Consolidated Income Tax
Calculation for Trusts
Consolidated Taxable Net Income and Tax Due
Consolidated Taxable Net Income
The consolidated taxable net income is P10,000,000, which consists of: *
P8,000,000 from the first P8,000,000 of the consolidated income *
P2,000,000 from the excess of the consolidated income over P8,000,000
Consolidated Tax Due
The consolidated tax due is calculated as follows: * P8,000,000 at 30% =
P2,400,000 * P2,000,000 at 35% = P700,000 * Total Consolidated Tax Due =
P2,400,000 + P700,000 = P3,110,000
Allocation of Consolidated Tax Due
The consolidated tax due of P3,110,000 is allocated between the two trusts
as follows: * Trust 1 (4/10 of the consolidated tax due) = P1,244,000 * Trust
2 (6/10 of the consolidated tax due) = P1,866,000
Payments Made
The payments made by the two trusts are: * Trust 1: P1,130,000 * Trust 2:
P1,770,000
Consolidated Income Tax Payable
The consolidated income tax payable is the difference between the
consolidated tax due and the payments made by the two trusts: *
Consolidated Tax Due: P3,110,000 * Payments Made: P1,130,000 +
P1,770,000 = P2,900,000 * Consolidated Income Tax Payable: P3,110,000 -
P2,900,000 = P210,000
