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    Intax Quiz 8: C. Transitional Input Tax Credit

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    BLACKPINKLisaRoseJisooJennie
    CP, a retail business, wants to register for VAT to claim input tax credits. Once registered, CP will be entitled to transitional input tax credits (choice c). For Ben10 Corp., a VAT-registered taxpayer, the total sales subject to VAT is P2,800,000, which is the amount of local sales to private entities (P1,500,000) plus export sales (P500,000) plus local sales to government (P800,000) (choice a). For Leron-Leron Sinta Inc., a real estate dealer, the output tax to be recognized for the June 2, 2018 payment of P2,000,000 is P249,600, which

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    Intax Quiz 8: C. Transitional Input Tax Credit

    Uploaded by

    BLACKPINKLisaRoseJisooJennie
    171 views2 pages
    CP, a retail business, wants to register for VAT to claim input tax credits. Once registered, CP will be entitled to transitional input tax credits (choice c). For Ben10 Corp., a VAT-registered taxpayer, the total sales subject to VAT is P2,800,000, which is the amount of local sales to private entities (P1,500,000) plus export sales (P500,000) plus local sales to government (P800,000) (choice a). For Leron-Leron Sinta Inc., a real estate dealer, the output tax to be recognized for the June 2, 2018 payment of P2,000,000 is P249,600, which

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    InTax 8

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    CP, a retail business, wants to register for VAT to claim input tax credits. Once registered, CP will be entitled to transitional input tax credits (choice c). For Ben10 Corp., a VAT-registered taxpayer, the total sales subject to VAT is P2,800,000, which is the amount of local sales to private entities (P1,500,000) plus export sales (P500,000) plus local sales to government (P800,000) (choice a). For Leron-Leron Sinta Inc., a real estate dealer, the output tax to be recognized for the June 2, 2018 payment of P2,000,000 is P249,600, which

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    171 views2 pages

    Intax Quiz 8: C. Transitional Input Tax Credit

    Uploaded by

    BLACKPINKLisaRoseJisooJennie
    CP, a retail business, wants to register for VAT to claim input tax credits. Once registered, CP will be entitled to transitional input tax credits (choice c). For Ben10 Corp., a VAT-registered taxpayer, the total sales subject to VAT is P2,800,000, which is the amount of local sales to private entities (P1,500,000) plus export sales (P500,000) plus local sales to government (P800,000) (choice a). For Leron-Leron Sinta Inc., a real estate dealer, the output tax to be recognized for the June 2, 2018 payment of P2,000,000 is P249,600, which

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    InTax Quiz 8

    1. CP operated a retail business that had been generating sales not exceeding the threshold for VAT exempt
    persons. However, he desires to be registered under the VAT system for the first time in order to benefit from
    input tax credits. What benefit may CP be entitled to once he registers under the VAT system?
    a. Tax refund
    b. Presumptive input tax credit
    c. Transitional input tax credit
    d. None of the foregoing

    2. The financial records of Ben10 Corp., a VAT-registered taxpayer, for the taxable year 2016 disclosed the
    following:
    Local sales to private entities 1,500,000
    Export Sales 500,000
    Local sales to government 800,000

    How much is the total sales subject to value-added tax?


    a. P2,800,000 c. P2,000,000
    b. P2,300,000 d. P1,500,000

    Local sales to private entities 1,500,000


    Export Sales 500,000
    Local sales to government 800,000
    Total VATABLE SALES 2,800,000

    3. Leron-Leron Sinta Inc. is a real estate dealer. Details of its sales during the year showed the following:
    Date of sale June 2, 2017
    Consideration in the deed of sale P 5,000,000
    Fair market value in the assessment rolls 4,800,000
    Zonal Value 5,200,000

    Schedule of payments:
    June 2, 2017 1,000,000
    June 2, 2018 2,000,000
    June 2, 2019 2,000,000

    How much is the output tax to be recognized for the June 2, 2018 payment?
    a. P0 c. P249,600
    b. P124,800 d. P624,000

    **Zonal Value 5,200,000 x 12% = 624,000 x 2M/5M = 249,600 Output Tax for 2018

    4. The Improperly Accumulated Earnings Tax shall not apply to which of the following corporations?
    a. Banks and other non-bank financial intermediaries
    b. Insurance companies
    c. Publicly-held corporation
    d. All of the choices
    5. Foreign income taxes paid by the resident citizen or domestic corporation.
    a. May be claimed only as tax credit.
    b. May be claimed only as tax deduction.
    c. Do not qualify either as a tax credit or as a tax deduction.
    d. May be claimed either as a tax credit or as a tax deduction at the option of the income taxpayer.

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