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WorksheetsINCOTAX- REVIEW
Total questions: 50
Worksheet time: 25mins
TRUE OR FALSE: A business partnership is subject to the rule on minimum corporate income tax.
True
False
TRUE OR FALSE: A business partnership may avail of optional standard deduction in computing its taxable income.
True
False
TRUE OR FALSE: Employees of BIR are disqualified to receive reward as tax informers.
True
False
TRUE OR FALSE: Excess of cash advances on travel allowances of employees are taxable to them if not returned to their employer.
TRUE
FALSE
One of the following is not subject to income tax
Wagering Gains
Bribes given to an officials
Winnings In Lotto Amounting To 10,000
Winnings In Jueteng
If an individual renders services to a creditor who in consideration thereof cancels the debt, the cancellation of indebtedness may amount to a:
Capital Contribution
Gift
Payment Of Income
Donation Inter Vivos
It is the process or means by which the sovereign, through its lawmaking body, raises income to defray the necessary expenses of the government.
Tax
Government Tax
Scope Of Taxation
Taxation
The power of the state to enact such laws in relation to persons and property as may promote public health, public morals, public safety, and the general welfare of the people.
Taxation
Eminent Domain
Direct Tax
Police Power
It means the place of taxation. The rule is that the state which has jurisdiction to tax the person, property, or transactions may rightfully levy and collect tax.
Sinus Of Taxation
Situs Of Taxation
Shifting
Capitalization
Which are the sources of tax laws? (Choose 2)
Constitution
Judicial Decisions
Revenue Law Purposes
Tax Bill
It is a presidential decree that consolidatethe internal revenue law and Presidential Decrees into a single tax code.
Presidential Decree No. 1994
Presidential Decree No. 1995
Presidential Decree No. 1158
Presidential Decree No. 1168
It is An Act Amending Sections 22, 24, 34, 35, and 79 of RA 8424 as amended,” was signed into law and made effective July 6, 2008.
RA 8904
RA 9503
RA 9555
RA 9504
What does a double taxation means?
Taxing Twice
Within The Same Jurisdiction Or Taxing District
Same Purpose
All Of The Above
In case of doubt as to whether a taxpayer is covered by the tax or not,
the doubt shall be resolved in favor of the government and against the taxpayer
the doubt shall be resolved in favor of the constitution and against the taxpayer.
the doubt shall be resolved in favor of the taxpayer and against the government.
It refers to all the property, rights, and obligations of a person which are not extinguished by his death and those which have accrued thereto since the opening of the succession.
Heir
Beneficiary
Estate
Trust
An heir who inherits personal property by will is called
Beneficiary
Fiduciary
Legator
Trustor
TAXABLE OR NOT TAXABLE: 13th Month Pay
TAXABLE
NOT TAXABLE
TAXABLE OR NOT TAXABLE: Winning In Lotto In The Philippines
Taxable
Not Taxable
TRUE OR FALSE: The cash prize received by SAJ Antetokounmpo as Ramon Magsaysay Awardee (Literary Writing Category) is not subject to income tax.
TRUE
FALSE
TRUE OR FALSE: All passive incomes are subject to final witholding tax.
True
False
An act amending certain sections of NIRC of 1997 which was signed into law and made effective in 2008 with respect to the withholding tax on compensation income increasing personal and additional exemption, compensation received by minimum wage earners and other concerns.
RA 9504
RA 8424
RA 10694
RA 10963
A concept in taxation where a taxpayer has sufficient personality and interest to seek judicial assistance with a view of restraining an attempt to unlawfully disburse public funds.
Tax Amnesty
Rules On Set-Off
Taxpayer's Suit
Shifting
FRINGE BENEFIT TAX OR NOT:
Premiums borne by the employer for the insurance of its supervisory and managerial employees.
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
FRINGE BENEFIT TAX OR NOT:
Monetized value of sick leave credits of private employees not exceeding 10 days.
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
FRINGE BENEFIT TAX OR NOT:
Monetized unused vacation leave credits of government employees in excess of 10 days.
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
FRINGE BENEFIT TAX OR NOT:
House benefits to the Chief Finance Officer of the company
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
FRINGE BENEFIT TAX OR NOT:
Contributions made by an employer to SSS, GSIS and similar contributions under existing laws in excess of what the law requires as contributions.
