BCLTE Mock Exam 1

RPT
BUSINESS TAX
LEES
LOCAL BUDGET PROCESS
LOAN APPLICATION
BOT
Identify the following
1. It is the tax imposed on the use of lands, buildings and machineries.
Real Property Tax
2. It refers to the purpose for which the property is principally utilized.
Actual use
3. the price at which the seller is willing to sell and the buyer is willing to purchase
Fair Market Value or FMV
4. The basic RPT is equal to
Assessed Value x Tax rate
5. The assessment level for residential and agricultural lands respectively are
20%, 40%
6. The special levy on lands benefited by public works is
not exceeding 60% of its actual cost and payable within 5- 10 years
7. The 2% basic RPT Rate is applied to which political subdivisions?
Cities and Municipalities
8. What is the tax rate on Transfer of Real Property Ownership?
Provinces = 50% of 1% Cities 75% of 1% of the assessed value
9. What is tax rate on printing and publication and franchise for newly started businesses?
Provinces = 1/20 of 1% of Capital Investment
Cities = 3/20 of 1% of Capital Investment
10. The payment of professional tax shall be on or before
Annually, January 31 or before the beginning of the practice of profession
11. Which tax form is applicable to manufacturers, distributors and exporters?
Graduated Fixed Tax
12. Which tax form is applicable to lending institutions and finance companies?
Percentage tax
13. For businesses under NIRC, the tax rate for cities and municipalities respectively are
Not exceeding 3% of Gross Receipts for cities, 2% for municipalities
14. The maximum amount of gross receipt that barangay in a city can levy taxes
P50 000
15. Business Tax must be paid annually or quarterly within
the first 20 days of January
16. What are the 5 Local budget process ?
Preparation Authorization Review Execution Accountability

17. The Appropriation Ordinance of provinces shall be reviewed by

DBM
18. Appropriation Ordinance of Cities, municipalities, and Barangays must be reviewed by
Sanggunian
19. Who must be present in the conduct of Budget Forum
Local Chief Executive, Local Finance Committee and Department Heads
20. It is anchored on the principle of NO MONEY SHALL BE PAID OUT OF THE TREASURY
EXCEPT IN PURSUANCE OF APPROPRIATION ORDINANCE AND LAW.
Budget Authorization
21. Who shall justify the budget proposal?
Department Heads
22. In local budget process, it determines whether the Appropriation Ordinance has
complied with the budgetary requirements and general limitations stated in the LGC.
Budget Review
23. It refers to the disbursement of funds and delivery of goods
Budget Execution
24. It is the evaluation of financial and Physical performance of PPAs
Budget Accountability
25. Who is responsible in adjusting the cash program and Financial and Physical
performance target for shortages/overages?
Local Finance Committee
26. These are ventures wholly or partially owned by LGUs that aims to provide basic
necessities which cannot be provided by private sector alone.
Local Economic Enterprises
27. It helps in determining whether the proposed LEE is able to pass the 4- hurdle criteria
Feasibility Study
28. It is the heart and soul of LEEs
Business Plan
29. It includes the profile of the target customers and the assessment of the competitors
Marketing Analysis
30. It ensures the project scope, design and specifications have no adverse environmental
impact
Technical Analysis
31. It is the reference used in conducting the feasibility Study of the proposed LEEs.
NEDA’s Evaluation and Development Manual
32. What is the 4th step in proposing LEEs?
Selecting Financing Source
33. Which is excluded from the LGU transfer/advance to LEEs?
Personnel Services
34. It refers to working systematically and logically to resolve problems in the organization.
Analytical Thinking
35. A process of influencing and directing people to engage in the work efficiently.
Leading
36. It is a way of being, managing and treating people
Coaching
37. What are the key principles of Coaching?
Awareness and Responsibility
38. What are the essence of coaching?
Awareness , Responsibility and Independent Thinking
39. It refers to the core of coaching
Thinking Environment
40. It is regarded as the heart of coaching
Questions
41. Welcoming different opinions and allowing exchange of ideas in coaching
Diversity
42. It is the CSC adopted process of Coaching
GROW
43. The initial LGU-level forecasting by BLGF is not later than
15th of May
44. The LGU final budget must be ready not later than
June 30
45. period in years from the date of appraisal to the date when the machinery becomes
valueless .
Remaining Economic Life
46. levy on RPT on the basis of a fixed proportion of the property
Ad Valorem Tax
47. in which metallic or nonmetallic minerals in sufficient quantity can be extracted and
utilized
Mineral Land
48. actual cost of machineries including cost of transportation, handling and installation.
Acquisition Cost
49. is the assigning of new assessed values to property as the result of reappraisal.
Reassessment
50. estimated period a machinery or equipment may be profitably utilized.
Economic Life
 51. valuable addition or repair made to a property
Improvement
52. devoted principally for the object of profit.
Commercial Land
53. cost of acquiring or replica of the property on current prices
Replacement or Reproduction Cost
54. the purpose for which the property is principally utilized
Actual use
55. the price at which the seller and buyer are willing to sell and buy the property
FMV
56. determining the value of a property or proportion subject to tax
Assessment
57. principally devoted to habitation.
Residential Land
58. value remaining after deducting depreciation from acquisition cost.
Depreciated Value
59. determining the value of property as of a specific date and purpose
Appraisal
60. percentage applied to FMV to determine the taxable value of the property.
Assessment level
61. devoted principally to planting, livestock and poultry
Agricultural Land
62. remaining useful life of the machinery
Remaining Value
63. devoted principally to industrial activity as capital investment .
Industrial Land
64. created for the purpose of providing an everyday basic necessity or service to the public
at large.
Local Economic Enterprises
65. Created for the purpose of improving production and delivery of marketable goods or
services for specific market
Other Economic Enterprises
66. CSC Leadership Brand
Coaching for Integrity and Excellence

