100,000 x 30%
P300,000
400,000
P700,000
P2,500,000
1,000,000
1,500,000
600,000
P 900,000
130,000
30,000
Gross Sales
Tax rate
Amusement tax
P
160,000
P2,500,000
18%
P 450,000
45. References: Section 85, NIRC, as amended
Section 4, Revenue Regulations 12-2018
46. Reference: Section 85 (E), NIRC, as amended
47. Reference: Section 6 (2.1), Revenue Regulations 12-2018
48. References: Section 86 (A) (1) (d), NIRC, as amended
Section 6 (3), Revenue Regulations No. 12-2018
Claims of the deceased against insolvent persons as defined under R.A. 10142 [The
Financial Rehabilitation and Insolvency ACT (FRIA) of 2010] and other existing
laws, where the value of the decedent’s interest therein is included in the value
of the gross estate shall be allowed as deduction from the gross estate of a
decedent.
The requirement for notarization of debt instrument is a requisite of deduction
of the “claims against the estate”.
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ReSA Batch 45 – May 2023 CPALE Batch
12 February 2023  8:00 AM to 11:00 AM
TAX First Pre-Board Exam
49. Reference: Section 16, Revenue Regulations No. 12-2018
Where property, other than a real property that has been subjected to the final
capital gains tax, is transferred for less than an adequate and full
consideration in money or money’s worth, then the amount by which the fair market
value of the property at the time of the execution of the Contract to Sell or
execution of the Deed of Sale which is not preceded by a Contract to Sell
exceeded the value of the agreed or actual consideration or selling price shall
be deemed a gift, and shall be included in computing the amount of gifts made
during the calendar year: Provided, however That a sale, exchange, or other
transfer of property made in the ordinary course of business (a transaction
which is a bona fide, at arm’s length, and free from any donative intent), will
be considered as made for an adequate and full consideration in money or
money’s worth.”
52. Reference: Section 4.106-5, Revenue Regulations No. 16-2005
53. Reference: Section 4.109-1 (B) (1) (g),
Revenue Regulations No. 16-2005
56. Reference: Section 4.110-3, Revenue Regulations No. 13-2018
For purchase made on January 2018, the amortization shall be for the shorter
period of 5 years only or up to December 2022 although the useful life is 6
years.
57. Reference: Section 4.110-3, Revenue Regulations No. 13-2018
For purchase made on February 2018, the amortization shall be for period of 4
years only or up to January 2022 since the useful life of the asset is shorter
than 5 years.
58. Reference: Section 4.110-3, Revenue Regulations No. 13-2018
For purchase made on December 2021, the amortization shall be for the period
of 5 years or up to November 2026.
59. Reference: Section 4.110-3, Revenue Regulations No. 13-2018
For purchase made on January 2022, no amortization shall be made and the input
VAT shall be claimed on the month of purchase or January 2022.
60. References: Section 118, NIRC, as amended
Section 5, Revenue Regulations No. 15-2013
61. Reference: Section 120 (A), NIRC, as amended
64.
Gross receipts
Tax rate
Amusement tax
P5,000,000
10%
P 500,000
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