✅ Is the employee Managerial/Supervisory? (If No → Stop. It's compensation income). ✅ Step 2: Is the benefit a "Fringe Benefit" as listed in Sec. 33 (Housing, car, household help, expenses, etc.)? ✅ Step 3: Compute the Monetary Value (Actual cost, rental value, or 50% of car depreciation). ✅ Step 4: Divide by 65% to get the Grossed-Up Monetary Value (GUMV) . ✅ Step 5: Multiply GUMV by 35% to get FBT Payable . ✅ Step 6: Remember: The employer pays this, but the employer deducts the GUMV from gross income.
If you simply look at the final numbers (e.g., "Question 7.3 Answer: B"), you will fail the CPA Board Exam. The reason Banggawan’s book is so valuable is that the analysis is the answer. income taxation banggawan 2021 answer key chapter 7
Answer: b) To reduce taxable income
✅ Is the employee Managerial/Supervisory? (If No → Stop. It's compensation income). ✅ Step 2: Is the benefit a "Fringe Benefit" as listed in Sec. 33 (Housing, car, household help, expenses, etc.)? ✅ Step 3: Compute the Monetary Value (Actual cost, rental value, or 50% of car depreciation). ✅ Step 4: Divide by 65% to get the Grossed-Up Monetary Value (GUMV) . ✅ Step 5: Multiply GUMV by 35% to get FBT Payable . ✅ Step 6: Remember: The employer pays this, but the employer deducts the GUMV from gross income.
If you simply look at the final numbers (e.g., "Question 7.3 Answer: B"), you will fail the CPA Board Exam. The reason Banggawan’s book is so valuable is that the analysis is the answer.
Answer: b) To reduce taxable income