(To be filled up by the BIR)

DLN: BCS No. PSIC:

Republika ng Pilipinas BIR Form No.

Improperly Accumulated Earnings
Kagawaran ng Pananalapi
Kawanihan ng Rentas Internas

For Corporations Tax Return

1704
May 2001

Fill in all applicable spaces. Mark all appropriate boxes with an “X”.
1 For the Calendar Fiscal 3 Amended Return? 4 No. of sheets attached 5 ATC
2 Year Ended
( MM / YYYY ) 1 2 2 0 2 0 Yes No 0 I C 3 7 0
Part I Background Information
6 TIN 7 RDO Code 8 Line of Business/
0 0 2 1 2 1 5 6 7 2 1 B Occupation
Manufacturing of Food
9 Taxpayer's Name

FANTASTIC BEST CORPORATION

10 Registered Address 11 Zip Code
MAC ARTHUR HIGHWAY, BRGY. DOLORES, CITY OF SAN FERNANDO, PAMPANGA 2 0 0 0
12 Date of Incorporation 12A Date of Registration with BIR 12B
(MM/DD/YYYY) 0 1 0 1 2 0 2 0 (MM/DD/YYYY) 0 1 1 5 2 0 2 0
Part II Computation of Tax

13 Taxable Income 13 6,738,846

14 Add: Income exempt from Tax
14A 180,000 14B 50,000
14C 14D
15 Income excluded from Gross Income

15A 15B
15C 15D

16 Income subject to Final Tax

16A 16B
16C 16D

17 Net Operating Loss Carry-over (NOLCO) deducted 17A 17B 230,000

18 Total (Sum of Item 13 and Item 17B) 18
6,968,846
19 19
Less: Income tax paid/payable for the taxable year 1,684,712
20 Dividends actually or constructively paid/issued 20
21 Amount reserved for the reasonable needs of the business
200,000 1,884,712
(See Schedule I) 21A 21B
22 Improperly Accumulated Taxable Income (Item 18 less Item 21B) 22 5,084,135
23 Tax Rate 23 10%

24 Improperly Accumulated Earnings Tax (Item 22 multiply by Item 23) 24 508,413

25 Add: Penalties
Surcharge Interest Compromise
25A 25B 25C 25D 0
26 Total Amount Payable (Sum of Item 24 and Item 25D) 26 508,413
We declare, under the penalties of perjury, that this return has been made in good faith, verified by us, and to the best of our knowledge and belief, is true
and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof.

27 JUAN MIGUEL C. DAVID 28 MARY ANN L. CRUZ

President/Vice-President/Authorized Representative Treasurer/Asst. Treasurer/Authorized Representative
(Signature over printed Name) (Signature over printed Name)
KURT L. MENDIOLA 08-001998-101-2018
Tax Agent Tax Agent Accreditation No.
Date Issued
Community Tax Certificate Number Place of Issue MM DD YYYY Amount

29 23327043 30 SAN FERNANDO, PAMPANGA 31 03 0 1 2020 32 500 00

Part III D e t a i l s of P a y m e n t
Drawee Bank/ Date
Particulars Agency Number MM DD YYYY Amount
33 Cash/Bank 33 Stamp of Receiving
Debit Memo……………………………………………………………………………. Office and
34 Check 34A BPI 34B 2167 34C 0 1 1 0 2 0 21 34D 508,413 00 Date of Receipt
35 Tax Debit 35A 35B 35C
Memo……………………………
36 Others 36A 36B 36C 36D

Machine Validation/Revenue Official Receipt Details (If not filed with the bank)
Schedule I
Schedule of amount reserved for the reasonable needs of the business
(emanating from the covered year's taxable income)

Allowance for the increase in the accumulation of earnings

up to 100% of the paid-up capital
Paid-up Capital as of balance sheet date (covered year) P
Less: Accumulated Retained Earnings as of previous year
Allowable increase considered as reasonable accumulation P
Reserved for definite corporate expansion projects or programs
Reserved for building, plants or equipment acquisition
Reserved for compliance with any loan covenant or pre-existing
obligation established under a legitimate business aggreement
Earnings with legal prohibition against distribution 200,000.00
For subsidiaries of foreign corporations,
Earnings intended or reserved for investment within the Philippines
Total amount reserved for the reasonable needs of the business (To Item No. 21) P 200,000.00

