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WorksheetsBasic Income Taxation and Other Business Taxes Quiz
Total questions: 30
Worksheet time: 15mins
Mr. T's building with a book value of 2,000,000 was razed by fire. The insurance company paid T 1,400,000 for damages. The 1,400,000 proceeds is
taxable in full
partly reportable income and partly income subject to final tax
tax exempt
subject to final tax
The principal amount of time deposit in the bank (point of view of depositor) is an/a
revenue
receipt
capital
income
All of the following are inherent limitations on the exercise of taxation power, EXCEPT
Rule of Uniformity
International comity
Public purpose
Territorial jurisdiction
Which of the following is a taxable income?
Member's SSS contribution
SSS sickness benefits
excess of de minimis benefits + 13th month pay, aggregated amount is 30,000
Passive income earned by a resident citizen from sources outside the Philippines
Which of the following is not a compensation income?
Overtime pay
Allowances
Retirement pay
Professional fees
For the life insurance premium paid by the employer to be included as gross income of employee, the designated beneficiary should be
The insured person
Employer
A family member of the insured
A religious organization
Which of the following income earned/received in the Philippines by a citizen is subject to income tax?
winnings in Philippine Charity Sweepstake Lottery
Value of property received as gift
Gains from sale of a 3-year bond
SSS or GSIS benefits
What is the tax rate of Value Added Tax in the Philippines?
2%
5%
10%
12%
Which of the following is a taxable compensation income?
Terminal pay by fact of death
Separation pay due to resignation
Retirement pay under BIR approved retirement plan
Unused vacation leave credits of 10 days or less
Separation pay due to disability
Atty. Ruth Cal received a second-hand car from his employer Jihad Law Office for successfully defending a criminal case. The car has a cost of 400,000 and its accumulated depreciation amounts to 300,000. The prevailing market value of the car of the same model is 120,000, but the new model is 500,000. How much is the reportable income of Atty. Cal?
500,000
200,000
120,000
100,000
400,000
ALE Company insured the life of its president for 2,000,000. A total of 500,000 in premiums was paid before the president died. The company collected the total proceeds. Compute the return on capital.
1,500,000
2,000,000
0
500,000
The statement that he who received more should give more is based on this basic tax principle.
Theoretical justice
Fiscal Adequacy
Administrative Feasibility
Due Process
The following are exclusions from gross income, except
gifts, bequests and devises
proceeds of life insurance policies
SSS retirement benefits
stock option granted by employer
Which of the following may be excluded from gross income of taxpayer?
income derived from bequests and devises
income from illegal gambling
Hazard pay of MWE senior citizen
laundry service income of a minimum wage earner
A BMBE is exempt from income tax if its capitalization is:
more than 5,000,000 excluding land
not exceeding 3,000,000 excluding land
not more than 5,000,000 including land
more than 3,000,000 including land
What amount of income earned by a taxpayer in a given year is exempted from income taxation?
3,000,000
250,000 and below
150,000 per quarter
300,000
The following are exclusions from gross income, except:
retirement benefits from plan approved by BIR
gifts, bequests and devises
proceeds of life insurance policies
prizes and winnings
The following shall be excluded from gross income, except:
advances for travelling expenses computed on a daily basis and are paid to an employee to perform his duty
amount paid under marriage settlement
income derived from a gift
allowance based from marriage separation agreement
Which of the following is considered as taxable compensation income?
Retrenchment pay
Retirement pay under a duly BIR approved benefit plan
Social security system benefits
Transportation allowance paid to rank and file employee
Gifts, Bequest and Devisees
If a property is received in lieu of cash compensation, the basis of tax is the
supposed amount of cash to be received
agreed value of the property received
salvage value of the property received
fair market value of the property received
An alien received 200,000 compensation income in the Philippines and 300,000 rental income from abroad. How much will be subject to Philippine income tax?
200,000
None
300,000
500,000
Cost of services may be defined as
All of the above are cost to provide services
Cost of facilities directly utilized to provide services
Cost of services to provide services
No cost involved in providing services
All direct costs and expenses necessary to provide services
Which of the following is taxable?
SSS and GSIS benefit
Personnel Economic Relief Allowance
Social security benefit received by a balikbayan from employer abroad
Separation pay received by a 50-year old employee due to the retrenchment program of the employer
Which is not a natural person?
Resident citizen
Non-resident alien not engaged in trade or business
Non-resident alien engaged in trade or business
Taxable estate
Which of the following tax escape is permissible under the Tax code?
tax avoidance
overstatement of expenses
tax evasion
tax dodging
The following are taxable recoveries from damages except
interest from nontaxable damages
moral damages awarded due to libel
damages for unrealized profit
damages for loss goods and other belongings
The BIR is under the supervision of the
Bureau of Customs
Department of Finance
Department of Budget
Department of Trade and Industry
Which of the following will result to earning of income by the debtor?
Cancellation of existing payables without any financial consideration
Cancellation of existing payables for services rendered to creditor
All of these will result to earning income by the debtor
Cancellation of existing payable due to bankruptcy of the debtor
Cancellation of existing payable to offset the equivalent amount of collectible
Which of the following is classified as income?
a gift received
damage recovery due to physical injuries
excess of selling price over cost of assets sold
return of capital
From January to March of 2018, Mr. C's salary from employment in the Philippines amounted to 250,000, net of 50,000 withholding tax. From April to December 2018 his total income from employment in Japan where he resided for the rest of the year, amounted to peso equivalent of 630,000, net of foreign income tax of 70,000. If Mr. C is a Filipino citizen and an overseas contract worker (OCW), how much is his total reportable income from Philippines?
250,000
1,000,000
880,000
700,000
300,000
