BUSINESS LAW and
BUSINESS LAW and TAXATAXATIONTION Final Pre-Board Examination Final Pre-Board Examination
1. M makes negotiable pr
1. M makes negotiable promissory note in favor of P payable on December 25,2009 omissory note in favor of P payable on December 25,2009 with the following sccewith the following sccessivessive in!orsement of P to
in!orsement of P to ", " ", " to #, an! to #, an! # to # to $. %n $. %n the !e !ate, the !e !ate, M is M is paying $, paying $, bt $ bt $ e&ten!s the payment p e&ten!s the payment p toto to
to December 25, December 25, 2010. 2010. 'hich 'hich of of the the following following is is not not correct(correct( a. $ may still enforce the instrments against M.
a. $ may still enforce the instrments against M. b. )f
b. )f M M becomes insolvent on becomes insolvent on December 25, December 25, 2010, P, 2010, P, ", an! ", an! # # are !ischarge! are !ischarge! from from their obligation.their obligation. c. )f
c. )f the in!orsers the in!orsers consente! to consente! to the e&tension the e&tension of time of time an! M an! M becoming insolvent on becoming insolvent on December 25, December 25, 2010, the2010, the in!orsers
in!orsers are are still still liable.liable. !. )f
!. )f $ $ cancels the cancels the signatre of signatre of P as P as in!orser, P, in!orser, P, ", #, ", #, an! the an! the instrment are instrment are !ischarge!.!ischarge!. 2.
2. " iss" isse! a pre! a promisomissory nsory note ote to the oto the or!er!er of # for of # for P10,r P10,000 p000 payabayable on le on "g"gst *0,st *0,2012010 in pa0 in paymenyment of t of + se+ sett sol! by # to ". # faile! to !eliver the + set to " an! instea! transferre! the note to $ for vale bt withot sol! by # to ". # faile! to !eliver the + set to " an! instea! transferre! the note to $ for vale bt withot in!orsement.
in!orsement. 'hich 'hich of of the the following following is is correct(correct( a. $
a. $ is is !eeme! a !eeme! a hol!er for hol!er for a vale a vale when when # transferre! # transferre! the note the note to himto him b. $ becomes the hol!er in !e corse
b. $ becomes the hol!er in !e corse c. $
c. $ has no has no right to right to compel to compel to # # to make to make the prthe proper in!orsement to oper in!orsement to himhim !. $ cannot collect from " becase of "-s !efense of lack of consi!eration !. $ cannot collect from " becase of "-s !efense of lack of consi!eration *.
*. +his +his is is not negotiablenot negotiable a.
a. ) ) promise to promise to pay pay to the to the or!er or!er of of myself P10, myself P10, 000signe! by 000signe! by ", ", the makthe makerer b. P
b. Pay to ay to the or!er the or!er of the of the $ommissioner of $ommissioner of the )nternal the )nternal revene P10, revene P10, 000 000 to "#$ to "#$ bank .g!. bank .g!. "" c. ) promise to pay to or!er P10, 000. g!. "P
c. ) promise to pay to or!er P10, 000. g!. "P !.
!. Pay Pay to to the or!er the or!er of of /, /, , an! , an! , P10, , P10, 000. +000. +o o # # g!."g!."
. /, , an! forme! Partnership to engage in import3e&port bsiness. +he partners agree! that the pro4t . /, , an! forme! Partnership to engage in import3e&port bsiness. +he partners agree! that the pro4t
will be !ivi!e! in the following ratio
will be !ivi!e! in the following ratio /3 2067 /3 2067 3 *0 67 350 6, bt no agreement as to losses ."fter one year3 *0 67 350 6, bt no agreement as to losses ."fter one year oper
operatioation, there was n, there was a a loss of loss of P10, 000.8P10, 000.8ow will yo ow will yo appapportiortion this on this loss if loss if the capitathe capital l contcontribribtiontions s are asare as follows /3 P20, 0007 3P 15,0007 3P5, 000.
follows /3 P20, 0007 3P 15,0007 3P5, 000. a. "ccor!ing
a. "ccor!ing to their to their capital contribtion /capital contribtion /3 P5, 3 P5, 0007 0007 3*,507 3P1, 3*,507 3P1, 250250 b.
b. :;ally :;ally among among /, /, an! an! c.
c. /3P2, /3P2, 0007 0007 3*,0007 3*,0007 3P5, 3P5, 000000 !.
