PHILIPPINE TAXATION

Compute with solution. NO SOLUTION, NO POINT.

5. Cardo is a resident Filipino citizen. In his filed Income Tax Return during the first quarter of 2020, he signified his intention to be taxed at 8% income tax rate on gross sales. Based on his interim financial statements, the following are his quarterly income statement account balances:

	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Sales	600,000	600,000	1,800,000	3,500,000
Cost of Sales	(200,000)	(200,000)	(1,000,000)	(1,200,000)
Gross Income	400,000	400,000	800,000	2,300,000
Operating Expenses	(100,000)	(100,000)	(480,000)	(720,000)
Net Taxable Income	300,000	300,000	320,000	1,580,000

- What is Cardos annual income tax payable. (2 points)

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Harry Roque is a Filipino taxpayer. The following data for 2019 was provided:

Gross business income, Philippines P2,000,000

Gross business income, Tokyo 3,000,000

Business Expenses, Philippines 1,400,000

Business Expenses, Tokyo 2,050,000

Interest income BDO Philippines 100,000

Interest income BDO Tokyo 50,000

Dividend income from a domestic corporation 125,000

Dividend income from a resident foreign corp. 75,000

Dividend income from a non-resident foreign corp. 102,000

Interest income from depository bank under FCDS, PH 50,000

Philippine lotto winnings 10,000

Philippine Charity Sweepstakes winnings 500,000

Berlin sweepstakes winnings 200,000

Other winnings Philippines 50,000

Raffle draw winnings Robinsons Manila 8,000

Raffle draw winnings SM Manila 20,000

Raffle draw SM Wuhan, China 30,000

6. Assuming that Mr. Roque is non-resident citizen, compute for this taxable income. (2 points)

7. Assuming that Mr. Roques is a resident citizen, compute his final tax on passive income. (2 points)

8. In October 2020, Bong Go sold 4,000 shares of a domestic corporation directly to a buyer (Bato Dela Rosa) at Php 90.00 per share. The shares were acquired six (6) months ago at Php 105.00 per share. Determine the amount of capital gains tax for 2020. (2 points)