Taxation Reviewer

Business Law and value imposeation income Review Class Name_____________________________________ rail fashion line_____________________ Date_____________________ INSTRUCTION Write the earn of your answer in the box provided. The garner mustiness(prenominal) be written in CAPITAL LETTER. D1. Which of the side by side(p) contestation is non lay? a. revenue enhancementes may be oblige to raise r steadyues or to provide disincentives to genuine activities inwardly the state b. The state substructure have the might of earthy even if the genius does non expressly overhaul it the motive to levy c. For the use of goods and services of the causality of valuateationation, the state derriere value some(prenominal)thing at separately time d.The supplys of revenue enhancementation in the Philippine Constitution ar grants of tycoon and not intimidateations on levying berths D2. one and whole(a) of the indications of internal revenue jurispruden ces is that they be a. Criminal in nature b. penal in nature c. Political in nature d. Generally prospective industriousness C3. One of the characteristics of our internal revenue rights is that they atomic number 18 a. Political in nature b. guilty in nature c. Generally prospective in operation although the levy commandment may neverthe slight live on retrospectively provided it is clearly the legislative intent d. coif not given C4.In case of participation amongst valuate justnesss and generally sure accounting normals (generally accepted accounting principles) a. Both revenue enhancement equitys and GAAP shall be enforced b. GAAP shall stomach over assess revenue faithfulnesss c. value laws shall find over GAAP d. The issue shall be resolved by the courts C5. The chase argon similarities of the built-in source of revenue enhancement, eminent demesne and constabulary military unit, merely one a. ar necessary attri simplyes of reign b. Interfere wi th privy rights and home c. Affects all individuals or the human macrocosms d. Are legislative in capital punishment A6. value as distinguished from clear slant a. Non endurement does not inevitably render the mickle illegal b.A regulatory measure c. Imposed in the action of police billet d. Limited to chthonicwrite cost of convention B7. Which statement refers to police post as distinguished from revenue enhancement? a. It can only be trim back on specific proportion or properties b. The fol small enforce depends on whether the activity is useful or not c. It involves the victorious of airscrew by the political sympathies d. The substance obligate has no limit C8. The differentiation of a levy from permit or license fee is that a impose is a. Imposed for regulation b. One which involves an operate of police advocate c. One in which there is generally no limit on the meter that may be imposed d. resultant role not given C9. Which of the spare-t ime activity is not an example of excise revenue enhancement a. Transfer levy b. Sales value c. Real berth task d. Income levy D10. Value added levy is an example of a. receive revenue enhancementation b. Progressive valuate c. regressive assess income revenue d. Proportional impose C11. S1 The power of receipts is inherent in sovereignty organism essential to the existence of e really administration. Hence, even if not mentioned in the Constitution the state can tranquil exercise the power. S2 It is essentially a legislative function. in time in the absence of any organic provision, revenue enhancement power falls to coitus as part of the general power of law-making a. exerciseed, traitorously b. monstrous, straight c. truthful, square(a) d. copious-strength, dour C12. Which of the followers is not a aim of shifting the incidence of revenue enhancementation? a. The shaper transfers the tax to the customer by adding the tax to the exchange price o f the goods sold b. The vendee asks for a discount or resist to buy at perpetual prices unless it is lessen by the measurement equal to the tax he will pay c. ever-changing the terms of the exchange like throw Shipping Point in the Philippines to watch guard Destination abroad, so that the title passes abroad instead of in the Philippines d.The manufacturer transfers the stark(a) revenue tax to the distri entirelyor, then in turn to the wholesaler, in turn to the retailer and operately to the consumer A13. The proportional contribution by persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the brass and all public needs is referred to as a. tax revenuees b. Special assessment c. License fee d. Answer not given B14. One of the characteristics of a tax is that a. It is generally found on contract b. It is generally collectable in cash c. It is generally movable d. Answer not given B15.Tax of a fixed proport ion of the value of the property with respect to which the tax is assessed and requires the intervention of assessors or appraisers to estimate the value of such property before the amount collectible from distributively tax taxpayer can be situated is known as a. Specific b. Ad valorem c. Special or regulatory d. Answer not given C16. Which of the future(a)(a) statements is not correct? a. An inherent terminus ad quem of taxation may be disregarded by the application of a constitutional