Togglenavigation

iCPA
Practice
Challenge
Community
Hijbpedragosa23!
0ePoints
LogOut

Result
Youcorrectlyanswered1outof60questionswithanaccuracyof1.67%.
Yougained20experiencepoints!
AnswerMoreChallenges

Question#1
Oneofthefollowingisnotavaliddonation.
AnoraldonationofaparceloflandvaluedatP5,000
AdonationofcommerciallandinadeedofdonationvaluedatP100,000
AnoraldonationofwatchvaluedatP5,000
AdonationinwritingofatelevisionsetvaluedatP40,000
TaxationDonorsTax(Average)

Question#2
Whenthefindingforanytaxistheresultofmathematicalerrorinthecomputationofthetaxappearingonthe
faceofthereturnfiledbythetaxpayeror
2.Whenadiscrepancyhasbeendeterminedbetweenthetaxwithheldandtheamountactuallyremittedbythe
withholdingagentor
3.Whenthetaxpayerwhooptedtoclaimarefundortaxcreditofexcesscreditabletaxforataxableperiodwas
determinedtohavecarriedoverandautomaticallyappliedthesameamountclaimedagainsttheestimatedtax
liabilitiesforthetaxablequartersofthesucceedingtaxableyearor
4.Whentheexcisetaxdueonexcisablearticleshasnotbeenpaidor
5.Whenanarticlelocallypurchasedorimportedbyanexemptperson,suchas,butnotlimitedto,vehicles,
capitalequipment,machineriesandspareparts,hasbeensold,tradedortransferredtononexemptpersons.
DIF:2REF:Tamayo,ReviewerinTaxationOBJ:TaxRemedies
TOP:TaxRemedies
38.Thetaxpayerorhisdulyauthorizedrepresentativemayprotestadministrativelybyfilingarequestfor
reconsiderationorreinvestigationinsuchformandmannerasmaybeprescribedbyimplementingrulesand
regulationswithinhowmanydaysfromthedateofreceiptoftheformalnoticeofassessment?
Sixty(60)days Thirty(30)days Twenty(20)days Ten(10)days

Solution:
Alllettersofprotest,requestsforreinvestigation/reconsiderationandsimilarcorrespondencesshallonlybefiled
bythetaxpayersortheirdulyauthorizedrepresentatives,inpersonorthroughregisteredmailwithreturncard,
withtheOfficeoftheconcernedRegionalDirector(RD),AssistantCommissionerLargeTaxpayersService
(ACIRLTS)andAssistantCommissionerEnforcementService(ACIRES),whosignedthePreliminary
AssessmentNotices(PAN),FANsandFormalLettersofDemand,forproperrecordingoftheprotests,and
evaluationifthesameisinaccordancewithSection228oftheNIRC,asimplementedbyRevenueRegulations
No.1299.Iftheaforesaidproceduresarenotfollowed,thenthelettersofprotest,requestsfor
reinvestigation/reconsiderationandsimilarcorrespondencesshallbeconsideredvoidandwithoutforceand
effect.Aletterofprotest,requestforreinvestigation/reconsideration,orothersimilarcommunicationallegedly
filedbyanytaxpayerbutarenotincludedintheaforementioneddatabasecreatedbytheOfficeoftheCIRshall
bedeemedasnotofficiallyfiledwiththeBureauandshallnotbeusedasbasisforthegrantofanyrequestfor
reinvestigation/reconsiderationofanyFANorFinalDecisiononDisputedAssessment(FDDA)issuedagainst
thetaxpayer.
TaxationTaxRemedies(Average)

Question#3
Whichofthefollowingbusinessesisallowedapresumptiveinputvalueaddedtax?
Manufacturerofpackednoodles
Manufacturerofdriedfish
Manufacturerofpackedjuices
Manufacturerofcannedgoods
TaxationVAT(Average)

Question#4
Jenus,anemployeeofacooperativewasregularlyreceivingamonthlysalaryandallowanceofP3,500and
P1,000,respectively.OnJune1,2014,hewasretrenchedbythecooperativepayinghimaseparationpayof
P125,000.Hedecidedtousethismoneyinbuyingatrimobile.Fora6monthperiod,heearnedanetincomeof
P24,000.HowmuchincomeshouldJenusdeclarein2014forincometaxpurposes?
46,500
48,750
173,750
171,000