!. " " thir! thir! party may party may be be calle! to calle! to make make the !istribtionthe !istribtion 5.
5. <<irsirst t tatatemtement ent = = )n )n all all cacases ses of of e&e&tratra>!>!iciicial al salsale, e, the mortgthe mortgagagor or may re!emay re!eem em the the prpropeoperty rty at at anany y timtimee within
within the the term term of of one one year year from from an! an! after after the the !ate of !ate of registration of registration of the the sale.sale. ec
econ! tatemenon! tatement t = = )n )n >!i>!icial foreccial forecloslosre re of real of real estatestate e mortmortgagegage, , the the gengeneral rle eral rle is is that the that the mortgmortgagoragor cannot e&
cannot e&ercise his ercise his right right of rof re!emption after e!emption after his his con4rmation of con4rmation of the sale the sale by by the the cort.cort. a.
a. #oth #oth statementstatements s are are correctcorrect b.#oth
b.#oth statements statements are are wrongwrong
c. %nly the 4rst statement is correct c. %nly the 4rst statement is correct !.
!. %nly %nly the the secon! secon! statement statement is is correctcorrect ?. +his obligation is !eman!able at once ?. +his obligation is !eman!able at once
a.
a. 'ith 'ith a a sspensive sspensive con!itioncon!ition b.
b. 'ith 'ith a a perio! perio! of of !iem!iem
c. 'hen my means permit me to !o so c. 'hen my means permit me to !o so !.
!. 'hen 'hen it it !epen!s !epen!s on on the the happening happening of of a a speci4c eventspeci4c event . +his is not a characteristic of a voi! or ine&istent contract . +his is not a characteristic of a voi! or ine&istent contract
a.
a. +he +he right right to to raise a raise a !efense or !efense or illegality cannot illegality cannot be be waive!waive! b. +he
b. +he action or action or !efense for !efense for !eclaration of !eclaration of nllity or nllity or in in e&istence of e&istence of the contract the contract !oes not !oes not prescribe.prescribe. c.
c. @ot @ot a a sb>ect sb>ect to to rati4cationrati4cation
!. Defense of the legality of the contract is available to thir! person s whose interest are not !irectly aAecte! !. Defense of the legality of the contract is available to thir! person s whose interest are not !irectly aAecte! B.
B. " owns a piece of lan! an! sells it to # " owns a piece of lan! an! sells it to # with a right of repwith a right of reprcrchase withase within one yeahin one year from the !ate of the sale.r from the !ate of the sale. $an
$an # # sell the sell the lan! lan! he he prchase! prchase! from from ", to ", to $, $, a a thir! thir! party(party( a.
a. es es provi!e! provi!e! the the sale sale is is with with consent of consent of ".". b.
b. @o, @o, # # is is not not yet yet absolte absolte owner owner of of the the lan!lan! c.
c. es, es, bt bt " " can can still rstill re!eem e!eem the the lan! lan! from from $.$. !.
!. @o, @o, becase becase " " can can still still re!eem re!eem the the lan! lan! from from #.#. 9. 'hich of the following s is correct(
9. 'hich of the following s is correct( a. +
a. +reasry stock reasry stock for less for less than their than their par or par or isse! vale arisse! vale are consi!ere! e consi!ere! Cwatere! stockC an! Cwatere! stockC an! as sch as sch isis prohibite!
prohibite! by by law.law. b. <
b. <ivive be bt not not mort more the than 4an 4ftefteen >en >rri!i!icaical anl an! na! natrtral pal persersonons, mas, ma>o>oritrity of y of whwho aro are re resiesi!en!ents ots of thf thee Philippines mat form a private corporation.
