INSTRUCTIONS

Choose your fighter, choose the best letter. If there’s none, write none of the above. Write in
capital letters. No erasures. Failure to do so will constitute as wrong. Best of luck! You’ll only
given 50 seconds to answer!

1. Statement 1: Any provisions of general or special law to the contrary withstanding there shall
be levied, assessed and collected in respect to all franchises on radio and or television
broadcasting companies whose quarterly gross receipts does not exceed P10,000,000.
Statement 2: The option by a Self-employed and/or Professional (SEP) to be taxed at 8% in lieu
of the graduated income tax rate and Percentage Tax under Section 118 of the Tax Code is not
automatic.
Statement 3: Renters, transportation servicers, encompassing those engaged in the conveyance of
passengers for compensation, as well as other domestic land-based movers facilitating passenger
transit, in addition to garage custodians, are mandated to remit a levy equivalent to three percent
(3%) of their gross quarterly receipts derived from the rental or hire of vehicles under their
stewardship.
a. Statement 1 is true, statement 2 is true, statement 3 is true
b. Statement 1 is true, statement 2 is true, statement 3 is false
c. Statement 1 is false, statement 2 is true, statement 3 is true
d. Statement 1 is true, statement 2 is false, statement 3 is false
NONE OF THE ABOVE, only 3 is true

2. Statement 1: Emirates operates flights from Manila to various countries. During the first
quarter of 2024, Emirates generated ₱50,000,000 in gross receipts from transporting cargo in the
Philippines, paying 3% of their quarterly gross receipts.
Statement 2: Lumen Investments, a seasoned shareholder, divests a substantial portion of its
portfolio, selling a batch of listed shares through the local stock exchange. The transaction,
encompassing a diverse range of securities, is subject to a levy of six-tenths of one percent of the
gross selling price, which is meticulously calculated based on the value of the shares at the time
of sale.
Statement 3: SwiftRide operates a fleet of vehicles seamlessly accessible to the riding public.
Leveraging modern communication technologies, such as mobile applications, text messaging,
and calls, SwiftRide provides a centralized platform connecting passengers to drivers with
unparalleled convenience.
h. Statement 1 is Sec. 118, Statement 2 is Sec. 127, Statement 3 is Sec. 117
g. Statement 1 is void, Statement 2 is Sec. 127, Statement 3 is Sec. 117
f. Statement 1 is Sec. 118, Statement 2 is void, Statement 3 is Sec. 117
e. Statement 1 is Sec. 118, Statement 2 is Sec. 127, Statement 3 is void
Statement 1 is void because income was from transporting cargo within the Philippines and not
to other countries

3. Statement 1: Aurora Transco, a domestic shipping firm, navigates complex tax. Local routes
incur VAT on gross receipts, while international shipments hinge on VAT registration. This dual
system forces Aurora to weigh the benefits of registration against its operational implications.
Statement 2: Dizon Bank, accrues substantial gross receipts from its diverse Philippine-based
activities, including intermediation services and money market transactions. In adherence to
fiscal policies, a rebate is imposed on these receipts, ensuring that the institution contributes its
equitable share to national revenues.
Statement 3: HFAF microfinance NGO, operates under the dual role of providing micro financial
services and employing an assorted workforce. In accordance with tax regulations, the
foundation is designated as a withholding agent, responsible for remitting the appropriate
withholding taxes on compensation income received by its employees. Additionally, when the
NGO disburses payments to individuals or corporations subject to withholding at source, it
dutifully withholds and remits these taxes to the government.
i. Statement 1 is Sec. 117, Statement 2 is Sec. 121, Statement 3 is Sec. 122
j. Statement 1 is Sec. 117, Statement 2 is void, Statement 3 is Sec. 122
k. Statement 1 is void, Statement 2 is Sec. 121, Statement 3 is Sec. Sec. 122
l. Statement 1 is Sec. 117, Statement 2 is Sec. 121, Statement 3 is void
Statement 2 is void because it is tax, not rebate