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
TRUE OR FALSE: The grossed-up monetary value of the fringe benefit shall be determined by dividing the monetary value of fringe benefit by the grossed up monetary value factor.
TRUE
FALSE
TRUE OR FALSE: A managerial employee is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions
TRUE
FALSE
TRUE OR FALSE: Grossed-up monetary value is reflected in the books of accounts as fringe benefit expense and fringe benefit tax expense.
TRUE
FALSE
What is the regular (normal) income tax rare imposed on ordinary corporation effective July 1, 2020?
35%
15%
25%
20%
From July 1, 2020 to June 30, 2023, what is the minimum corporate income tax (MCIT)?
2% of gross income
1% of taxable income
1% gross income
2% taxable income
A domestic corporation is exempt from the imposition of the minimum corporate income tax (MCIT) if it is a
Operating Headquarters
Offshore banking unit
Domestic corporation
Non-profit hospital
TRUE OR FALSE:
Don Adilberto died in June 2021, leaving to his two heirs a parcel of land. The heirs decided not to sell the property but instead divided the 2021 rental income starting July 1 from the land lease between the two of them.
A partnership was formed in this case.
TRUE
FALSE
All the following statements are true, except
Dividends received by non-resident foreign corporations from domestic corporations maybe subject to 15% final tax.
Intercorporate dividends between domestic corporations are exempt from tax
Dividends received by residents or citizens from a domestic corporation are subject to final tax
A tax credit representing the difference between the regular corporate income tax rate and the reduced 15% tax rate maybe applied if dividends are received by domestic corporations from nonresident foreign corporations.
Determine the rate of each passive income:
Royalties (Resident Or Citizen)
20%
15%
10%
25%
Determine the rate of each passive income:
Philippine Charity Sweepstakes Winnings And Lotto Winnings In The Philippines Amounting To 10,000 or Less.
20%
15%
10%
25%
Not Taxable
Determine the rate of each passive income:
Philippine Charity Sweepstakes Winnings And Lotto Winnings In The Philippines Amounting To More Than 10,000
20%
15%
10%
25%
Not Taxable
Determine the rate of each passive income:
Prizes
20%
15%
10%
25%
Not Taxable
Determine the rate of each passive income:
Interest Income Received from a depository bank under the expanded foreign currency system. (Resident Or Citizen)
20%
15%
10%
25%
Not Taxable
Determine the rate of each passive income:
Interest Income Received from a depository bank under the expanded foreign currency system. (NRA ETB)
20%
15%
10%
25%
Exempt
______ is one where at any time the power to revest in the grantor the title to any part of the corpus of the trust vested. The income of such trust shall be included in the gross income of the grantor.
Irrevocable Trust
Revocable Trust
Trust
Estate
It is a partnership formed for the purpose of practicing a common profession, no part of the net income of which is derived from engaging in any trade or business.
General Business Partnership
General Professional Partnership
General Co-Partnerships
General Income Partnership
The share of a partner shall be subject to a creditable withholding income tax as follows:
____% if gross income is P720,000 and below
15%
20%
25%
10%
The share of a partner shall be subject to a creditable withholding income tax as follows:
____% if gross income is P720,000 and above
15%
20%
25%
10%
It is a Legal concept where two or more co-owners share the legal ownership of a property.
Co-Ownership
Partnership
Corporation
Cooperatives
It is a type of corporation that engaged in trade or business within the Philippines or having an office or place of business therein.
Foreign
Resident Foreign
Non-Resident Foreign
Any amount subsequently received on account of a bad debt previously charged off and allowed as a deduction from gross income from prior years must be included in the gross income for taxable year in which received. This is known as
Severance Theory
End Result Doctrine
Doctrine Of Income Tax Benefit
Destination Of Income Test
FRINGE BENEFIT TAX OR NOT:
Housing units situated inside or adjacent to business or factory (located within 50 meters from the parameter of business).
Subject To Fringe Benefit Tax
Not Subject To Fringe Benefit Tax
Which of the following is not correct in the computation of the minimum corporate income tax (MCIT)?
MCIT is generally applicable on corporations that suffered losses during the taxable year
Corporation subject to preferential tax rates are not subject to MCIT.
MCIT does not apply on the first three taxable years from registration with the BIR.
Application of MCIT is suspended during the period of pandemic.
