1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
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*[May 2024] 00-Diagnostic Examination
Diagnostic Examination
Taxation (TAX)
Submissions
Here are your latest answers:
Question 1
Proceeds of insurance taken by ABC Corporation on the life of Nicanor, Chief Financial Officer of the company, to indemnify Inday, the wife and only
beneficiary of Nicanor against loss in case of his death is:
S1: Exempt from income tax
S2: The premium paid is exempt from income tax, but the excess of premium received by Inday upon death of Nicanor is taxable as part of her gross income.
S3: The whole amount is part of gross income subject to regular income tax
Response: b. Only S2 is true
Feedback: Reason: S2 – all proceeds received from life insurance are exclusions from gross income on the part of Inday. S3 - proceeds from life insurance are
EXCLUSIONS from gross income.
Correct answer: a. Only S1 is true
Score: 0 out of 1 No
Question 2
Percentage tax is:
S1: A business tax
S2: An ad valorem tax
Response: a. Only S1 is true
Correct answer: c. Both are true
Score: 0 out of 1 No
Question 3
Jeff Bezos, the world's richest person is an american based in the California.
Response: RA
Correct answer: NRANETB
Score: 0 out of 1 No
Question 4
If a professional is both a CPA and a Doctor, he has to pay two professional taxes
Response: False
Correct answer: True
Score: 0 out of 1 No
Question 5
Capital loss can be deducted from any gross income.
Response: True
Feedback: Can be deducted only up to capital gain
Correct answer: False
Score: 0 out of 1 No
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 1/14
,1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Question 6
Juicy Wiggle Corporation will remove from customs 50 cases of Four Seasons Powdered Juice using caloric and non-caloric sweetener containing 144 packs by
25 grams. Each 25 grams pack can make 1 Liter (per serving suggestion appearing on the label)
How much is the total excise tax to be paid before removal?
Response: P 21,600
Feedback:
No. of Cases 50
Multiplied by no. of bottle per case 144
Total no. of bottles 7,200
Multiplied by content per bottle 1L
Total Volume in Liter 7,200L
Multiplied by Specific Tax Rate 6.00
Total excise tax to be paid before removal P43,200
Correct answer: P 43,200
Score: 0 out of 1 No
Question 7
On August 12, 2022, Nicanor called John and told him that he intends to donate his car worth P 1,0000,000 to him (John). Within the same day, John accepted
Nicanor’s offer. On August 15, 2022, they executed a deed of donation, and the car was delivered by Nicanor to John. The 30-day period of filing and paying the
donor’s tax will run after August 15, 2022.
Response: True
Correct answer: True
Score: 1 out of 1 Yes
Question 8
As a result of the accident, Nicanor was paid money. The money he received is:
Response: Exclusions from Gross Income
Correct answer: Exclusions from Gross Income
Score: 1 out of 1 Yes
Question 9
Statement 1: Phil Health is exempted from corporate income tax.
Statement 2: Cebu Pot Authority, a Government-Owned and Controlled Corporation is exempted from corporate income tax.
Response: Statement 2 is true but, Statement 1 is false
Correct answer: Statement 1 is true but, Statement 2 is false
Score: 0 out of 1 No
Question 10
Nicanor won Php 5,000 in Philippine Lotto. The amount is?
Response: Subject to final tax in the amount of 20%
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 2/14
,1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Correct answer: Exempt from taxation
Score: 0 out of 1 No
Question 11
Proceeds of life insurance taken by the decedent upon his own life are included in the gross estate if the designation of a third person as a beneficiary is
irrevocable.
Response: True
Correct answer: False
Score: 0 out of 1 No
Question 12
Banko De Pera, earned parking fees from leasing its spaces to some of its regular bank customers. Banko De Pera is liable to 7% Gross Receipts Tax.
Response: True
Feedback: Basis: Section 121, NIRC.
Correct answer: True
Score: 1 out of 1 Yes
Question 13
BKTD Corporation, a domestic corporation, holds 20% of the stocks of EU Corporation, a non-resident foreign corporation. BKTD is a wholly owned subsidiary
of GKCM Corporation, a non-resident foreign corporation. BKTD’s holding in EU Corporation started in 2018, and the holding period is uninterrupted. On July
1, 2021, BKTD Corporation received dividends from EU Corporation amounting to P 2,000,000 and subsequently paid out dividends on December 31, 2022, in
the amount of P 1,500,000. The remaining P 500,000 has not been used in any qualified activity for exempt foreign-sourced dividends.
The P 1,500,000 portion of dividend income shall be treated as tax exempted since this was properly utilized within 2022.
Response: False
Correct answer: True
Score: 0 out of 1 No
Question 14
What is the maximum number of days a taxpayer can submit the documents related to BIR tax audit without being issued a subpoena?
