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Income Taxation

75 answers

A government officer considered as tax enforcer by having the power to ascertain the validity of tax laws subject to the review of the Courts of Justice
  • Secretary of JusticeCorrect Correct
A tax evader sidesteps the law, while the tax avoider breaks it.
  • FALSECorrect Correct
All amounts received from a life insurance annuity are taxable.
  • FALSECorrect Correct
All BIR approved retirement pays are exempted from income tax.
  • TRUECorrect Correct
All damage recoveries are not taxable.
  • TRUECorrect Correct
All government entities regardless of their functions are exempted from taxes because it would be impractical for the government to be taxing itself.
  • FALSECorrect Correct
All of the following are administrative functions of taxation except
  • selection of object of taxCorrect Correct
All of the following are inherent restrictions on the exercise of taxation power, except
  • rule of uniformityCorrect Correct
All of the following are National taxes as to collecting authority except
  • real property taxCorrect Correct
All of the following are not taxes except
  • custom dutiesCorrect Correct
An increase in the value of property is income.
  • TRUECorrect Correct
As a rule, excess amount of liquidating dividends over cost of shares surrendered is taxable.
  • TRUECorrect Correct
Below are the legal sources of income. Select three sources of income.
  • Salary, Gambling, Bonus, RebatesCorrect Correct
Cash method of reporting income can deduct prepaid expenses in the year of payment.
  • FALSECorrect Correct
Distinctions of Income
  • Capital, Revenue, ReceiptsCorrect Correct
Dividends received by a cooperative from a domestic corporation are tax exempt.
  • TRUECorrect Correct
Gain from redemption of shares in mutual fund is exempted from income tax.
  • TRUECorrect Correct
Gross income includes other income from other sources.
  • TRUECorrect Correct
If the taxpayer is an individual, his taxable income shall be computed on the basis of calendar year.
  • FALSECorrect Correct
In general, bills need not to be signed by the President to become a law.
  • FALSECorrect Correct
In installment method, the excess of mortgage assumed over cost of property sold is considered as part of the initial payment.
  • FALSECorrect Correct
In tax capitalization, the buyer absorbs the payment if tax and includes the same as part of the cost of the acquired property.
  • TRUECorrect Correct
In taxation, it is one's civil liability to pay taxes which gives rise to criminal liability.
  • TRUECorrect Correct
Income that is not realized is taxable.
  • FALSECorrect Correct
It is a civil penalty imposed by law in addition to the main tax required to be paid dud to delinquency or misrepresentation of taxes.
  • SurchargesCorrect Correct
It is a contract whereby the parties, by reciprocal concessions, avoid litigation or put an end to one already commenced.
  • CompromiseCorrect Correct
It is a legal claim granted to the government to secure the proper payment of the tax, surcharges, interest and costs on all property subject to levy or distraint.
  • Tax LienCorrect Correct
It is a scheme of reducing payment of taxes through legally permissible means.
  • Tax AvoidanceCorrect Correct
It is a system of collecting taxes in accordance with the country's tax policies.
  • Tax AdministrationCorrect Correct
It is the government agency primarily in charge to assess and collect all taxes and charges imposed.
  • Bureau of Internal RevenueCorrect Correct
It is twenty five percent (25%) surcharge.
  • Simple NeglectCorrect Correct
It terminates or condenses the taxpayer's period.
  • Jeopardy AssessmentCorrect Correct
Local tax ordinances must be uniformly and equally applied throughout the country.
  • FALSECorrect Correct
Most taxpayers elect to report income in a fiscal year basis.
  • FALSECorrect Correct
No person shall be imprisoned for nonpayment of income taxes.
  • FALSECorrect Correct
Normal taxes are usually subject to creditable withholding tax.
  • TRUECorrect Correct
Passive income is subjected to normal tax only if not subjected to final tax.
  • TRUECorrect Correct
Protection is the basic consideration that justifies tax situs.
  • TRUECorrect Correct
Revenues derived from taxes cannot be used for the exclusive use of private persons.
  • TRUECorrect Correct
Select the right answer.
