Mr. Chris Cruz, 60 years old, manager at DEF Company, retired during the taxable year. Because of his exemplary performance for the last 25 years, the company, which did not have an approved retirement plan, gave him P500,000 as retirement pay. In addition, he also received P300,000 from SSS as a retirement benefit. Is the total retirement pay of Mr. Crz from his employer and the SSS taxable?Answer I No, the total amount of P800,000 is not a taxable retirement pay.Answer II Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable.Select one:a.Both answers are correctb.Both answers are wrongc.No, the total amount of P800,000 is not a taxable retirement pay is correct: Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is wrongd.No, the total amount of P800,000 is not a taxable retirement pay is wrong:Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is correct

Ms. Juana Dela Cruz, Vice President for Corporate Management, regularly receives representation and travelling allowance of P25,000 a month in addition to her basic salary. Is the P25,000 taxable?I. No, because the representation and travelling allowance is not a compensation.II. Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable.Select one:a.Both answers are wrongb.No, because the representation and travelling allowance is not a compensation is correct: Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable is wrongc.Yes, unless the representation and travelling allowance is subject to liquidation or reimbursable is correct: No, because the representation and travelling allowance is not a compensation is wrongd.Both answers are correct

Mr. A received the following from his employer during the current taxable year: Monthly basic salary, P45,000 Monthly representation and travelling allowance not subject to liquidation, P10,0005% commission on net sales. Sales during the year were P6,300,000; sales return, P250,000 13th month pay, Christmas bonus and productivity pay amounting to 120% of his basic salary The gross taxable compensation income of Mr. A for the current taxable year is:Select one:a.P1,016,500b.P986,500c.P962,500d.P841,500

Mr. Juan Dela Cruz recently received P200,000 as a separation pay from his employer, ABC Corporation, since the company was undergoing reorganization due to merger with XYZ Corporation. Is the amount received by Mr. Dela Cruz taxable? Answer I No, because the separation was involuntary on his part. Answer II Yes, because by nature, separation pay is generally taxable.Select one:a.Both of the given choices are correct.b.No, because the separation was involuntary on his part is correct: Yes, because by nature, separation pay is generally taxable is wrongc.No, because the separation was involuntary on his part is wrong: Yes, because by nature, separation pay is generally taxable is correctd.No correct answer

Retirement pay from employer is not taxable, provided the following requirements had been complied with, except:Select one:a.The retiree received the retirement for the first timeb.The retirement plan of the employer to its employees are approved by the BIR Commissionerc.The retiree should have been at least 50 years oldd.The retiree should have been employed for 5 years in the said company

Andrew is 48 years old. He earned a salary of R380 000, a bonus of R60 000. He contributes 5% of his salary and bonus to a retirement fund. His employer also contributed 5% of his salary and bonus. You may assume that his remuneration is R504 000. YOU ARE REQUIRED to determine the retirement fund contribution deduction which he will be allowed to deduct from his taxable income for the current year of assessment.a.R22 000b.R145 475c.R44 000d.R138 600