ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 46  October 2023 CPALE  23 July 2023  8:00 - 11:00 AM

TAXATION FIRST PRE-BOARD EXAMINATION

INSTRUCTIONS: Select the correct answer for each of the questions. Mark only one
answer for each item by shading the box corresponding to the letter of your choice on
the answer sheet provided. STRICTLY NO ERASURES ALLOWED. Use pencil no. 2 only.
1. Under absolute community of property, which of the following is a community
property?
a. Property inherited by the surviving spouse during the marriage
b. Property bought during the marriage using the salary of the decedent
earned before marriage
c. Personal belongings (e.g. clothes, shoes, etc.) bought during the
marriage for the exclusive use of the decedent
d. Jewelry inherited by the decedent during the marriage

2. Which of the following will not be included in the gross estate of a resident alien
decedent.
a. Land located outside the Philippines donated inter vivos to his son
b. Intangible personal property located in the Philippines, his country
does not tax intangibles situated in his country owned by Filipinos
who are not resident therein
c. Proceeds of life insurance where the beneficiary is the estate
irrevocably designated
d. Claims against a person who absconded, wholly uncollectible

3. Which of the following is not subject to the rule of reciprocity?

a. Shares in a Philippine domestic corporation owned by a nonresident
alien decedent
b. Investment in stock in a US corporation 80% of the business of which
is in the Philippines owned by a non-resident alien decedent
c. Investment in bonds in a US corporation that have acquired business
situs in the Philippines owned by a non-resident alien decedent
d. Share in a Philippine partnership owned by a nonresident alien
decedent

4. A married decedent had the following real properties among other properties left:
Vacation house, Baguio (exclusive property of decedent) P5,250,000
Beach house, Batangas (conjugal property) 4,000,000
Residential house and lot, Manila (conjugal property) 6,000,000
Farm house, Masbate (exclusive property of surviving spouse) 3,000,000
The decedent resided in Manila as certified by the Barangay Captain in the
locality where his residential house and lot were located. For estate tax
purposes, the amount of property to be included in his gross estate and the
deduction for family home would be:
Gross estate Family home deduction
a. P18,250,000 P10,000,000
b. P18,250,000 P 6,000,000
c. P15,250,000 P 6,000,000
d. P15,250,000 P 3,000,000

5. Which of the following is not a remedy against indirect double taxation?

a. Vanishing deduction
b. Tax credit for foreign estate tax
c. Exemption from transfer tax of merger of usufruct in the owner of the
naked title
d. Transfer for public use

6. When is a certified copy of the schedule of partition and the order of the court
ordering the same filed?
a. Within 2 months after decedent’s death
b. Within 6 months after decedent’s death
c. Within 30 days after decedent’s death
d. Within 30 days after the promulgation of such order

7. Properties acquired by gratuitous title during the marriage are generally classified
as:
I – Conjugal properties under conjugal partnership of gains
II – Community properties under absolute community of properties

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
a. Only I is correct; c. Both I and II are correct
b. Only II is correct; d. Both I and II are incorrect.

8. Mr. J. Cruz transferred P200,000 mortis causa to a religious organization. During

the year, the total expenses of the religious organization was P5,000,000, 30% of
which was for administration. How much of the transferred amount would be exempt
for estate tax purposes?
a. Zero c. P100,000
b. P10,000 d. P200,000

9. A resident decedent, single and head of family, left the following:

Personal properties, outside the Philippines P10,000,000

Real properties, Philippines (excluding family home valued at
P10,500,000) 12,000,000
Deductions claimed (including actual funeral expenses of
P200,000, and medical expenses of P600,000) 1,900,000

How much was the taxable net estate?

a. P31,400,000 c. P21,500,000
b. P26,500,000 d. P16,500,000

10. A resident citizen died on September 3, 2020. An administrator was appointed on

September 15, 2020. The inventory taking of the decedent’s properties was completed
on October 10, 2020. To avoid penalties, the estate tax return shall be filed on
or before:
a. September 3, 2021 c. October 10,2021
b. September 15,2021 d. April 15, 2022

11. Which of the following donations will be taxable in the Philippines.

a. Donation of real property located outside the Philippines made by a
nonresident alien donor
b. Donation of intangibles situated in the Philippines made by a
nonresident alien donor when there is reciprocity
c. Donation of tangible personal property situated in the Philippines
made by a nonresident alien donor when there is reciprocity
d. Donation to the National Government for public use

