1. Edgar Dalumpines works as financial consultant in an oil firm in Dubai.

Aside from his salary thereat, he also maintains a 10-door

apartment in Manila which he inherited from his parents when he was already married. On the other hand, Sakura Dalumpines, his
wife, is employed as a loan officer at a local bank. Data pertaining to their dependent appear below for the taxable year 2016: (1)
Anton - son who turned 23 in April 1,2016; incapable of self-support due to loss of both legs in an accident; (2) Bunny - 21 year old
daughter who is taking up culinary arts in Paris, France; (3) Charlie - 15-year old adulterous son of Edgar living with the couple; (4)
Dina - 12-year old child who died from a vehicular accident on January 1, 2016 and (5) Evan - 80-year old father of Sakura,
supported by her and living with the couple. The basic and additional personal exemptions of Edgar for the taxable year 2015
amounts to:

a. 50,000 and 100,000, respectively

b. 50,000 and 75,000, respectively
c. 50,000 and 0, respectively
d. 0 and 0

2. This requires that all subjects or objects of taxation, similarly situated are to be treated alike or put on equal footing both in
privileges and liabilities.
a. Due process
b. Uniformity
c. Progressive taxation
d. None of the choices

3. Which statement is wrong? A revenue bill:

a. Must originate from the House of Representatives and on the same bill the Senate may propose amendments
b. May originate from the Senate and on which same bill the House of Representatives may propose amendments
c. May have a House version and a Senate version approved separately
d. May be recommended by the President to Congress

4. The head priest of the religious sect Tres Personas Solo Dios, as the corporation sole, rented out a 5,000 sq. m. lot registered in
its name for use as school organized for profit. The sect used the rentals for the support and upkeep of its priests. The rented lot is
a. not exempt from real property taxes because the user is organized for profit.
b. exempt from real property taxes since it is actually, directly, and exclusively used for religious purposes.
c. not exempt from real property taxes since it is the rents, not the land, that is used for religious purposes.
d. exempt from real property taxes since it is actually, directly, and exclusively used for educational purposes.

5. Statement 1: The power of taxation must first be expressly granted, either by law or by the Constitution, before the State may
validly exercise it.
Statement 2: The taxing power of provinces, municipalities, barangays and cities (LGUs) precede from Constitutional grant. Hence,
in the absence of any provisions in the Constitution, statute or any law, the LGUs cannot exercise the power to tax.

a. Statements 1 and 2 are false

b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

6. One sunny afternoon in 1992, a very busy businessman named Jonel fell in love with her accountant named Jinky. Jonel and
Jinky tied the knot last 30 August 1993. In 1994, Jinky gave birth to a beautiful child named Masla. Unfortunately, Masla died last 26
December 1996 because of dengue fever. Luckily, in 1997, the couple was blessed with a handsome lad amed Jenner. In 2017,
Jenner celebrated his 20th birthday together with his parents in Boracay. During their vacation, Jonel and Jinky announced to the
young lad that he will become a big brother. In 2018, Jinky gave birth to Frances.

The couple had the following income and expenses:

Gross sales of Jonel from business Php4,500,000.00
Gross receipts of Jinky from compensation 900,000.00
Gross rent income 500,000.00
Cost and expenses of Jonel 2,500,000.00
Cost and expenses of Jinky 200,000.00
Expenses on the rental property 200,000.00

How much is the income taxes due of Jonel in 2018?

a. Php538,000.00
b. Php490,000.00
c. Php621,000.00
d. Php669,000.00

7. Mr. Danilo receives P120,000 as monthly regular compensation (net of SSS/GSIS, PHIC, HDMF- all are employee share only)
starting January 1, 2018 from Benz-Mercedez Co. On June 1, 2018, he filed his resignation effective June 30, 2018 and was
subsequently re-employed in EBQ Company on July 1, 2018 with a monthly compensation of P130,000. He furnished his new
employer with the BIR Form 2316 from Benz-Mercedez Co., his old employer, which showed that the amount he received from the
said previous employer was P720,000 with tax withheld of P134,164.50. On December 15, 2018, he received commissions of
P15,000 from his new employer. His new employer withheld P178,997.40 from his income. How much is the amount of tax due to
be deducted by EBQ Company from Mr. Danilo for December 2018?

a. Php(50,247.40) over withheld

b. NIL
c. Php31,338.10
d. Php31,318.10

8. Ching B is the owner of a nutrition and fitness club, non-VAT. His annual gross business income reached P600,000 with business
expenses of P346,200. He is married with four dependents. Assuming Ching B did not opt to use the 8% tax rate and chose
itemized deductions. How much will be the tax savings/(loss) from TRAIN Law?

a. 14,500
b. (14,500)
c. 32,500
d. (32,500)

9. Jorgie, a micro entrepreneur earning annual gross sales of Php500,000.00 and who has two dependents, opt to use the 8%
optional flat rate applying the new provisions of the TRAIN law. Based on the foregoing, how much will be the tax savings or benefit
of Jorgie from the TRAIN law?

a. Php27,500.00
b. NIL
c. Php32,500.00
d. Php17,500.00

10. Using the assumptions given below, kindly compute for the net tax due of the husband by applying the provisions of the Tax
Reform for Acceleration and Inclusion (TRAIN) law:

•Resident alien husband and wife named Bengie and Emily with two dependent children.
•Salary and allowances of Bengie arising from employment: annual salary of PHP652,000, living allowances of PHP100,000,
housing benefits (employer leases residential property for use of the employee) PHP 300,000.
•Teaching salary of Emily: PHP 68,000.
•Bengie’s Gross dividend income from investment in shares of stock of a domestic corporation of PHP 10,000.
•Bengie’s Interest income of PHP 20,000 on peso bank account.
•PCSO and lotto winnings outside the Philippines of PHP60,000.00 by Bengie.
•Bengie’s Capital gain on sale of shares of PHP 5,000.
•Taxes withheld by employer of husband at PHP 118,000 and by employer of wife at NIL.

a. NIL
b. Php12,600.00
c. (Php25,000.00) over withheld
d. (Php12,500.00) over withheld

Old Law

TRAIN Law