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INCOME TAX - PRELIM

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The following statements correctly described the power of the State to tax except

a)

It is a power inherent in every sovereign state to imposed a charge or burden upon persons, properties or rights to raise revenues for the use and support of the government and to enable it to discharge its functions.

b)

The State can exercise the power of taxation only if it is expressly mentioned in the Constitution

c)

It passes a legislative undertaking through the enactment of laws by the Congress which will be implemented by the Executive Branch of the government through its Bureau of Internal Revenue to raise revenue for the inhabitants in order to pay necessary expenses of the governement.

d)

It is a way of collecting and apportioning the cost of government among those who are privileged to enjoy its benefits

2.

Which statement is wrong

a)

The power of taxation may be exercised by the governement, its political subdivisions, and public utilities

b)

Generally, there is no limit on the amount of tax that may be imposed

c)

The money contributed as tax becomes part of public funds

d)

The power to tax is subject to inherent and constitutional limitations

3.

They exist independent of the constitution being fundamental power of the state, except

a)

Power of taxation

b)

Police power

c)

Power of eminent domain

d)

Power of recall

4.

The following statement correctly states te differences among the inherent powers of the state, except?

a)

The property taken under eminent domain and taxation are preserved but that of police power is destroyed

b)

Eminent domain does not require constitutional grant but taxation being formidable, does in order to limit its exercise by the legislature

c)

Police power and taxation is exercised only by the government but eminent domain may be exercised by private entities

d)

Police power regulates both property and liverty while eminent domain and taxation affects only property rights

5.

Which of the following statements is not correct?

a)

Taxes maybe imposed to raise revenue or to provide disincentives to certain activities within the State

b)

The State can have the power of taxation even if the Constitution des not expressly give it the power to tax

c)

In the exercise of the power of taxation, the State can tax anything at any time.

d)

The power of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers.

6.

The principal purpose of taxation is

a)

To encourage the growth of home industries through the proper use of tax incentives

b)

To implement the police power of the State

c)

To reduce excessive inequalities of wealth

d)

To raise revenue for governmental needs

7.

Taxation is exercised both by the legislative and executive branch of the governement. Which of the following is not function of the Congress?

a)

Selecting the kind of tax

b)

Fixing amount of tax

c)

Prescribing rules of taxation

d)

Assessment of tax liability

8.

The official action of an officer authorized by law in ascertaining the amount of tax due under the law from a taxpayer is

a)

Assessment

b)

Delinquency

c)

Deficiency

d)

Distraint

9.

Fixing the tax rate to be imposed is best described as a (an):

a)

Tax administration aspect

b)

Tax legislative function

c)

Aspect of taxation which could be delegated

d)

Function that could be exercised by the executuve branch

10.

One of the following is not a characteristic or an element of tax

a)

It is levied by the legislature

b)

It is payable in money or in kind

c)

It is proportionate in character

d)

It is an enforced contribution

11.

The tax law must be capable of convenient, just and effective administration

a)

Theoretical justice

b)

Fiscal adequacy

c)

Administrative feasibility

d)

Rule of apportionment

12.

These are restrictions imposed by the Constitution

a)

Inherent limitations

b)

Constitutional limitations

c)

Basic principles of sound tax system

d)

None of the choices

13.

It literally mean "place of taxation" the country that has the power and jurisdiction to levy and collect the tax

a)

Basis of taxation

b)

Situs of taxation

c)

Scope of taxation

d)

Theory of taxation

14.

Tax which is a fixed proportion of the amount or value of the property with respect to which the tax is assessed

a)

Ad-valorem

b)

Specific

c)

Excise

d)

Revenue

15.

Transfer of the tax burden by one whom the tax is assessed to another

a)

Shifting

b)

Capitalization

c)

Transformation

d)

Tax exemption

16.

Due to his expertise, Engr. Pedro D. Magiba (a freelancer) was hired by a foreign petroleum contractor in Thailand to provide technical assistance for two months from Febuary to March. He was hired again for the months of June-July and October-December of the same taxable year. Engr. Pedro D. Magiba is a:

a)

Resident citizen

b)

Nonresident citizen

c)

Special Filipino employee

d)

None of the above

17.

Bu-dhoy, a Mongolian national, arrived in the Philippines on January 18, 2022 to visit his Filipina girlfriend. He planned to stay in the country until December 31, 2020, by which time he would go back to his legal wife and family in Mongolia. Bu-dhoy derived income during his stay here in the Philippines. For 2018 taxable year, Bu-dhoy shall be classified as a:

a)

Resident alien

b)

Non-resident alien engaged in trade or business in the Philippines

c)

Non-resident alien not engaged in trade or business in the Philippines

d)

Special alien employee

18.

Rihanna, an American singer, was engaged to sing for one week at the Western Philippine Plaza after which she returned to USA. For income tax purposes, she shall be classified as:

a)

Resident alien

b)

Nonresident alien engaged in trade or business

c)

Nonresident alien not engaged in trade or business

d)

Resident citizen

19.

Who of the following individual taxpayers is taxable on income derived from within and without the Philippines?

a)

Pedro, a native of Bacolod City, working as overseas contract worker in Singapore

b)

George, naturalized Filipino citizen and married to a Filipina. He had been living in Pampanga since 1990

c)

Pao Gasul, Spanish citizen and a resident of Madrid, Spain, spent a one (1) week vacation in Boracay

d)

Jennie, Korean singer, held a 3-day concert in Manila

20.

On October 2018, Mr. Bald Nha, an American basketball coach was hired as a team consultant by one of the teams in the Philippine Basketball Association (PBS) for one conference which will las for a period of not more than three (3) months from October to December 2018. His coming to the Philippines was a definite purpose. However, he was subsequently chosen to coach the Philippine men's basketbal team for a period of two (2) years. The American mentor intends to leave the Philippines as soon as his job is finished. For 2018 taxable year, the AMerican coach shall be classified as:

a)

Resident alien

b)

Nonresident alien engaged in trade or business

c)

Nonresident alien not engaged in trade or business

d)

Resident citizen

21.

Conmpute for the tax due if the taxable income is 250,000

(a)  

22.

Conmpute for the tax due if the taxable income is 420,000 (answer should be in this format ex. 10,000.00)

(a)  

23.

Conmpute for the tax due if the taxable income is 8,000,001 (answer should be in this format ex. 10,000.00)

(a)  

24.

Conmpute for the tax due if the taxable income is 2,000,010 (answer should be in this format ex. 10,000.00)

(a)  

25.

Conmpute for the tax due if the taxable income is 100,000 (answer should be in this format ex. 10,000.00)

(a)