48.  Nicanor is a civil engineer. His reported total gross receipts in 2020 amounted to Php 4,250,000.00 while the cost of service and operating expenses were Php 2,150,000.00 and Php 1,000,000.00, respectively. Since he does not keep receipts of his purchases, his Accountant advised to avail of the 40% OSD in his 1st Quarter ITR which he did. Total tax withheld (expanded withholding tax) by his clients is equivalent to 10% from which he received tax certificates (BIR Form 2307s). During filing annual ITR, without the getting professional advice, he filed his own return and opted 8% preferential taxation.  What is Nicanor’s CORRECT income tax payable in 2020? Disregard payment in his original return filed     Group of answer choices c. 666,000 a. Overpayment of 205,000 d. 241,000 b. 320,000

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48. 

Nicanor is a civil engineer. His reported total gross receipts in 2020 amounted to Php 4,250,000.00 while the cost of service and operating expenses were Php 2,150,000.00 and Php 1,000,000.00, respectively. Since he does not keep receipts of his purchases, his Accountant advised to avail of the 40% OSD in his 1st Quarter ITR which he did. Total tax withheld (expanded withholding tax) by his clients is equivalent to 10% from which he received tax certificates (BIR Form 2307s). During filing annual ITR, without the getting professional advice, he filed his own return and opted 8% preferential taxation.

 What is Nicanor’s CORRECT income tax payable in 2020? Disregard payment in his original return filed

 

 

Group of answer choices
c. 666,000
a. Overpayment of 205,000
d. 241,000
b. 320,000
 
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