EXCISE TAX AND DOCUMENTARY STAMP TAX

Question 1

1. ABC Company produced 10,000 units of excisable goods that has a total wholesale value of
   P1,680,000, inclusive of VAT. If sold on a retail basis, the goods would be priced at P2,100,000. The
   goods are subject to a 20% ad valorem tax. Compute for the excise tax.
   a. P300,000
   b. P336,000
   c. P420,000
   d. P375,000

Question 2

2. On January 1, 2021, ABC Cigar Incorporated manufactured 100 boxes of cigars and removed them
   from the place of production. As of January 1, 2020, the cigars shall be subject to an excise tax as
   follows:
   Specific tax (per cigar)-P6.33
   Ad valorem tax rate (based on the net retail price per cigar)-20%

The specific tax is subject to 4% increase per year. The retail selling price per box, net of VAT and
excise tax, was P10,000, and 1 box of cigars contained 25 cigars. Compute the excise tax per box
of cigar on January 1, 2021.
a. P2,158
b. P2,165
c. P2,000
d. P2,171

Question 3

3. ABC Company imported excisable goods subject to 10% excise tax and 20% customs duties. As per
   Sec. 131B of the Tax Code, unless otherwise specified by law, the imported goods imposed with
   ad valorem tax shall be subject to the same rates and basis of excise taxes applicable to locally
   manufactured articles. Data relating to the imported articles were as follows:
   Purchase price-P6,000,000
   Other inland costs-1,500,00
   Domestic wholesale price, net of VAT-13,500,000
   Compute for the following:
   * Excise tax
   * Customs duties
   * VAT

Question 4

4. ABC Corporation sold its commercial land and building for P5,000,000 to XYZ Company. The land
   had a fair value per assessor’s office of P1,500,000 and zonal value of P2,000,000. The building had
   a P4,000,000 fair value per assessor’s office. The documentary stamp tax is P15 per P1,000
   transactional value. Compute for the DST.
   a. P75,000
   b. P90,000
   c. P82,500
   d. P60,000

Question 5

5. Under Sec. 179 of the Tax Code, on every original issue of debt instruments, there shall be collected
   a documentary stamp tax of P1.50 on each P200, or fractional part thereof, of the issue price of
   any such debt instrument. Provided, that for such debt instruments with terms of less than one
   year, the documentary stamp tax to be collected shall be of a proportional amount in accordance
   with the ratio of its term in number of days to 365 days. Compute for the DST.
   Question 1: A promissory note is issued with a face value of P3,000,000 with a term of 3 years
   a. P30,000
   b. P37,500
   c. P22,500
   d. P0

Question 2: A promissory note is issued with a face value of P2,500,000 with a term of 150 days
a. P18,750
b. P11,045
c. P7,705
d. P0

Question 6

6. ABC Corporation was organized with a proposed authorized capital stock of P5,000,000 divided
   into 250,000 common shares. Compute for the DST under the following scenarios:
   Scenario 1: The shares were issued with a par value of P20 per share.
   Scenario 2: Continuing Scenario 1, assume further that Mr. X, one of the shareholders,
   subsequently sold his 5,000 shares.
   Scenario 3: The shares were issued for a total consideration of P1,000,000 with no par value.
   Scenario 4: Continuing Scenario 3, assume further that the same P1,000,000 worth of shares were
   subsequently sold for P1,200,000.

Question 7

7. Statement I: If the agreeing party fail to pay the documentary stamp tax, the government may
   enforce the tax against the other party.
   Statement II: If one of the contracting parties enjoys exemption to documentary stamp tax, the
   other party who is not exempt shall be liable to the same.
   Statement III: Documentary stamp taxes are levied independently of the legal status of the
   transaction giving rise thereto. It must be paid upon the issuance of the said documents, without
   regard to whether the contracts are voidable, rescissible, unenforceable or void.
   Statement IV: Documents not specifically listed in the Tax Code may still be subject to DST.
   Statement V: DST applies whenever the right or obligation arises from the Philippines or when
   property or object of contract is in the Philippines regardless of the place where the document is
   executed.
   a. Only one (1) of the above statements is false
   b. Two (2) of the above statements are false
   c. Three (3) of the above statements are false
   d. All of the above statements are false