MINDANAO STATE UNIVERSITY – GENERAL SANTOS CITY

DEPARTMENT OF ACCOUNTANCY
ACCTG184: QUIZ SERIES 3

BUSINESS TAXES AND PREFERENTIAL TAXATION

1. Who shall be statutorily liable to pay for the tax on sale of goods or properties
and sale of services and lease of properties?
A. Buyer C. Consumer
B. Seller D. None of the choices

2. “Considered export sales under Executive Order No. 266” shall mean:
I – the Philippine port F.O.B. value determined form invoices, bills of lading,
inward letters of credit, landing certificates, and other commercial documents, of
export products exported directly by registered export producer.
II – the net selling price of export products sold by a registered export producer
to another export producer, or to an export trader that subsequently exports the
same.
A. Only I is correct C. Both I and II are correct
B. Only II is correct D. Neither I nor II is correct

3. Which of the following statements is incorrect?

A. In case the valuation used by the Bureau of Customs in computing customs duties
is based on volume or quantity of the imported goods, the landed cost shall be the
basis for computing VAT.
B. Landed cost consists of the invoice amount, customs duties, freight, insurance
and other charges.
C. If the goods imported are subject to excise tax, the excise tax shall not form
part of the tax base.
D. The same valuation rule applies to technical importation of goods sold by a
person located in a Special Economic Zone to a customer located in a customs
territory

4. Mr. Jaime Jayme, VAT-registered, imported goods from South Korea. After the
release from Customs custody, he sold them to LBT Importers, Inc. Mr. Jayme would be
liable to:
A. Both VAT on importation and VAT on sale of goods.
B. Neither VAT on importation nor VAT on sale of goods.
C. VAT on importation only.
D. VAT on sale of goods only.

5. How is the percentage on the secondary offering of shares of stock of closely

held corporation collected and paid?
A. The stockbroker collects and remits the tax within 5 working days from the date
of collection.
B. The stockbroker collects and remits the tax within 5 banking days from the date
of collection.
C. The purchaser collects and remits the tax within 5 days after the end of the
quarter, fiscal or calendar.
D. The local stock exchange collects and remits the tax within 5 banking days from
the date of collection.

6. Which of the following percentage taxes is paid on a quarterly basis?

A. Common carrier’s tax C. Tax on Winnings
B. Amusement tax D. Stock transaction tax

7. One of the following statements is incorrect.

A. Overseas communication tax is imposed on overseas communication originating from
the Philippines
B. The person liable to overseas communications tax may or may not be engaged in any
trade or business
C. The overseas communications tax is imposed whether the overseas communications
are made in the course of trade or business or not
D. The overseas communications tax is imposed on the owner of the communications
facilities used to make overseas communications

8. A large taxpayer subject to percentage 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 files its consolidated monthly percentage tax return?
A. Authorized agent bank in Makati City
B. Revenue district office in Quezon City
C. Office of the collection agent in Pasig City
D. Any of the above as long as the correct tax is paid

9. For VAT purposes, the term “taxable quarter” shall mean:

A. Calendar quarter whether the taxpayer uses fiscal or calendar quarter for income
tax purposes
B. Fiscal quarter whether the taxpayer uses fiscal or calendar quarter for income
tax purposes
C. The quarter that is synchronized to the income tax quarter of the taxpayer
D. None of the choices

10. Mr. C is a manufacturer of fermented liquors. In making sales, all taxes on the
products and transactions are passed on the buyers. For the purposes of the value-
added tax, which of the three taxes mentioned here that he pays forms part of the
gross selling price?
A. Excise tax C. Percentage Tax
B. Value-added tax D. None of the Above

11. Shoegar Products is a processor of refined sugar. It purchases sugarcane from

farmers for processing into intermediate stages until it becomes refined sugar. In a
month, it had the following sales and purchases, no tax included:
Sales P880,000
Purchases of sugarcane 220,000
Purchases of containers and paper labels 100,000
The VAT payable is:
A. P66,000 B. P88,000 C. P74,700 D. P84,800

12. Sale by a real estate dealer:

Date of sale June 2, 2009
Consideration in the deed of sale P5,000,000
Fair market value in the assessment rolls 4,800,000
Zonal value 5,200,000
Payments on the consideration:
June 2, 2009 P1,000,000
June 2, 2010 2,000,000
June 2, 2011 2,000,000
Installment output/input tax on payment of June 2, 2011
A. P0 B. P124,800 C. P249,600 D. P624,000

13. Mr. A is a VAT-registered building contractor:

Gross receipts in a month, any tax not included:
 From Mr. X, a private property owner, on the final payment
on the contract price, net of a 5% agreed retention by Mr. X P2,850,000
 From Mr. Y, a payment of a 5% retention on the contract
price previously made by Mr. Y 100,000
 From Mr. Z, for materials used in the contracts, on a contract
for labor and materials 500,000
How much is the Output VAT?
A. P414,000 B. P342,000 C. P72,000 D. Some other amount

14. A Co., in its first month of operations, and as a VAT taxpayer, purchased
various fixed assets. Purchases of fixed assets in the first month are as follows:
Light equipment, with a useful life of 3 years P300,000
Heavy equipment, with a useful life of 10 years 4,000,000
How much is the input tax available?
A. P516,000 B. P9,000 C. P480,000 D. Some other amount

15. Sales in the preceding year not exceeded P 1,500,000. Data in January, 2011:
Sales, any tax included P120,000
Purchases from VAT suppliers, VAT included 22,400
Inventory, all purchased from VAT suppliers:
January 1, VAT included 33,600
January 31, VAT not included 10,000
The tax payer opted to be a VAT tax payer beginning January, 2011. Value-added tax
payable for January, 2011 is?
A. P12,400 B. P11,100 C. P6,400 D. Some other amount.

