1. Mr.

Aguak earned the following prizes from two different competitions:

Date Event Gross Prize
January 4,2017 Singing competition P 12,000
February 14,2017 Painting competition 10,100

Compute the total final tax that should have been withheld from the above prizes.

2. Mr. Rems Orayt participated in two different events on January 4, 2018:

Date Organizer Competition Gross Prize
January 4,2017 Ang Mahiwagang Boses Singing P 10,000
January 4,2017 Samahang Sexy Body Dancing 10,000
Compute the total final tax that should have been withheld from the above prizes.

3. Mr. Conrado won the P 50,000,000 6/49 Superlotto Jackpot of the Philippines Charity Sweepstakes
Office. How much final tax will be withheld?

4. Mr. Matti won a gold medal and P50,000 cash prize for chess competition in the Palarong Pambansa.
How much final tax should be withheld from the prize?

5. Mr. Curandang submiited a sworn statement regarding the alleged tax evasion practices of Chitie
Corporation. This led the BIR to recover P20,000,000 unpaid taxes. How much net tax informer’s reward
shall be paid to Mr. Curandang?

6. Roy invested P1,000,000 in the “tax-free” corporate bonds of RBC Corporation. The bond pays 8.75%
interest annually net of any taxes. How much final tax must RBC Corporation withhold from the annual
interest payment to Roy?

7. Assume that Winnie is a non-resident alien not engaged in trade or business; compute the final tax on
maturity of the deposit.

8. On January 1, 2018, Mr. Albuera invested P2,000,000 in the six-year time deposit of Sulu Unibank which
pays 10% annual interest. Compute the final tax to be withheld by Sulu Unibank on December 31, 2018.

9. Assume Mr. Albuera pre-terminated the time deposit on July 1, 2018; compute the final tax to be
withheld on pre-termination.

10. Armando is a partner in a business partnership. At the end of 2018, he has a total of P300,000 profit
sharing on the after tax income of the partnership inclusive of P120,000 salaries as a managing partner.
Compute the amount final tax to be withheld from Armando’s profit sharing.

11. Compute the total amount of income subject to final tax.

Yield from deposit substitute P 10,000
Interest income from bonds of a domestic corporation 23,000
Property dividend declared by a foreign corporation 40,000
Stock dividend declared by a domestic corporation 50,000
Compensation income, net of P10,000 withholding tax 80,000
Prize on “Search for Mr. Sexy Body” 15,000
Royalties from books 24,000
Interest income on personal loans granted to a friend 8,000
Salaries from a general professional partnership 30,000
Salaries from a business partnership 20,000

12. Determine the total amount of income tax withheld from the following passive income during the year:
Interest on Peso bank deposit P 90,000
Royalties 36,000
Dividends 63,000
Share in the distributive income of a joint venture 72,000

13. On January 1, 2008, Kevin purchased 1,000 P1,000 face value bonds of a domestic corporation at face
value. The bonds were dated January 1, 2007 and mature on January 1, 2011. The bonds pay 12% annual
interest every January 1. If Kevin disposed of this investment directly to buyer on December 31, 2008 at
102, how much is the total final tax due?

14. On January 1, 2015, Helen invested P1,000,000 to RCBC Commercial Bank’s 5-year, tax-free time
deposit. The long-term deposit pays 15% annual interest every January 1. In need of cash, Helen pre-
terminated her investment on July 1, 2018. How much is the final tax due and the proceeds of Helen’s
investment?

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