12. Donato donated a conjugal property to his son with the consent of his wife on
account of the son’s forthcoming marriage. The value of the donation was
P1,000,000. Unpaid mortgage on the property was P300,000 and unpaid real estate
tax was P100,000 which were assumed by the donee. The total deductions of Donato
were:
a. P200,000 c. P300,000
b. P210,000 d. P310,000

13. One of the following is not an important factor when computing the taxable net
gifts and the gift tax payable:
a. Residence of the donor
b. Citizenship of the donor
c. Blood relationship between the donor and the donee
d. The legal capacity of the donor

14. John sold his car to his brother Samuel. The sold car had a cost of P500,000. It
was sold for P300,000 at the time when its fair market value was P400,000. For
donor’s tax purposes, which of the following statements is CORRECT?
a. The sale was not subject to donor’s tax because it was sold at a loss
b. There was a deemed gift of P200,000
c. There was a deemed gift of P100,000
d. The transfer involved a personal property, hence, not subject to
donor’s tax

15. Is notice of donation required to be given to the Revenue District Office?

a. Yes, on every donation regardless of the amount
b. Yes, when the donor is engaged in business and the amount of donation
is at least P50,000
c. Yes, when the property donated is real property
d. No, notice of donation is not required

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
16. Which of the following donations inter vivos may not require that it be made in
writing?
a. Donation of personal (movable) property, the value of which exceeds
P5,000
b. Donation of personal (movable) property, the value of which is P5,000
c. Donation of real (immovable) property, the value of which is less
than P5,000
d. Donation of real (immovable) property, the value of which exceeds
P5,000
17. One of the following is not a distinction between donation inter vivos and
donation mortis causa.
a. Donation inter vivos takes effect during the lifetime of the grantor
while donation mortis causa takes effect after the death of the
grantor.
b. Donation inter vivos is subject to donor’s tax while donation mortis
causa is subject to estate tax.
c. Donation inter vivos requires a public document while donation mortis
causa may not require a public document.
d. Donation inter vivos is valued at fair market value at the time the
property is given while donation mortis causa is valued at the fair
market value at the time of the death of the grantor.
18. Motivated by love, Mr. D donated a car to his brothers, Mr. E and Mr. F, the naked
title to Mr. E and usufruct to Mr. F for one year. Is the transfer of the car,
naked title to Mr. E and usufruct to Mr. F a valid donation?
a. Yes the transfer of the naked title to E and usufruct to F is a valid
donation, provided all the donees are living at the time of donation.
b. No, the donation is not valid because it is specifically provided in
the Civil Code that such donation is not allowed.
c. Yes the donation is valid provided that Mr. E agrees to the donation
of usufruct to Mr. F.
d. No, the donation is not valid because a right (usufruct) cannot be
donated.
19. Donor’s tax is:
a. a property tax. c. a business tax.
b. a personal tax. d. an excise tax.
20. As a general rule, when is the donation completed?
a. The moment the donor knows of the acceptance by the donee
b. The moment the thing donated is delivered, either actually or
constructively, to the donee
c. Upon payment of the donor’s tax
d. Upon execution of the deed of donation
21. One of the following taxes had been replaced by VAT:
a. Advance sales tax
b. Tax on life insurance premiums
c. Common carrier’s tax on transport of passengers
d. Franchise tax on electric, water and gas utilities
22. One of the following is a zero-rated sale.
a. Export of a person who is VAT registered
b. Sale of non-food agricultural products
c. Sale of gold to Bangko Sentral ng Pilipinas
d. Sale of cotton and cotton seeds
23. Which of the following is allowed to claim presumptive input tax?
a. Processor of canned fruits
b. Miller of refined sugar not for his account
c. Miller of refined sugar for his own account
d. Public works contractor with respect to private sector contracts
24. A VAT-registered seller sold goods to Asian Development Bank. It failed to get an
approved zero-rating from the BIR. As a consequence of the failure to the get the
approval:
a. The sale should be exempt from VAT
b. The sale should be subject to 10% VAT
c. The sale shall be subject to 0% VAT
d. The sale shall not be subject to any business tax

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
25. Which of the following will give rise to a creditable input tax?
a. Importation of goods for sale, VAT on importation is still unpaid
b. Purchase of services, bill still unpaid
c. VAT on cash purchase of raw materials from VAT-exempt supplier who
issued VAT invoice
d. Purchase of supplies from a VAT-registered supplier who issued non-
VAT invoice

26. To avoid penalties, the quarterly VAT return shall be filed:

a. on or before the 30th day after the end of the quarter.
b. on or before the 25th day after the end of the quarter.
c. on or before the 20th day after the end of the quarter.
d. on or before the 15th day after the end of the quarter.