  • Installment of payments. → Annuities, Reward for an event. → Winning, By month. → Salary, Illegal source of income → Embezzlement, Reward for a contest. → Prize, By hour, day, week. → Wage, Allowance on his retirement. → Pension, Amount of wealth plus savings and earnings. → Income, Leasehold improvement is recognized. → Outright Method, Total earnings from whatever source. → Gross Income Correct
Sovereign equality dictates that a nation cannot impose taxes on the property of another country.
  • TRUECorrect Correct
Tax Administration is a system involving enforcement of taxes through the use of
  • Tax Assessment and CollectionCorrect Correct
Tax affects the area or nation as a community rather than as individuals. This is a specific explanation of
  • Public PurposeCorrect Correct
Tax exemption is transferable and assignable.
  • FALSECorrect Correct
Taxation co-exist with the four elements of the state which includes all, except
  • PropertyCorrect Correct
Taxation could be described as a power, as a process, or as a means. As a power, taxation is a way of apportioning the cost of government among those who are privileged to enjoy its benefits.
  • FALSECorrect Correct
Taxation is the government's legitimate means of interfering with private properties of its subjects.
  • TRUECorrect Correct
Taxation is the primary source of government revenue. Hence, all government funds come from taxes.
  • FALSECorrect Correct
Taxes collected by the BIR are local taxes.
  • FALSECorrect Correct
The 13th month pay and other benefits amounting to P82,000 and below are not taxable.
  • TRUE Correct
The benefits from taxation have to be experienced to justify the legitimacy of collection of taxes from the people.
  • FALSECorrect Correct
The deferred payment method adopts the present value of reporting income.
  • FALSECorrect Correct
The existence of a Constitution is necessary for the exercise of the inherent powers of the Sovereign State.
  • FALSECorrect Correct
The following are business taxes except
  • custom dutiesCorrect Correct
The monetary value of availed vacation and sick leaves is compensation income.
  • FALSECorrect Correct
The net worth method is commonly used in determining the taxable income of taxpayers with complete accounting records.
  • TRUECorrect Correct
The Philippine tax laws are not political and penal in nature.
  • TRUECorrect Correct
The power to tax includes the power to destroy because the taxpayer has no option but to pay the tax imposed to him.
  • Marshall DictumCorrect Correct
The State can still exercise its taxing powers over its citizen, even if he resides outside the taxing State's territory.
  • TRUECorrect Correct
The tax doctrine of Marshall Dictum explains that tax is a power to destroy.
  • TRUECorrect Correct
The th month pay and other benefits amounting to P, and below are not taxable
  • TRUECorrect Correct
These are procedures or actions available both to the government to collect taxes and to the taxpayer to avoid abuses in the payment of taxes.
  • Tax RemediesCorrect Correct
These refer to the last day for filing return and payment of tax.
  • Due datesCorrect Correct
This refers to the process of taxation to determine the amount of tax based on existing tax law.
  • AssessmentCorrect Correct
This tax assessment is being asked to be cancelled because there is a question as to its validity or legality.
  • Disputed AssessmentCorrect Correct
Tips are taxable.
  • TRUECorrect Correct
Where are the sources of Income come from?
  • Within the Philippines, Partly within the Philippines, Partly without the Philippines, Outside PhilippinesCorrect Correct
Which of the following characteristics describes our internal revenue laws?
  • Generally, prospective in operation although the tax statute may nevertheless operate retrospectively provided it is clearly the legislative intentCorrect Correct
Which of the following is not an activity involving tax administration?
  • Passage of tax laws and ordinance through the legislatureCorrect Correct
Which of the following is not within the scope of authority of the BIR Commissioner?
  • To exercise the levying function of taxationCorrect Correct
Which of the following nature of laws describes tax laws?
  • civilCorrect Correct
Which of the following remedies against double taxation requires tax treaty?
  • ReciprocityCorrect Correct
Which of the following tax rates behaves in the same direction with the taxable value?
  • progressiveCorrect Correct
Which statement is wrong? A revenue bill
  • may have a House version and a Senate version approved separately and then consolidated, with both houses approving the consolidation versionCorrect Correct
Who is the BIR Commissioner?
  • Commissioner Caesar R DulayCorrect Correct
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