TRUE or FALSE
67. Only taxable real property shall be appraised at the current FMV prevailing in the locality.
False
68. Department of Finance shall promulgate the ruling for the classification, appraisal and
assessment of real property.
True
69. The sworn declaration of real property, taxable or exempt, shall be filed with the assessor
once every 5 years from January 1 to June 30
False
70. Sworn Statement declaring the true value of subject property shall be filed within 30 days
after the acquisition or completion of improvement
False
71. Refuse or failure to make such declaration, the assessor shall himself declare the property
in the name of the defaulting owner, and assess the property for taxation.
True
72. An Assessment Roll shall be prepared and maintained by the Provincial, City or Municipal
Registrar
False
73. Proof of exemption of real property from Taxation shall be filed together with the required
documents within 30 days from the date of declaration
True
74. Notification of transfer of real property ownership shall be filed within 60 days from the
date of such transfer.
True
75. Registrar of Deeds shall prepare and submit every 3 years to the assessor the abstract of his
Registry of Property containing description of real property, present owners, recent transfer
with supporting documents
False
76. The official issuing building permit or registration of machinery shall transmit a copy of such
permit or certificate to the assessor within 30 days of its issuance
True
77. Geodetic Engineers shall furnish the assessor the white or blue print copy of each approved
subdivision plans or map of surveys within 60 days from receipt of such plans from LMB, LRA,
HLURB
False
78. The assessor shall prepare a schedule of FMV for the different classes of real property. This
shall be published in newspaper of general circulation or shall be posted in LGU hall and in two
other conspicuous public places
True
79. The assessor may recommend to Sanggunian concerned amendments in valuation of FMV
and shall be acted upon by Sanggunian within 90 days from receipt
True
80. Real Property shall be classified into 7 categories.
True
81. Assessment levels shall be fixed by ordinances of Sanggunian.
True
82. General revisions of assessment and property classification can be made once every 5 years
Reassessment due to destruction, change in actual use, great sudden inflation or deflation of
real property values shall be made within 90 days from causes occurred and shall take effect
immediately.
False
83. Assessment of property subject to back taxes shall be liable but in no case be more than 10
years prior to initial assessment
True
84. No interest for delinquency shall be imposed if such taxes are paid on or before the end of
the quarter following the date of Notice of Assessment , otherwise, 2% monthly interest shall
be applied
True
85. The FMV of all machineries shall be its acquisition cost .
False
86. Yearly depreciation allowance for machinery is 10% of its original cost
False
87. The remaining Value of all kinds of machines shall be fixed at not less then 40% of its
original cost or replacement
False
105. It is where the list of projects of 300M should be submitted for approval
NEDA ICC