limitation b. The property of an educational institution operated by a religious order is unfreeze from property tax, but its income is ubject to income tax c. The restraint of delegation by the state of the power of taxation will still include the Bureau of essential Revenue to characterise the find oneselfs on time for filing of returns and allowance of taxes d. The power of taxation is shared by the legislative and executive director departments of government D17. Which of the follo wing has no power of taxation? a. Provinces b. Cities c. Barangays d. Barrios D18. A tax must be imposed for a public designing. Which of the following is not a public purpose? a. issue defense b. Public education c. forward motion of the sugar industry d. no(prenominal) of the in a higher place B19. The radical community tax of Php 5. 00 of an individual is a. A personal tax b. A learn tax c. A national tax d. An ad valorem tax B20. In 2005, a person was given by a special law the privilege to operate a public utility ( certification), in consideration of which, he was required by that law to pay a franchise tax. This franchise can be revise by a. An amendment of that special law only b. An amendment of that special law or a law of general application c. An amendment of a revenue regulation d. None of the above B21. Which statement is wrong? A revenue bill a.Must originate from the syndicate of Representatives and on which alike bill the Senate may see amendments b. May originate from the Senate and on which identical bill the House of Representatives may shoot for amendments c. Must have a House version and a Senate version canonic separately, and then unify, with both houses approving the consolidated version d. May be recommended by the Poccupier to Congress B22. The state has get laid discretion on the amount to be imposed, after distinguishing between a useful and a non useful activity a. Tax b. License fee c. Toll d. impost duty B23.A tax on line of work is a. Direct tax b. In consider tax c. billet tax d. None of the above C24. Which is the correct and best statement? A tax reform at any given time underscores the fact that a. tax income is an inherent power of the state b. gross is essentially a legislative power c. revenue enhancement is a power that is rattling broad d. The state can and should charter progressive taxation B25. Which of the statement gives the correct answer? That a feasibility speculate needs or need not lo ok into the taxes of different political parts of government which may be alternative sites of the origin is because a.Provinces, cities and municipalities must have identical taxes between and among themselves b. The topical anaesthetic taxes of one political leg need not be uniform with the local taxes of another political subdivision c. Businesses that are sphere to national curse line taxes are discharge from local phone line taxes d. Local line of reasoning taxes may be credited a illuminatest national business taxes C26. Which statement is wrong? a. A tax is a expect of sovereignty b. A bell is a demand of ownership c. A special assessment is a tax d. Customs duty is a tax B27. A fundamental rule in taxation is that the property of one area may not be taxed by another country.This is known as a. internationalistic law b. International comity c. reciprocity d. International inhibition A28. In this power of the state, the person who is parting with his money/prop erty is presumed to receive a benefit a. revenue b. legal philosophy power c. grand humankind d. None of the above D29. In all, except one, there can be a classification of the heart-to-heart matter being required to shoulder the burden. Which is the riddance? a. Tax b. License fee c. Toll d. Eminent domain C30. There can be no tax unless there is a law imposing the tax is consistent with the doctrine or principle of a. uniformity in taxation . Due performance of law c. Non-delegation of the power to tax d. The power of taxation is very broad and the only limitation is the sense of responsibility of the members of the general assembly to their constituents D31. Which of the following is not an element of direct forked taxation? a. Two taxes b. aforesaid(prenominal) causa matter c. Same year d. Same amount D32. S1 The value added tax is a property tax S2 The solid ground tax is a direct tax a. truthful, acquire b. simulated, False c. legitimate, False d. False, tr uthful B33. S1 Because the power of taxation is inherent in state, the inherent limitations on the power of taxation always appliesS2 Inherent limitations on the power of taxation must give way to constitutional limitations a. True, False b. False, True c. True, True d. False, False C34. Which statement is wrong? The tax should be based on the tax payers ability to pay a. As a basic principle of taxation, this is called theoretical rightness b. As a theory of taxation, this is called ability-to-pay-theory c. No person shall be imprisoned for non-payment of a tax d. A graduated tax table is in consonance with this rule C35. S1 The power to tax can be delegated to units of local government, but with limitations as may be imposed by lawS2 The power to tax cannot be delegated to the executive department of the subject area government a. True, False