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Multiple Choice Problems Part 1

1. Grace is a proprietor of a mini-store with sales in any 12-month


period not exceeding P1,900,000. She shall pay
a. percentage tax
b. VAT
c. excise tax
d. percentage tax and excise tax
2. Tony, a VAT-registered taxpayer, reported P200,000 sales in the
month of May. Tonys annual sales never exceeded P1,800,000.
Compute Tonys percentage tax
a. 0
b. 6000
c. 24000
d. 54000
3. Donnel, a non-VAT registered operator of jeepney, reported a
total receipt of P200,000 during a month, including P20,000
rentals for cargo transport. Compute the percentage tax.
a. 0
b. 5400
c. 6000
d. 6600
4. Mr. Ngina owns and operated a taxi unit. He also teaches as an
accounting professor the University of Baguio and renders
taxation advisory services to various clients. Mr. Ngina is
registered as a VAT-taxpayer. In March 2015, he had the following
receipts:
Compensation income-teaching
200,000
Receipts from taxi
50,000
Receipts from professional practice
350,000
Total
600,000
Compute for the percentage tax payable of Mr. Ngina for March
2015.
a. 0
b. 1500
c. 12000
d. 18000
5. In the immediately preceeding problem, compute the total
receipts of Mr. Ngina subject to the VAT.
a. 0
b. 350,000
c. 400,000
d. 550,000

6. Michael Jackson is an operator of a fleet of 10 taxis operated


under the boundary system. A total of P150,000 boundary
payments from chauffeurs were received in July 2015. A total of
P20,000 is still receivable from chauffers for family advances.
The percentage tax for the month is
a. 360
b. 600
c. 4500
d. 5100
7. Mr. Pogi-it practices his profession as a medical practitioner. He
registered as VAT taxpayer. Mrs. Pogi-it is nurse employed by a
public hospital. Which statement is correct?
a. mr. pogi-it shll pay percentage tax
b. mrs. pogi-it shall pay percentage tax
c. mrs. pogi-it is exempt from business tax
d. mr. pogi-it is exempt from business tax
8. There are two competing keepers of garage with the following
receipts:
Parcorito
P1,200,000
Parkodum
P2,500,000
Which will pay 3% percentage tax?
a. Parcorito
b. Parkodum
c. Both
d. None of them
9. Mr. Conner has two taxis which were both grounded during the
month of February 2014 because of technical problem. The
applicable presumptive quarterly gross receipt for each taxi was
P3,600. Compute the percentage tax due for February 2014.
a. 0
b. 72
c. 108
d. 216
10.
Mr. Frank Sinatra owns a cargo truck for rent. During the
month, it generated a total receipt of P40,000 from various
clients. The percentage tax is
a. 0
b. 1200
c. 2000
d. 4800
11.
Mr. Jackson Michael is an operator of four buses playing the
route Baguio-Manila. During November 2014, the buses remitted
a total of P320,000 including P30,000 freight and charges for the
passenger baggage and mails. Compute Michaels percentage
tax if he is registered as a non-VAT taxpayer.

a.
b.
c.
d.

0
8700
9600
10500
12.
In the immediately preceding problem, compute the
percentage tax if Mr. Michael is a VAT-registered taxpayer.
a. 0
b. 8700
c. 9600
d. 10500
13.
Cagayan Ferry Boats transport passengers and cargoes
between the island of Palaui and Sta. Ana. It earned a total of
P120,000 on March 2015 excluding P10,000 freight for cargoes.
What is the percentage tax if Cagayan Ferry Boat is registered as
a non-VAT taxpayer and a VAT-taxpayer, respectively
a. 0; 0
b. 3600; 0
c. 3900; 3600
d. 3900; 0
14.
Lavezares Ferries transport passengers and land vehicles
between Samar and Sorsogon. Lavezares usually had an average
annual receipts of P5,000,000. During the month, it earned a
total of P400,000 from the customers. The percentage tax is
a. 0
b. 12000
c. 138000
d. 150000
15.
An operator of care for hire with chauffeur had the
following financial results of operations during a month:
Total collections
240,000
Less: Fuel
100,000
Other car supplies
24,000
Driver salaries
20,000
Net income
96,000
What is the percentage tax?
a. 2880
b. 4200
c. 4320
d. 7200
16.
DANUMI is a local water district with annual sales
exceeding P10M a year. During the month, it collected
P4,000,000 from sales of water. Compute the percentage tax.
a. 0
b. 80000
c. 120000

d. 200000
17.
Radyo Bolero had an annual sales not exceeding P10M a
year. During the month, it posted revenue of P2,000,000 out of
which P1,800,000 is collected. Compute the percentage tax.
a. 0
b. 36000
c. 54000
d. 60000

Multiple Choice Problems Part 2


1. Regga Transporters, a transportation contractor, transport
employees of Euro Textiles Industries to and from Cagayan de
Oro City to a distant factory plant in Impasug-ong, Bukidnon. In
March, Regga Transporters was paid P300,000 by Euro Textile
Industries. The percentage tax is
a. 0
b. 9000
c. 12000
d. 36000
2. Napartas is a transportation contractor of Haring Padala, a mail
courier company. Napartas Company delivers the mails to
adresee location specified in the mail. During the month,
Napartas Company was paid P400,000 by Haring Padala. The
percentage tax is
a. 0
b. 12000
c. 24000
d. 48000
3. Malaysian Birdia, an international air carrier, collected a total of
P30,000,000 from transport of passengers during the month. It
also collected total of P5,000,000 from transport of mails and
baggage. Compute for the percentage tax.
a. 0
b. 150000
c. 900000
d. 1050000
4. Puro-Air is a domestic airliner with annual receipts exceeding
P50,000,000. During a month, it generated the following receipt:
Passengers
5,000,000
Cargoes and baggage 1,500,000
Total
6,500,000
The percentage tax is
a. 0

5.