106. A contract agreement where the project is authorized to finance, construct, operate and
maintain an infrastructure facility and turn it over to the LGU after the franchise period:
Build- Operate- Transfer
107.A contract agreement whereby the project proponent undertakes the financing and
construction of a given infrastructure and turn it over to the LGU upon completion.
Build and Transfer
108. A contract agreement whereby an existing facility is turn over to the private
sector to refurbish and operate with no limitation imposed on ownership:
Rehabilitate-Own-Operate
109. A contract agreement whereby an existing facility is turned over to the private
sector to refurbish, operate and maintain for a franchise period and turnover to the
LGU.
Rehabilitate-Operate-Transfer
110. A contract arrangement whereby a project proponent is authorized to finance,
construct, own, operate, and maintain an infrastructure from which the proponent is
allowed to recover its total investment, operating and maintenance costs plus a
reasonable return:
Build -Own – Operate
111. A contractual arrangement whereby favorable conditions external to a new
infrastructure project which is to be built by a Project Proponent are integrated into the
arrangement by giving that entity the right to develop adjoining property.
Develop-Operate- Transfer
112. A contract arrangement whereby a project proponent is authorized to finance
and construct an infrastructure or development facility and upon its completion turns it
over to the LGU concerned on leasing arrangement for a fixed period, after which
transferring automatically to the LGU.
Build- Lease- Transfer
113. It is where the lists of projects should be submitted for approval, if it cost more
than 300M.
NEDA Board
LGUs LOAN APPLICATION PROCESS
Who is/are responsible on the following procedures?
1. Local Council, through a Resolution/Ordinance, authorizes the Local Chief Executive to
negotiate and contract loans and other forms of indebtedness LGU
2. Submit Letter of Intent and negotiate with the lending institution LGU

3. Pre-Evaluation/Setting of Terms and Conditions lending institution

4. Submit to BLGF a written request for certification of LGU Net Debt Service Ceiling and
Borrowing Capacity, with complete supporting documents pursuant to DOF Department
Order 054.2016 lending institution

5. Evaluate LGU request and supporting documentary requirement BLGF-RO

6. Evaluate financial reports of the LGU BLGF-RO

7. Compute preliminarily LGU Net Debt Service Ceiling and Borrowing Capacity (NDSCBC)
BLGF-RO
8. Submit to BLGF-CO all documentary requirements and the preliminary computation for the
issuance of certificate of NDSCBC BLGF-RO
9. Final computation and issuance of certificate of NDSCBC BLGF-CO
10. Submit to BSP a written request for Monetary Board Opinion LGU
11. Evaluate LGU request and supporting documentary requirements BSP
12. Monetary Board renders Opinion on the Monetary Balance and Payments implications of
the proposed LGU borrowing, per BSP Circular No.926 -2016 BSP
13. Submit to the Lending Institutions the BLGF Certification, MB Opinion and Other
Requirements BSP
14. Approval and Signing of Loan Agreement with the LGU Lending Institution
15. Release of Loan Lending Institution
16. Record receipt of Loan Proceeds and prepare borrowing reports for submission to BLGF-RO
and BSP LGU
17. Receive LGU Post Borrowing Report BLGF-RO and BSP