Solution:
JanMaysalary(3,500+1,000)x5

22,500

Incomefromtrimobile

24,000

Totalincome
TaxationIncomeTaxIndividuals(Easy)

46,500

Question#5
UnderSection39oftheTaxCode,howmuchshallbetakenintoaccountincomputingnetincome,ifagainis
realizedbyanindividualtaxpayerfromthesaleorexchangeofcapitalassetsheldmorethan12months
50,000
50%ofthenetcapitalgain
5%ofthecapitalassetssold
5,000
TaxationIncomeTaxonCapitalAssets,SalesorExchangeofProperties(Easy)

Question#6
Whichofthefollowingisadeductibleexpenseforincometaxpurposes?
Ordinaryrepairofthepersonalcar
Salariesofdomesticservants
Provisionfordoubtfulaccounts
Noneoftheabove

Solution:

Salariesofdomesticservantsandrepairofpersonalcararepersonal,livingandfamilyexpenses,theyarenot
connectedwithtrade,professionorbusiness.Doubtfulaccountsaredeductibleiftheyhavebeenwrittenoff.
Thus,mereprovisionfordoubtfulaccountsisnotdeductible.
TaxationIncomeTaxIndividuals(Easy)

Question#7
Theprocessbywhichthesovereignraisesincometodefraytheexpensesofthegovernmentiscalled
tariff
taxation
subsidy
tribute
TaxationGeneralPrinciplesofTaxation(Easy)

Question#8
Ifacorporationtowhichthestockholderisindebtedforgivesthedebt,thetransactionhastheeffectofa
paymentofwhatkindofdividend?
indirectdividend
stockdividends
cashdividends
liquidatingdividend
TaxationIncomeTaxCorporation(Easy)

Question#9
Ageneralprofessionalpartnershipanditspartnersaresubjecttothefollowingrulesexcept:
Eachpartnershallreportasgrossincomehisdistributiveshareinthepartnershipnetincome
Thepartnersshallbeliableforincometaxintheirseparateorindividualcapacities
Thegeneralprofessionalpartnershipisnotsubjecttoincometax
Theshareofthepartnershallbesubjectedacreditablewithholdingtaxoftax10%
TaxationIncomeTaxPartnerships,EstatesandTrusts(Average)

Question#10
Whenisthetimeforfilingoftheestatetaxreturn?
Thirty(30)daysfromthedecedentsdeath
Two(2)monthsfromthedecedentsdeath
Six(6)monthsfromthedecedentsdeath
Two(2)yearsfromthedecedentsdeath
TaxationEstateTax(Easy)

Question#11
Thefringebenefitstaxisnotimposedon
rankandfileemployee
managerialemployee
supervisoryemployee
allemployees
TaxationPercentageandOtherTaxes(Easy)

Question#12
Thefollowingarenottaxable,except
Refundofspecialassessment
Refundofestatedonorstax
RefundofPhilippineincometax
Refundofthefringebenefittax
TaxationPercentageandOtherTaxes(Easy)

Question#13
Dividendsfromadomesticcorporationand/orshareinthenetincomeofataxablepartnershipreceivedbya
citizenduringtheyear2014issubjecttoafinaltaxof
20%
30%
10%
0%
TaxationIncomeTaxCorporation(Easy)

Question#14
Oneofthefollowingisdeductiblefromthegrossincomeevenifnotbusinessrelated
Rentexpenses
Charitableandothercontributions
Baddebts
Travelexpenses
TaxationIncomeTaxCorporation(Average)

Question#15
Fordonorstaxpurposes,oneofthefollowingisastranger
Soninlaw
Spouse
Uncle
Brotherorsister
TaxationDonorsTax(Easy)

Question#16
Ifastockholderreceivesataxablestockdividend,whatisthemeasureofincomeapplicabletohim?
Theadjustedcostoftheoldsharesandthenewsharesofthecorporation
Thebookvalueofthesharesoftheprecedingcalendaryear.
Parvalueofthesharesonthedatehereceivesthem
Fairmarketvalueofthesharesonthedateofdeclaration
TaxationIncomeTaxCorporation(Average)

