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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