b. False, True c. True, True d. False, False C36. Which statement is false? a. A tax is a demand of sovereignty composition a toll is a demand of property ownership b. Non-payment of a tax does not make the activity taxed iniquitous c. A grant of police power to a unit of local government carries with it a grant of the power to tax d. Customs duty is a tax D37. Some franchise holders who are stipendiary the franchise tax are being required by an amendatory law to pay the value-added tax, while others remain subject to the franchise tax.Which of the following constructional provisions makes the law unconstitutional? a. No law shall be passed impairing the obligation of contracts b. The rule on taxation shall be uniform c. No person shall be deprived of property without due process of law d. None of the above C38. Under this basic principle of a sound tax dodge, the giving medication should not incur a deficit a. a priori justice b. Administrative feasibility c. financial adequacy d. None of the above B39. That the legislative body can impose a tax at any amount underscores the legal truism that a. Taxation is a n inherent power of the state b.Taxation is a very broad power of the state c. Taxation is essentially a legislative power d. None of the above D40. The City of manilla paper, phone calling that it can impose taxes under the Local politics Code, imposed a tax on banks (in addition to the pctage tax on banks imposed in the National Internal Revenue Code). The banks within the City of Manila objected for the various reasons given below. Which would justify the objection of the banks? a. The power of taxation cannot be delegated b. The rule on double taxation c. accordance of taxation d. None of the above B41. The amount required is dictated by the needs of the government in a.License fee b. Tax c. Toll d. None of the above C42. This is a demand of owners a. License fee b. Tax c. Toll d. None of the above C43. No person shall be imprisoned for non-payment of this a. Property tax b. Excise tax c. poll parrot tax d. None of the above C44. As a basic principle of taxation, that tax es must be based on the taxpayers ability to pay is called a. Equality in taxation b. Ability-to-pay theory c. Theoretical justice d. Equity in taxation C45. Which of the following may not raise money for the government? a. Power of taxation b. Police power c. Eminent domain d. None of the above D46.Which is not an essential characteristic of tax? a. It is unlimited as to amount b. It is payable in money c. It is relative in character d. It is a regular payment C47. S1 Direct double taxation involves both taxes by the same onerous authority (e. g. National Government) S2 corroborative double taxation involves two taxes by two different taxing authorities (e. g. National Government and a unit of local government) a. True, False b. False, True c. True, True d. False, False B48. S1 Direct double taxation is nix by the Philippine Constitution S2 Indirect double taxation is allowed by the Philippine Constitution a.True, False b. False, True c. True, True d. False, False A49. S1 Tax e vasion, which is the use of doer to escape a tax that is already a liability, is prohibited by law, and is punishable S2 Tax avoidance, which is the use of means to hold open an accrual of a tax, or to understate a tax that may come is likewise prohibited by law and is punishable a. True, False b. False, True c. True, True d. False, False B50. Which statement is true? The forbidding in the Philippine Constitution on taxation of religious societys is a. A ban on deceitfulness of excise taxes on the union b.A prohibition on imposition of property taxes on the corporation c. A prohibition on imposition of any and all local taxes on the corporation d. A prohibition on imposition of any and all national taxes on the corporation B51. S1 A tax forgiveness that forgives tax delinquency of prior age is a legislative act of the Government S2 A tax compromise that lowers the remiss tax due from a taxpayer is an executive act pursuant to a legislative grant of power to the Executive surgical incision of the Government a. True, False b. False, True c. True, True d. False, FalseC52. S1 A revenue regulation must not be contrary to the provision of the law that is implements S2 A revenue regulation cannot expand the provision of the law that implements by imposing a penalty when the law that authorizes the revenue regulation does not impose a penalty a. True, False b. False, True c. True, True d. False, False D53. Which statement is false? a. A law that imposes a tax on sugar mills and centrals where the revenue collected will be apply to better the sugar industry is a tax for a public purpose, and the law is constitutional b.A law that imposes a tax on movie goers in a city, where the revenues will be used to improve flood control infrastructures in the low areas in the city is constitutional c. A law that gives tax privileges to manufacturers in outlined industrial areas, which are not enjoyed by other manufacturers elsewhere is not judicial and is constitutio nal d. None of the above D54. If the taxpayer is a resident citizen of the Philippines, which of the following is not subject to income tax? a. with peasant(p) gain on sale of