Schedule 4: P 132,067.00 Representation and Entertainment Expense per ITR Less: Allowable Representation and Entertainment Expense Net Revenues per ITR/AFS Multiply by Ceiling Rate (1% of Net Revenue) Disallowed Representation and Entertainment Expense P 9,683,516.00 1% 96,835.16 P 35,231.84 Verification disclosed that your claimed Unsupported Creditable Tax Withheld, P44,335.00 creditable tax withheld per ITR amounting to P44,335.00 were not supported with copies of the Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307); thus, disallowed pursuant to Section 2.58.3 (B) of RR No. 2-1998, as amended. II. VALUE-ADDED TAX Comparison of the amount of Revenue/Receipts not subjected to VAT, P9,683,516.0o revenues/receipts reported in your VAT returns as against the purported revenues/receipts declared in your ITR disclosed a discrepancy of P9,683,516.00, hence, assessed which is then subject to VAT under Title IV, Sections 105 and 108 of the NIRC of 1997, as amended. Section 105. Persons Liable. “Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports g0ods shall be subject to Value-Added Tax (VAT) imposed in Sections 106 and 108 of this Code. Section 108. Value-Added Tax on Sale of Services and Use or Lease of Properties. (A) Rate of Tax – "There shall be levied, assessed and collected a VAT equivalent to ten percent (10%) (now twelve percent (12%) pursuant to R.A. No. 9337) of the gross receipts derived from the sale or exchange of services, including the use or lease of properties."
Schedule 4: P 132,067.00 Representation and Entertainment Expense per ITR Less: Allowable Representation and Entertainment Expense Net Revenues per ITR/AFS Multiply by Ceiling Rate (1% of Net Revenue) Disallowed Representation and Entertainment Expense P 9,683,516.00 1% 96,835.16 P 35,231.84 Verification disclosed that your claimed Unsupported Creditable Tax Withheld, P44,335.00 creditable tax withheld per ITR amounting to P44,335.00 were not supported with copies of the Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307); thus, disallowed pursuant to Section 2.58.3 (B) of RR No. 2-1998, as amended. II. VALUE-ADDED TAX Comparison of the amount of Revenue/Receipts not subjected to VAT, P9,683,516.0o revenues/receipts reported in your VAT returns as against the purported revenues/receipts declared in your ITR disclosed a discrepancy of P9,683,516.00, hence, assessed which is then subject to VAT under Title IV, Sections 105 and 108 of the NIRC of 1997, as amended. Section 105. Persons Liable. “Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports g0ods shall be subject to Value-Added Tax (VAT) imposed in Sections 106 and 108 of this Code. Section 108. Value-Added Tax on Sale of Services and Use or Lease of Properties. (A) Rate of Tax – "There shall be levied, assessed and collected a VAT equivalent to ten percent (10%) (now twelve percent (12%) pursuant to R.A. No. 9337) of the gross receipts derived from the sale or exchange of services, including the use or lease of properties."
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 1P: Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are...
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Question
Provide legal basis to support your claim (if there is wrong in the schedule 4)
Transcribed Image Text:Schedule 4:
P 132,067.00
Representation and Entertainment Expense per ITR
Less: Allowable Representation and Entertainment Expense
Net Revenues per ITR/AFS
Multiply by Ceiling Rate (1% of Net Revenue)
Disallowed Representation and Entertainment Expense
P 9,683,516.00
1%
96,835.16
P
35,231.84
Verification disclosed that your claimed
Unsupported Creditable Tax Withheld, P44,335.00
creditable tax withheld per ITR amounting to P44,335.00 were not supported with copies of the
Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307); thus, disallowed pursuant
to Section 2.58.3 (B) of RR No. 2-1998, as amended.
II. VALUE-ADDED TAX
Comparison of the amount of
Revenue/Receipts not subjected to VAT, P9,683,516.0o
revenues/receipts reported in your VAT returns as against the purported revenues/receipts
declared in your ITR disclosed a discrepancy of P9,683,516.00, hence, assessed which is then subject
to VAT under Title IV, Sections 105 and 108 of the NIRC of 1997, as amended.
Section 105. Persons Liable. “Any person who, in the course of trade or business, sells, barters,
exchanges, leases goods or properties, renders services, and any person who imports g0ods
shall be subject to Value-Added Tax (VAT) imposed in Sections 106 and 108 of this Code.
Section 108. Value-Added Tax on Sale of Services and Use or Lease of Properties.
(A) Rate of Tax – "There shall be levied, assessed and collected a VAT equivalent to ten
percent (10%) (now twelve percent (12%) pursuant to R.A. No. 9337) of the gross
receipts derived from the sale or exchange of services, including the use or lease of
properties."
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