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    Final Tax

    Uploaded by

    Eun Ice
    The document provides 14 multiple-part questions regarding the calculation of final tax amounts for various scenarios involving prizes, investments, salaries, and other income. It asks the reader to compute final tax amounts that should be withheld or paid for individuals and corporations in situations such as prize winnings, interest income, profit sharing, bond investments, and pre-terminated deposits.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Final Tax

    Uploaded by

    Eun Ice
    4K views1 page
    The document provides 14 multiple-part questions regarding the calculation of final tax amounts for various scenarios involving prizes, investments, salaries, and other income. It asks the reader to compute final tax amounts that should be withheld or paid for individuals and corporations in situations such as prize winnings, interest income, profit sharing, bond investments, and pre-terminated deposits.

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    FINAL-TAX.docx

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    The document provides 14 multiple-part questions regarding the calculation of final tax amounts for various scenarios involving prizes, investments, salaries, and other income. It asks the reader to compute final tax amounts that should be withheld or paid for individuals and corporations in situations such as prize winnings, interest income, profit sharing, bond investments, and pre-terminated deposits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4K views1 page

    Final Tax

    Uploaded by

    Eun Ice
    The document provides 14 multiple-part questions regarding the calculation of final tax amounts for various scenarios involving prizes, investments, salaries, and other income. It asks the reader to compute final tax amounts that should be withheld or paid for individuals and corporations in situations such as prize winnings, interest income, profit sharing, bond investments, and pre-terminated deposits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    1. Mr.

    Aguak earned the following prizes from two different competitions:


    Date Event Gross Prize
    January 4,2017 Singing competition P 12,000
    February 14,2017 Painting competition 10,100

    Compute the total final tax that should have been withheld from the above prizes.

    2. Mr. Rems Orayt participated in two different events on January 4, 2018:


    Date Organizer Competition Gross Prize
    January 4,2017 Ang Mahiwagang Boses Singing P 10,000
    January 4,2017 Samahang Sexy Body Dancing 10,000
    Compute the total final tax that should have been withheld from the above prizes.

    3. Mr. Conrado won the P 50,000,000 6/49 Superlotto Jackpot of the Philippines Charity Sweepstakes
    Office. How much final tax will be withheld?

    4. Mr. Matti won a gold medal and P50,000 cash prize for chess competition in the Palarong Pambansa.
    How much final tax should be withheld from the prize?

    5. Mr. Curandang submiited a sworn statement regarding the alleged tax evasion practices of Chitie
    Corporation. This led the BIR to recover P20,000,000 unpaid taxes. How much net tax informer’s reward
    shall be paid to Mr. Curandang?

    6. Roy invested P1,000,000 in the “tax-free” corporate bonds of RBC Corporation. The bond pays 8.75%
    interest annually net of any taxes. How much final tax must RBC Corporation withhold from the annual
    interest payment to Roy?

    7. Assume that Winnie is a non-resident alien not engaged in trade or business; compute the final tax on
    maturity of the deposit.

    8. On January 1, 2018, Mr. Albuera invested P2,000,000 in the six-year time deposit of Sulu Unibank which
    pays 10% annual interest. Compute the final tax to be withheld by Sulu Unibank on December 31, 2018.

    9. Assume Mr. Albuera pre-terminated the time deposit on July 1, 2018; compute the final tax to be
    withheld on pre-termination.

    10. Armando is a partner in a business partnership. At the end of 2018, he has a total of P300,000 profit
    sharing on the after tax income of the partnership inclusive of P120,000 salaries as a managing partner.
    Compute the amount final tax to be withheld from Armando’s profit sharing.

    11. Compute the total amount of income subject to final tax.


    Yield from deposit substitute P 10,000
    Interest income from bonds of a domestic corporation 23,000
    Property dividend declared by a foreign corporation 40,000
    Stock dividend declared by a domestic corporation 50,000
    Compensation income, net of P10,000 withholding tax 80,000
    Prize on “Search for Mr. Sexy Body” 15,000
    Royalties from books 24,000
    Interest income on personal loans granted to a friend 8,000
    Salaries from a general professional partnership 30,000
    Salaries from a business partnership 20,000

    12. Determine the total amount of income tax withheld from the following passive income during the year:
    Interest on Peso bank deposit P 90,000
    Royalties 36,000
    Dividends 63,000
    Share in the distributive income of a joint venture 72,000

    13. On January 1, 2008, Kevin purchased 1,000 P1,000 face value bonds of a domestic corporation at face
    value. The bonds were dated January 1, 2007 and mature on January 1, 2011. The bonds pay 12% annual
    interest every January 1. If Kevin disposed of this investment directly to buyer on December 31, 2008 at
    102, how much is the total final tax due?

    14. On January 1, 2015, Helen invested P1,000,000 to RCBC Commercial Bank’s 5-year, tax-free time
    deposit. The long-term deposit pays 15% annual interest every January 1. In need of cash, Helen pre-
    terminated her investment on July 1, 2018. How much is the final tax due and the proceeds of Helen’s
    investment?

    ---End of Quizzer---

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