Law 202: Quiz 3 - Assessment

1.

Multiple Choice

1 min

1 pt

A seller of agricultural food products is vat-exempt. His annual gross sales in 2018 amounted to P3,000,000. To what business tax is he liable?

3% tax on vat-exempt persons

12% value-added tax

3% common carrier's tax

none of the above

2.

Multiple Choice

1 min

1 pt

The taxpayer is a trader of poultry feeds. Determine his applicable business tax.

Subject to 12% vat

Vat exempt but subject to 3% OPT under Section 116

12% vat or 3% OPT, at his option

Exempt from 12% Vat and OPT

3.

Multiple Choice

1 min

1 pt

One of the following is subject to three percent (3%) percentage tax

Establishments whose annual gross sales or receipts exceed P3,000,000 and who are VAT registered.

Businesses whose annual gross sales or receipts exceed P3,000,000 and who are not VAT registered.

VAT registered establishments whose annual gross sales or receipts do not exceed P3,000,000

Establishments whose annual gross sales or receipts do not exceed P3,000,000 and who are not VAT registered.

4.

Multiple Choice

2 mins

1 pt

Floyd (self-employed) is a non-vat registered taxpayer who operates a convenience store. The following were provided for 2018:

Sales of processed food items P280,000

Sales of non-food items P220,000

Purchases of processed food items P100,000

Purchases of non-food items P80,000

Salaries of helpers P48,000

The percentage tax is

P15,000

P50,000

P27,200

P32,000

5.

Multiple Choice

1 min

1 pt

Statement 1: The gross receipts of common carriers derived from their incoming and outgoing freight shall be subject to the local taxes imposed under the Local Government Tax Code.

Statement 2: The 3% common carrier's tax is based on the actual quarterly gross receipts or minimum quarterly receipt whichever is lower.

Only statement 1 is correct

Only statement 2 is correct

Both statements are correct

Both statements are incorrect

6.

Multiple Choice

1 min

1 pt

A non-vat registered transportation contractor is engaged in the transport of passengers, goods and cargoes. What business taxes is he liable?

12% value-added tax;

3% common carrier's tax;

3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers;

12% VAT on gross receipts from transport of goods and cargoes and 3% common

carrier's tax on gross receipts from transport of passengers.

7.

Multiple Choice

1 min

1 pt

One of the following statements is wrong: Operators of transport facilities are

Subject to the value-added tax on gross receipts from transporting passengers.

Subject to the value-added tax on gross receipts from transporting goods and cargoes.

Subject to percentage tax on gross receipts from transporting passengers.

Subject to the value-added tax on gross receipts from renting out its transportation facilities.

8.

Multiple Choice

2 mins

1 pt

Isarog is a vat registered common carrier with passenger buses and cargo trucks. For the month of June 2018, it had the following data on revenues and receipts, taxes not included:

o For transporting passengers, gross revenues and receipts of P330,000.

o For transporting cargoes, gross revenues of P220,000, of which P200,000 was received

o For renting out to the MMDA its towing trucks, gross receipts of P50.000, representing P10,000 from gross revenue of the quarter ending March 31 and P40,000 for the month of June.

The percentage tax is:

P1,500

P9,900

P15,900

P17,400

9.

Multiple Choice

1 min

1 pt

The Republic of Korea, as an act of goodwill, does not impose business taxes to Philippine carriers Korean Air is operating in the Philippines having two flights a week. If You were engaged by Korean air as its tax consultant and asked you whether it is liable to percentage tax which of the following will be your advice?

Korean Air is liable to percentage tax based on gross receipts from passengers, goods, cargoes and mails

Korean Air is liable to percentage tax based on gross receipts from passengers

Korean Air is liable to percentage tax based on gross receipts from goods, cargoes and mails only.

Korean air is not liable to percentage based on the principle of reciprocity.

10.

Multiple Choice

1 min

1 pt

Which of the following franchise grantees is subject to the franchise tax?

A Franchise on radio and/or television broadcasting companies the annual gross Receipts in the preceding year exceed P10,000,000.

Franchise on gas and water utilities.

Franchise on toll road operations.

PAGCOR and its licensees and franchise

11.

Multiple Choice

1 min

1 pt

Statement 1: Radio and/or television broadcasting whose gross receipts in the preceding year did not exceed P10,000,000 shall have an option to be registered as value-added taxpayer.

Statement 2: Once a radio and/or television broadcasting franchise grantees registered as value-added taxpayer, the registration shall not be revoked.

Both statements are correct.

Both statements are incorrect.

Only the first statement is correct.