Question#17
Thetaxpayerisnotallowedtoclaimadditionalexemptions

Illegitimateson,minorwhodiedJanuary1ofthepreviousyear
Recognizednaturalsonwhocelebratedhis21stbirthdayduringthetaxableyear
Legallyadopteddaughter,25yearsoldbutincapableofselfsupportduetomentaldefect
LegitimatedaughterwhogotmarriedonDecember31ofthetaxableyear,oneday
beforesheturned22
TaxationIncomeTaxIndividuals(Average)

Question#18
OneofthefollowingdoesnotfallwithinthepowersoftheCommissionerofBIR
ToreviewontaxcasesdecidedbytheCourtofTaxAppeals
Tomakeassessmentandprescribeadditionalrequirementstotaxadministrationandenforcement
Tointerprettaxlawsandtodecidetaxcases
Tosummon,examineandtaketestimonyofpersons
TaxationBIR(Easy)

Question#19
Awasselectedasthemostoutstandingteacherinherregion.Hernamewassubmittedbytheschoolprincipal
withoutherknowledge.ShereceivedatrophyandacashawardofP15,000
Subjecttofinaltax
Partlytaxable,partlyexempt
Taxableincome
Exemptfromincometax
TaxationIncomeTaxIndividuals(Average)

Question#20
Theshareofapartnerintheprofitsofageneralprofessionalpartnershipisregardedasreceivedbyhimandthus
taxablealthoughnotyetdistributed.Thisprincipleisknownas
advancereportingofincome
accrualmethodofaccounting
actualreceiptofincome
constructivereceiptofincome
TaxationIncomeTaxPartnerships,EstatesandTrusts(Easy)

Question#21
PhilipCorporationincurredthefollowingexpenses.Whichoftheseexpensesisnondeductible?
Entertainingprospectivecustomers
Insurancepremiumsonthebuilding
GiftsgiventopublicofficialswhofavoredPhilipsCorporationscontractwiththegovernment.
Salariesoftheofficialsandemployees
TaxationIncomeTaxIndividuals(Easy)

Question#22
Thetaxpayerseasonablyfiledhisprotesttogetherwithallthesupportingdocuments.ItisalreadyJuly31,2011,
or180daysfromsubmissionoftheprotestbuttheBIRCommissionerhasnotyetdecidedhisprotest.Desirous

ofanearlyresolutionofhisprotestedassessment,thetaxpayershouldfilehisappealtotheCourtofTax
Appealsnotlaterthan
August31,2011
August1,2011
August30,2011
August15,2011
TaxationBIR(Average)

Question#23
Proceedsofinsurancetakenbyacorporationonthelifeofanexecutivetoindemnifyitagainstlossincaseof
hisdeath
Subjecttofinaltax
Partoftaxableincome
Exemptfromincometax
Partlyexempt,partlytaxable
TaxationIncomeTaxIndividuals(Easy)

Question#24
Proprietaryeducationalinstitutionsandhospitalswhicharenonprofitshallpayataxableincomeatwhat
percent?
15%
25%
10%
30%
TaxationIncomeTaxCorporation(Average)

Question#25
ThepowertointerprettheprovisionsoftheNationalInternalRevenueCodeshallbeundertheexclusiveand
originaljurisdictionofthe
SecretaryofFinance
SecretaryofJustice
CommissionerofInternalRevenue
CourtofTaxAppeals
TaxationBIR(Easy)

Question#26
WhichofthefollowingcasesinvolvingtaxcollectioncasesshallbeunderthejurisdictionoftheCTA?
Allofthechoices. Exclusiveappellatejurisdictionintaxcollectioncasesoverpetitionsforreviewofthe
judgements,resolutionsorordersoftheRegionalTrialCourtintheexerciseoftheirappellatejurisdictionover
taxcollectioncasesdecidedbytheMetropolitanTrialCourtsandMunicipalCircuitTrialCourts,intheir
respectivejurisdictions. Exclusiveappellatejurisdictionintaxcollectioncasesoverappealsfromthe
judgements,resolutionsorordersoftheRegionalTrialCourtintaxcollectioncasesoriginallydecidedbythem,
intheirrespectiveterritorialjurisdictions. Exclusiveoriginaljurisdictionintaxcollectioncasesinvolving
finalandexecutoryassessmentsfortaxes,fees,chargesandpenalties.
TaxationBIR(Average)