27. The beginning inventory of a taxpayer who started a business which he registered
under the VAT system in the year 2020 follows:
VAT-subject beginning inventory, at cost P5,000,000
VAT-subject beginning inventory, net realizable value 7,000,000
VAT-exempt beginning inventory, at cost 8,000,000
VAT-exempt beginning inventory, at net realizable value 6,000,000
Actual VAT paid 600,000

The allowable transitional input tax in 2020 is:

a. P600,000. c. P220,000.
b. P300,000. d. None, not allowed transitional input tax.

28. One of the following is not subject to VAT on importation:

a. Goods brought into the Philippines in the course of trade or business
by a VAT-registered person
b. Goods brought into the Philippines not in the course of trade or
business by a person who is not VAT-registered
c. Tax-free goods acquired by person who is not exempt from the tax on
importation from persons who are exempt from tax on importation
d. Goods exempt from customs duties classified as personal and household
effects belonging to residents of the Philippines returning from
abroad

29. Mr. Jose Cruz, mango plantation owner, sold ripe mangoes to Juan Santos, fresh
fruit vendor. Mr. Santos sold the ripe mangoes he bought from Mr. Cruz to Mr.
Pedro Reyes, canned fruit processor. Who shall be subject to value-added tax on
sales?
a. Jose Cruz only
b. Jose Cruz and Mr. Juan Santos
c. Mr. Pedro Reyes
d. None among the three

30. Ms. Juana Cruz, not VAT-registered, was sent a package of goods by his sister who
was abroad. The package was claimed by Juana. The Bureau of Customs required her
to pay VAT on importation. Juana refused to pay the tax on the ground that she was
not VAT-registered and therefore not an importer. Was Juana’s ground in refusing
to pay VAT correct?
a. Yes, because only VAT-registered importers should be subject to VAT.
b. No, because importations, unless exempted, should be subject to VAT.
c. Yes, because the goods were for her personal use, and therefore, she
was not an importer;
d. No, because the package of goods sent by her sister had value.
31. Gross receipts tax is a business tax paid by a:
a. hotel operator c. franchise holder.
b. non-life insurance company. d. bank.
32. The Safer Bank received the following during the first quarter of 2020:
Interest from lending activities:
Remaining maturities of instruments Interest earned
5 years or less P200,000
More than 5 years 55,000
Gross receipts
Lease of property P 500,000

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam

The percentage tax due for the month of the Safer Bank was:
a. P70,550. c. P10,550.
b. P45,550. d. not subject gross receipts tax.

33. A boxing championship featuring Filipino boxers was held in the Philippines, and
was promoted by Filipinos. The gate receipts amounted to P5,000,000, and the
amount received from TV coverage was P3,000,000. How much was the amusement
tax due?
World championship Philippine championship
a. P1,440,000 P1,440,000
b. P 800,000 Exempt
c. Exempt P 800,000
d. Exempt Exempt

34. A telephone company offers its services for domestic calls and overseas calls.
What business taxes are due?
a. VAT on domestic calls and overseas communications tax on overseas
calls, both imposed on the owner of the communication facilities;
b. VAT on both services imposed on the owner of the communication
facilities
c. Overseas communications tax on both services imposed on the user of
communication facilities;
d. VAT on domestic calls imposed on the owner of communication facilities
and overseas communications tax on overseas calls imposed on the user
of the communication facilities.