Response: 30 days
Feedback: Checklist is 10 days, First Notice 10 days, Final Notice 10 days
Correct answer: 30 days
Score: 1 out of 1 Yes
Question 15
Statement 1: A donation inter vivos by husband and wife, jointly during the marriage is a donation of community property that will require one computation of
the donor’s tax, if the spouses are under the system of absolute community of property.
Statement 2: A donation inter vivos by husband and wife, jointly during the marriage is a donation of exclusive property by the either spouse that will require one
computation of the donor’s tax, if the spouses are under the system of conjugal partnership of gains.
Response: Both statements are false
Correct answer: Both statements are false
Score: 1 out of 1 Yes
Question 16
Koya Sotto, a young and promising Filipino basketball player was invited to play professionally in the United States. He was paid $1 Million. His income is
derived from ____ and it is:
Response: Within, Taxable
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 3/14
, 1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Correct answer: Without, Exempt
Score: 0 out of 1 No
Question 17
The provincial, city or municipal governments are not subject to taxation. This is based on
Response: Inherent limitation
Correct answer: Inherent limitation
Score: 1 out of 1 Yes
Question 18
ABC., Co. gave fringe benefits to employees as follows:
To its Clerks and Janitors P 100,000
To its Area Managers 650,000
How much is the total of the deductions of ABC., Co.?
Response: P 1,000,000
Feedback:
Monetary value P 650,000
Divided by 65%
Gross-up monetary value 1,000,000
Multiply by Fringe benefit rate 35%
Fringe benefit tax P 350,000
Fringe benefit given to Clerks and Janitors (Rank and File) P 100,000
Fringe benefit given to Area Managers (Managers ) 650,000
Fringe benefit tax (please refer to the computation above) 350,000
Total Deductions P 1,100,000
Correct answer: P 1,100,000
Score: 0 out of 1 No
Question 19
Nicanor earned interest income from the 10-year time deposit he made in December 2019 in the amount of Php 10,000 at XYZ Bank, a local bank. Due to
emergency, he cancelled the deposit and paid bank charges for early termination in 2021. The interest income is subject to?
Response: 10% final tax
Correct answer: 20% final tax
Score: 0 out of 1 No
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 4/14
Home
*[May 2024] 00-Diagnostic Examination
Diagnostic Examination
Taxation (TAX)
Submissions
Here are your latest answers:
Question 1
Proceeds of insurance taken by ABC Corporation on the life of Nicanor, Chief Financial Officer of the company, to indemnify Inday, the wife and only
beneficiary of Nicanor against loss in case of his death is:
S1: Exempt from income tax
S2: The premium paid is exempt from income tax, but the excess of premium received by Inday upon death of Nicanor is taxable as part of her gross income.
S3: The whole amount is part of gross income subject to regular income tax
Response: b. Only S2 is true
Feedback: Reason: S2 – all proceeds received from life insurance are exclusions from gross income on the part of Inday. S3 - proceeds from life insurance are
EXCLUSIONS from gross income.
Correct answer: a. Only S1 is true
Score: 0 out of 1 No
Question 2
Percentage tax is:
S1: A business tax
S2: An ad valorem tax
Response: a. Only S1 is true
Correct answer: c. Both are true
Score: 0 out of 1 No
Question 3
Jeff Bezos, the world's richest person is an american based in the California.
Response: RA
Correct answer: NRANETB
Score: 0 out of 1 No
Question 4
If a professional is both a CPA and a Doctor, he has to pay two professional taxes
Response: False
Correct answer: True
Score: 0 out of 1 No
Question 5
Capital loss can be deducted from any gross income.
Response: True
Feedback: Can be deducted only up to capital gain
Correct answer: False
Score: 0 out of 1 No
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 1/14
,1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Question 6
Juicy Wiggle Corporation will remove from customs 50 cases of Four Seasons Powdered Juice using caloric and non-caloric sweetener containing 144 packs by
25 grams. Each 25 grams pack can make 1 Liter (per serving suggestion appearing on the label)
How much is the total excise tax to be paid before removal?
Response: P 21,600
Feedback:
No. of Cases 50
Multiplied by no. of bottle per case 144
Total no. of bottles 7,200
Multiplied by content per bottle 1L
Total Volume in Liter 7,200L
Multiplied by Specific Tax Rate 6.00
Total excise tax to be paid before removal P43,200
Correct answer: P 43,200
Score: 0 out of 1 No
Question 7
On August 12, 2022, Nicanor called John and told him that he intends to donate his car worth P 1,0000,000 to him (John). Within the same day, John accepted
Nicanor’s offer. On August 15, 2022, they executed a deed of donation, and the car was delivered by Nicanor to John. The 30-day period of filing and paying the
donor’s tax will run after August 15, 2022.
