INCOME TAXATION PRACTICE SET Topic: FRINGE BENEFITS 8 Problem: The company paid the following fringe benefits to few employees during the month of September, 2021: Employee Position Citizenship Benefits Given Value John Gilbert Alvarez HR Director Filipino Residential Condo Unit in Makati 5,000,000.00 Razelle Lizaso IT Analyst American Citizen (resident) Macbook Air 150,000.00 Maria Ruby Bonifacio Controller Filipino Use of Corporate Car (useful life of 8 years) 1,180,000.00 Franklin Adolfo Senior Audit Manager Filipino Trip to Thailand (all expense) 750,000.00 Rocelo Becera Corporate Secretary Filipino Car named and registered to 956,000.00 Rocelo Christian Maquiso House and Lot in Pasay City, Half-American Chief Finance Officer Half-Filipino where he is allowed to live as long 7,000,000.00 as he is in the company Vice President for Presry San Pablo Operations Filipino Monthly Grocery and Other 50,000.00 Household Allowance of All-expense trip to Baguio, Raymond Elebada Senior Marketing Manager Filipino excluding the pocket allowance of 120,000.00 70,000 De Ramos, Terence Corporate Messenger Filipino Motor vehicle with useful life of 6 125,000.00 years De Ramos, Terence Corporate Messenger Filipino Tuition Allowance for his son who 100,000.00 just got into college Delos Reyes, Syrelle Brand new Ford Mustang, with a Chief Executive Officer Filipino monthly fuel allowance of P 5,000,000.00 Mae 30,000.00 Ma. Jessa Labastida Audit Member Filipino Cash Gift during her 34th birthday 30,000.00 held on September 24 Requirements: 1. Prepare a working paper (in excel and saved as PDF) for the above benefits, and compute the following for each item (Total of 36 points): a. Monetary Value (1 point each, total of 12 points) b. Grossed-up Value (1 point each, total of 12 points) c. Fringe benefit tax (1 point each, total of 12 points) 2. Prepare the BIR Form 1603-FQ and file the above benefits. Completely Prepared (with correct amount and complete details) Completely Prepared but wrong amount (max. of 5 mistakes) Lacking of some details but all amounts are correct (max. of 5) Lacking of details and/or more than 5 mistakes in amount 40 points 35 points 35 points 30 points INCOME TAXATION PRACTICE SET Topic: FRINGE BENEFITS 8 Problem: The company paid the following fringe benefits to few employees during the month of September, 2021: Employee Position Citizenship Benefits Given Value John Gilbert Alvarez HR Director Filipino Residential Condo Unit in Makati 5,000,000.00 Razelle Lizaso IT Analyst American Citizen (resident) Macbook Air 150,000.00 Maria Ruby Bonifacio Controller Filipino Use of Corporate Car (useful life of 8 years) 1,180,000.00 Franklin Adolfo Senior Audit Manager Filipino Trip to Thailand (all expense) 750,000.00 Rocelo Becera Corporate Secretary Filipino Car named and registered to 956,000.00 Rocelo Christian Maquiso House and Lot in Pasay City, Half-American Chief Finance Officer Half-Filipino where he is allowed to live as long 7,000,000.00 as he is in the company Vice President for Presry San Pablo Operations Filipino Monthly Grocery and Other 50,000.00 Household Allowance of All-expense trip to Baguio, Raymond Elebada Senior Marketing Manager Filipino excluding the pocket allowance of 120,000.00 70,000 De Ramos, Terence Corporate Messenger Filipino Motor vehicle with useful life of 6 125,000.00 years De Ramos, Terence Corporate Messenger Filipino Tuition Allowance for his son who 100,000.00 just got into college Delos Reyes, Syrelle Brand new Ford Mustang, with a Chief Executive Officer Filipino monthly fuel allowance of P 5,000,000.00 Mae 30,000.00 Ma. Jessa Labastida Audit Member Filipino Cash Gift during her 34th birthday 30,000.00 held on September 24 Requirements: 1. Prepare a working paper (in excel and saved as PDF) for the above benefits, and compute the following for each item (Total of 36 points): a. Monetary Value (1 point each, total of 12 points) b. Grossed-up Value (1 point each, total of 12 points) c. Fringe benefit tax (1 point each, total of 12 points) 2. Prepare the BIR Form 1603-FQ and file the above benefits. Completely Prepared (with correct amount and complete details) Completely Prepared but wrong amount (max. of 5 mistakes) Lacking of some details but all amounts are correct (max. of 5) Lacking of details and/or more than 5 mistakes in amount 40 points 35 points 35 points 30 points