TAXATION

A citizen who has been previously considered as nonresident citizen and who arrives in the Philippines at any time during the taxable year to reside permanently in the Philippines shall likewise be treated as a nonresident citizen for the taxable year in which he arrives in the Philippines with respect to his:

• income derived from sources abroad until the date of his arrival in the Philippines.

• income derived from sources within the Philippines.

• income derived from sources abroad until the last day of the calendar year.

• income derived from sources within and outside the Philippines.

The MCIT shall be imposed upon a domestic corporation or a resident foreign corporation:

I - whenever such corporation has a zero or negative taxable income;

II - when the amount of minimum corporate income tax is greater than the normal income tax due from such corporation.

• Both I and II are correct

• Neither I nor II is correct

• Only I is correct

• Only II is correct

Excise tax on certain articles is an example of:

• An indirect tax

• A direct tax

• A local tax

• A transfer tax

An annual tax of P1,000 was imposed upon all residents of the Philippines, who are above 21 years of age, with a gross income of P250,000, whether or not they send their children to public schools, for the purpose of raising funds in order to improve public school buildings. The tax is:

• violative of the equal protection clause of the Constitution

• confiscatory

• for public purpose

• contradicts the inherent limitations

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 court

Which of the following cases may not be compromised?

• Delinquent accounts

• Cases under administrative protest after issuance of the Final Notice of Assessment to the taxpayer still pending in the BIR

• Civil tax cases being disputed before the courts

• Criminal violations involving criminal tax fraud

The following are instances when penalties and/or interest imposed on the taxpayer may be abated or cancelled on the ground that the imposition thereof is unjust and excessive, except when the:

• Filing of the return or payment of the tax is made at the wrong venue

• Taxpayer’s mistake in payment of his tax is due to erroneous written official advice of a revenue officer

• Assessment is brought about or a result of the taxpayer’s noncompliance with the law due to a difficult interpretation of the said law.

• Taxpayer is declared insolvent or bankrupt.

For requests for reinvestigation, the taxpayer shall submit all relevant supporting documents in support of his protest within how many days from the date of filing of his letter of protest, other-wise, the assessment shall become final?

• Sixty (60) days

• Thirty (30) days

• Twenty (20) days

• None of the choices

Under the TRAIN, the books of accounts shall be audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements if the:

• gross annual sales, earnings, receipts or output exceed Three million pesos (P3,000,000).

• gross quarterly sales, earnings, receipts or output exceed Three million pesos (P3,000,000).

• gross annual sales, earnings, receipts or output amount to Three million pesos (P3,000,000)or more

• gross quarterly sales, earnings, receipts or output exceed One Hundred Fifty Thousand (P150,000).

On every original issue, whether on organization, reorganization or for any lawful purpose, of shares of stock by any association, company or corporation, the documentary stamp tax is:

• One peso and fifty centavos (P1.50) on each Two hundred pesos (P200), or fractional part thereof, of the par value of such stock

• Two pesos (P2.00) on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock

• Three pesos (P3.00) on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock

• Fifteen pesos (P15.00)on each Two hundred pesos (P200), or fractional part thereof, of the par value, of such shares of stock