Question#27
Whichofthefollowingcannotavailofinputtaxcredit?
Purchaserofservicesuponsigningthecontractofsaleservices
Lesseeorlicenseeuponpaymentoftherental,royaltyorfee
ImporteruponpaymentofVATpriortothereleaseofgoodsfromcustomscustody.
Purchaserofdomesticgoodsorpropertiesuponconsummationofthesale.
TaxationVAT(Average)

Question#28
Oneofthefollowingisadonationmadetoarelative.
Donationgivenbyacorporationtoitsstockholder
Donationgivenbyaparenttohisillegitimatechild
Donationgivenbyapartnertoapartnership
Donationgivenbyafatherinlawtohissoninlaw
TaxationDonorsTax(Average)

Question#29
Whichofthefollowingtransactionsisexemptfromvalueaddedtax?
Servicesarisingfromemployeeemployerrelationship
Legalservices
Servicesrenderedbydomesticairtransportcompanies
Medicalservicessuchasdentalandveterinaryservicesrenderedbyprofessionals
TaxationVAT(Easy)

Question#30
Themembersofthisformofbusinessorganizationshallbeliableforincometaxonlyontheirindividual
capacity,andtheirshareintheprofits,whetherdistributedorotherwise,shallbereturnedfortaxation.This
appliesto
unregisteredgeneralcopartnership
dulyregisteredgeneralcopartnership
jointstockcompanies
generalprofessionalpartnership
TaxationIncomeTaxPartnerships,EstatesandTrusts(Easy)

Question#31
I
II

TheCTAmaysitenbancorin3Divisions,eachDivisionconsistingof3
Justices.

5Justicesshallconstituteaquorumforsessionsenbancand2Justicesfor
sessionofaDivision.
Bothstatementsareincorrect. Bothstatementsarecorrect. Onlythesecondstatementiscorrect.
Onlythefirststatementiscorrect.
TaxationBIR(Average)

Question#32
Adividendreceivedbyadomesticcorporationfromanotherdomesticcorporationshallbe:
PartoftheGrossIncome
PartofthePassiveIncome
PartoftheTaxableIncome
Exemptfromincometax
TaxationIncomeTaxCorporation(Easy)

Question#33
Inthevalueaddedtaxonsaleofservices,theoutputtaxiscomputed:
Oncollectionsofthemonthonallbillingsmade
Onbillingsofthemonth
Onlyandstrictlyonlaborperformedunderthecontractforservices
Onthecontractpriceofcontractscompletedduringthetaxableperiod
TaxationVAT(Average)

Question#34
PatrickdiedonJuly31,2014.Hisestatetaxreturnshouldbefiledwithin
SixtydaysfromthetimehediedonJuly31,2014
Sixtydaysfromtheappointmentofanadministrator
Sixmonthsfromthefilingofthenoticeofdeath
SixmonthsfromthetimehediedonJuly31,2014
TaxationEstateTax(Average)

Question#35
AmarrieddecedentssfamilyhomewasvaluedatP1,000,000.Theconjugalportionofthefamilyhomeis65%
whiletheexclusiveportionis35%.Howmuchisthefamilyhomededuction?
1,000,000
Noneofthechoices
600,000
810,000
TaxationEstateTax(Average)

Question#36
Theofficialactionofanofficerauthorizedbylawinascertainingtheamountoftaxdueunderthelawfroma
taxpayeris
Assessment
Distraint
Deficiency
Delinquency
TaxationTaxRemedies(Easy)

Question#37

Acontractwherebythetaxpayerandthegovernmentbyreciprocalconcessionsavoidalitigationorputanend
alreadycommenced
Distraint
Suspensionofaction
Compromise
Confiscation
TaxationTaxRemedies(Easy)

Question#38
DonMiguel,awidower,diedinMay,2014.Inhiswill,helefthisestateofP100milliontohisfourchildren.He
namedhiscompadre,DonJames,tobetheexecutor/administratoroftheestate.WhentheBIRsentademand
lettertoDonJamesforthepaymentoftheestatetax,herefusedtopayclaimingthathedidnotbenefitfromthe
estate,henotbeinganheir.Forthwith,heresignedasadministrator.Asaresultoftheresignation,whomaybe
heldliableforthepaymentoftheestatetax?
DonJamessincethetaxbecameduepriortohisresignation
Thepersondesignatedbythewillastheoneliable
Theeldestchildwhowouldbereimbursedbytheothers
Allthefourchildren,thetaxtobedividedequallyamongthem
TaxationEstateTax(Average)