Philippines mat form a private corporation. !.@o par
!.@o par valvale e sharshares es of of stocstock k canncannot ot be be ississe! e! by by banbanks, ks, trstrst t compcompanieanies, s, insinsrancrance e compcompanieanies, s, bilbil!in!ingg an!
an! loan loan associatioassociation n an! an! pblic pblic tilities.tilities. !.Membership in
!.Membership in a non3stock a non3stock corporation an! corporation an! rights arising rights arising there frthere from are om are personal an! personal an! non3transferanon3transferable an!ble an! therefore
therefore cannot cannot be be transferre! transferre! even even if if provi!e! provi!e! in in the the articles of articles of incorporation or incorporation or in in the the by3laws.by3laws. 10. +he following are the obligations of agent, e&cept
10. +he following are the obligations of agent, e&cept a
a )n the )n the e&ection of e&ection of the agency, the agency, the agent the agent shall act shall act in in accor!ance with accor!ance with the instrctions of the instrctions of the principalthe principal b.hall is
b.hall is bon! bon! to to a!vance the a!vance the necessary fn!s, necessary fn!s, e&cept e&cept when when the the principal is principal is insolventinsolvent
c. hall 4nish the bsiness alrea!y begn on the !eath of the principal shol! !elay entail !anger c. hall 4nish the bsiness alrea!y begn on the !eath of the principal shol! !elay entail !anger
!.)n
!.)n case case a pea person rson !ecl!eclines ines an aan agencgency7 he y7 he is bis bon! on! to obto observserve the e the !il!iligenigence of ce of a gooa goo! fat! father oher of a ff a familamilyy in
in the the csto!y csto!y an! an! preserpreservation vation of of the the goo!s goo!s forwar!forwar!e! e! to to him him by by the the owner owner ntil ntil the the latter latter shol! shol! appointappoint the
11." boght a car from #, a minor , for P100,000.%ne week later, " !iscovere! that # was a minor at the time of sale so he 4le! a complaint in cort to annl the sale. 'ill the action prosper(
a. es, # being a minor is anticipate! to enter into contract !.@o, the right to annl the sale is given to #
c. es, # cannot 4le the action to annl the sale becase he is minor !.@o, nless there is lesion of more than of the vale of the property
12. D mortgage! his 103hectare parcel of lan! to secre his loan amonting to P00, 000.00 payable on or before Eanary *1, 2010.%n Eanary 10, 2010, D pai! P200, 000.00 to his cre!itor. $an he vali!ly ask for the release of 506 of the mortgage! property(
a .es, becase real mortgage is separable from the property b. es, becase real mortgage is only a limitation on ownership
c. @o, becase real mortgage bin!s the property an! the thir! persons, if registere! !. @o, becase real mortgage is in!ivisible
1*. " is athoriFe! by P to sell ten G10H cell phones for P5, 000.00 each at 106 commission. " sol! the cell phones to # on cre!it for a price of P?, 000.00 each .P !i! not ratify the sale on cre!it .8ow mch can P imme!iately as a payment from "(
a.P 50,000.00
b. P 50,000.00 less 106 c. P ?0,000.00
!. P ?0,000.00 less 10 6
1. 'hich of the following statements is not correct(
a. +he seller nee! not to be the owner of the thing sol! at the time of the perfection of the contract b. %wnership of the thing sol! is transferre! pon its actal or constrctive or ;asi3!elivery
c. $ontract of sale throgh letter or telegram is !eeme! perfecte! only when the acceptance by the byer has been receive! by the seller
!. +he seller of the thing shall be liable for the violation of the warranty against hi!!en !efects if he is aware of the sais !efect at the time of the perfection of the contract
15. +his shall take place when the ven!or reserves the right to reprchase the thing sol! a.Policitation
b.$onventional re!emption c. :;itable mortgage !. Iegal re!emption
1?. +he right of the cre!itor to e&ercise all the rights of his !ebtor to satisfy his claim, e&cept rights which are inherent an! personal on the part of the !ebtor
a. "ction sbrogatoria b."ction re!hibitoria c. "ccion paliana !. "ccion ;anti minoris
1.)n 2005, at age 1?, " sol! his lan! to # for PM payable at P1M in 200?,P1M in 200 , P1M in 200B an! P1M in 2009.)n 2010, " wants to annl the contract on the gron! of minority .'ill his action prosper(
a. @o, " is allowe! to ask for annlment of the contract only within years from the perfection of the contract
b.es, " has years conte! from the time he becomes of legal age to ask for annlment of the contract c. @o, the acceptance of the installment payments amonte! to rati4cation of the sale
!. es, provi!e! " was then acting in goo! faith when he sol! the property
1B. " owes # P500 an! a secrity, " ple!ge his !iamon! ring .Iater " borrowe! again P200. "s a reslt a .# has a right to retain the thing ntil the P00 is pai!
b.# has right to retain the thing ntil the P 500 is pai!
c. " has a right to !eman! that thing be !eposite! with the thir! person !. # has the right to se the thing ple!ge!