4. Statement 1: Hilot Services, a prominent fleet rental contractor, thrives in the urban centers of
the Philippines. Throughout a bustling quarter, their operations yield significant gross earnings
from providing shuttle services for tourists. As stipulated by law, Hilot is obligated to remit a 3%
levy on these quarterly gross earnings.
Statement 2: Nova Holdings, a corporate investor, strategically disposes of a significant tranche
of equities listed and traded on the local bourse. The gain realized from this transaction is exempt
from capital gains tax as well as regular individual or corporate income tax.
Statement 3: Helios Enterprises, a thriving retail business, diligently files its quarterly tax return,
reporting the gross sales and receipts accrued over the last quarter. As a business subject to
percentage taxes, it ensures that the tax due is remitted within the mandated 25-day period after
the close of the taxable quarter. Following the cancellation of its VAT registration, Helios
Enterprises is now liable for the tax imposed under Section 116 of the Tax Code.
p. Statement 1 is Sec. 117, Statement 2 is Sec. 127, Statement 3 is Sec. 116
o. Statement 1 is Sec. 117, Statement 2 is Sec. 127, Statement 3 is Sec. 128
n. Statement 1 is Sec. 117, Statement 2 is Sec. 122, Statement 3 is Sec. 116
m. Statement 1 is Sec. 117, Statement 2 is Sec. 122, Statement 3 is Sec. 128

5. A 2% tax is imposed on the total premiums collected by any person, company, or corporation
engaged in life insurance business in the Philippines. This tax applies to premiums paid in any
form, but excludes premiums refunded within six months due to risk rejection or other reasons.
In this, Pucot Coop, engaged in life insurance in the Philippines, must pay such tax.
q. Yes, because Pucot Coop collects premiums, thus taxable
r. Yes, because Pucot Coop is engaged in life insurance business in the Philippines
s. No, because Pucot Coop is not engaged in life insurance in the Philippines
t. No, because Pucot Coop is exempt as it is not a business entity
NONE OF THE ABOVE, because cooperatives are exempted

6. Statement 1: Celeste Companyero, an astute patron of fortuity, emerges triumphant, securing a

substantial windfall from her wager. The net proceeds fall under the purview of a statutory
exaction amounting to 10%. This fiscal levy reinforces her compliance with the entrenched
regulatory apparatus.
Statement 2: In a bustling metropolitan hub, Zenith Heimann, a fledgling radio company,
grapples with a fiscal dilemma. Their modest ₱9.8 million annual revenue subjects them to a 3%
franchise tax, a lesser burden than VAT. However, whispers of growth and lucrative advertising
deals tempt them to register as VAT taxpayers. The irrevocability of this decision looms, a
weighty gamble between prudence and ambition.
Statement 3: Verano, a lending investor, is compelled to subject her substantial gross receipts
from interest-bearing transactions to a 12% value-added tax. Despite the allure of profit, the
stringent tax obligations weigh heavily on her strategic decisions, demanding intricate
compliance with tax codes designed to curtail any fiscal misstep.

u. Statement 1 is Sec. 124, Statement 2 is Sec. 121, Statement 3 is Sec. 124

v. Statement 1 is Sec. 125, Statement 2 is Sec. 120, Statement 3 is Sec. 123
w. Statement 1 is Sec. 127, Statement 2 is Sec. 118, Statement 3 is Sec. 121
x. Statement 1 is Sec. 126, Statement 2 is Sec. 119, Statement 3 is Sec. 122

7. Statement 1: TeleCom Global, a major telecom provider in the Philippines, imposes a 10%
Overseas Communication Tax (OCT) on fees paid for international calls, messages, and
transmissions via various communication methods. The tax is collected from customers using the
services and remitted by TeleCom Global to the authorities, ensuring compliance with the tax
regulations.
Statement 2: Zenith Stocks, a seasoned investor, decides to liquidate a portion of its portfolio by
selling stocks listed on the local stock exchange. In accordance with tax regulations, the
transaction incurs a levy of six-tenths of one percent on the gross selling price of the shares. This
tax is borne by Zenith Stocks as the seller.
Statement 3: Alburo Global Insurance, an insurance intermediary, secures policies for foreign
insurers unauthorized to operate in the Philippines but covering local risks. By law, such agents
must remit a levy equivalent to double the rate specified in Section 122, reflecting stringent fiscal
measures for transactions involving non-resident entities.
bb. Statement 1 is void, Statement 2 is Sec. 127, Statement 3 is Sec. 123
aa. Statement 1 is Sec. 120, Statement 2 is void, Statement 3 is Sec. 124
z. Statement 1 is Sec. 120, Statement 2 is Sec. 127, Statement 3 is Sec. 124
y. Statement 1 is Sec. 120, Statement 2 is Sec. 127, Statement 3 is void
Statement 3 is void because it is double the rate specified in Sec. 123