16. In a month, VAT not included:

Domestic sales P660,000
 Export sales, 500,000
Purchases form VAT-registered persons:
Of goods exported 550,000
Of goods sold in the Philippines 220,000
Operating expenses 110,000

The input taxes attributable to export sales which may be refunded or credited
against any other internal revenue tax including the VAT on domestic sales is:
A. P50,000 B. P20,000 C. P70,000 D. P66,000

17. In the third quarter of 2019, a taxpayer engaged in the sale of services whose
annual gross receipts do not exceed P3,000,000 has the following data
Accounts receivable, beginning of the quarter P50,000
Sales during the quarter 100,000
Accounts receivable, end of the quarter 75,000
Purchase of supplies, total invoice amount 11,200
The percentage tax due for the quarter is
A. P2,250 B. P3,000 C. P7,500 D. P6,500

18. Royal Mining is a VAT-registered domestic mining entity. One of its products is
silver being sold to Bangko Sentral ng Pilipinas. It filed a claim with the BIR for
tax refund on the ground that under Section 106 of NICR, sales of precious metal to
Bangko Sentral ng Pilipinas are considered export sales subject to zero-rated VAT.
Is Royal Mining’s claim for refund meritorious?
A. Yes, sale of precious metal to Bangko Sentral ng Pilipinas are deemed zero-rated
transactions.
B. Yes, sale of precious metal to Bangko Sentral ng Pilipinas is deemed an exempt
sale.
C. No, sale of gold to Bangko Sentral ng Pilipinas is an exempt transaction not
silver.
D. No, sale of precious metal to Bangko Sentral ng Pilipinas is creditable not
refundable.

Use the data for the next two questions:

A, operates a convenience store, from which the gross receipts from sales, and
payments on purchases from VAT-registered supplies, were as follows:
Sales of processed food items P280,000
Sales of non-food items 200,000
Purchases of processed food items 100,000
Purchases of non-food items 80,000
Salaries of helpers 48,000

19. The percentage tax (tax due) is (above amounts are net of taxes)
A. P15,000 B. P32,000 C. P50,000 D. P27,200

20. Using the preceding number, if A opted to be registered under the VAT scheme,
the VAT payable is
A. P15,000 B. P32,000 C. P38,400 D. P27,200

Use the data for the next two questions:

A, operates a ferryboat. During a particular quarter, its receipts consist of the
following
Gross receipts (without VAT) P1,000,000
Transport of goods 1,500,000
Transport of cargoes 500,000
21. The common carrier’s tax payable is
A. P30,000 B. P90,000 C. P100,000 D. None

22. Using the data above, the output VAT is

A. P360,000 B. P90,000 C. P100,000 D. P240,000

Use the data for the next three questions:

A operates a cockpit. Inside the cockpit, he also operates a restaurant. Data for
the particular quarter follow
Gross receipts:
Cockpit operations P500,000
Restaurant operations:
Sale of foods 100,000
Sale of liquor 150,000
23. The amusement tax due from A is
A. P90,000 B. P135,000 C. P225,000 D. Some other amount
24. Using the above data, except that the restaurant is not owned by A but is owned
by another person, B, not VAT registered and whose annual gross sales never exceeded
P1,500,000. The amusement tax due from A is
A. P90,000 B. P135,000 C. P225,000 D. Some other amount

25. Continuing the preceding number, the percentage tax due from B is
A. P90,000 B. P135,000 D. P225,000 D. Some other amount

26. For BMBE purposes, the Certificate of Authority shall be effective for a period
of ____ and renewable for the same period.
A. 1-year B. 2 years C. 3 Years D. 4 years

27. The _____ of each City or Municipality shall register BMBEs and issue
Certificate of Authority to enable BMBE to avail of the incentives under the BMBE
Act
A. Office of the Mayor C. Office of the Barangay Chairman
B. Office of the Treasurer D. BIR Revenue District Office

28. 1st Statement: BOI registered enterprises are subject to 5% gross income tax in
lieu of national and local taxes, except real property tax.
2nd Statement: The 5% special discount granted to a Senior Citizen carried with it
an exemption from VAT.
A. Both are correct C. Only first statement is correct
B. Both are incorrect D. Only second statement is correct

29. Lolo Cardo, a senior citizen went to Jollengke to treat his 4 grandchildren on
account of his retirement. The consumed foods and beverages with gross amount of
P1,120 inclusive of VAT. How much is amount to be paid by Lolo Cardo?
A. P896 B. P920 C. P1,056 D. Some other amount

30. Ipin Dental Clinic rendered dental services to a PWD. The professional fee
amounted to P1,120. Assume that the dental clinic is non-vat registered and its
annual gross receipts never exceeded the VAT Threshold. How much is the amount to be
paid by the PWD?
A. P800 B. P896 C. P1,000 D. Some other amount

END

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(DETACH THIS PORTION)

NAME: SCORE:

1. 6. 11. 16. 21. 26.

2. 7. 12. 17. 22. 27.

3. 8. 13. 18. 23. 28.

4. 9. 14. 19. 24. 29.

5. 10. 15. 20. 25. 30.