Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Determine the business tax and the business tax due. *
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Setting: Philippines 2021
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- Printer Company pays a 25,000 annual membership fee to a trade association for paper wholesalers. The trade association estimates that 60% of its dues are allocated to lobbying activities. a. What are Printers total deductible expenses for tax purposes? b. Assume the same facts as above, except that the 25,000 was incurred for in-house lobbying expenses. What are Printers total deductible expenses for tax purposes?Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Determine the business tax and the business tax due. a. Percentage tax 1%; P 25,000 b. Percentage tax 3%; P 75,000 c. VAT 12%; P 300,000 d. VAT Exempt; P 0Mahigos owns the following businesses: Annual Gross Receipts Annual Gross Sales Restaurant 1,350,000 1,000,000 Barbershop 625,000 600,000 Seller of marine food products 1,875,000 2,000,000 Purchases of goods from VAT suppliers totaled P1,200,000 (related to VAT business if applicable). How much is the VAT payable or percentage tax for the year? Group of answer choices P318,000 P108,000 P93,000 P48,000
- A VAT registered person engages in both VAT and VAT exempt business. During the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT exempt business amounts toP200,000. During the quarter, the business incurred the following: Input VAT arising from repairs amounting P6,000. On the other hand, input on supplies, for common use amounted P1,200. The creditable input tax isA derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: Assuming that the tax rate is 25%, what is the income tax payable of A? Group of answer choices P2,500.00 P12,500.00 P25,000.00 P15,000.00A VAT registered person is engages in both VAT and VAT exempt During the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT exempt business amounts to P200,000. During the quarter, the business incurred the following: Input VAT arising from repairs amounting P6,000. On the other hand, input on supplies, for common use amounted P1,200 The creditable input tax is:
- Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit before tax of R3 800 000 for the year ended 28 February 2021. Included in the profit before tax are the following items: * Dividend income of R200 000 which is exempt from income tax* Donations of R100 000 which is non-deductible The income tax rate for the financial year is 30% and there was no temporary difference observed. Required:Calculate current income tax for the year ended 28 February 2021.Exco plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: Amounts in £ Year 20X1 Total revenue 100,000 Total expenses 70,000 * Profit before tax 30,000 * includes a non-deductible expense (see below) The following information is also available: - Exco plc’s expenses include £10,000 for a penalty charge which is not tax-deductible. - The statutory tax rate on corporate profits is 20%. The current tax (expense) reported for the year ended 31 December 20X1 is: a. £3,000 b. £6,000 c. £8,000 d. £9,000 e. £13,000As a retailer, Zertan Corporation sells software programs manufactured and packaged by other parties. Zertan also purchases computer parts, assembles them as specified by customers in purchase orders, and sells them as operating stand-alone computers. All of Zertan's operations take place in State F, which levies a 9% sales tax. Results for the current year are as follows: a) What is Zertan's own sales tax expense for the year? __________ b) How much State F sa;es tax must Zertan collect and pay to the state on behalf of other taxpayers subject to the tax? ___________
- Mr. Alejandro Sison is marketing goods and he is subject to the 1% Percentage Tax. He registered his business with the government registry offices and registered his books of accounts and official invoices/receipts with the Bureau of Internal Revenue as a non-VAT taxpayer. His business name is Sison Merchandising Transactions in January 20A were: January 2 Invested P4,000,000 in the business. Purchased goods from a non-VAT supplier for P400,000. 3 Purchased goods from a VAT supplier for P600,000 plus VAT of P72,000. 10 Sale for cash of P500,000. 15 Purchase of office equipment with a useful life of two years from a VAT taxpayer for P800,000, plus VAT of P96,000. 25 Operating expenses of P400,000 were paid to non-VAT tax- рayers. 30 Operating expenses of P10,000 plus value-added tax of P1,200 were paid to VAT taxpayers. Additional information: Inventory at the end of the month was P500,000. Required: Preparation of the Trial Balance of January 20AJoshua Pty Ltd runs a furniture retailing business. During the tax year 19-20, Joshua provided customers with various loan arrangements to finance the purchase of furniture. Total expenses relating to the loan arrangements (specific loan calculation software and computers) totaled $33,000 (inc. GST) Joshua’s total expenses during the year (All expenses to run the business included the $33,000) were $2.2 million (inc. GST). Joshua Pty Ltd is registered for GST purposes. Required: Discuss Joshua’s Ability to claim the $3,000 Input Tax Credit?1. A VAT-registered business makes a sale of P33,600, inclusive of VAT. The amount of sale that is reported in the statement of comprehensive income can be computed as* a. P33,600 x 112%b. P33,600 / 112%c. P33,600 x 12% / 112%d. P33,600 / 12% / 112% 2. You are an employee in the private sector. For the year 20x1, you received a 13th month pay of P110,000 and a Christmas bonus (non-performance based) of P25,000. Of the benefits you have received, how much is taxable?* a. P135,000b. P90,000c. P45,000d. P0