35. In a particular month during the year 2022, a closely held corporation had its
initial public offering at the Philippine Stock Exchange. The total number of
shares sold during the IPO was 300,000. Before the IPO, the total outstanding
shares were 900,000. The gross value of the initial offering was P10,000,000. How
much was the tax on the initial public offering under Section 127 (B) of the NIRC?
a. P400,000 c. P100,000
b. P200,000 d. Not subject to IPO Tax

36. A domestic carrier by water is engaged in the transport of passengers, goods and
cargoes. It is not VAT-registered and its annual gross receipts do not exceed
P3,000,000. To what business taxes is it liable?
a. 12% value-added tax c. 3% tax on VAT-exempt persons
b. 3% common carrier’s tax d. Not subject to business tax

37. A domestic keeper of garage whose gross receipts for the year exceed the VAT threshold is
subject to:
a. value-added tax. c. garage sales tax.
b. common carrier’s tax. d. franchise tax.

38. Shares of stock held as investment listed and sold through the local stock exchange
shall be subject to:
a. 6/10 of 1% percentage tax based on gross selling price or gross value
in money.
b. 12% VAT based on gross income.
c. capital gains tax of 15% based on net capital gain.
d. 4%; 2%; 1% percentage tax based on gross selling price or gross value
in money.

39. Premium on Health and Accident Insurance, whether received by a life or non-life
insurance company shall be subject to:
a. 12% Value-Added Tax.
b. premium tax under Section 123 of NIRC, as amended.
c. Franchise tax under Section 119 of NIRC, as amended.
d. Percentage Tax on VAT-Exempt Persons under Section 116 of NIRC, as
amended

40. Agence France Press, a news service, has used communication facilities to send its
news to its head office in Paris, France. During the current quarter, it paid a
total of P500,000 for its overseas communications originating from the Philippines.
How much is the overseas communications tax due?
a. P 60,000 c. P 25,000
b. P 50,000 d. None

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
41. Which of the following individual taxpayers is taxed on income from sources within
and without the Philippines?
a. A citizen of the Philippines residing therein.
b. A non-resident citizen.
c. An individual citizen of the Philippines who is working and deriving
income abroad as an overseas contract worker.
d. An alien individual, whether a resident or not of the Philippines.

42. Which of the following shall not be included in the term “trade, business or
profession”?
a. Performance of the functions of a public office.
b. Performance of services to the general public for a fee.
c. Performance of services as an employee.
d. None of the choices.

43. Denzell Wetta, an American management expert is hired by a Philippine corporation

to assist in its organization and operation for which he has to stay in the
Philippines for 5 months. He came to the Philippines for this definite purpose but
the nature of his job may require him to extend his stay and live temporarily in
the Philippines. The American management expert intends to leave the Philippines
as soon as his job is done. For income tax purposes, the American management expert
shall be classified as:
a. resident alien.
b. nonresident alien engaged in trade or business.
c. nonresident alien not engaged in trade or business.
d. resident citizen.

44. A mixed income earner individual having income from his employment (compensation
income) and from practice of his professional (professional income) failed to
indicate in his first quarter return that he is availing of the 8% income tax rate.
His gross receipts from the practice of profession does not exceed the VAT
threshold. To what tax will his income be subject to?
Compensation income Professional income
a. Graduated income tax Graduated income tax
b. 8% income tax 8% income tax
c. Graduated income tax 8% income tax
d. 8% income tax Graduated income tax

45. For income tax purposes, the income tax return shall be filed:
a. by the husband being head of the family.
b. by the spouse who has higher income
c. by both spouses jointly.
d. by the wife is authorized by the husband.

46. The 8% income tax is based on:

a. gross sales or gross receipts.
b. gross sales or gross receipts and other non-operating income.
c. gross income.
d. net income.

47. Which of the following statements is incorrect with respect to Optional Standard
Deduction allowed to individuals?
a. In lieu of the deductions allowed (itemized), an individual subject
to tax under Section 24, other than a nonresident alien, may elect
a standard deduction in an amount not exceeding forty percent (40%)
of his gross sales or gross receipts, as the case may be.
b. Unless the taxpayer signifies in his return his intention to elect
the optional standard deduction, he shall be considered as having
availed himself of the itemized deductions allowed.
c. An individual who is entitled to and claimed for the optional standard
deduction shall not be required to submit with his tax return such
financial statements otherwise required under the Tax Code.
d. An individual who is entitled to and claimed for the optional standard
deduction shall no longer keep such records pertaining to his
gross sales or gross receipts.