19. / entere! into a written contract with for the sale of his car at the price of P 210,000.00.bse;ently
< tol! / that the prchase price is very low as it can comman! a price of his car to P250, 000.00 ./ wante! to increase! the prchase price of his car to P250, 000.00.+his cannot be !one by / of what principle of contract(
a. <ree!om or liberty of contract b. Mtality of contract
c. Jelativity of contract !. $osensality of contract
20. M isse! to P, accommo!ate! party, negotiable promissory note for P 10,000.P in!orse! it to ", to #, # to $ . 'hich of the following is incorrect(
a. M can collect from P, if M will pay $ b. M may !irectly pay $
c. #etween M an! P, M is secon!arily liable while P is principally liable !. P can collect from M, if P will pay $
21. Payment by cession as !istingishe! from !ation in payment a. +he !ebtor is not necessarily in a state of 4nancial !iKclty
b.+he eAect is to release the !ebtor for the net procee!s of the things ce!e! or assigne! c. +he property is alienate! by the !ebtor to the cre!itor in satisfaction of a !ebt in money
!. 'hat is !elivere! by the !ebtor is merely a thing to be consi!ere! as the e;ivalent of the performance of the obligation
22. Pacto !e retro sale as !istingishe! from mortgage is that in Pacto !e retro a. +here is no foreclosre nless !eclare! as an e;itable mortgage
b. +here is no transfer of possession of the property c. +here is no transfer of ownership
!. +he contract is merely accessory to secre the performance of an obligation
2*. +he following are essential re;isites common to the contracts of ple!ge an! mortgage, e&cept a. +hat they are constitte! to secre the fl4llment of a principal obligation
b. +hat the ple!ge or mortgagor is the absolte owner of the thing ple!ge or mortgage! c. +hat the contract is registere! with the Jegister of Dee!s
!. +hat the person constitting the contract has free !isposal of his property or that he is athoriFe! legally for the prpose
2. +here being no e&press stiplation an! if the n!ertaking is to !eliver a !eterminate thing, the payment shall be ma!e
a. "t the !omicile of the !ebtor b. "t the !omicile of the cre!itor
c. 'here the thing might be at the moment the obligation was constitte! !. 'here the thing might be at the moment the obligation is to be fl4lle!
25. " limite! partnership has ", as general partner, # as limite! partner an! $, as in!strial partner contribting P100, 000, P50, 000 an! services respectively. +he partnership faile! an! after !isposing all its assets to pay partnership !ebts, there still remains a note payable in the sm of P*0, 000."gainst whom can the cre!itor !eman! payment(
a. "3P*0, 000 #3 P 0 $3 P 0 b. "3P15, 000 #3 P 0 $3 P 15,000 c. "3P15, 000 #3 P ,500 $3 P ,500 !. "3P10, 000 #3 P 10,000 $3 P 10,000
2?. " an! # are co3owners of one3hectare rral lan!. " sol! his L share to . $ as a!>oining lan! owner is intereste! in bying the share which " sol! to . 'hich of the following is correct(
a. # can re!eem what " has sol! to if alrea!y owns a rral lan!
b. # can re!eem what " has sol! to even if !oes not own any rral lan! c. "s an a!>oining lan! owner $ has a sperior right to re!eem what " sol! to !. $ can re!eem what " sol! to whether or not alrea!y owns a rral lan!
