1.

Which of the following is not considered in the determination of taxable income

 all of these
 deduction from gross income
 gross income subject to final tax
 gross income subject to regular tax

2. The following are operating income except

 gross receipts of colliseum events

 gross receipts of cinemas
 sales of retail stores
 sale of office building in excess of book value

3. Which is not subject to final tax

 royalty from book publication

 interest from savings BDO
 local lotto winnings
 winnings abroad

4. Sources of regular income

 practice / exercise of profession

 employment
 all of these
 trade or business

5. Which of the corporate tax payers is not subject to tax on taxable or net income

 domestic
 business partnership
 resident foreign
 nonresident foreign

6. The following are interest income included in the NCIT computation except

 interest from bank deposit

 interest from notes receivable
 interest from loans to employees
 interest from lending
7. Which employees may be subject to to fringe benefit tax

 construction workers
 office clerks
 comptroller
 encoders

8. Income tax return for 2014 must be filed on or before _____________to avoid penalty

 april 15, 2015

 august 15,2015
 april 15, 2014
 november 2015

9. Which is not subject to income tax

 prizes in recognition of civic,religeous artistic achievement

 all of these
 gain on sale of shares in mutual fund by investor
 PCSO and Lotto winnings

10. Item of gross income subject to income tax

 royalty
 gain on sale of house and lot of realty dealer
 interest from deposit substitutes
 interest from bank deposits

11. The net amount of regular income subject to tax regular tax

 gross income
 taxable income
 business income
 net income

12. Active income is subject to

 none of these
 regular tax
 final tax
 capital gains
13. Who are required to file quarterly declaration of income

 corporations and individuals engage in business

 all corporations and individuals
 corporations
 individual engage in business

14. The taxable income of corporate tax payers is the

 net income from business

 taxable compensation
 net income less personal expense
 net income plus compensation

15. Regular or proportional income tax does not apply to

 domestic corp
 business partnership
 resident foreign corp
 general professional partnership

16. Which of the following tax payer is not subject to regular tax

 regular partnership
 nrfc
 rfc
 domestic

17. Dividend subject to regular tax

 domestic dividend
 neither a nor b
 foreign dividend
 both a&b

18. The following are passive income except subject to final withholding tax except

 Royalties
 Yield / monetary benefit from deposit substitute
 interest earned from cash saving abroad
 interest in any currency bank deposit
19. These special corporations are subject to 10% preferential tax rate except

 non profit hospital

 international carriers
 regional headquarters of multinational company
 private educational institution

20. Which of the following special corporations is subject to regular income tax both
within and without

 foreign lessor of aircraft, machineries

 owner, lessor, distributor of foreign cinematographic films
 international carriers
 non profit hospital

21. Japan Airline provided the following information for the year 2018

Gross receipts from passengers

Manila – Osaka > 6,000,000

Manila - Hokaido > 3000,000

Japan - Manila > 5,000,000

Manila - LA with connecting flight served by other airline > 6,500,000

Manila -Tokyo > 4 hours

Tokyo- LA > 9hours

Operating expenses > 15,000,000

The taxable income for the year?

Tax due?

 15,500,000; 0
 11,000,000;275,000
 15,500,000;387,500
 11,000,000;387,500
22. Info Tech Institute has the following data for the taxable year 2016

Tuition fees > 30,000,000

Misc. fees > 2,500,000

Canteen revenue- 6,000,000

Book store revenue -1,500,000

Rental revenue from tenants of vacant floors in Bldg. C > 6,000,000

The taxable income and tax due for the period?

 36,000,000;3,600,000
 30,000,000;9,000,000
 30,000,000;3000,000
 46,000,000;4,600,000

23. Which of the following is not included in the computation of taxable Gross Philippine
billings of international carriers

 gross receipts of outbound chartered flight of passenger from Phil’s to any point
of destination on foreign country
 none of these
 gross receipts of outbound flights or voyage commence from the Phil’s
 gross receipts for outbound cargoes and mails

24. The following are attributes of proprietary educational institution except

 30% income tax rate applied if related revenue is lower than 50% of total gross
income
 option to charge the full amount of capital expenditures as part of current opex
 reduced tax rate based on treaty or reciprocity rule
 preferential rate of 10%

25. Interest income received from expanded foreign currency deposit system shall be
subject to

 DOMESTIC>.1;RFC>.10;NRFC>Exempt
 Domestic >0.15; RFC>0.075 ; NRFC>exempt
 NRFC>exempt; DOMESTIC>Exempt; NRFC>.15/.3
 DOMESTIC>exempt; RFC>exempt; NRFC>.15/.3
26. A Private educational institution duly recognized by CHED has the following data for
the calendar year 12.31.19

Tuition fee and miscellaneous > 7000,000

Rent income from concessionaire >1,500,000

Dividend from domestic corporation > 100,000

Interest from bank deposit BPI > 10,000

Opex > 3000,000

During the year the school constructed 5 story bldg. costing 17M with an estimated
useful life of 15 years and zero scrap value.

The school policy is to depreciate all capital expenditures based on estimated useful
life.

What would be the taxable income and tax due for the period?

 ₱6,733,333.33 ; ₱673,333.33
 ₱9,633,333.33 ; ₱963,333.33
 ₱5,966,666.67 ; ₱596,666.67
 ₱4,366,666.67 ; ₱436,666.67

27. A Private educational institution duly recognized by CHED has the following data for
the calendar year 12.31.19

Tuition fee and miscellaneous > 10,000,000

Rent income from concessionaire >15,000,000

Dividend from domestic corporation > 100,000

Interest from bank deposit BPI > 10,000

Opex > 3000,000

During the year the school constructed 5 story bldg. costing 17M with an estimated
useful life of 15 years and zero scrap value.

The school policy is to charge in full all capital expenditures based on completed cost.
How much would be the taxable income and tax due for the period?

 ₱5,100,000.00 ; ₱1,530,000.00
 ₱8,000,000.00 ; ₱2,400,000.00
 ₱5,000,000.00 ; ₱1,500,000.00
 ₱5,000,000.00 ; ₱500,000.00

28. The term domestic applied to corporation means created and organized in the Phils
or under foreign law for as long as it has Philippine branch

- False

29. Private educational institution are normally subject to 10% preferential rate on
income all income within

- False

30. International carriers subject to a 2.5% preferential or may be tax exempt

- True

31. Resident foreign corporation are subject to regular tax [NCIT] and correspondingly
MCIT on its 4th year of operation.

- True

32. Association and mutual fund companies for tax purposes are included in the
definition of corporation.

- True