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
48. Under the global system of income taxation:
a. there is no need for classification of income as all taxpayers are
subject to a single rate.
b. there are different categories of taxable income.
c. there are different tax rates.
d. individuals are subject to different tax treatments.
49. A purely compensation income earner whose gross compensation income does not exceed
the VAT threshold shall be subject to:
a. graduated income tax.
b. 8% income tax.
c. graduated income tax or 8% income tax at his option.
d. other percentage tax in addition to income tax.

50. A pure business or professional income earner who initially availed of the 8% income
tax and whose gross receipts exceed the VAT threshold during the year shall be
subject to:
a. Graduated income tax and VAT on his total gross receipts.
b. Graduated income tax and percentage tax on the first P3,000,000 gross
receipts and 12% VAT on the excess of P3,000,000.
c. 8% income tax and percentage on all his gross receipts.
d. Graduated income tax and VAT in the succeeding year.

SITUATIONAL
The decedent was a married man with a surviving spouse had the following data:
Conjugal real properties (including land valued at P500,000
transferred to a son to reward him for services rendered) P 5,500,000
Exclusive family home 2,000,000
Other exclusive properties (excluding properties valued at
P200,000 inherited by the decedent during the marriage) 3,300,000
Conjugal ordinary deductions
Funeral expenses P 150,000
Other deductions (including P100,000 unpaid mortgage
on conjugal real properties) 1,300,000 1,450,000
Medical expenses 500,000

51. How much is the total gross estate?

a. P11,000,000 c. P10,500,000
b. P10,800,000 d. P10,000,000

52. How much is the ordinary deductions?

a. P1,550,000 c. P1,450,000
b. P1,500,000 d. P1,300,000

53. How much is the special deduction?

a. P15,000,000 c. P7,000,000
b. P10,000,000 d. P6,000,000

54. How much is the taxable net estate?

a. P2,220,000 c. P700,000
b. P2,200,000 d. P350,000

55. How much is the estate tax due and payable?

a. P133,200 c. P42,000
b. P132,000 d. P21,000

SITUATIONAL
The following donations during the calendar year 2020 are made to relatives:
Date Amount
January 30, 2020 P 2,000,000
March 30, 2020 1,000,000
August 15, 2020 500,000

56. How much is the tax due on the gift made on January 30, 2020?
a. P 120,000 c. P 102,000
b. P 105,000 d. P 100,000

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
57. How much is the tax due on the gift made on March 30, 2020?
a. P 180,000 c. P 60,000
b. P 165,000 d. P 45,000

58. How much is the tax due on the gift made on August 15, 2020?
a. P 195,000 c. P 60,000
b. P 165,000 d. P 30,000

SITUATIONAL
Hotel California, VAT-registered, offers different services to its guests. The
following data taken from the books of the taxpayer are for the first quarter of 2015:

Revenues Collections
Hotel rooms (local guests) P 800,000 P 700,000
Dining hall:
Sale of food and refreshments 1,000,000 850,000
Sale of wine, beer and liquor 700,000 600,000
Disco:
Sale of food and refreshments 600,000 550,000
Sale of wine, beer and liquor 500,000 450,000

59. How much is the output tax for the first quarter of 2015 using 12% VAT rate?
a. P 432,000 c. P 258,000
b. P 378,000 d. None of the choices

60. How much is the amusement tax?

a. P378,000 c. P180,000
b. P198,000 d. P150,000

SITUATIONAL
Your client is engaged in several transactions that are subject to business taxes. The
following data are presented for your perusal.

Gross receipts, sale of gas and water P3,500,000

Expenses, sale of gas and water 1,000,000
Gross receipts, rentals of office spaces 3,500,000
Expenses, rental of office spaces 500,000
Total premiums collected, life insurance premiums 4,000,000
Expenses, life insurance business 1,000,000

61. How much is the business tax of the sale of gas and water?
a. P105,000 c. P50,000
b. P70,000 d. None of the choices

62. How much is the business tax on the rent of office spaces, assuming the taxpayer
is not VAT-registered?
a. P420,000 c. P70,000
b. P105,000 d. None of the choices

63. If the taxpayer is a concessioner of a franchise grantee of water utilities, not

VAT-registered, how much is the business tax, if any?
a. P840,000 c. P140,000
b. P420,000 d. Answer not given