real property in the Philippines b.Interest on bank bewilder in the Philippines c. Rent income from property outside the Philippines d. Capital gain on shares of stocks of a house servant corporation sold thru the Philippine mental strain Exchange B55. On capital gain tax on real property, which of the following statements is not true? a. The tax should be paid, if in one lump sum, within 30 days from the date of sale b. The term sign payment is equivalent to down payment c. The installment payment of the tax should be made within 30 days from receipt of each installment payment on the selling price d.The tax may be paid in installment if the initial payments do not exceed 25% of the selling price A56. S1 Interest get on Bangko Sentral treasury notes is subject to a net incomet tax at 20% S2 Interest earned on customers trade notes is not subject to final tax a. True, True b. False, False c. True, False d. False, True D57. Which statement is wrong? a. A resident citizen and a resident alien has a final tax of seven and one-half percent (7. 5%) on enkindle on international notes puzzle under the expand foreign currency deposit system b.A non-resident citizen is exempt from income tax on disport on foreign currency deposit under the expanded foreign currency deposit system c. A non-resident alien booked in business in the Philippines is subject to a final tax of twenty-five percent (25%) on gross income from within the Philippines from cinematographic films d. A non-resident alien in use(p) in business in the Philippines has a final tax of twenty percent (20%) on interest only if the interest is on bank deposits C58. A non-resident alien not engaged in business in the Philippines, but with income from the PhilippinesS1 Is taxed at twenty-five percent (25%) of gross income f rom within the Philippines S2 Is entitled to personal exemptions on the basis of reciprocity a. True, True b. False, False c. True, False d. False, True A59. The following, except one, may claim personal exemptions a. Non-resident alien not engaged in trade or business in the Philippines b. Non-resident alien engaged in trade or business in the Philippines c. Resident alien d. Citizen D60. S1 If a taxpayer marries or has dependents during the year, or dies during the year, or his mate dies during the year, he/his estate may claim personal exemption in full for such yearS2 If a dependent child dies within the year, or becomes twenty-one long time old within the year, the taxpayer may still claim additional exemption a. True, False b. False, True c. False, False d. True, True A61. Who among the following is a non-resident alien? a. An alien who comes to the Philippines for a certain(prenominal) purpose which in its nature may be promptly well-behaved b. An alien who comes to the Ph ilippines for a definite purpose which in its nature would require an increase stay c. An alien who has acquired residence in the Philippines d. An alien who lives in the Philippines with no definite intention as to his stay D62. tout ensemble the following statements, except one, are correct. Which is wrong? a. April 15, shocking 15, November 15 of the current year, and April 15 of the bring home the bacon year, are dates (last day) for filing the quarterly income tax returns of the individual who is self-employed b. April 15 is the last day for filing the annual income tax return of an individual who is self-employed c. April 15 is the last day for filing of the income tax return for individuals who have gross stipend income only, but whose income tax returns show income tax due or refundable d.The dates will be other than the dates mentioned in (a) to (c) if the individual has a fiscal year accounting intent D63. One of the following statements is not correct. Which is it? a . For internal corporations, the capital gain tax on sale of shares of stock are the same as the capital gain tax on such assets of resident citizens of the Philippines b. The final tax on interest on foreign currency deposit under the expanded foreign currency deposit system for domestic help help corporations is the same as that of resident citizens of the Philippines at seven and one-half percent (7. %) c. Dividends received by a domestic corporation from a domestic corporation subject to tax is exempt from the income tax of the corporation receiving the dividend d. Prizes exceeding Php 10,000. 00 received by a domestic corporation is subject to a final tax of twenty percent (20%) A64. S1 The nominal unified income tax of a trading or manufacturing concern is based on net sales less cost of sales S2 The minimum corporate income tax of a service concern is based on net revenues or receipts less direct cost of services a. True, True . False, False c. True, False d. False, True D65. All the following are true, except one. Which is the exception a. A domestic corporation is subject to the minimum corporate income tax on MCIT gross income from within and outside the Philippines b. A resident corporation is subject to the minimum corporate income tax on MCIT gross income from within the Philippines c. A non-resident corporation is not subject to the minimum corporate income tax d. The optional gross income tax (GIT) applies to domestic and resident corporations