Covid Private School (CPS) is a non-profit private educational institution with an issued permit to operate from the Commission on Higher
Covid Private School (CPS) is a non-profit private educational institution
with an issued permit to operate from the Commission on Higher
Education (CHED). CPS uses a fiscal year accounting ending July 31st of
each year. On July 31, 2021, it recorded total gross receipts amounting to
P18,000,000.00, of which P10,000,000.00 came from education-related
activities, while P8,000,000.00 from other unrelated business activities.
Also, CPS recorded cost of service and operating expenses from related
activities amounting to P2,000,000.00 and P1,000,000,00, respectively,
and from unrelated business activities amounting to P3,000,000.00 and
P2,000,000.00, respectively.
REQUIRED:
1. How much is the taxable income of CPS?
2. how much is the tax due of CPS?
3. In case the Corporation in the above problem is a REGULAR Domestic
Corporation, how much is its taxable income?
4. In case the Corporation in the problem 5 is a REGULAR Domestic
Corporation, how much is its income tax due if it has celebrated its 2nd yr
in 2021?
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Augustinian University (AU) is a non-profit private educational institution with an issued permit to operate from the Commission on Higher Education (CHED). It is maintained and administered by MCGJ Inc., a private domestic corporation registered under the Securities and Exchange Commission.
AU uses a fiscal year accounting ending July 31st of each year. On July 31, 2021, it recorded total gross receipts amounting to P18,000,000.00, of which P8,000,000.00 came from education-related activities, while P9,500,000.00 (net of 5% creditable withholding tax) from other unrelated business activities (rent income from commercial spaces). Also, AU recorded cost of service and operating expenses from related activities amounting to P3,000,000.00 and P1,000,000.00, respectively, and from unrelated business activities amounting to P2,000,000.00 and P2,000,000.00, respectively.
How much is the income tax payable?
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