64. How much is the premiums tax?

a. P160,000 c. P40,000
b. P 80,000 d. Not subject to premiums tax

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam

SITUATIONAL
The Anong Pizza Na, VAT-registered issued the following official receipt to a customer
who was with a senior citizen:
Ordered by a senior citizen
Parma pizza P880.00
Mango basil 180.00 P1,060.00
Ordered by the non-senior citizen
House salad 420.00
Beef rendang 590.00
Avocado smoothie 190.00 1,200.00
Total sales (VAT inclusive) P2,260.00

65. How much is the VAT-exempt sale?

a. P2,017.85 c. P946.43
b. P1,060.00 d. None of the choices

66. How much is the sales discount for senior citizen?

a. P403.57 c. P189.29
b. P212.00 d. None of the choices

67. How much is the total amount due?

a. P2,260.00 c. P2,017.85
b. P2,140.00 d. None of the choices

SITUATIONAL
To improve her body shape Paz Seksi decided to undergo procedure and sought the services
of Body Beautiful, a clinic operated outside the hospital and owned by Bello Medical
Group, Inc. Body Beautiful charged Ms. Pax Seksi the amount of P50,000 (inclusive of
12% VAT but exclusive of 5% excise tax) for the service rendered.

68. How much is the excise tax?

a. P2,500.00 c. P2,233.00
b. P2,232.14 d. Not subject to excise tax

69. How much is the VAT?

a. P6,000.00 c. P5,357.14
b. P5,625.00 d. Not subject to VAT

70. How much is the total amount to be collected from Ms. Paz Seksi?
a. P52,500.00 c. P46,375.00
b. P49,767.86 d. P44,642.85

END OF EXAMINATION

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 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam

ANSWERS & SOLUTIONS/CLARIFICATIONS

1 B 26 B 51 C
2 A 27 A 52 D
3 B 28 D 53 C
4 D 29 C 54 D
5 B 30 B 55 D
6 D 31 D 56 B
7 D 32 B 57 C
8 A 33 C 58 D
9 D 34 D 59 C
10 A 35 D 60 C
11 C 36 C 61 B
12 A 37 B 62 A
13 C 38 A 63 A
14 C 39 B 64 B
15 B 40 D 65 C
16 B 41 A 66 C
17 C 42 C 67 B
18 A 43 A 68 B
19 D 44 A 69 B
20 B 45 C 70 A
21 A 46 B
22 A 47 D
23 C 48 A
24 C 49 A
25 C 50 B

3.
Shares, obligations or bonds issued by any foreign corporation 85% of the business
of which is located in the Philippines

8.
All bequest, devises, legacies or transfers to social welfare, cultural and
charitable institutions, no part of the net income of which inures to the benefit
of any individual: Provided, however, that not more than 30% of the said bequest,
devises, legacies or transfers shall be used by such institutions for
administration purposes.

9.
Gross estate (10,000,000 + 10,500,000 + 12,000,000) P32,500,000
Less: Ordinary deductions (1,900,000 – P800,000) 1,100,000
Estate after ordinary deductions 31.400.000
Less: Special deductions
Standard deductions (5,000,000)
Family home deduction (10,000,000)
Net taxable estate P16,500,000

16.
Reference: Article 748, Civil Code of the Philippines
Art. 748. The donation of a movable may be made orally or in writing.

An oral donation requires simultaneous delivery of the thing or of the

document representing the right donated.

If the value of the personal property donated exceeds five thousand pesos,
the donation and acceptance shall be made in writing. Otherwise, the
donation shall be void.

17.
References: Article 748, Civil Code of the Philippines
Article 749, Civil Code of the Philippines

18. Reference: Article 756, Civil Code of the Philippines

Page 10 of 12 0915-2303213  resacpareview@gmail.com

 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
27.
Transitional input tax (11,000,000 x 2%) P220,000
Value added tax paid P600,000
Transitional input tax P600,000

