The record of a closely held corporation, registered with BIR in 2014, reveals the following: 2018: Gross income P 3,000,000 Less: Expenses 3,800,000 Net operating loss ( P 800,000 ) 2019: Gross income P 5,000,000 Expenses 3,000,000 Rent income, net of 5% withholding tax 475,000 Interest on money market placement, net of 20% withholding tax 80,000 Inter-corporate dividends received 500,000 Dividends paid by the corporation 1,500,000 Upon examination of the 2019 return, the BIR concludes that there is improper accumulation of profit. The corporation fails to show proof to prove the contrary. Question 8: How much is the tax payable of the corporation per return in the year 2019? Question 9: How much is the tax on the improperly accumulated income in 2019?
The record of a closely held corporation, registered with BIR in 2014, reveals the following:
2018: Gross income P 3,000,000
Less: Expenses 3,800,000
Net operating loss ( P 800,000 )
2019: Gross income P 5,000,000
Expenses 3,000,000
Rent income, net of 5% withholding tax 475,000
Interest on
net of 20% withholding tax 80,000
Inter-corporate dividends received 500,000
Dividends paid by the corporation 1,500,000
Upon examination of the 2019 return, the BIR concludes that there is improper
Question 8: How much is the tax payable of the corporation per return in the year 2019?
Question 9: How much is the tax on the improperly accumulated income in 2019?
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