Chapter Exercises - Fringe Benefit To Tay 14. The monetary value of fringe benefit if given in money is a. Fair market value (BIR) or zonal value whichever is higher. b. Amount granted c. Depreciated value d. Acquisition cost plus other incidental costs 15. Statement 1: if the employer did not withhold the fringe benefit tax and subsequently discovered and assessed by the BIR, the related fringe benefit tax is not allowed as a deduction from the employers gross income. Statement 2: Fringe benefit tax includes additional benefit granted by the employer to the employees in addition to the basic salary a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 and 2 are true 16. Statement 1: The exemption of any fringe benefit from the fringe benefit tax shall not be interpreted to mean exemption from any other income tax imposed under the Tax Code except if the same expressly exempt from any other income tax imposed under the Tax Code or under any other existing law. likewise Statement 2: If the fringe benefit is exempted from the fringe benefit tax, the same may, however still form part of the employee's gross compensation income which is subject to income tax, hence, likewise subject to withholding tax on compensation income payment. a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 and 2 are true 2 17. Cost of life or health insurance and other non-life insurance premiums borne by the employer for his employee shall be treated as taxable fringe benefit, except a. Contributions of the employer for the benefit of the employee pursuant to provision of existing SSS and GSIS laws. b. Cost of premiums borne by the employer for the group insurance of his employees. c. Both "a" and "b". d. None of the above 21 177