Taxation Straight Problem No. 3: On The Wings of Love

Determine the taxes payable by Tatang Sol and Simon.


Value-Added Tax or Percentage Tax

Tatang Sol drives a jeepney for hire, transporting passengers. The following gross receipts and expenses were extracted from his books of accounts for the following months:

Gross Receipts

Expenses

July

12,800

4,260

August

9,600

3,200

September

8,875

2,275

October

9,230

3,146

November

10,498

4,122

December

11,996

5,786

January

8,956

4,213

February 9,455

2,814

Requirements:

  1. Determine the income tax, percentage tax, and VAT to be paid by Tatang Sol for the respective months. Show supporting computations.
  2. Same question, this time using manual or electronic BIR Forms.

Donation

Tatang Sol made the following donations on account of their marriages on February 27, 2016:

  1. Tiffany, on account of her marriage to Tolayts, celebrated last January 14, 2015, house and lot in Dasmariñas City, 1,250,000.
  2. Leah, on account of her marriage to Clark, to be celebrated on April 27, 2016, personal property worth 980,000.
  3. Clark, a parcel of land worth 1,065,000.
  4. Jigs, on account of his marriage to Angela the next day, personal property worth 275,000.

Tatang Sol’s previous gifts on January 2016 amounted to 1,605,000 and he had previously paid 92,400 related to the particular donation.

Requirements:

  1. Determine the donor’s tax to be paid by Tatang Sol for February 27, 2016. Show supporting computations.
  2. Same question, this time using manual or electronic BIR Forms.

Regular Corporate Income Tax vs. Minimum Corporate Income Tax

The Creative Concepts Corporation is a company primarily engaged in advertising services for its clients in television, radio, and print. Simon, the President and the rumored fiancee of Leah, is now approaching you to compute for the tax to be paid by the corporation. You extracted the following from him:

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Gross Receipts on Advertising

1,400,000

4,315,000

3,275,000

4,226,000

Cost of Direct Services

400,000

565,000

275,000

126,000

Other Expenses

870,000

3,570,000

2,740,000

3,930,000

Creditable Withholding Tax

5,000

6,400

7,800

8,400

The figures stated above are for their respective quarters only.

Requirements:

  1. Determine the regular corporate income tax, the minimum corporate income tax, and the income tax payable by the Creative Concepts Corporation for the following: (Show supporting computations.)
    1. 1st quarter
    2. 2nd quarter
    3. 3rd quarter
    4. 4th quarter
  2. Same question, this time using manual or electronic BIR Forms.

Taxation problem prepared by: TweetNewscaster.


Featured Image Credit: Paulo Avelino as Simon.

 

 

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