32.
Amount Rate GR Tax
Interest earned (remaining maturity 5 years or less) 200,000 5% 10,000
Interest earned (remaining maturity more than 5 years) 55,000 1% 550
Lease of property 500,000 7% 35,000
Total gross receipts tax 45,550
51 – 55
Exclusive Conjugal Total
Gross estate P5,500,000 P5,000,000 P10,500,000
Less: Ordinary deductions - 1,300,000 1,300,000
Estate after ordinary deductions 5,500,000 3,700,000 9,200,000
Less: Special deductions
Family home (2,000,000)
Standard deduction (5,000,000)
Net estate 2,200,000
Less: Share of surviving spouse
(1/2 x 3,700,000) (1,850,000)
Net taxable estate 350,000
Applicable tax rate 6%
Estate due and payable P 21,000
56.
27 Total gifts in this return P2,000,000
33 Total deductions -
34 Total net gifts in this return 2,000,000
35 Add: Total prior net gifts during the calendar year -
36 Total net gifts 2,000,000
37 Less: Exempt gift 250,000
38 Total net gift subject to tax 1,750,000
15 Applicable donor’s tax rate 6%
16 Total donor’s tax due 105,000
57.
27 Total gifts in this return P1,000,000
33 Total deductions -
34 Total net gifts in this return 1,000,000
35 Add: Total prior net gifts during the calendar year 2,000,000
36 Total net gifts 3,000,000
37 Less: Exempt gift 250,000
38 Total net gift subject to tax 2,750,000
15 Applicable donor’s tax rate 6%
16 Total donor’s tax due 165,000
17 Less: Tax payments/ credits
17A Payments for prior gifts during the calendar year
(2,000,000 – 250,000 x 6%) 105,000
18 Tax payable P 60,000
58.
27 Total gifts in this return P500,000
33 Total deductions -
34 Total net gifts in this return 500,000
35 Add: Total prior net gifts during the calendar year 3,000,000
36 Total net gifts 3,500,000
37 Less: Exempt gift 250,000
38 Total net gift subject to tax 3,250,000
15 Applicable donor’s tax rate 6%
16 Total donor’s tax due 195,000
17 Less: Tax payments/ credits
17A Payments for prior gifts during the calendar year (3,000,000
– 250,000 x 6%) 165,000
18 Tax payable P 30,000

Page 11 of 12 0915-2303213  resacpareview@gmail.com

 TAXATION
ReSA Batch 46 – October 2023 CPALE Batch
23 July 2023  8:00 AM to 11:00 AM TAX First Pre-Board Exam
59.
Collections, hotel rooms P 700,000
Collections, dining hall (sale of food and refreshments 850,000
Collections, dining hall (sale of wine, been and liquor) 600,000
Gross receipts 2,150,000
Tax rate 12%
Output tax P 258,000
60.
Collections, disco, food and refreshments P 550,000
Collections, disco, wine, beer and liquor 450,000
Gross receipts 1,000,000
Tax rate 18%
Amusement tax P 180,000
61.
Gross receipts, sale of water P3,500,000
Tax rate 2%
Franchise tax P 70,000
62.
Gross receipts, rent of office spaces P3,500,000
Tax rate 12%
VAT P 420,000
63.
Gross receipts, sale of water P3,500,000
Gross receipts, rent of office spaces 3,500,000
Total gross receipts 7,000,000
Tax rate 12%
VAT P 840,000
64.
Total premiums collected P4,000,000
Tax rate ________2%
Premiums tax P 80,000
65.
Parma pizza P 880.00
Mango basil 180.00
Total VAT-exempt sales 1,060.00
Less: VAT included in the VAT-exempt sale (1,060.00 x 12/112)
113.57
VAT-exempt sale P 946.43
66.
VAT-exempt sale P 946.43
Sales discount rate 20%
Sales discount to senior citizen P 189.29
67.
Total sales (VAT inclusive) P2,260.00
Less: Sales discount 189.28
VAT included on VAT-exempt sale 113.57 302.85
Net sales 1,957.15
Add: Service charge 182.85
Total amount due P2,140.00
68.
Gross receipts, net of VAT (50,000/1.12) P44,642.85
Tax rate 5%
Excise tax P 2,232.14
69.
Gross receipts, net of VAT P44,642.85
Add: Excise tax 2,232.14
Total 46,874.99
Tax rate 12%
VAT P 5,625.00
70.
Gross receipts, net of VAT P44,642.85
Add: Excise tax 2,232.14
VAT 5,625.00
Total P52,500.00

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