TAX 2018

Which of the following statements relating to taxes and taxation is incorrect?

• Taxes may be imposed to raise revenues or to provide disincentives to certain activities with the state.
• The state can have the power of taxation even if the Constitution does not expressly give it the power to tax.
• For the exercise of the power of taxation, the state can tax anything at any time.
• The provisions of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers.

One of the characteristics of internal revenue laws is that they are:

• Criminal in nature
• Penal in nature
• Political in nature
• Generally prospective in application

In case of conflict between tax laws and generally accepted accounting principles (GAAP):

• Both tax laws and GAAP shall be enforced.
• GAAP shall prevail over tax laws.
• Tax laws shall prevail over GAAP.
• The issue shall be resolved by the courts.

One of the characteristics of tax is that it is generally

• based on contract
• payable in money
• assignable
• payable in money or in kind

Who is not a Philippine income tax payer?

• A resident citizen of the Philippines with income from within and outside the Philippines.
• A resident citizen of the Philippines with income from within the Philippines only.
• A non-resident citizen of the Philippines with income from outside the Philippines only.
• A non-citizen of the Philippines with income from within the Philippine only.

Which of the following is not subject to estate tax?

• A succession to the property of a decedent who left no last will and testament.
• A donation mortis causa.
• A donation in contemplation of death.
• A transfer during the lifetime for less than full and adequate consideration.

The following, except one, may claim personal exemptions:

• non-resident alien not engaged in trade or business in the Philippines
• non-resident alien engaged in trade or business in the Philippines.
• resident alien.
• citizen.

Who is not subject to the donor’s tax?

• An individual making a donation.
• A corporation making a donation.
• A partnership making a donation.
• An individual who pays premiums on the life insurance of another.

Under the value-added tax law, which of the following sales is not zero-rated?

• Export sales
• Foreign currency denominated sales
• Sale of goods to the Asian Development Bank
• Sale of goods to an export-oriented enterprise

How much is the basic annual community tax for individuals?

• 25

• 20

• 15

• 10

• 5