2. " sells to # her car for P*00, 000 on a sale or retrn within 10 !ays after !elivery. %n 5th !ay after
!elivery, the car was lost throgh fortitos event. 'ho bears the loss( a. " n!er the principle of res perit !ominoC
b. # an! he mst pay the prchase price c. #oth " an! # >ointly
!. @o one becase the loss was !e to fortitos event
2B. : owns a piece of property an! sells it to with a right to reprchase within years from the !ate of sale. )f sells the property to +, which of the following is not correct(
a. +he sale is vali! becase things sb>ect to a resoltory con!ition maybe the ob>ect of a contract sale b. : can still e&ercise her right of re!emption against +
c. +he sale is voi! becase it is a con!itional sale
!. +he ac;ires the property bt sb>ect to the right of conventional re!emption.
29. )f a partner assigns his interest in the partnership to his personal cre!itor the assignee ac;ires the right to
a. Deman! an acconting partnership aAair
b. )nspect the books an! recor!s of the partnership c. Jeceive the partner3assignor-s share of the pro4ts !. )nterfere in the management of the partnership
*0. :very corporation whose charter e&pires by its own limitation, or annlle! by forfeitre or otherwise, or whose corporate e&istence for other prposes is terminate! in any other manner shall nevertheless be contine! as a bo!y corporate for * years after the time when it wol! have been !issolve! for the prpose of the following, e&cept
a. Prosecting an! !efen!ing sits by or against it an! enabling it to settle an! close its aAairs b. +o !ispose an! convey its property
c. +o !istribte its assets
!. $ontining the bsiness for which it was establishe!
*1. D-s obligation is to !eliver a nokia cell phone worth P10, 000.00 on Eanary 15, 2010. " week before the matrity !ate, D was or!ere! by his sperior to go to $eb to confer with the company-s client. ince D has no time to by the cell phone, he oAere! to give $ the amont of P10, 000 so that $ can by the cell phone .$ accepte! the oAer. +he obligation of D to $ in this case is e&tingishe! by
a. @ovation b. $ession
c. Dation in payment !. $ompensation
*2. imilarity between real estate mortgage an! antichresis a. +he property is !elivere! to the cre!itor
b. +he sb>ect matter is a real property
c. +he cre!itor ac;ires the right to receive the frits of the property !. +he cre!itor is oblige! to pay the ta&es an! charges pon the estate
**. 'hich of the following statements is false(
a. P in writing appoints " as his agent to sell his parcel of lan! for P 0,000." sol! it orally to /.+he contract of " an! / is vali!
b. # wrote ", his sister, to sell his parcel of lan!. +he lan! was prchase! by /, bt " !i! not forwar! the money to #. # now wants to recover the parcel of lan! .# can recover becase the athority of is not in special power of attorney.
c. P orally appoints as his agent to sell his lan! for P0, 000. " sol! it to / in writing. +he sale by " to / is not vali!.
!. P orally appointe! " to sell a hose on a parcel of lan! belonging to /. " sol! it to # orally. +he contracts by P an! ", an! " an! # are vali!
*. 'hich of the following is tre an! correct regar!ing the contract of agency(
a. +he contract entere! into by a sb3agent appointe! !espite the prohibition of the principal may be rati4e! by the principal.
b. "n agent can appoint a sb3agent only when he is athoriFe! to !o so by the principal.
c. )f the co3owner s /, , an! appointe! " as their agent for the sale of the property owne! by them, sai! appointment can be revoke! by / alone.
!. 'hen several agents ha! been appointe! by the principal, the liability of the agents to the principal shall be soli!ary.
*5. 'hich of the following statements is not correct(
a. +he sale of the thing ple!ge shall e&tingish the principal obligation, whether or not the procee!s of the sale are e;al to the amont of the principal obligation, interest an! e&penses in a proper case
b. )f the procee!s of the sale of the thing ple!ge are more than the obligation, the !ebtor shall not be entitle! to e&cess nless it is otherwise agree!.
c. )f the procee!s of the sale of the thing ple!ge are more than the obligation, the !ebtor shall not be entitle! to recover the !e4ciency, nless it is otherwise agree!.
