INCOME TAXATION 1

MM 2E
MIDTERM EXAMINATION

I- IDENTIFICATION:

1. The due date on filing of return and payment of excise taxes on importation.
2-3 What are the collection remedies available to the government?
4. System of collecting taxes in accordance with country’s tax policies.
5. This is the government agency principally responsible for the fiscal policies and general management
of the Philippine Government’s financial resources.
6.What is TIN?
7. This is also tax minimization; reducing or totally escaping payment of taxes through legally permissible
way.
8. When should a self-employed be first registered with the BIR?
9. What is tax return?
10. How much is the initial bond of those manufacturers and importers of alcohol and tobacco products?

II- Problem solving: Choose the correct answer. Support your answer. (5 pts each)

1. Annual registration

Jollimacs is a food chain corporation with a principal office in Mandaluyong City. It has two factories
located in Cavite and Cebu, 12 warehouses and 45 branches throughout the Philippines. How much is the
total annual registration fees of Jollimacs?

a.) P30,000 c.)P29,000

b.) P29,500 d.)P28,500

2. Minimum Compromise

A criminal case was filed in court against Mr. Garcia for obtaining three (3) different Tax Identification
Number (TIN) resulting to an estimated tax fraud of P50M.

If Mr. Garcia proposed for a compromise to the BIR Commissioner, how much is the minimum
compromise that is allowed to Mr. Garcia?

a.) P20 million c.) P5 million

b.) P10 million d.) P – 0 –

3. Minimum Compromise

Francis Co declared bankruptcy with the following financial conditions:

Cash P100,000
` Non cash assets 1,000,000
Bank loans payable 600,000
Trade creditors payable 800,000
 Income Tax payable 1,000,000
Accumulated Losses 1,300,000

The non-cash assets were liquidated for P600,000. Francis Co was able to negotiate compromise due to
financial incapability. Assuming that income tax payable of Francis Co has been due for 6 months, how
much is the minimum amount due for compromise?

a.) P550,000 c.) P270,000

b.) P400,000 d.) P200,000

4. Wrong RDO

A certain taxpayer has a basic tax due amounting to P10,000 pertaining to his 2017 ITR but was filed only
on June 30, 2018 to wrong Revenue District Office. How much would be the total amount due by the
taxpayer inclusive of surcharge and interest?

a.) P12,500 c.) P15,417

b.) P15,000 d.) P17,417

5. Importer’s Bond

Y company is an importer of liquor products that need to pay an importer’s bond on excise taxes. During
the first year of importation, the following was taken from the record of Y Company:

First 6-month bond P100,000

Actual excise tax on the:
First 6 months 200,000
Last 6 months 250,000

How much is the required bond on the last 6 months of the first year?

a.) P250,000 c.) P400,000

b.) P300,000 d.) P450,000