8. Statement 1: EternaLife Insurance Corp., operating in the Philippines, collects premiums from
clients through various payment methods, subject to a 2% tax. Exemptions apply to refunded
premiums, reinsurance already taxed, policies for non-residents taxed abroad, and variable
contracts exceeding basic worker coverage. The company ensures compliance by carefully
calculating its taxable base under these provisions.
Statement 2: AquaFlow Utilities Corp., a major water utility franchise, dutifully files its tax
return with the Bureau of Internal Revenue (BIR). As mandated, the company remits a 2% tax on
its gross receipts derived from franchise operations, a rate that supersedes conflicting provisions
in existing laws. Meanwhile, VistaView Broadcasting, another franchise holder, determines its
tax liability based on its VAT status, paying either a 12% VAT or a 2% percentage tax.
Statement 3: Aldin Capital, a private investor, orchestrates the sale of equities listed on the local
bourse, capitalizing on favorable sentiment. As the transaction unfolds, the gross selling price of
the disposed securities becomes subject to a levy of 0.6 percent, meticulously calculated and
remitted by the seller.
cc. Statement 1 is Sec. 123, Statement 2 is Sec. 119, Statement 3 is Sec. 127
dd. Statement 1 is void, Statement 2 is Sec. 119, Statement 3 is Sec. 127
ee. Statement 1 is Sec. 123, Statement 2 is Sec. 119, Statement 3 is void
ff. Statement 1 is Sec. 123, Statement 2 is void, Statement 3 is Sec. 127
Statement 2 is void because VistaView Broadcasting must pay either a 12% VAT or a 3%
percentage tax

9. Statement 1: There shall be levied, assessed and collected on every sale, barter, exchange or
other disposition of shares of stock listed and traded through the local stock exchange other than
the sale by a broker in securities
Statement 2: There shall be collected upon certain overseas dispatch, message or conversation
transmitted from the Philippines by telephone, telegraph, telewriter exchange, wireless and other
communication equipment service, a tax of ten percent (10%) on the amount paid for such
services.
Statement 3: Lessees, transportation contractors, including those who transport passengers for
hire, other domestic carriers by land for the transportation of passengers (apart from banca and
animal-drawn two-wheeled vehicle owners), and garage keepers are required to pay a tax equal
to three percent (3%) of their quarterly gross receipts for cars they rent or hire.
jj. Statement 1 is Sec. 127, Statement 2 is Sec. 120, Statement 3 is Sec. 117
ii. Statement 1 is Sec. 127, Statement 2 is void, Statement 3 is Sec. 117
hh. Statement 1 is Sec. 127, Statement 2 is Sec. 120, Statement 3 is void
gg. Statement 1 is void, Statement 2 is Sec. 120, Statement 3 is Sec. 117
Statement 2 is void because it is on every overseas dispatch, not certain

10. Statement 1: Any person whose sales or receipts are exempt under Section 109(2)(CC) of the
Tax Code from the payment of value added tax AND who is not a VAT-registered person shall
pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts.
Statement 2: This states that municipal taxes would not be applied to common carriers' gross
receipts from their incoming and leaving freight.
Statement 3: This states that an NSSLA is a non-stock, non-profit corporation that accumulates
savings from its members and provides loans for long-term financing, such as home building and
personal finance.
kk. Statement 1 is Sec. 116, Statement 2 is R.A. No. 7160, Statement 3 is R.A. No. 8367
ll. Statement 1 is Sec. 116, Statement 2 is R.A. No. 8367, Statement 3 is R.A. No. 337
mm. Statement 1 is Sec. 116, Statement 2 is R.A. No. 10963 or the TRAIN Law, Statement 3 is
R.A. No. 8367
nn. Statement 1 is R.A. No. 8367, Statement 2 is R.A. No. 10378, Statement 3 is Sec. 116
NONE OF THE ABOVE, because Statement 1 is supposedly Section 109(1)(CC)

SUMMARY OF ANSWERS:
1. NONE OF THE ABOVE
2. G
3. K
4. O
5. NONE OF THE ABOVE
6. X
7. Y
8. FF
9. II
10. NONE OF THE ABOVE