Response: True
Correct answer: True
Score: 1 out of 1 Yes
Question 8
As a result of the accident, Nicanor was paid money. The money he received is:
Response: Exclusions from Gross Income
Correct answer: Exclusions from Gross Income
Score: 1 out of 1 Yes
Question 9
Statement 1: Phil Health is exempted from corporate income tax.
Statement 2: Cebu Pot Authority, a Government-Owned and Controlled Corporation is exempted from corporate income tax.
Response: Statement 2 is true but, Statement 1 is false
Correct answer: Statement 1 is true but, Statement 2 is false
Score: 0 out of 1 No
Question 10
Nicanor won Php 5,000 in Philippine Lotto. The amount is?
Response: Subject to final tax in the amount of 20%
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 2/14
,1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Correct answer: Exempt from taxation
Score: 0 out of 1 No
Question 11
Proceeds of life insurance taken by the decedent upon his own life are included in the gross estate if the designation of a third person as a beneficiary is
irrevocable.
Response: True
Correct answer: False
Score: 0 out of 1 No
Question 12
Banko De Pera, earned parking fees from leasing its spaces to some of its regular bank customers. Banko De Pera is liable to 7% Gross Receipts Tax.
Response: True
Feedback: Basis: Section 121, NIRC.
Correct answer: True
Score: 1 out of 1 Yes
Question 13
BKTD Corporation, a domestic corporation, holds 20% of the stocks of EU Corporation, a non-resident foreign corporation. BKTD is a wholly owned subsidiary
of GKCM Corporation, a non-resident foreign corporation. BKTD’s holding in EU Corporation started in 2018, and the holding period is uninterrupted. On July
1, 2021, BKTD Corporation received dividends from EU Corporation amounting to P 2,000,000 and subsequently paid out dividends on December 31, 2022, in
the amount of P 1,500,000. The remaining P 500,000 has not been used in any qualified activity for exempt foreign-sourced dividends.
The P 1,500,000 portion of dividend income shall be treated as tax exempted since this was properly utilized within 2022.
Response: False
Correct answer: True
Score: 0 out of 1 No
Question 14
What is the maximum number of days a taxpayer can submit the documents related to BIR tax audit without being issued a subpoena?
Response: 30 days
Feedback: Checklist is 10 days, First Notice 10 days, Final Notice 10 days
Correct answer: 30 days
Score: 1 out of 1 Yes
Question 15
Statement 1: A donation inter vivos by husband and wife, jointly during the marriage is a donation of community property that will require one computation of
the donor’s tax, if the spouses are under the system of absolute community of property.
Statement 2: A donation inter vivos by husband and wife, jointly during the marriage is a donation of exclusive property by the either spouse that will require one
computation of the donor’s tax, if the spouses are under the system of conjugal partnership of gains.
Response: Both statements are false
Correct answer: Both statements are false
Score: 1 out of 1 Yes
Question 16
Koya Sotto, a young and promising Filipino basketball player was invited to play professionally in the United States. He was paid $1 Million. His income is
derived from ____ and it is:
Response: Within, Taxable
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 3/14
, 1/20/24, 10:02 AM Submissions - *[May 2024] 00-Diagnostic Examination - Taxation (TAX) -
Correct answer: Without, Exempt
Score: 0 out of 1 No
Question 17
The provincial, city or municipal governments are not subject to taxation. This is based on
Response: Inherent limitation
Correct answer: Inherent limitation
Score: 1 out of 1 Yes
Question 18
ABC., Co. gave fringe benefits to employees as follows:
To its Clerks and Janitors P 100,000
To its Area Managers 650,000
How much is the total of the deductions of ABC., Co.?
Response: P 1,000,000
Feedback:
Monetary value P 650,000
Divided by 65%
Gross-up monetary value 1,000,000
Multiply by Fringe benefit rate 35%
Fringe benefit tax P 350,000
Fringe benefit given to Clerks and Janitors (Rank and File) P 100,000
Fringe benefit given to Area Managers (Managers ) 650,000
Fringe benefit tax (please refer to the computation above) 350,000
Total Deductions P 1,100,000
Correct answer: P 1,100,000
Score: 0 out of 1 No
Question 19
Nicanor earned interest income from the 10-year time deposit he made in December 2019 in the amount of Php 10,000 at XYZ Bank, a local bank. Due to
emergency, he cancelled the deposit and paid bank charges for early termination in 2021. The interest income is subject to?
Response: 10% final tax
Correct answer: 20% final tax
Score: 0 out of 1 No
https://learn.teamprtc.com.ph/learner_quiz_assessment/submissions/268225 4/14
