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WorksheetsIncome Taxation - 09.01.2021
Total questions: 30
Worksheet time: 30mins
_______ may be defined as a state power, a legislative process and a mode of government cost distribution.
Which of the following statement is false?
Taxation is an inherent power of the State to enforce a proportional contribution from its subjects for public purpose.
Taxation is a process of levying taxes by the legislature of the State to enforce proportional contributions from its subjects for public purpose
Taxation is a mode by which the State allocates its costs or burden to its subject who are benefited by its spending.
None of the choices.
Taxation is a mode of allocating government costs or burden to the people distributing the costs or burden, the government regards the following general considerations in the exercise of its taxation power:
Benefits received theory
Ability to pay theory
Both choices
None of the choices
Taxes are essential and indispensable to the continued subsistence of the government. Without taxes, the government would be paralyzed for lack of motive power to activate or operate it. This principle is known as ________
Which of the following is not included in the inherent powers of the State?
Taxation Power
Police Power
Eminent Domain
None of the choices
What are the inherent limitation of Taxation Power?
What are the constitution limitations of Taxation Power?
Explain Situs of Taxation
The following are the instances of double taxation, except
Same object
Same type and purpose of tax
Same taxing jurisdiction
Same tax period
None of the choices
Which of the following is not among those considered escapes from Taxation?
Tax Evasion, Tax Avoidance and Tax Exemption
Shifting, Capitalization and Transformation
All of the choices
None of the choices
Which of the following is true?
Tax Amnesty is a general pardon granted by the government for erring taxpayers to give them a chance to reform and enable them to have a fresh start to be part of a society with a clean state.
Tax Condonation is a forgiveness of the tax obligation of a certain taxpayer under a certain justifiable ground. This is also called tax remission
Tax amnesty covers both civil and criminal liabilities but condonation only covers civil liabilities of the taxpayers.
Tax amnesty operates retrospectively by forgiving past violations while tax condonation applies prospectively to any unpaid balance of tax in which a portion already paid by the taxpayer will not be refunded.
None of the choices.
Taxation law refers to any law that arises from the exercise of the taxation power of the State. What are the different types of taxation laws?
Tax laws related to assessment and collection of taxes
Tax exemptions laws that grant certain immunity from taxation
Both choices
None of the choices
which of the following is not among the sources of taxation laws?
Constitution
Statutes and Presidential Decrees
Jurisprudences
Local Ordinance
None of the above
Which of the following are among the types of administrative issuance issued by the Bureau of Internal Revenue?
Revenue Regulations
Revenue Memorandum Circular
Revenue Memorandum Orders
BIR Rulings
None of the above
How do we classify taxes?
As to purpose and subject matter
As to incidence and amount
As to rate and imposing authority
All of the choices
Among are the principles of a sound tax system, except
Fiscal Adequacy
Theoretical Justice
Administrative feasibility
None of the choices
Who are not among the chief officials of the Bureau of Internal Revenue?
Deputy Commission - Resource Management Group
Deputy Commissioner - Operations Group
Deputy Commissioner - Legal and Enforcement Group
Deputy Commission - Information Systems Group
None of the choices
Which of the following is not among the powers of the Commissioners which shall not be delegated?
To recommend the promulgation of rules and regulations to the DOF
To issue rulings of first impression or to reverse, revoke or modify any existing tax rulings of the BIR
Power to compromise or abate any tax liability
To assign and reassign internal revenue officers to establishment where articles subject to excise tax are produced or kept.
None of the choices
The following are other agencies tasked with the tax collections or tax incentives
Bureau of Customs
Board of Investments
Philippine Economic Zone Authority
Local Government Tax Collecting Unit
All of the choices
Taxpayers may be classified as
Large Taxpayer
Non-large Taxpayer
either of the choices
neither of the choices
Which of the following is true?
Income is regarded as the best measure of taxpayer's ability to pay tax which is also an excellent object of taxation in the allocation of government costs.
A taxable item or income is referred to as an "item of gross income" or "inclusion in gross income"
Under the Tax Code, as amended, "taxable income" refers to certain items of gross income less deductions allowed by law.
None of the above.
Which of the following are elements of gross income?
Return on capital that increases net worth
Realized benefit
Not exempted by law, contract or treaty
All of the above
Which of the following is true about recovery of loss capital and recovery of lost profits?
The loss of capital results in decrease in net worth while loss of profits decreases net worth
The recovery of loss capital merely maintains net worth while the recovery of loss profits increases net worth
The recovery of loss profits through insurance, indemnity contracts or legal suits constitutes a non-taxable return on capital
None of the choices
The following arethe type of taxpayers, except
Individuals
Corporate
None of the choices
The following are considered citizens, except?
Those who are citizens of the Philippines at the time of adoption of the 1987 Constitution
Those whose fathers or mothers are citizens of the Philippines
Those born before January 17, 1973 of Filipino Mother who elected Filipino Citizenship upon reaching the age of maturity
Those who are naturalized in accordance with the law
None of the above
A citizen may be classified as resident or non-resident
True
False
Danilo, a mexican actor, was contracted by GMA to do a project in the Philippines. He arrrived in the country February 29, 2021 and returned to Mexico three weeks later upon completion of the telenovela. How do we classify Danilo as an individual?
Non-resident alien engaged in trade or business
Non-resident alien not engaged in trade or business
Citizen
none of the choices
Mario, a Mongolian, arrived in the Country on November 4, 2021 and stayed in the Philippines since then without any working via or work permit. If he stays before 2021, how do we classify him?
Non-resident alien engaged in trade or business
Non-resident alien not engaged in trade or business
Resident Alien
Citizen
Which of the following is true?
A domestic corporation is the one organized under the laws of the Philippines and includes one-person corporation under the Revised Corporate Code of the Philippines.
A foreign corporation is one organized under a foreign law.
A foreign corporation may be classified as resident and non-resident foreign corporations.
All of the choices.
Which of the following is false between the a type of income and its place of taxation following the concepts under situs of income?
Interest income - debtors residence
Royalties - where the tangible property is located
Rent income - where the property is located
Service income - place whether it was rendered
None of the choices.
