DRILL # 3

Other Percentage Tax

Common Carriers Tax : 3 minutes
Problem 1:
Victory Liner is a domestic common carrier engaged mainly in the transport of passengers
in Luzon areas. Due to the increasing demand to transport good/cargoes, the company
decided to acquire additional bus units exclusively intended for this purpose. The results of
the operations for the first quarter of 2023 are as follows:
Gross receipts – transport of passengers P15,000,000
Gross receipts – transport of goods 4,000,000
Compute for the common carriers tax.
Compute for the business tax.
Common Carriers Tax : 3 minutes
Problem 2:
Philippine Airlines, a registered domestic air carrier provided the following
data
Gross receipts – transport of P15,000,000
passengers
Gross receipts – transport of goods 3,000,000
Compute for the common carriers tax.
Compute for the business tax assuming Philippine Airlines is VAT
registered.
Compute for the business tax assuming Philippine Airlines is non VAT
registered.
Common Carriers Tax : 5 minutes
Problem 3:
Grab, a transportation network company, have pool of land transportation vehicles used in
transporting passengers and goods which is owned by the partners. Grab provided the
following data during the quarter:
Gross receipts – transport of passengers P10,000,000
Gross receipts – transport of goods 3,000,000

Compute for the common carriers tax assuming Grab has a valid Certificate of Public
Convenience.
Compute for the common carriers tax assuming Grab do not have a valid Certificate of
Public Convenience.
Compute for the business tax assuming Grab is VAT registered
Compute for the business tax assuming Grab is non VAT registered
Common Carriers Tax : 3 minutes
Problem 4:

Goyo, a very private person, has a vacant lot located

beside the terminal of Florida, a domestic carrier
engaged in the transport of passenger. Due to the
limited space in the terminal for the parking of the
buses, Florida asked Goyo if he would rent the vacant
lot for bus parking at a rate of P500,000 annually.
Goyo agreed.
Compute for the common carriers tax.
Franchise Tax : 3 minutes
Problem 5: ABS is a franchise grantee and the leading radio
broadcasting company in the Philippines. The gross receipts for
three years are as follows:
2021 2022 2023
9,000,000 11,000,000 3,000,000
Compute for the business tax in 2021
Compute for the business tax in 2022
Compute for the business tax in 2023
Franchise Tax : 5 minutes
Problem 6: Compute for the business tax of the following independent
cases.
Agua Bendita is a water refilling station franchise grantee. The gross
receipts derived from the business covered by the franchise amounted to
P10,000,000.
Metropolitan Tuguegarao is a water utility franchise granted by the
local government of Tuguegarao. Its gross receipt derived from the
business covered by the franchise amounted to P15,000,000 while
receipts from renting out its facilities amounted to P3,000,000.
Cagelco 1 is a franchise grantee engaged in the distribution of electricity
in the province of Cagayan. Its gross receipts derived from the business
covered by the franchise amounted to P5,000,000.
Overseas Communication Tax : 3 minutes
Problem 7: Compute for the overseas communication tax of the following independent
cases.
Tawag Communications provided the following data from its 2023 operations:
Gross receipts – local calls P60,000,000
Gross receipts – incoming calls from abroad 30,000,000
Gross receipts – outgoing calls abroad 50,000,000

PLDT provided the following data from its 2023 operations based on the clients in
which they have provided communication services.
Office of the President of the Philippines to China’s Prime Minister P10,000,000
Philippine Embassy to US Embassy 30,000,000
Family of the Philippine President to their family abroad 5,000,000
WHO Representative Office located in the Philippines to World Health Organization 10,000,000
DRILL # 4
Other Percentage Tax
Gross Receipts Tax: 2 minutes
Big Bank has the following income/loss for the months of March and April:
March April
Interest income maturity of 50,000 100,000
less than 5 years
Rentals 50,000 50,000
Net trading gain/loss (10,000) 20,000
Compute the gross receipts taxes payable for March and April.
Gross Receipts Tax: 7 minutes
The China Bank, a domestic bank, shows the following data for January 2010:
Rentals from safety deposit boxes and real property acquired through foreclosure proceeding 880,000
for bad loans
Net foreign exchange gains (difference between the value of foreign currency sold and 220,000
purchased)
Net trading gains from trading of securities, commercial papers and other financial 660,000
instruments (difference between the yield or selling price and the cost of obtaining the same)
Trust fees 110,000
Dividend from domestic corporation 30,000
Other service fees 220,000
Interest income from lending activities from instrument with remaining term of:
Five years and less 700,000
More than five years 800,000

