Principles of Taxation

The power to demand proportionate contribution from persons and property to defray the necessary expenses of the government is the ________________________.

• Police Power

• Power of Eminent Domain

• Power of Taxation

• Power of Contribution

A calculation of all employees' compensation, statutory contributions, taxes, deductions and net payment of a certain time period is called ___________

• payslip

• payroll

• payroll register

• net pay

A payroll register is a formal, internal, and confidential document to present payroll.

• True

• False

It refers to all remuneration for services performed by an employee for his employer under an employer-employee relationship.

• payslip

• payroll

• compensation

• tax

What do you call a system of raising money to finance government expenditures?

• Fund-raising

• Bayanihan

• Taxation

• Contribution

Which of the following is exempted from paying taxes?

• Corporations

• Minimum Wage Earners

• Mixed Income Earners

• Purely Compensation Income Earners

The following are the relevant statutory contributions of an employer EXCEPT:

• Social Security System (SSS)

• Home Mutual Development Fund (HDMF) or Pag-ibig

• Philippine Health Insurance Corporation (PHIC) or PhilHealth

• De Minimis Benefits

Under the TRAIN law, the total amount of mandatory 13th month pay and other additional benefits granted by employers, such as 14th month pay, performance bonus, health bonus, perfect attendance bonus, and all other types of bonuses, may be considered non-taxable compensation but only up to an amount of ninety thousand pesos (₱90,000).

• True

• False

Under the TRAIN law, if the annual income of an individual is beyond ₱250,000.00, he/she does not have to pay and file an annual ITR.

• True

• False

De minimis benefits are benefits of relatively small values provided by the employers to the employee on top of the basic compensation intended for the general welfare of the employees.

• True

• False