Tax

Tax Evasion ?

• bring forward capital expenditure so that at the end of the year all the profits are used up

• tax takes lower percentage on higher income and higher percentage on lower income

• making false or no declarations to the tax authority

• reducing the tax payment to the legal minimum

For purposes of tax-free exchange under Section 40(C)(2) of the 1997 Tax Code, as amended , the value of shares to be issued by reason of exchange should be equal to the fair market value of the property transferred. Consequently, the number of shares to be issued will be computed on the basis of the fair market value of the property transferred.

• TRUE

• FALSE

What Country does this flag belong to?

• Portugal

• UK

• America

• Spain

Avaling tax holiday by a new industrial undertakings in backward areas is a case of

• Tax evasion

• Tax management

• Tax Planning

• Tax avoidance

Tax evasion is part of an overall definition of tax .........

• fraud

• avoidance

• havens

• Shields

Within the context under  Section 40(C)(2) of the 1997 Tax Code, as amended the term used in reference to both the value of the property in the hands of the transferee after its transfer and the shares received by the Transferor from the Transferee.

• Adjusted Basis

• Historical Cost

• Substituted Basis

• Original Basis

Under Section 40(C)(2) of the 1997 Tax Code, as amended -an arrangement where the stock and bonds of a corporation are readjusted as to amount, income, or priority or an agreement of all stockholders and creditors to change and increase or decrease the capitalization or debts of the corporation or both.

• RECAPITALIZATION

• MERGER

• REORGANIZATION

• REINCORPORATION

Which world currency symbol is this?

• Pound

• Rand

• Real

• Riyal / Rial

Pursuant to Section 40(C)(2) of the 1997 Tax Code, as amended the term “adjusted basis” is the term used in determining the tax basis of property or shares for purposes of computing the gain or loss on the subsequent disposition of property or shares.

• TRUE

• FALSE

The Original basis of the property to be transferred under Section 40(C)(5) of the 1997 Tax Code, as amended shall be the following except.

• The cost of the property, if acquired by purchase on or after March 1, 1913

• The fair market price or value as of the moment of death of the decedent, if acquired by inheritance

• The basis in the hands of the donor or the last preceding owner by whom the property was not acquired by gift, if the property was acquired by donation

• The amount paid by the transferor for the property, if the property was acquired for less than an adequate consideration in money or money’s worth