Gross receipt tax for the month is (5 points)

Amusement Tax : 2 minutes
Carlos operates the El Combo Nightclub along
Malate Avenue, Palayan City. His gross receipts in
February 2008 amounted to 126,700. The foods and
drinks being served inside the nightclub are being
delivered by Tiberio, a non-VAT taxpayer. During the
month, Tiberio sold 32,400 worth of goods and drinks
to Carlos. Compute for the amusement tax.
Amusement Tax : 3 minutes
Makasalanan Corporation had the following data during the month of
February:
Net income during the month 40,000
Collections during the month:
From services rendered in January 50,000
From services rendered in February 300,000
From services to be performed in March (advances) 10,000
The business tax payable if Makasalanan is a bus company:
The business tax payable if Makasalanan is a cabaret:
The business tax payable if Makasalanan is a race track:
Amusement Tax : 5minutes
Rose Tear operates a cockpit in Zamboanga City. Inside the cockpit is a restaurant which she
operates. The data during the month are as follows:
Gross receipts from the gates 390,000
Receipts from advertisements inside the cockpit arena 15,000
Gross receipts from restaurant:
Sale of food and soft drinks 21,000
Sale of liquor 33,000
Disbursements (subject to VAT) 24,200
Disbursements (not subject to VAT) 12,000

The amusement tax due is

Suppose the restaurant is owned and operated by Mon, a non VAT registered person, the
business tax payable by Mon is
Suppose the restaurant is operated by Mon, the percentage tax due on Rose is
Assume that Mon, a VAT registered taxpayer is operating the restaurant. The business tax
payable by Mon is
Gaming Tax : 2 minutes
Bayani’s ticket (daily double) won P42,000,
gross of withholding tax and cost of ticket,
in a horse race in San Lazaro Hippodrome.
His ticket had cost him P250. Bayani had
other non-winning tickets costing P2,500.
How much tax was withheld on winnings
in horse races by Bayani?
Insurance Tax : 2 minutes
Mabuhay Insurance Company had the following data on collections of
premiums and disbursements during the month:
Life insurance Non-life insurance
Cash collections P520,000 P896,000 (including
VAT of 96,000)
Checks 365,000
Accounts receivable 315,000 342,000
The percentage tax due is?
Stock Transaction Tax: 5 minutes
Compute for the stock transaction tax of the following independent cases:
Q owns 2,000 shares with a cost of P200 per share of Padilla Corporation, a
closely held corporation owned and controlled by a public figure. He
subsequently sold the shares for P600,000.
Q owns 2,000 shares with a cost of P200 per share of Villar Corporation which
are traded in the Philippine Stock Exchange. He subsequently sold the shares for
P600,000.
Q owns 2,000 shares with a cost of $20 per share of Poe Corporation which is a
listed foreign corporation are traded in a stock exchange. He subsequently sold
the shares for $50 per share. Exchange rate during this sale is $1:P56.
Q, a dealer of shares, sold 2,000 shares from a listed company for P500 per
share.
Stock Transaction Tax: 5 minutes
Hontiveros Corporation, a closely held corporation offered for the first time
its own shares of stock at par of P50 per share. The corporations authorized
capital stock is P10,000,000 with a 100,000 share outstanding before the IPO.
Compute for the stock transaction tax assuming:
Gross receipts at its initial public offering was P1,200,000.
Gross receipts at its initial public offering was P5,000,000.
Q, an investor of Hontiveros Corporation, sold his 10,000 shares for
P500,000 during the IPO period of the corporation. The total outstanding
shares before IPO disposed during the IPO is 50,000 shares.