The document summarizes tax information for a general professional partnership (GPP) called Cabarles, Ong, and Sia (COS) and its three partners. It provides the partnership and individual partners' income and expense details. It then poses six questions to calculate: [1] the partnership's taxable income is zero since a GPP is not taxable; [2] each partner's distributive share of partnership income; [3] the taxable income for each partner; [4] the partnership's taxable income and tax if it was a general partnership; [5] each partner's taxable income under the general partnership assumption; and [6] each partner's final tax from their partnership
The document summarizes tax information for a general professional partnership (GPP) called Cabarles, Ong, and Sia (COS) and its three partners. It provides the partnership and individual partners' income and expense details. It then poses six questions to calculate: [1] the partnership's taxable income is zero since a GPP is not taxable; [2] each partner's distributive share of partnership income; [3] the taxable income for each partner; [4] the partnership's taxable income and tax if it was a general partnership; [5] each partner's taxable income under the general partnership assumption; and [6] each partner's final tax from their partnership
The document summarizes tax information for a general professional partnership (GPP) called Cabarles, Ong, and Sia (COS) and its three partners. It provides the partnership and individual partners' income and expense details. It then poses six questions to calculate: [1] the partnership's taxable income is zero since a GPP is not taxable; [2] each partner's distributive share of partnership income; [3] the taxable income for each partner; [4] the partnership's taxable income and tax if it was a general partnership; [5] each partner's taxable income under the general partnership assumption; and [6] each partner's final tax from their partnership
The document summarizes tax information for a general professional partnership (GPP) called Cabarles, Ong, and Sia (COS) and its three partners. It provides the partnership and individual partners' income and expense details. It then poses six questions to calculate: [1] the partnership's taxable income is zero since a GPP is not taxable; [2] each partner's distributive share of partnership income; [3] the taxable income for each partner; [4] the partnership's taxable income and tax if it was a general partnership; [5] each partner's taxable income under the general partnership assumption; and [6] each partner's final tax from their partnership
Read and analyze the problem. Provide what is asked.
Cabarles, Ong, and Sia (COS) is a general professional partnership (GPP) with assets valued at P25,000,000. The partners are participating equally in the income and expenses of the GPP. The following are the data for the Partnership and the partners during the 2021 taxable year: COS Charles Ong Sia Gross Income P5,000,000 P3,500,000 P2,000,000 P2,800,000 Expenses 3,500,000 1,200,000 600,000 825,000 Income subject 600,000 200,000 200,000 200,000 to final taxes (net)
Requirements: (6 items x 10 points)
1. How much is the taxable income of the Partnership? Justify your answer. - None. As per Section 26 of the Tax Code, A General Professional Partnership (GPP) is not subject to income tax or creditable withholding tax. COS is not taxable since it is a GPP according to Philippine Taxation Laws. 2. How much is each partner's distributive share in the income of the GPP?
Income from Passive Income Total
Operations
Gross Income P 5,000,000
Allowable deductions (3,500,000)
Net Income P 1,500,000 600,000
X Partner’s Profit & X 33.33% X 33.33%
Loss %
P 499,950 P 199,980 P 699,930
3. How much is the taxable income of Cabarles?
Gross Income P 3,500,000
Expenses (1,200,000) Share in the Net Income of GPP 499,950
Taxable Income P 2,799,950
4. Assume the Partnership is a general (commercial) partnership; how much are the Partnership's taxable income and the amount of applicable tax?
Income from Passive Income Total
Operations
Gross Income P 5,000,000
Allowable deductions (3,500,000)
Net Income P 1,500,000 600,000
RCIT (1,500,000 x 20%) (300,000) X 33.33%
X Partner’s Profit & 1,200,000 Loss % X 33.33%
P 399,960 P 199,980 P 599,940
5. Using the same assumption in item #4, how much is the taxable income of Sia?
Gross Income P 2,800,000
Expenses (825,000) Share in the Net Income of GPP N/A
Taxable Income P 1,975,000
6. Using the same assumption in item #4, how much is the final tax of each partner from their share in the income of the Partnership?
Income from Passive Income Total Final Tax
Operations
Gross Income P 5,000,000
Allowable (3,500,000) deductions
Net Income P 1,500,000 600,000
RCIT (1,500,000 x (300,000) X 33.33%
20%) 1,200,000 X Partner’s Profit X 33.33% 599,940 & Loss % x 10%
P 399,960 P 199,980 P 599,940 P 59,994
Rubric for grading:
CRITERIA PERFORMANCE INDICATORS POINTS Content Provided pieces of evidence, 8 supporting details, and factual scenarios
Organizati Expressed the points in a clear and 2
on of logical arrangement of ideas in the ideas paragraph
TOTAL 10
CRITERIA POINTS
Completed the solution with the correct answer 10
The last two (2) major steps of the solution are incorrect 7
Half of the solution is correct 5
The first two (2) major steps of the solution are correct 3
