DEPARTMENT OF ACCOUNTANCY ACCTG163: REVIEW IN TAXATION
EXERCISE 1: Determine which of the following shall be
subjected to common carrier’s tax (domestic or international)
1. Transport of passengers by land of VAT-Registered domestic
common carrier. 2. Transport of passengers by land by a non-VAT registered domestic common carrier, whose annual sales exceed P3,000,000 3. Transport of goods and cargoes by land by non-VAT registered domestic common carrier. 4. Transport of passengers, goods and cargoes by sea by a VAT- registered domestic common carrier. 5. Transport of passengers, goods and cargoes by air by a VAT- registered domestic common carrier. 6. Transport of passengers, goods and cargoes by banca. 7. Fees received by Cathay Pacific on freight and cargo originating from the Philippines. Passage of documents were sold in Singapore. Cathay Pacific is an airline maintaining flight operations to and from the Philippines. 8. Gross receipts from sale of tickets by an agent of British Airways, an airline with no flight operations to and from the Philippines, for transport of passengers from Singapore to London.
EXERCISE 2: Determine the appropriate business tax of the
following transactions 1. A trader of goods whose receipts exceed P3,000,000 2. A seller of service whose gross receipts exceed P3,000,000 3. Domestic common carriers transporting passengers. Gross receipts for the year amounted to P2,800,000 4. Domestic common carriers transporting passengers. Gross receipts for the year amounted to P3,500,000 5. Domestic common carriers transporting good/cargoes. Gross receipts for the year amounted to P2,600,000 6. Domestic common carrier (VAT Registered) transporting goods or cargoes. Gross receipts for the year amounted to P2,250,000. 7. Domestic common carriers transporting goods or cargoes. Gross receipts for the year amounted to P4,000,000. 8. International air carrier transporting passengers only. 9. International air carrier transporting goods only. 10. International carrier transporting passengers and cargoes 11. A radio television broadcasting franchise. Gross receipts for the preceding year amounted to P12,000,000. 12. A VAT-registered radio broadcasting franchise. Gross receipts for the preceding year amounted to P8,000,000. 13. A telephone franchise grantee offering local and overseas communication services. Gross receipts for the year amounted to P25,000,000. 14. A telephone franchise grantee offering local and overseas communication services. Gross receipts for its first year of operations amounted only to P4,000,000. 15. Philippine commercial bank 16. PBA, a professional basketball league 17. Operator of Jai-Alai 18. Saint Claire Dormitory 19. The Pearl Hotel 20. New Wave Resort