A concerned government employee furnished the BIR a statement detailing the improper tax practices of a corporate taxpayer. The information was instrumental to the collection of P500,000 tax. How much informer's tax reward after tax shall be released to the informant?

A concerned government employee furnished the BIR a statement detailing the improper tax practices of a corporate taxpayer. The information was instrumental to the collection of P500,000 tax. How much informer's tax reward after tax shall be released to the informant?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 3BCRQ

See similar textbooks

Related questions

Q: f a business owner paid for the business expenses with their personal account, and those expenses…

A: Business expenses are the rightful expenses which can be deducted on tax return as these expenses…

Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000 Cost of…

A: Income tax due is the amount of tax which is due on income taxable during the year.

Q: Mike Inc. is switching from a cash to an accrual method for tax purposes effective 1/1/X2. Mike…

A: Taxable income: It can be defined as an income that is used or considered while calculating the tax…

Q: Examples for the permanent differences between financial reporting and reporting for the IRS in…

A: Answer:- Financial reporting meaning:- The process for recording and communicating financial…

Q: Mr. Encina is a government employee. He is not engaged in business nor has any other source of…

A: Tax refers to the amount of tax which is imposed through the government authorities on the taxable…

Q: TRUE OR FALSE? The levy may be repeated until the full amount due, including all expenses is…

A: Answer 1:- True Explanation:- The above assertion is true. As per the the appropriate section the…

Q: What is the taxable income if the taxpayer had chosen itemized deduction? A domestic corporation had…

A: Calculation of taxable Income of Domestic Corporation

Q: The Tax Code was created to punished people who did not pay taxes. True False

A: Tax code is created for individual and who are in businesses .In this tax code lots of sections,…

Q: You are assisting a client with a transaction that produces a most favorable tax result. The client…

A: Answer: We have situation where the client has told that the outcome is dependent on one court case…

Q: Which of the following statements is false? A. A corporation must file a Federal income tax…

A: Corporation refers to the entity which is owned through shareholders, who elect the BOD (Board of…

Q: A taxpayer registered in 2010 made available the following financial information for TY2021: Balance…

A: The tax rate for domestic corporation under CREATE law is 25%, if income of the corporation is more…

Q: Juan inquired from the BIR whether or not he will be covered with the new tax law. The BIR issued an…

A: Here Mr. Juan already got the administrative ruling which state that activities are not covered by…

Q: ollowing types of expenses is deductible? Group of answer choices A.Bribes & Illegal Kickbacks…

Q: A member of the board of directors is concerned that the company’s income statement reports income…

A: Explanation for the difference in the income tax expense:The income tax expenses contain both the…

Q: Which of the following is wrong? Exempt corporations are subject to income tax on their income…

A: Last option i.e. None of the above, is the correct answer.

Q: A concerned citizen furnished the BIR a statement detailing the improper tax practices of a…

A: Solution : Given : A concerned citizen furnished the BIR a statement detailing the improper tax…

Q: The registration of tax agents and BAS agents is governed by the provisions of the Tax Agents…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Identify which scenario is an appropriate tax planning strategy. A taxpayer choosing to exclude cash…

A: Tax planning is to be considered important part . tax planning help to take advantage of…

Q: analyze possible reasons (any five) for individuals to evade and avoid taxes and suggest remedial…

A: Since information spills, governments all throughout the planet have recovered more than $1.2…

Q: Which of the following instances is not a ground for the BIR Commissioner to inquire or examine the…

A: The answer is stated below:

Q: For each of the following situations, indicate the nature and amount of the penalty that could be…

A: Penalty:Penalty refers to the punishment imposed on a person or company for breaking the rule and…

Q: A taxpayer whose income is derived from both compensation and business and whose business income…

A: Income tax is the tax which is charged on the taxable income of a taxpayer. Given in the question: A…

Q: Which of the following will not require reporting of taxpayer’s income on a calendar basis? * If…

A: Correct option is A.If the taxpayer is a corporation operating in a fiscal year Companies are…

Q: Identify the following statement that is false. a. If an employer is not required to withhold…

A: Withholding - Withholding is the portion of an employee's wages that is not included in his or her…

Q: True or False Corporations are required to file a tax return annually regardless of their taxable…

A: A tax return is documentatiion filed with a tax authority that reports income, expenses, and…

Q: For each of the following situations, indicate the amount of the penalty that could be imposed on…

A: The penalty imposed on the given situations can be explained as follows. 1. f a tax return preparer…

Q: A former longstanding client of an accounting practice is being investigated by the tax authorities.…

A: A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act…

Q: You were asked by your audit client Panga Inc., to assist them in preparing its income tax return…

A: First of All Calculate Gross Total Income Pre Tax income = 10000000 Add : Provision for the Loss…

Q: A calendar year corporation must file its tax return no later than March 15 of the following year.…

A: A corp[oration is an operation of a business that is run by an individual or group of individual. A…

Q: Is it appropriate or inappropriate for government tax enforcement officials to socialize with tax…

A: Every individual and company is liable to pay tax to the government. But the individual and company…

Q: How are the electronic tax deposits transferred from the employer’s account to the IRS?