!. "t the pblic action, the ple!gor or owner may bi! an! he shall have a better right if he col! oAer the same terms as the highest bi!!er
*?. " resi!ent citiFen !ie! on eptember *, 200? ."n a!ministrator was appointe! on eptember 15, 200? +he inventory taking of the !ece!ent-s properties was complete! on %ctober 10,200? .'hen shol! the estate ta& retrn be 4le!(
a. @ovember *, 200? b. December 10, 200? c. March *.200
!. March 15, 200
*. )n !etermining the net estate of the !ece!ent, which of the following statements is $%JJ:$+(
a. "ll !ece!ents are allowe! to !e!ct e&penses an! charges from their gross estate. b. De!ction for property previosly ta&e! is not allowe! when the !ece!ent is a non3resi!ent alien.
c. hares of stocks being intangible property shall be incl!e! in the !ece!ent-s gross estate whenever sitate!.
!. %nly flly pai! fneral, e&penses are !e!ctible to the e&tent of 56 of the total gross estate bt not e&cee!ing P200, 000
*B. %ne of the following is not an important factor when compting the ta&able net gifts an! the gift ta& payable
a. Jesi!ence of the !onor b. $itiFenship of the !onor
c. #loo! relationship between the !onor an! the !one !. +he economic stats of the !one
*9. /, the garantor3corporation owns 06 of the capital stock of , !ebtor3corporation. / assmes the original loan of , with a portion of the loan assme! by / to be late on con!one! an! converte! into pai!3in srpls of G withot the correspon!ing issance of a!!itional sharesHan! then se! to wipe ot its accmlate! losses. 'hat is the ta& conse;ence of this transaction(
a. +he con!onation of !ebt is sb>ect to !onor-s ta& becase the con!one! portion of the original loan represents forgiveness of !ebt where the !ebtor !i! not ren!er service in favor of the cre!itor. b. +he con!onation of !ebt is not sb>ect to !onor-s ta& becase the con!one! portion of the original loan
represents a!!itional capital contribtion.
c. $on!onation of !ebt is sb>ect to capital gains ta&.
!. +he transfer involve! tangible personal property, hence, not sb>ect to !onor-s ta&.
0. +ransfers in contemplation of !eath ma!e !ring the lifetime of the transferor shall be sb>ect to a. +he !onor-s ta&
b. :state ta&
c. @either !onor-s ta& nor estate ta& !. #oth !onor-s ta& an! estate ta&
1. %ne of the following ta&es ha! been replace! by "+. a. "!vance sales ta&
b. +a& on life insrance premims
c. $ommon carrier-s ta& on transport of passengers !. <ranchise ta& on electric, water an! gas tilities
2. +he threshol! amont for any bsiness prse! by an in!ivi!al to be consi!ere! principally for sbsistence or livelihoo! an! not in the corse of tra!e of bsiness is
a.P100, 000 b. P500, 000 c. P550, 000 !. P900, 000
*. +he following inpt ta&es, which are connecte! with a Fero3 rate! sale of goo!s were presente! to yo Presmptive inpt ta& P50, 000
)npt ta& on prchase of spplies *0,000 )npt ta& on prchase of oKce e;ipment 20,000 8ow mch of the e&cess inpt ta&es can be refn!e!(
a.P100, 000 b. PB0, 000 c. P50, 000 !. P20, 000
. %ne of the following persons is not sb>ect to other percentage ta&es. a. Proprietor of cockpits
b. Domestic common carrier transporting passengers
c. $losely hel! corporation initially oAering its shares to the pblic !. "gricltral cooperative selling its pro!ce in processe! form 5. %ne of the following is @%+ re;ire! to withhol! percentage ta&es.
a. #reas, oKces an! instrmentalities of the government b. Novernment3owne! or controlle! corporations
c. Prchaser3payor of goo!s in the corse of bsiness, which is sb>ect to *6 percentage ta& n!er ec.11?
!. Prchaser3payor of goo!s not in the corse of bsiness, which is sb>ect to *6 percentage ta& n!er ec.1?