BIR FORM NO. 1704

Improperly Accumulated Earnings Tax (IAET) Return
Guidelines and Instructions
Who shall file
Every domestic corporation (branch of a foreign corporation (2) Family and Partnership Ownership. – An individual
not included) classified as closely-held corporation except banks and shall be considered as owning the stock owned, directly
other non-bank financial intermediaries, insurance companies, taxable or indirectly, by or for his family, or by or for his partner.
partnerships, general professional partnerships, non-taxable joint For purposes of this paragraph, the ‘family of an
ventures and enterprises duly registered with the Philippine Economic individual’ includes his brothers or sisters (whether by
Zone Authority (PEZA) under R.A. 7916, and enterprises registered whole or half-blood), spouse, ancestors or lineal
pursuant to the Bases Conversion and Development Act of 1992 (R.A. descendants.
7227), and other similar laws, shall render a true and accurate tax (3) Option to Acquire Stocks. – If any person has an option
return in accordance with the provisions of the Tax Code. The return to acquire stock, such stock shall be considered as
shall be filed in triplicate copies by the president, vice-president or owned by such person. For purposes of this
other principal officer, sworn to by such officer and by the Treasurer or paragraph, an option to acquire such an option and
Assistant Treasurer. each one of a series of option shall be considered as
an option to acquire such stock.
When and Where to File (4) Constructive Ownership as Actual Ownership. – Stock
The return shall be filed within 15 days after the close of the constructively owned by reason of the application of
year immediately succeeding taxpayer’s covered taxable year. paragraph (1) or (3) hereof shall, for purposes of
Example: For calendar year 2000, the IAET return shall be filed on or applying paragraph (1) or (2), be treated as actually
before January 15, 2002. This return shall be filed with any Authorized owned by such person; but stock constructively owned
Agent Bank (AAB) located within the territorial jurisdiction of the by the individual by reason of the application of
Revenue District Office where the taxpayer’s place of business is paragraph (2) hereof shall not be treated as owned by
located and registered. him for purposes of again applying such paragraph in
In places where there are no AABs, the return shall be filed order to make another the constructive owner of such
with the Revenue Collection Officer or Duly Authorized City or stock.
Municipal Treasurer of the municipality or city under the jurisdiction of
the Revenue District Office where the taxpayer’s principal place of Penalties
business is located and registered. There shall be imposed and collected as part of the tax:
If the taxpayer is a large taxpayer, the return shall be filed 1. A surcharge of twenty five percent (25%) for each of the
with the AAB located at the BIR National Office except if said taxpayer following violations:
is under the jurisdiction of a Large Taxpayer District Office, (LTDO), in a) Failure to file any return and pay the amount of
which case the return shall be filed with the LTDO having jurisdiction tax or installment due on or before the due date;
over the taxpayer. or
When and Where to Pay b) Unless otherwise authorized by the
Upon filing this return, the total amount payable shall be paid Commissioner, filing a return with a person or
in full to the AAB where the return is filed. In places where there are no office other than those with whom it is required
AABs, payment shall be made directly to the Revenue Collection to be filed; or
Officer or duly Authorized City or Municipal Treasurer who shall issue c) Failure to pay the full or part of the amount of tax
Revenue Official Receipt (BIR Form No. 2524) therefor. shown on the return on or before the due date; or
Where the return is filed with an AAB, the lower portion d) Failure to pay the deficiency tax within the time
must be duly machine validated and stamped received to serve as prescribed for its payment in the notice of
receipt of payment. The machine validation shall reflect the amount assessment.
paid, the date of payment and the transaction code and the stamp 2. A surcharge of fifty percent (50%) of the tax or of the
mark shall show the name of the AAB, branch code, teller’s code and deficiency tax, in case any payment has been made on the
teller’s initial. The AAB shall also issue an Official Receipt as proof of basis of such return before the discovery of the falsity or
payment. fraud, for each of the following violations:
a) Willful neglect to file the return within the period
Rate and Base of Tax prescribed by the code or by rules and
The ten percent (10%) IAET is imposed on improperly regulations; or
accumulated taxable income earned starting January 1, 1998 by b) In case a false or fraudulent return is willfully
domestic corporations as defined under the Tax Code and which are made.
classified as closely-held corporation. 3. Interest at the rate of twenty percent (20%) per annum or
The IAET shall not apply on improperly accumulated income such higher rates as may be prescribed by rules and
as of December 31, 1997 in the case of corporations using the regulations, on any unpaid amount of tax, from the date
calendar year basis. In the case of corporations adopting the fiscal prescribed for the payment until it is fully paid.
year accounting period, the IAET shall not apply on improperly 4. Compromise penalty.
accumulated taxable income as of the end of the month comprising the
twelve-month period of fiscal year 1997-1998. Attachments:
1. Photocopy of the Annual Income Tax Return (BIR
Closely-held Corporations Form No. 1702) and audited Financial
Closely-held corporations are those corporations at least fifty Statements/Account Information Forms of the
percent (50%) in value of the outstanding capital stock or at least fifty taxable year covered duly received by the BIR;
percent (50%) of the total combined voting power of all classes of and
stock entitled to vote is owned directly or indirectly by or for not more 2. Sworn declaration as to dividends declared taken
than twenty (20) individuals. from the covered year earnings and the
For purposes of determining whether the corporation is corresponding tax withheld, if any.
closely held corporation, insofar as such determination is based on
stock ownership, the following rules shall be applied: Note: All Background information must be properly filled up.
(1) Stock Not Owned by Individuals. – Stock owned • Nos. 1 and 2 of this form refer to transaction period and not
directly or indirectly by or for a corporation, the date of filing this return.
partnership, estate or trust shall be considered as being • TIN = Taxpayer Identification Number.
owned proportionately by its shareholders, partners or
beneficiaries.