ACLC COLLEGE OF ORMOC

Lilia Avenue., Brgy. Cogon, Ormoc City

Business Department
___________________________________________________________________________________
Philippine Tax System and Income Tax (BAMM6301)

MIDTERM EXAMINATION
November 13, 2021

INSTRUCTIONS

1. This Questionnaire contains FOUR (4) pages including this Instructions page. Check the number of pages and the page numbers at the bottom of
each page of this Questionnaire and make sure it has the correct number of pages and their proper numbers.

2. Read each question very carefully and write your answers in your Examination Notebook in the same order the questions are posed. Write your
answers only on the front, not the back page of every sheet in your Notebook. Note well the allocated percentage points for each number, question,
or sub-question. In your answers, use the numbering system in the questionnaire.

If the sheets provided in your Examination Notebook are not sufficient for your answers, use the back pages of every sheet of your Examination
Notebook, starting at the back, page of the first sheet and the back of the succeeding sheets thereafter.

You do not need to re-write or repeat the question in your Notebook.

YOU HAND THIS QUESTIONNAIRE TOGETHER WITH YOUR NOTEBOOK

Atty. MELFA DELOS SANTOS-SALIDAGA, CPA, MPA

Instructor

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PHILIPPINE TAX SYSTEM AND INCOME TAX Atty. MELFA DELOS SANTOS-SALIDAGA, CPA, MPA
A. FILL IN THE BLANK. Please provide the correct answer in the blank. (2 pts each

Please apply what you have learned in Lesson 5 (Income Tax on Individual) and Lesson 6 (Income Tax on Corporations). (80 pts.)

Kinds of Types of Taxable Source Taxable Taxable Base

Business Individual / (Within and / or Income
Entity Corporation Without) (Gross) * (e)
(Individual / Taxpayer
Corporation) (c) (d) (1 pt. each)
(b)
(a) (1 pt. each) (1 pt. each)
Particulars (1 pt. each)
(1 pt. each)

Sample: Ms. Everything is a Filipina who works Individual Individual – Within P1,000,000.00 Net Income
as a fashion designer in the US. (Example: Non
Residen
Bonus)
t Citizen

1. Katkat Bernardo is a Filipina actress living

in the Philippines.
2. Ms. Selene Deon, a Canadian citizen, is
engaged in buying and selling of goods in
the Philippines for more than 1 year.
3. Ms. Lia Saloonga is a Filipino performer
who goes to Thailand to act in the stage
play, Miss Saigon for one (1) month.
4. Mr. Hyun Bin, a Korean who resides in the
Philippines, is engaged in the selling of
solar power lights in the Philippines.
5. ABS- GMA is a corporation incorporated
under the Corporation Code of the
Philippines.
6. Ms. An-An Kurtis, a Filipino citizen, has left
the Philippines during a taxable year to
reside in Australia on permanent basis.

PHILIPPINE TAX SYSTEM AND INCOME TAX Atty. MELFA DELOS SANTOS-SALIDAGA, CPA, MPA
ACLC COLLEGE OF ORMOC
Lilia Avenue., Brgy. Cogon, Ormoc City

Business Department
___________________________________________________________________________________
7. Mr. Jun Llyod, a Filipino citizen, is able to
establish to the satisfaction of the CIR the
fact of his physical presence in Hongkong
with a definite intention to reside therein.
8. Mr. Gabby Cuneta is a Filipino seaman who
receives compensation for services
rendered abroad as member of the
complement of a vessel engaged
exclusively in international trade.
9. Ms. Via Alonzo is a Filipino citizen who
stays in Korea for more than 183 days by
end of the year.
10. Perrykoykoy Corporation, created and
organized under the Japanese law, is
engaged in the distribution of electronic
devices in the Philippines.
11. Ms. Yoon Se-Ri, a Korean actress, shoots
a movie in the Philippines and has stayed in
the country for more than 12 months.
12. Ms. Maddie Lim, a Chinese business
woman, came to the Philippines, and stayed
for an aggregate period of more than 180
days during a calendar year.
13. Katty Fiery, a South African performer,
conducts a concert in the Philippines.
14. IU, a Korean singer, is paid a royalty by
ABS-GMA for the use of her song in one of
the network’s telenovelas.

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PHILIPPINE TAX SYSTEM AND INCOME TAX Atty. MELFA DELOS SANTOS-SALIDAGA, CPA, MPA
 15. Pieperry, a corporation created and
organized under the Canadian law, has
purchased stocks in a domestic corporation.

*Data to be used in the computation of Taxable Income (Gross):

Philippines Korea Canada

Income Earned from P1,200,000.00 P 200,000.00 P 100,000.00

B. Cases: (10 pts. Each)

1. Mr. Salcedo is a big-time swindler. In one year, he was able to earn P1 Million from his swindling activities. Is Mr. Salcedo obliged under our Tax Code
to pay taxes for income from his illegal activities?

2. GMA-AMG International, a non-resident corporation with a branch in the Philippines, has directly invested shares of stock in ABS - SBA, a domestic
corporation. Should ABS-SBA withold tax on dividends of GMA-AMG?

PHILIPPINE TAX SYSTEM AND INCOME TAX Atty. MELFA DELOS SANTOS-SALIDAGA, CPA, MPA