WorksheetsACC 26 - QUIZ 2
Total questions: 35
Worksheet time: 23mins
The existence of the government is a necessity and that the state has the right to compel all individuals and property within its limits to contribute
basis of taxation
situs of taxation
scope of taxation
theory of taxation
The reciprocal duties of support and protection between the people and the government
basis of taxation
situs of taxation
scope of taxation
theory of taxation
Which statement below expresses the lifeblood theory?
the assessed taxes must be enforced by the government
the underlying basis of taxation is government necessity, for without taxation, a government can't either exist nor endure
taxation is an arbitrary method of exaction by those who are in seat of power
the power or taxation is an inherent power of the sovereign to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues
The principal purpose of taxation is
tp encourage the growth of home industries through the proper use of tax industries
to implement the police power of the state
to reduce excessive inequality of wealth
to raise revenues for governmental needs
The following are the aspects of taxation:
1. levying or imposition of the tax on persons, property or excises
2. collection of taxes already levied
3. sufficiency of the governments sources to satisfy its expenditure
1, 2 & 3
1 & 2 only
1 & 3 only
2 & 3 only
All of the following are legislative aspect of taxation except
selection of the object or subject of tax
valuation of property for taxation
fixing of tax rates
prescribing the general rules of taxation
All of the following are administrative functions of taxation except
selection of object of tax
equalization of assessments
valuation of property for taxation
collection of taxes
How will the local government units be able to exercise their taxing powers?
by local legislation
by authority conferred by congress
by issuance of the department of finance
by the help of the bureau of internal revenue
One of the following is not a characteristic or an element of tax
it is levied by the legislature
it is payable in money or in kind
it is proportionate in character
it is an enforced contribution
All of the following, except one, are basic principles of a sound taxation system:
fiscal adequacy
administrative feasibility
theoretical justice
inherent in sovereignty
What basic principle of a sound taxation system, the government should not incur a deficit?
theoretical justice
administrative feasibility
fiscal adequacy
none of the above
The following constitute double taxation, except one
both taxes are imposed in the same amount
both taxes are levied for the same purpose
both taxes are imposed by the same taxing authority
both taxes are imposed upon the same person
The usual mode/s of avoiding occurrence of double taxation is/are:
reciprocal exemption either by law or treaty
tax credit of foreign taxes paid
deduction for foreign taxes paid
all of the above
none of the above
A fundamental rule of taxation is that "the property of one country may not be taxed by another country". This is known as
international law
reciprocity
international comity
international inhibition
No person shall be imprisoned for non-payment of this
property tax
excise tax
poll tax
income tax
It is literally means "place of taxation" the country that has the power and jurisdiction to levy and collect the tax
basis of taxation
situs of taxation
scope of taxation
theory of taxation
The Philippine Income Tax System has the following features, except
comprehensive tax situs using the nationality, residence , and sources rules
the individual income tax system is mainly progressive in nature
indirect rather than direct system
semi-global and semi0schedular system
Tax of fixed amount imposed among all persons residing within a specified territory without regard to their property or occupation they may be engage
personal, poll or capitation
property tax
excise tax
regressive tax
Tax which is demanded from one person in the expectation and intention that he shall indemnify himself at the expense of another
direct
indirect
excise
income
Under the Creditable Withholding Tax System, which of the following statements is INCORRECT?
Taxes withheld on certain income payments are intended to equal or at least approximate the tax due of the payee on said income..
The receipt of the income is no longer required to file an income tax return as prescribed under the Tax Code
The payee is required to report the income and pay the difference between the tax withheld and the tax due thereon
Taxes withheld under this system are creditable in nature.
A Filipino citizen is a natural persons who is/has:
1. Born by birth with father and/or mother as Filipino citizens
2. Born before January 17, 1973 of Filipino who elects Philippine citizenship upon reaching the age of maturity
3. Acquired Philippine citizenship after birth (naturalized)in accordance with Philippine laws
1 only
1 & 2 only
1 & 3 only
all of the above
none of the above
Individual taxpayers are
natural person with income derived within the territorial jurisdiction of a taxing authority
natural person classified as citizens and aliens
all of the above
none of the above
Which is correct?
1. The intention with regard to the length and nature of stay of an alien determines whether he is a resident or non resident
2. A foreigner who has acquired residency in the Philippines shall only become a nonresident when he departs with the intention of abandoning his residency in the Philippines
Statement 1
Statement 2
Both statements
Neither 1 nor 2
Taxable only on income from sources within the Philippines, except
resident citizen
non resident citizen
resident alien
non resident alien
Income, for tax purposes:
1. means all income from whatever source (legal or illegal), unless specifically excluded under the Tax Code
2. means all wealth which flows into the taxpayer other than return of capital
3. is recognized in the year it is actually received in cash or cash equivalent
1 & 2 only
1 & 3 only
all of the statements
none of the statements
Which of the following is a requisites for an income to be taxable?
there must be a gain
the gain must be realized or received
the gain must not be excluded by law from taxation
all of the above
Which of the following is NOT an income for income tax purposes
collection of loans receivable
condonation of debt for services rendered
excess of selling price over the cost of an asset sold
all of the above
none of the above
Which of the following is not a characteristics of income?
increase in taxpayer's wealth
realization or receipt of gain
earnings constructively received
return of taxpayer's wealth
Which of the following is considered or construed as an example of "constructive receipt"?
retirement benefits, pensions, gratitude
fees paid to a public official
interest coupons that have matured and are payable but have not been cashed
deposits for rentals to answer for damages, restricted as to use
Situs for income taxation purposes will depend upon variations factors, including
1. the nature of the tax and the subject matter thereof
2. the possible protection and benefit that may accrue both to the government and to the taxpayer
3. domicile or residence
4. citizenship
5. source of income
1 & 5 only
1, 2 & 4 only
1, 3, 4 & five only
all of them
Situs of taxation on income from sale of personal property
place of the seller
place of sale
place of buyer
as determine by the BIR
Which of the following test of source of income is INCORRECT
Interest income - residence of the debtor
Income from services - place of performance
Royalties -place of use of intangible
Gain on sale of real property-place of sale
It is important to know the source of income for tax purposes (i.e. from within or without the Philippines) because
some taxpayers are taxed on their worldwide income while others are not
the Philippine imposes income tax only on income from sources within
some individual are citizens while other are aliens
export sales are not subject to income tax
Compensation income is earned when an employer-employee relationship exists. Which of the following represents income earned through employee-employer relationship?
1. professional fees
2. wages
3. pension pay
4. capital gain
1 only
1 & 2 only
2 & 3 only
1, 2 & 3 only
Which of the following is not taxable income?
bad debts previously deducted as items of expense and partially recovered subsequently
tax expense previously disallowed as deduction from taxable income, fully refunded subsequently
income from gambling
income from usurious financing
