Reference no: EM132675055
ABC Airlines, a Company created under Philippine laws, is in its 11th year of existence. It transports passengers within and outside the Philippines. ABC reported the following gross receipts during the taxable year:
Outbound Inbound
Passengers 56,000,000 65,000,000
Cargoes 30,000,000 25,000,000
Problem 1: If ABC has a total purchases of P25,000,000 from a VAT-registered suppliers, and P3,000,000 from Non-VAT suppliers for its entire operation within and outside the Philippines. 40% of the receipts from passengers are collected in the Philippines, while 60% of the freight for transport of cargoes are collected abroad. How much is the percentage tax due?
A. P672,000
B. P540,000
C. P900,000
D. P0