ITax

Which of the following taxes describes the value added tax?

• Income tax

• Sales tax

• Indirect tax

• Personal tax

The following are not taxable, except

• Refund of fringe benefits tax

• Refund of Philippine income tax

• Refund of Philippines income tax

• Refund of estate or donor’s tax

Issuance of shares by a closely held issuing corporation shall be subject to:

• Percentage tax — 6/10 of 1% based on gross selling price or gross value in money

• Capital gains tax of 15% on capital gain 

  
  

• Percentage on IPO — 4%, 2%, 1% based on gross selling price or gross value in money. 

• No business tax but subject to documentary stamp tax (DST) 

Primary offering of shares by the issuing corporation (issuance during initial public offering) shall be subject to: 

• Percentage tax — 6/10 of 1% based on gross selling price or gross value in money.

• Capital gains tax of 15% on capital gain.

• Percentage on IPO — 4%, 2%, 1% based on gross selling price or gross value in money. 

• No business tax but subject to documentary stamp tax (DST) 

Statement 1: The amount of money raised for the government in the exercise of its power to tax is and police power is based on the needs of the government

   Statement 2: The amount of money raised for the government in the exercise of its power of eminent domain is based on the cost of processing the transfer of property from private entities and/or individuals to the government.

•  Only statement 1 is correct

• Only statement 2 is correct

• Both statements are correct

• Both statements are incorrect

Statement 1: Passive incomes are subject to separate and final tax rates.  

Statement  2:  Passive  income  are  included  in  the  computation  of  taxable  income  from  compensation  or business/professional income.

• Only statement 1 is correct

• Only statement 2 is correct

• Both statements are correct

• Both statements are incorrect

Which of the following statements is true?

• The power of taxation and eminent domain are both exercisable only by the government and its political subdivision.

• The exercise of the power of eminent domain and police power can be expressly delegated to the local government units by the law making body

• In police power, the property taken is preserved for public use. The power of eminent domain is created by the constitution

The following passive income received by a domestic corporation shall be subject to 20% final withholding tax, EXCEPT:

• Interest income from peso bank deposit

• Yield from deposit substitutes

• Dividend income from another domestic corporation

• Royalties

The basis or test of exemption of real properties owned by religious, or charitable entities from real property taxes is:

• Use of the real property

• Ownership of the real property

• Location of the real property

• Ownership or location real property at the option of the government

Government agencies performing governmental functions are exempt from tax unless expressly taxed while those performing proprietary functions are subject to tax unless expressly exempted” refers to:

• The tax imposed should be for public purpose.

• There should be no improper delegation of the taxing power.

• The power to tax is limited to the territorial jurisdiction of the taxing government.

• Exemption of government entities from taxation.