PHILIPPINE TAXATION

Compute with solution. NO SOLUTION, NO POINT.

9. Bato Dela Rosa sold a residential lot located in Dasmarinas, Cavite for Php 5,000,000. The fair market value of the property was Php 6,000,000. The property was purchased at Php 4,000,000 three (3) years ago. What is the amount of final income tax? (2 points)

10. Assume that a corporation sold a parcel of land used in its operations abroad with a selling price of Php 7,000,000 but acquired six (6) years ago at Php 2,000,000. What is the amount of capital gains tax? (2 points)

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TAXATION

Write TRUE if the statement is TRUE. If the statement is FALSE, write FALSE and explain why.

3. The Commissioner of Internal Revenue may prescribe presumptive gross sales and receipts for a taxpayer when the latter fails to issue receipts and when he believes that the books or other records of the latter do not correctly reflect declarations in the return.

4. Jurisdiction is the power and authority of the court to hear, try, and decide a case. It can also refer to the territory.