EXERCISES 23– 1.

DISCUSSION QUESTIONS / PROBLEMS

1. Yes. The exemption from imprisonment refers to non-payment of poll tax. A poll tax is
a tax imposed on residents of a certain territory, without regard to his property or the
occupation in which he may be engaged.
The additional community tax is not a poll tax because it is based on earnings
derived from business, exercise of profession or pursuit of an occupation.

2. No. An individual is not required to pay the community tax until he/she reaches the
age of 18. Considering the Daisy Saez is only 16 years old, she is not yet liable to pay
the said tax.
a. No. In practice, government employees usually refuse to accept payments
below P5.00. This practice is not proper because if individuals are not yet required
to pay the tax but they want to secure a community tax certificate, they should not
be required to pay P5.
b. P1 only. This is the amount required by law to be collected on individuals
who are not yet required by law to pay the tax but wanting to secure a Community
Tax Certificate.

3. Basic tax P 5
Additional tax:
Income from profession (355,500/1,000 = 355.50 x P1) 355
Income on lease of car (89,500/1,000 = 89.50 x P1) 89 444
Total community tax payable 449

4. Community tax payable by Rolanda Matubis:

Basic tax 5

Community tax payable by Juan Matubis:

Basic tax 5
Additional tax:
Sales (1,578,912 x (100% - 38%) /1,000 = 978
978,925.44 / P1)
Salaries and allowances (144,590/1,000 = 144.59 x 144
P1)
Income on land (132,650/1,000 = 132.65 x P1) 13 1,25
2 4
Total community tax payable 1,25
9

5. a. No. Section 160 of the Local Government Code is explicit that “the community tax
shall be paid in the place of residence of the individual, or in the place where the
principal office of the juridical entity is located. Thus, Marie should have paid the tax in
Buhi, Camarines Sur.
b. The code is silent in this point. However, it is submitted that since the
provisions of Sec. 160 is mandatory in implementation the payment of the community
tax in Legazpi City is not valid.

EXERCISES 23 – 2. MULTIPLE CHOICE QUESTIONS

1. Answer: C

2. Answers: B

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3. Answer: C

4. Answer: C

5. Answer: D

6. Answer: D

7. Answer: B

8. Answer: A

9. Answer: B

10 Answer:

Basic tax 5
Additional community tax:
Salary ( 352,225/1,000 = 352 x 352
P1)
Business:
Dormitory
100,500
Jeepney
150,650
Total
251,150
(251,150/1,000 = 251 x P1) 251 60
3
Total community tax payable 60
8

11. Answer: D

Basic tax 5
Additional community tax:
Gross receipts, Manila 4,055,015.2
0
Gross receipts, Quezon City 3,264,980.6
0
Total 7,319,995.8
0
(7,319,995.80/1,000 = 7,319 7,319
x P1)
Limit 5,000
Total tax payable 5,005

12. Answer: c

13. Answer:

Tax due until February 28, 2007 5,005.0

0
Add: Interest (5,005 x 24% x 1/12) 100.10
Tax due as of March 31, 2007 5,105.1 0

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14. Answer: C

Additional tax (2,654,951/1,000 = 2,654 x 2,654

P1)

15. Answer: B

16. Answer: D

17. Answer: C

18 Answer: B

19 Answer: A

20 Answer: A

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