Question#39
Whichofthefollowingisastrangertothedonor?Ifthedoneeisthe
Granddaughterofthesisterofthedonorsmother
Grandfatherofthedonorsgreatgrandfather
Brotherofthedonorsgrandfather
Grandsonofthedonorshalfsister
TaxationDonorsTax(Average)

Question#40
Whichofthefollowingtransactionsissubjecttozeroratedvalueaddedtax?
Generation,transmissionanddistributionofelectricity
ServicesrenderedbyprofessionalssuchasCPAs,PhysiciansandLawyers
Servicesrenderedbybanks,nonbankfinancialintermediaries
Servicesrenderedtopersonsengagedininternationalshippingorairtransportoperations
TaxationVAT(Average)

Question#41
Amountreceivablebythebeneficiaryotherthanestate,executororadministratorasaninsuranceunderpolicy
takenbythedecedentuponhisownlifeis
Partofgrossestateifthebeneficiaryisrevocable
Partofgrossestateifthebeneficiaryisirrevocable
Excludedfromgrossestate
Partofgrossestatewhetherthebeneficiaryisrevocableorirrevocable
TaxationEstateTax(Average)

Question#42

Exemptedfromdonorstaxationaregiftsmade
Toaforprofitgovernmentcorporation
Toaschoolwhichisastockcorporation
Inconsiderationofmarriage
Fortheuseofthebarangay
TaxationDonorsTax(Easy)

Question#43
Whichofthefollowingitemsiscorrect?
Interestexpenseincurredonunpaidvalueaddedtaxisreducedby42%ofinterestincomesubjectedtofinal
tax
Interestincurredonloanfromabrotherisdeductible.
Interestincurredtoacquireabusinessassetmaybeaddedtothecostoftheproperty.
Interestpayablewhichhadalreadyprescribedisdeductibleifpaidvoluntarilybythetaxpayer
TaxationIncomeTaxIndividuals(Average)

Question#44
Lotsbeingrentedwhensubsequentlysoldareclassifiedas
ordinaryassets
liquidassets
fixedassets
capitalassets
TaxationIncomeTaxonCapitalAssets,SalesorExchangeofProperties(Easy)

Question#45
Cashdividendreceivedbyadomesticcorporationfromadomesticcorporationis
Subjecttofinaltax
Partlyexempt,partlytaxable
Partoftaxableincome
Exemptfromincometax
TaxationIncomeTaxCorporation(Average)

Question#46
Whichofthefollowingshallnotbeallowedtaxcreditforforeignincometax?
Domesticcorporation
Residentcitizen
Partnershipandestates
Alienindividualandaforeigncorporation
TaxationIncomeTaxIndividuals(Average)

Question#47
Similaritiesofpolicepower,poweroftaxationandpowerofeminentdomain,except
Thereistakingofproperty.
Superiortothenonimpairmentclause

Sovereignpowersofthegovernment
Thereiscompensation
TaxationGeneralPrinciplesofTaxation(Easy)

Question#48
Mishieldiedleavingseveralparcelsofland.Beforethepropertiesaredistributedtohisheirs,thetaxtobepaid
isknownas:
Donorstax
Inheritancetax
Estatetax
Transfertax
TaxationEstateTax(Easy)

Question#49
Theinterestondelinquencytaxisnotimposedincaseoffailureto
Paythetaxdueinfulluponfiling,thepaymentofwhichisallowedoninstallment
PaythedeficiencytaxontheduedateappearinginthenoticeanddemandoftheCommissionerofInternal
Revenue
Paythetaxdueforwhichnoreturnisrequiredtobefiled
Filethereturnandpaythetaxdueonanyreturnrequiredtobefiled
TaxationBIR(Average)

Question#50
Thelocationofpropertyisimportantindeterminingwhetherthepropertyshallbeincludedornotinthegross
estateofadecedentwhowasa
Nonresidentalien
Residentcitizen
Nonresidentcitizen
Residentalien
TaxationEstateTax(Average)