6.

7.

8.

b. 45000
c. 150000
d. 195000
European Seagull, an international shipping carrier, had the
following receipts on its Philippine operations:
Gross receipts froms:
Passengers Baggage
Total
Incoming voyage
2,000,000 1,500,000 3,500,000
Outgoing voyage
3,000,000 1,800,000 4,800,000
Total
5,000,000 3,300,000 8,300,000
How much is the percentage tax?
a. 0
b. 54000
c. 99000
d. 144000
American Hawk, an international air carrier, recorded the
following taxable receipts during a month for outgoing flights:
Philippines Abroad
Total
Passengers
2,000,000 3,000,000 5,000,000
Mails and Baggage
500,000
1,200,000
1,700,000
Total
2,500,000 4,700,000 6,700,000
Compute for the percentage tax.
a. 15000
b. 51000
c. 60000
d. 75000
DEF Insurance Corporation has the following receipts and
receivables from its insurance products:
Life
Property
Total
Cash and check collections 1,000,000 500,000
1,500,000
Promissory notes
200,000
100,000
300,000
Total
1,200,000 600,000
1,800,000
Compute for the premiums tax.
a. 20,000
b. 24,000
c. 30,000
d. 36,000
Bullion Bank reported the following receipts during the month:
Interest Income:
1 to 3 year loan
1,200,000
3 to 5 year loan
800,000
6 to 8 year old
600,000
8 to 10 year loan
400,000
Total
3,000,000
Compute for the gross receipt tax.

a. 100,000
b. 110,000
c. 80,000
d. 70,000
9. Venture Bank had the following summaries of receipts:
Interest income on short term loans
2,000,000
Interest income on long term loans
1,000,000
Rent income on ROPOA
80,000
Services fees and gains
200,000
Total
4,000,000
How much is the gross receipts tax?
a. 220,000
b. 200,000
c. 180,000
d. 160,000
10.
A quasi-bank receives the following from its short term
placement of excess funds:
Dividend income
500,000
Bank interest income, net of final tax
800,000
Total
1,300,000
Compute for the gross receipts tax.
a. 0
b. 40000
c. 50000
d. 91000
11.
A cellular company had the following receipts:
2,000,000 from domestic calls
3,000,000 incoming calls to the Philippines
2,500,000 outgoing calls abroad
What is the percentage tax?
a. 0
b. 75000
c. 165000
d. 250000
12.
Boy Manok is an operator of cockpit. During the quarter, it
collected P200,000 from gate receipts, P240,000 from tongs and
P300,000 from business concessionaires inside the cockpits. Total
winning on derby sets totaled P2,400,000. What is the
amusement tax?
a. 0
b. 74000
c. 111000
d. 133200
13.
Borneo Corporation, a publicly listed company, is planning
to increase its public ownership by issuing additional 1,000,000

shares for P10 per share. The new shares will increase the
outstanding shares of Borneo to 2,500,000. Compute for the IPO
tax.
a. 0
b. 100,000
c. 200,000
d. 400,000
14.
In a recently completed race, Sta. Ana Hippodrome noted
the following winning tickets:
Straight bets P40,000, 20 ticket at P100 per ticket
Combination bets P20,000, 2 tickets at P200 per ticket
Compute the percentage tax to be withheld on the winnings.
a. 0
b. 3800
c. 4584
d. 5760
15.
Mr. Magno owns 1,000,000 shares representing 40% of the
outstanding stockes of Calatna Corporation, a closely held
corporation, which is conducting an initial public offering. Mr.
Magno sold 700,00 shares during the initial public offering for
P100 per share. Compute the IPO tax due from Mr. Magno.
a. 350000
b. 700000
c. 1400000
d. 2800000
16.
Assuming further that Mr. Magno sold his remaining
300,000 shareholdings after the IPO for P90 per share, compute
the IPO tax.
a. 135000
b. 270000
c. 540000
d. 1080000
17.
Helix Company is conducting an initial public offering of
2,000,000 shares. Helix Company already had 4,000,000 issued
and outstanding shares. The new IPO shares shall be sold a P3
per share. What is the tax on the initial public offering?
a. 0
b. 60000
c. 120000
d. 240000
18.
Geneva Corporation, a non-VAT taxpayer, leases
commercial spaces to various businesses. During a month, it
receivd P142,500 rentals, net of 5% creditable withholding tax.
Compute for the percentage tax.
a. 0

b. 4061
c. 4275
d. 4500
19.
Almendras Corporation sells bread to various stores and
makes P150,000 monthly sales on the average. During the
month it made total sales of P200,000 out of the which only
P160,000 were collected. Compute the percentage tax.
a. 0
b. 4500
c. 4800
d. 6000