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Chapter 4: Tax Planning

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.
  1. The individual taxpayers are also called__.

a)

Jurisdictional Person

b)

 Artificial Person

c)

Natural Person

d)

Super Natural Person

2.
  1. According to the Philippine Tax Code Sec.22 E, immigrants are defined as___ .

a)

A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.

b)

 A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.

c)

A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year.

d)

Individuals whose residence is within the Philippines and who is not a citizen thereof.

3.
  1. Under the Create Act, these are the corporations who has a flat tax rate of 20%

a)

Domestic Corporations

b)

Domestic Corporations (MSMEs)

c)

 Foreign Corporations

d)

Foreign Corporations (MSMEs)

4.

Who are taxed only on their income derived from the Philippines?

a)

Resident Alien

b)

Non Resident Alien

c)

Resident Foreign Corporations

d)

All of the above

5.
  1. Jollibee is a famous fast food chain in the Philippines. It also now globally operates in 33 countries  including Singapore, Taiwan and the United States. What is the situs of taxation of the said branches?

a)

Within the Philippines

b)

Without the Philippines

c)

 Both  a and b

d)

No correct answer

6.
  1. This is where the Place of Sale is considered.

a)

Rentals

b)

Gain on sale of personal property

c)

Dividends

d)

Income from services

7.

Statement: A gain from sale of shares of a domestic corporation shall be considered derived from the Philippines regardless of where the shares were sold.

a)

The Statement is false

b)

The Statement is true

c)

The Statement is either false or true

d)

No answer

8.
  1. Statement 1: Rentals Involves physical assets like real estate, vehicles, or equipment.

Statement 2: Royalties are the intangible assets like intellectual property.

a)

Statement 1 and 2 are false.

b)

Statement 1 and 2 are true.

c)

Statement 1 is false and statement 2 is true.

d)

Statement 1 is true and Statement 2 is false.

9.

Which of the following test of source of income is incorrect?

a)

Interest income residence of the debtor

b)

Income from services - place of performance

c)

Royalties place of use of intangible

d)

Gain on sale of real property - place of sale (should be the location of real property)

10.

The following are considered the source of income under rentals and royalties except one?

a)

Copyright

b)

Design

c)

Shares

d)

Trade brand

11.

When is the deadline of filing income taxes return?

a)

May 15

b)

April 15

c)

Feb 15

d)

August 15

12.

Who are required to file income taxes return?

a)

Non-individuals

b)

Individuals

c)

Groups of people

d)

A and B

13.

What is the acronym of RDO?

a)

Revenue District Officials

b)

Real District Office

c)

Revenue District Office

d)

None of the above

14.

What are the ways to file an income tax return?

a)

Manually

b)

Electronically

c)

Traditional way

d)

All of the above

15.

What are the examples of non-individuals in business?

a)

Domestic Corporations

b)

Partnerships

c)

Foreign Resident Corporations

d)

All of the above

16.

When you choose to delay receiving money until a later time. This is often done to avoid paying taxes on that money right now, and instead pay those taxes in the future, when you might have a lower income and could pay less in taxes.

a)

Maximizing deductions

b)

Tax efficient investments

c)

Tax loss harvesting

d)

Income deferral

17.

Types of investments designed to minimize the amount of taxes you pay on the income or gains they generate.

a)

Maximizing deductions

b)

Income deferral

c)

Tax efficient investments

d)

Tax credits

18.

 Secure BIR Form No. _______ from clients to claim advance tax payments as deductions from your annual taxes.

a)

2307

b)

 2305

c)

2207

d)

3207

19.

Means ensuring you don’t mistakenly pay taxes on income that should be exempt from tax, such as unrealized foreign exchange gains or other non-taxable items.

a)

Keep up with tax law changes

b)

Avoiding taxing non-taxable income

c)

 Optimize retirement accounts

d)

Decide on excess tax payments

20.

What is the meaning of the deduction method “OSD” ?

a)

Optional Standard Deduction

b)

Optional Sales Deduction

c)

 Optional Strategy Deduction

d)

Optional Stock Deduction

21.

In this system, different kinds of income are treated as discretely independent and governed by different sets of rules and tax rates, which can be more complicated but enables provision of differential tax treatment.

a)

Schedular Tax System

b)

 Income Tax System

c)

Tax Planning System

d)

Global Tax System

22.

It means the income from earnings which is allocated and paid to shareholders by a corporation.

a)

Dividend Income

b)

Net Income

c)

Gross Income

d)

Global Tax System

23.

Its taxes are charged and computed on income that is obtained after authorized deductions have been taken in to consideration that include operational costs and business activities.

a)

Gross Income Taxation

b)

Net Income Taxation

c)

 Dividend Income

d)

Tax Planning System

24.

Knowing this is important in determining the taxable income as some taxpayers are taxable on their income from all sources while others are taxable only on their income derived from the Philippines.

a)

Situs of income

b)

Interest

c)

Revenue

d)

Net of income

25.

It is assessed on entire income without the deduction of any costs thereby simpler but giving this type of taxation suggests higher tax liabilities.

a)

Gross Income Taxation

b)

Net Income Taxation

c)

Tax Planning

d)

Income Tax System

26.

Which government sector should taxpayers pay compliance to?

a)

Bureau of Customs

b)

Banko Sentral ng Pilipinas

c)

Bureau of Internal Revenue

d)

 Bureau of Treasury

27.

What is the first step in calculating of your income tax in The Philippines?

a)

Use the BIR table to tell if you qualify for certain benefits

b)

Apply all salary deductions under the Philippine law

c)

Determine the taxable income

d)

Determine what type of taxpayer you are

28.

Which does not belong to the group?

a)

Pantawid Pamilyang Pilipino Program

b)

Philhealth contribution

c)

Social Security System

d)

Pag-IBIG

29.

What are the two types of taxpayers in The Philippines?

a)

Individual and Business

b)

Social and Corporation

c)

Individual and Corporation

d)

Personal and Business

30.

How do you get an accurate estimation for your taxable income?

a)

Apply all salary deductions

b)

Use the BIR table

c)

Check the compensation range

d)

Know what type of taxpayer you are