Question#51
Whichofthefollowingstatementsistrue?Dividendsreceivedbya
nonresidentforeigncorporationfromadomesticcorporationmaybesubjecttoataxsparingcredit
residentforeigncorporationfromanotherresidentforeigncorporationaresubjecttoschedularincometaxin
thePhilippines
domesticcorporationfromanotherdomesticcorporationaresubjecttofinalwitholdingtax
domesticcorporationfromaresidentforeigncorporationaresubjecttofinalwitholdingtax

Solution:
Dividendsfromadomesticcorporationfromaresidentforeigncorporationaresubjecttoordinaryincometax.
Dividendsreceivedbyaresidentforeigncorporationfromanotherresidentforeigncorporationisnottaxablein
thePhilippines.Dividendsreceivedbyadomesticcorporationfromanotherdomesticcorporationaretax
exempt.
TaxationIncomeTaxCorporation(Average)

Question#52
AtaxpayerwasregisteredundertheVATsysteminthesecondmonthofthesecondcalendarquarter.His
CertificateofRegistrationshowstheeffectivedateasJune1.TocomplywithVATrequirements,whatwillhe
fileinitially?
Noneofthechoices
MonthlyVATdeclarationonorbeforeJune20.
QuarterlyVATreturnonorbeforeJuly25
MonthlyVATdeclarationonorbeforeMay20
TaxationVAT(Average)

Question#53
RewardsgiventopersonsinstrumentalinthediscoveryofviolationsoftheNationalInternalRevenueCodeare
subjectto
Finaltaxof10%onrewardscollected
Finaltaxof10%ofrewardscollectedorP1,000,000,whicheverislower
Finaltaxof10%ofrewardscollectedorP1,000,000,whicheverishigher
Finaltaxof10%ofP1,000,000
TaxationIncomeTaxIndividuals(Average)

Question#54
Transitionalinputtaxrateis
12%
2%
10%
4%
TaxationVAT(Easy)

Question#55
Interestonbusinessisdeductibleforincometaxpurposes.However,oneofthefollowingisnotdeductible.
Interestondelinquencytax
Interestonindebtednessincurredtopurchasedeliveryequipment
Noneoftheanswersarecorrect
Interestonindebtednesssecuredtopurchaseataxexemptsecurity
TaxationIncomeTaxCorporation(Easy)

Question#56
Generally,salesofrealpropertyaresubjecttotax.Whichofthefollowingsalesoflandisnotallowedbythe
lawtobesubjectedtotax?
Landsoldbythechurch
Noneoftheabove
Landforeclosedbythebank
Landsoldtogovernmentcorporation
TaxationIncomeTaxCorporation(Average)

Question#57

Ifthegrossincomefromunrelatedactivityexceeds50%ofthetotalgrossincomederivedbyanyprivate
educationalinstitution,therateshallbe30%basedontheentiretaxableincome.Thisprincipleisknownas
constructivereceipt
endresultdoctrine
predominancetest
taxbenefitrule
TaxationIncomeTaxCorporation(Easy)

Question#58
Oneofthefollowingistheleastprincipleofsoundtaxsystem
Fiscaladequacy
Administrativefeasibility
Economicconsistency
Theoreticaljustice
TaxationGeneralPrinciplesofTaxation(Easy)

Question#59
Whichofthefollowingistaxableasacorporation?
Noneofthechoices
Coownership
Generalprofessionalpartnership
Generalcoownership
TaxationIncomeTaxCorporation(Easy)

Question#60
Doubletaxationinitsgeneralsensemeanstaxingthesamesubjecttwiceduringthesametaxingperiod.Inthis
sense,doubletaxation
Violatessubstantivedueprocess
Doesnotviolatesubstantivedueprocess
Violatestherighttoequalprotection
Doesnotviolatetherighttoequalprotection
TaxationGeneralPrinciplesofTaxation(Average)
AnswerMoreChallenges

Awwman!
Whoa!Thereseemstobesomethingwrongwiththisquestion.Whydon'tyoutellus?
We'dappreciateit!
ProblemType:
[QuizItem]Grammatical/SpellingErrors

Description(Optional):

Close

Submit