The Commissioner can estimate the income and expense of a taxpayer.

Group of answer choices

True

False

S1 – If fringe benefit is given to non-rank and file employees, fringe benefit is generally subject to FBT

S2 – If fringe benefit is given to rank and file employees, fringe benefit is subject to withholding tax on compensation.

Group of answer choices

S1 is true

S2 is true

Both are false

Both are true

The following persons are your clients: Who is allowed to claim deduction?

• Nicanor, an employee of ABC Corp.
• ABC Corp, a foreign corporation doing business in the Philippines
• XYZ Corp. a foreign corporation based in Europe
• Inday Manoban, a Thai-Korean and member of the PinkBlack K-Pop Group based in Korea

Group of answer choices

ABC Corp

Inday

XYZ Corp

Nicanor

General professional partnerships (GPP) are exempted from taxation because:

S1: Partners are liable in their own capacity

S2: GPP is a pass-through entity only

S3: GPP is not a corporation

Which is false?

Group of answer choices

S3

S2

None are false

S1

As the new Accountant, you were reviewing the payroll system of the company. You noticed that supplementary compensation is mingled with regular compensation. Which should form of regular compensation?

Group of answer choices

Overtime pay ranging from Php 1,000 to Php 10,000

Commission of 5% based on collections

Fixed transportation allowance of Php 50.00 per day

Profit-sharing