1. A tax law was enacted imposing a tax on manufacturers of coconut oil, the proceeds of which are to be used exclusively for the protection and promotion of the coconut industry, namely, to improve the working conditions in coconut mills and to conduct research on the use of coconut oil for motor fuel.  Some of the manufacturers of coconut oil challenge the validity of the law, contending that the tax is to be used for private purpose and therefore, the law violates the rule that public revenues shall not be appropriated for anything but a public purpose.  Decide with reason. 

2. Joan, a non resident alien appointed as a commission agent by a domestic corporation with a sales commission of 10% all sales actually concluded and collected through her efforts.  The local company withheld the amount of P100,000 from her sales commission and remitted the same to the BIR.  She filed a claim for refund alleging that her sales commission is not taxable because the same was a compensation for her services rendered in Germany and therefore considered as income from sources outside the Philippines.  Is her contention correct? . Explain.  

3. ABC Airlines, Inc. A foreign airline company which does not maintain any flight to and from the Philippines sold air tickets in the Philippines, through a general sales agent, relating to the carriage of passengers and cargo between two points, both outside the Philippines.  Is ABC Airlines, Inc. Subject to income taxes on the sale of the tickets?   Explain.  

4. Supposing that ABC Airlines, Inc. sells tickets outside of the Philippines for passengers it carry from X City, South America to the Philippines but returns to South America without any cargo or passengers.  Would it then be subject to any Philippine tax on such sales?  Explain. 

5. Why are tax exemptions strictly construed against the taxpayer and liberally in favor of the State? 

6. ABC Corporation is using the accrual method of accounting.  In 2005, DEF Company and GHI Auditing rendered various services which were billed by these firms only during the following year 2006.  Since the bills for these services were received only in 2006 and paid in the same year, ABC deducted the same from its 2006 gross income.  The BIR allowed the deduction.  Who is correct, ABC Corporation or the BIR? Explain. 

7. In your own words (do not copy from google or any website), 

what is your contribution to the economy in terms of taxation?  Explain. 

Do you think the government is doing its best to collect taxes in order to support the health and safety of the people?  Explain and give example 

Answer rating: 100% (QA)

1 The fee is beneficial to the public as per Cocofed v Presidential Commission on Good Governance 178 SCRA 236 252 It is a nonprofit program that supports coconut production in the Philippines the Phi... View the full answer