?. " single in!ivi!al ta&payer with no !epen!ents who is a pre compensation income earner can !e!ct the following from his gross compensation income.
a. #asic personal e&emption, a!!itional e&emption, health an!Oor hospitaliFation insrance premim pai!
b. #asic personal e&emption, a!!itional e&emption, health an!Oor hospitaliFation insrance premim pai!
c. #asic personal e&emption only !. @one of the choices
. 'hich of the following ta&payers is not allowe! to claim ta& cre!it for foreign income ta& incrre!( a. Jesi!ent citiFens
b. Domestic corporations
c. #ene4ciaries of estates an! trsts !. @on3resi!ent citiFens
B. " 4re occrre! in the $ity of Dmagete an! by reason of which of stock of plywoo! of a lmber company was locate! .+he lmber company faile! to recor! sch loss in its book of acconts. 'as the loss
!e!ctible(
a. es, the loss was !e!ctible becase it was case! by 4re
b.es, the loss was !e!ctible becase it wol! be correct to assme that the lmber company reporte! within 5 !ays after it was sstaine!
c. @o, the loss was not !e!ctible becase the con!ct of the ta&payer in not charging oA its book of acconts its loss prove! that the allege! loss ha! not been sAere!.
!. @o, the loss was case! by carelessness
9. %ne of the following in!ivi!als is not sb>ect to income ta& in the Philippines.
a ."n "merican engineer who makes the Philippines his resi!ence becase of the natre of his work
b. " Eapanese visiting professor who occasionally teaches at one of the lea!ing niversities in the Philippines, an! stays here for an aggregate of 1B5 !ays
c. " +aiwanese singer who performs in one of the hotels in the Philippines for one G1H week, an! then leaves after he is throgh with his performances
! " <ilipino resi!ing an! working in "merica who comes to visit his relatives
50. " !omestic corporation has the following !ata for three G*H years @ormal income ta& M$)+
2001 P 50,000 P5, 000
2002 P ?0,000 P100, 000
200* P 100,000 P?0, 000
8ow mch is the ta& payable in 200* a. P 100,000
b. P ?0,000 c. P *5,000 !. ero
51. " resi!ent citiFen owns a real property classi4e! as capital asset sitate! in ". Dring the crrent year, he sells the property for P5, 000,000 realiFing a gain of P2, 000,000.'hat is the Philippine ta& conse;ence of the sale(
a. b>ect to ?6 capital gains b. b>ect to ection 2 G"H
c. b>ect to ?6 capital gains or sb>ect to ection 2 G"H !. @ot sb>ect to Philippine ta&
52. "n in!ivi!al ta&payer is ;ali4e! to sbstitte! 4ling of income ta& retrn if he meets the following re;isites ,e&cept
a .Pre compensation income earner b. %ne employer in the Philippines
c. 'ithhol!ing ta& is correct
!. Nross compensation income !oes not e&cee! P?0, 000
5*. " ta&payer receives an assessment notice on Eanary 5, 200 .8e 4les a motion for reconsi!eration with the #)J on Eanary 15, 200. 'hen he is the last !ay for the sbmission of complete !ocments to his motion for reconsi!eration(
a. <ebrary , 200 b. March 15, 200 c. Ely 15, 200 !. "pril 15, 2005
5. #oy #onafe resi!es in #acoor, $avite while his place of work is in ampaloc, Manila. 8e 4les his income ta& retrn for 200* income on eptember 10, 200 in QeFon $ity becase the Jevene District %Kcer in the place is his college frien!. +he amont ta& !e is P100, 000.8ow mch will be the sb charge(
a. P 50,000 b. P 25,000 c. P 20,000 !. @one
55. 'hich of the following national ta&es is fon! in the +a& $o!e( a. gar a!>stment ta&es
b. +a&es on narcotic !rgs c. Docmentary stamp ta& !. Private motor vehicle ta&
5?. %ne of the following is not a sorce of income ta& laws a. )ncome ta& reglations
b. "!ministrative rlings an! opinions c. E!icial !ecisions
!. %pinions of ta& e&perts an! athors
5. %ne of the following is entitle! to an optional stan!ar! !e!ction( a. Jesi!ent citiFen who is a pre compensation income earner b. Jesi!ent alien who is pre bsiness income earner
c. Jesi!ent foreign corporation !. @one of these choices