Only the second statement is correct.

12.

Multiple Choice

1 min

1 pt

A telephone company, VAT-registered, provides services for domestic and overseas calls. What business taxes are due from the services offered?

I Value-added tax for domestic calls

II. Overseas communications tax for overseas calls.

I only

ll only

Both I and II

Neither I nor ll

13.

Multiple Choice

1 min

1 pt

One of the following is subject to overseas communications tax:

Long distance call by a son from Manila to his father in lloilo City.

Monthly telephone bill from PLDT.

Telephone bill on a call by a mother in the Philippines to her son in London.

Telephone call by Magda in Hongkong to her friend in Manila.

14.

Multiple Choice

2 mins

1 pt

Pedro executed on January 1, 2014, a long term loan from PRTC Bank in the amount of 6,000,000 payable within ten (10) years, with an annual interest of 2% However, on January 31, 2018, the loan was pre-terminated. Assuming PRTC Bank declared correctly the interest from 2014 to 2017 and the applicable gross receipts taxes were paid, how much gross receipts tax should be paid for the year 2018?

P100

P19,700

P24,500

P500

15.

Multiple Choice

1 min

1 pt

Statement 1: The tax on insurance premiums applies to every person, company or corporation doing life insurance business of any sort in the Philippines, except purely cooperative companies and associations.

Statement 2: A person engaged in non-life insurance business is subject to value-added tax.

Both statements are correct.

Only the first statement is correct.

Both statements are incorrect.

Only the second statement is correct

16.

Multiple Choice

1 min

1 pt

Statement 1: The tax on life insurance premiums is 2% based upon the total premiums collected whether such premiums are paid in money, notes, credits, or any substitute for money.

Statement 2: The tax on agents of foreign insurance companies is 4% based upon the total premiums collected.

Both statements are correct.

Both statements are incorrect.

Only the first statement is correct.

Only the second statement is correct.

17.

Multiple Choice

1 min

1 pt

Statement 1: All insurance premium collected by life insurance company is subject to 2% gross receipt tax.

Statement 2: A life insurance premium refunded within six (6) months is not subject to a 2% percentage tax.

Both statements are correct.

Both statements are incorrect.

Only the first statement is correct.

Only the second statement is correct.

18.

Multiple Choice

2 mins

1 pt

A domestic insurance company gave the following information for the more

Gross receipts from its insurance policies

Premium on life insurance P2, 100, 000

Premium on non-life insurance 1, 500, 000

Gross receipts as agent of a non-resident foreign insurance co.

Premium on non-life insurance P4, 000, 000

Premium on property insurance 1, 000, 000

The percentage tax due for the month is

P355,000

P430,000

P242.000

P605 000

19.

Multiple Choice

2 mins

1 pt

Pro-Life Insurance is engaged in business. It also serves as an agent of a marine non-resident foreign insurance company. It has the following data for the current month.

Total premium collected as an agent of a foreign insurance company P2 000 000

Total premiums collected from non-life insurance in the Philippines 500.000

Purchase of supplies for use in non-life business in the Philippines 300,000

How much is the tax for total premiums collected as an agent of a foreign insurance company?

P80.000

P100,000

P40.000

P20,000

20.

Multiple Choice

1 min

1 pt

A tax on the right or privilege to enter places of amusement

value added tax

franchise tax

amusement tax

income tax

21.

Multiple Choice

1 min

1 pt

Statement 1: All boxing exhibitions held in the Philippines shall be subject to amusement tax.

Statement 2: Admission charges to amusement places are required for the imposition of amusement tax.

Both statements are correct.

Both statements are incorrect.

Only the first statement is correct.

Only the second statement is correct.

22.

Multiple Choice

1 min

1 pt

One of the following is a correct amusement tax rate:

30% on jai-alai and racetracks

15% on cockpits, cabarets, night and day clubs

18% on boxing exhibitions

10% on professional basketball games

23.

Multiple Choice

1 min

1 pt

One of the following is an incorrect amusement tax rate:

Jai-alai and racetracks - 30%

Cockpits, cabarets, night and day clubs - 18%

Professional basketball games - 15%

Boxing exhibitions - 12%

24.

Multiple Choice

1 min

1 pt

One of the following is a correct amusement tax rate:

30% on jai-alai and racetracks

15% on cockpits, cabarets, night and day clubs

18% on boxing exhibitions

10% on professional basketball games

25.

Multiple Choice

1 min

1 pt

The operator of one of the following places is not subject to amusement tax.

Cockpits

Racetracks

Bowling Alleys

KTV Karaoke

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