Taxation Quiz

What is the purpose of taxation?

• To promote international trade

• To increase citizen's savings

• To reduce citizen's income

• To raise funds for government programs

What is a Tax according to the text?

• A contribution in proportion to citizen's ability to pay

• A fixed amount paid by all citizens

• A voluntary donation to the government

• A penalty for breaking the law

Which act is also known as the Tax Reform Act of 1997?

• Capital Gain Tax Act

• National Internal Revenue Code of 1997

• Excise Tax Act

• RA 9337

What type of tax is imposed on gains?

• Capital Gain Tax

• Documentary Stamp Tax

• Donor's Tax

• Estate Tax

Which tax is imposed on documents?

• Documentary Stamp Tax

• Percentage Tax

• Income Tax

• Value-added Tax

What is the purpose of Donor's Tax?

• Gratuitous transfer/gift

• To fund government projects

• To reduce inflation

• To promote exports

When is Estate Tax imposed according to the text?

• On the transfer of estate of a deceased person

• On annual profits

• On the sale of goods

• On rental income

Which tax is collected from the seller?

• Professional Tax

• Franchise Tax

• Excise Tax

• Value-added Tax

What is the purpose of Excise Tax?

• Imposed on goods manufactured

• Imposed on rental income

• Imposed on services rendered

• Imposed on government money payments

What is the Withholding Tax on Compensation related to?

• Government money payments

• Receiving purely compensation

• Goods manufactured

• Rental income