5B. " resi!ent international carrier has the following !ata for the crrent year. Nross income of P00, 000
an! e&penses of P200, 000 from the Philippines7 gross income of P 500,000 an! e&penses of P100, 000 from Eapan .8ow mch is the Philippine income ta& of the corporation(
a. P 1?0,000 b. P *0,000 c. P 1,500
!. @one of these choices
59. +he 106 )mproperly "ccmlate! :arnings +a& G)":+H shall apply to a. #anks an! other non3banks 4nancial interme!iaries
b. )nsrances companies c. Pblicly3hel! corporations !. $losely =hel! corporations
?0. +he minimm percentage of comprise on the basic assesse! ta& when 4nancial incapacity is se! as basis becase the company has not been in operation for 5 years is
a.0 6 b. *0 6 c. 20 6 !. 10 6
?1. )n 2009, $hing $o., a !omestic corporation, has a net income from within the Philippines, P200, 000 an! for ", P*00, 000 .)ncome ta& pai! on income from " is P110, 000 .+he ta& cre!it on the income ta& pai! to the government is
a. P 15,000 b. P1?0, 000 c. P 110,000
!. $hoice is not given
?2. " rank an! 4le employee receive! the following for the year 2009
1*thmonth pay P10, 000
1thmonth pay 10, 000
Jice allowance 12, 000
$lothing 5, 000
"ctal me!ical bene4ts 15,000 8ow mch wol! be the ta&able bene4ts(
a. P 52,000 b. P*2, 000 c. P ,000 !. @one
?*. 'hich of the following is not sb>ect to fringe bene4t ta&(
a. alary of the hosehol! help of a spervisor pai! by the ta&payer-s employer b. +ition of a manager pai! by his employer
c. alary of a manager pai! his employer
! Jent e&pense of the hose where a spervisor lives pai! by his employer
?. $. berita has three G*H wives n!er his tribal cstoms an! practices. 8e has a total of G?H ;ali4e!
!epen!ent chil!ren from his three G*H wives. 8e is entitle! to a basic personal e&emption an! a!!itional e&emption of
#asic personal e&emption "!!itional e&emption
a. P 50,000 P 100,000
b. P 50,000 P 150,000
c. P 150,000 P 150,000
!. @one @one
?5. +he amont of the informer-s rewar! shall be e;ivalent to
a. +en percent G106H of the amont recovere! or one million peso GP1, 000,000H per case whichever is lower.
b. +en percent G106H of the amont recovere! or one million peso GP1, 000,000H per case whichever is higher
c. <ifteen G156H of the amont recovere! !. @one of the choices
??. 'hich of the following is not a con!ition for reporting income n!er installment metho! by a casal seller of personal property(
a. +he selling price of property e&cee!s P1, 000
b. +he initial payments mst e&cee! 25 6 of the selling price
c. +he property sol! is not a kin! which wol! be incl!ible in the inventory if on han! at the close of the ta&able year.
!. +he seller is a natral person.
?. 8ow mch is the annal commnity ta& for in!ivi!als( a. P 25
b. P 20 c. P 10 !. P 5
?B. +his refers to the control nmber isse! by athoriFe! agent bank G""#H to the ta&payer an! #)J to acknowle!ge that the ta&payerRs accont has been sccessflly !ebite! electronically in payment of his ta& liability.
a. <iling reference @mber b. "cknowle!gement @mber c. $on4rmation @mber
!. +a&payer-s )nformation @mber
?9. " ta&payer pai! e&cessive ta& on "pril 15, 2000. %n December 20, 2001, she 4le! a written claim for refn! 8er claim was !enie! by the #)J an! she receive! the !enial on March 15, 2002 .he 4le! a motion for
reconsi!eration with the #)J on March *1, 2002. %n "pril 10, 2002, she receive! the 4nal !enial of the #)J 'hat will be the ta&payer-s reme!y(
a. <ile another motion for reconsi!eration with the #)J within *0 !ays after the receipt of the 4nal !enial b. <ile an appeal with the $ort of +a& of "ppeals on or before May 10, 2002
c. <ile an appeal with the $ort of +a& of "ppeals on or before "pril 15, 2002 !. +he ta&payer has no more reme!y against the 4nal !enial
0. 'hich is not an essential characteristic of ta&( a. Iimite! as to amont
b.Proportionate in character c. Payable in money
