Community Tax

DRILL PROBLEMS – COMMUNITY TAX:

1. Non-payment of the following is not a ground for imprisonment
a. Income tax c. Community tax
b. Value-Added Tax d. Donor’s tax

2. Which statement is correct?

I. Aliens who have stayed in the Philippines most of the time during the taxable year are required to pay
community tax in the Philippines
II. If a person loses the benefit of exemption on June 20 of the current year, he shall be liable for the
community tax on that same day
III. For purposes of community tax, general professional partnership are taxable as a corporation
a. All are correct c. Only I and II are correct
b. Only I and III are incorrect d. Only the second is correct

3. The maximum additional community tax payable by an individual and a corporation, respectively is
a. P5,000; P10,000 c. P5,005; P10,200
b. P5,005; P10,005 d. P5,005; P10,500

4. An exempt individual may secure community tax certificate by paying

a. P5.00 c. P10.00
b. P1.00 d. None

5. Payments of community tax is required to inhabitants of the Philippines whose age is at least
a. 15 c. 21
b. 18 d. 24

6. Drill: Compute the community tax under each of the following cases.

A. Mr. Douglas Alboria earned P800,000 salaries last year. __________

B. Mr. Douglas is unemployed resident who has a vacant lot valued at P300,000. ___________

C. Mr. Douglas Alboria earned the following income last year:

Salaries P 800,000
Income from profession 785,800
Rental income from properties 482,900

____________

D. Assume Mr. Douglas earned P6,874,800 in the preceding year. ______________

E. Mr. and Mrs. Lafa are both employed. Mr. Lafa is also medical practitioner while Mrs. Lafa owns a beauty
saloon. The following relates to the details of the income of the spouses.

Mr. Lafa Mrs. Lafa

Salaries P 400,000 P 420,000
Income from profession 3,200,000
Income from business 2,400,000
Community Tax

Mr. Lafa opted to pay the additional community tax.

Mr. Lafa _________________ Mrs. Lafa ________________

F. A partnership which is engaged in selling shoes had the following revenue last year:

Sales (P7.2M collected in cash) P 8,000,000

Less: Cost of sales 5,000,000
Gross income P 3,000,000
Interest income from client notes 50,000
Dividend income 214,000
Gain on sale of equipment 100,000
Total income P 3,364,000
Less: Expenses 1,500,000
Net income P 1,864,000

_______________

G. ABC Corporation is engaged in property leasing. Last year, it collected P3,489,000 rentals from various
tenants from its commercial building. Last year’s valuation of the building are compiled below:

Land Building Total

Appraisal value P 4,000,000 P 4,500,0000 P 8,500,000
Zonal value 5,000,000 - 5,000,000
Assessed value 1,218,000 1,415,000 2,633,000

_______________

H. Adonis Company, a domestic corporation, had the following receipts from business and property values:

Philippines Abroad Total

Gross receipts P 3,000,000 P 2,500,0000 P 5,500,000
Value of lands and buildings 12,000,000 8,000,000 20,000,000
Value of equipment 3,200,000 2,400,000 5,600,000

_______________

I. Megaworld Corporation, a real estate company, had a total assessed value of land in the previous year
aggregating P30,000,000. _____________

J. A corporation with total real estate properties assessed value aggregating P14,000,000 started operation on
January 2 of the year. _____________