A: The employer is having two options for transferring the electronic tax deposit to the internal…

Q: During a recent IRS audit, the revenue agent decided that the Parker family used their closely held…

A: given During a recent IRS audit, the revenue agent decided that the Parker family used their…

Q: Indicate whether the following statements are "True" or "False" regarding the administrative powers…

A: Explanation The Tax payer must be able to substantiate certain expenses to deduct them. In general,…

Q: What are some of the issues the tax preparer should discuss with this client?

Q: Scott requested Jenny to work with the Bureau of Internal Revenue (BIR) in further reducing the tax…

A: Tax means the charge which is levy by the government on the net income of individual or an…

Q: During the audit conducted by the BIR official, it was found that the rental income claimed by the…

A: Introduction:- Discussion of During the audit conducted by the BIR official it was found that the…

Q: A friend says to you, “I don’t understand how taxable temporary differences can be ‘liabilities’ and…

A: Valuation Allowance - It is reserved that will used for offset the amount of deferred tax assets…

Q: What are the powers of the Commissioner-General, if a taxpayer fails to file tax return on time?

A: Solution- Commissioner Of Income Tax :- He is an important income tax authority which has executive…

Q: Which of the following statements is true regarding the calculation of a C corporation's taxable…

A: Here discuss about the treatment of taxable income for the C corporation and the details which are…

Q: Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on…

A: Tax is the amount which the tax payer pays to the government when the income of an individual goes…

Q: Irwin Schiff is a self-styled “tax rebel” who has made a career, and substantial profit, out of his…

A: Situation:

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A tax preparer has a client tht recently asked him about the probability ofthe IRS detecting cash transactions not reported on tax return. What are some of the issues the tax preparer should discuss with this client?
Which of the following instances is not a ground for the BIR Commissioner to inquire or examine the bank deposits of taxpayers? when the taxpayer filed an application for compromise of his tax liability when the taxpayer fails the lifestyle check test and shows unexplained wealth the taxpayers waives his right in writing the confidentiality of the bank deposits to determine the gross estate of a decedent
A concerned citizen furnished the BIR a statement detailing the improper tax practices of a corporate taxpayer. The information was instrumental to the collection of P200,000 tax. How much is the final tax ? a.P20,000b.P18,000c.P2,000d.P0
Mr Rahman is a professional accountant who works in a big corporation. While filling his income tax, he deliberately hid the information that he received some income from his part-time consultancy service to a scall company. This action of Mr Rahman can be termed as _______ a. Tax planning b. Tax avoidance c. Tax hiding d. Tax evasion
John Taylor, a tax consultant, charges his clients a fee based on the percentage of the tax he saves a client. John received a payment from a client, but he realised that Angela didn’t declare income. Therefore, the income tax return that John’s prepared understated income tax liability.Taking into consideration the Accounting Professional Code of Conduct explain the Tax Penalties and actions John should take following his discovery.
f a business owner paid for the business expenses with their personal account, and those expenses would otherwise be deductible, they: A. CANNOT be deducted on the tax return because they weren't paid for from a business account. B. CAN be included on the tax return as long as proof of the expenses is sent with the return. C. CAN be deducted on the tax return. D. CANNOT be deducted because the IRS requires separate business and personal bank accounts.
For each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer A tax return preparer understates the taxpayer’s tax liability with a frivolous position and does not disclose the position. $ A tax return preparer fails to furnish his identifying number $ A tax return preparer aids a taxpayer in understating a tax liability $ A tax return preparer endorses and cashes a client’s tax refund check.
A former longstanding client of an accounting practice is being investigated by the tax authorities. The former client requests the assistance of the practice in representing them. The client promises that, if the outcome is favourable, he will pay a substantial fee and re-appoint the practice as his accountants in the future. (Any tax payable will be deducted from the fee.) Which THREE threats to the fundamental principles are involved? OSelf-review OSelf interest O Intimidation OFamiliarity Advocacy
According to the AICPA's Statements on Standards for Tax Services, what duties does the tax practitioner owe the client? (If an input field is not used leave the input field(s) empty.) not to disclose tax-related errors without the client's consent. to inform the client of corrective measures to be taken. C to inform the client of errors in a previously filed tax return. to inform the client of how the client can avoid a penalty through disclosure. to inform the client of the potential adverse consequences of a tax return position. to inquire of the client when information provided by him or her appears incorrect, incomplete, or inconsistent on its face. to inquire of the client when the client must satisfy conditions to take a deduction. to instruct the client to file an extension based on refunds that are expected. to instruct the client whether or not to file a tax return.
Mrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information to the Bureau of internal revenue unpaid taxes leading to the recovery of P9,500,000. REQUIRED: 1. How much is the net amount to be received by the informant after deduction of final taxes?
Indicate whether the following acts can be considered as tax evasion/tax management/ tax planning or otherwise: 1. Sushil is using a motor car for his personal purposes, but charges as businessexpenditure. 2. SQL Ltd. pays advance tax by estimating his total income in previous year to ensure timely compliance.