| TRUE | The 13th month pay and other benefits amounting to P82,000 and below are not taxable. |
| TRUE | The State can still exercise its taxing powers over its citizen, even if he resides outside the taxing State's territory. |
| FALSE | The benefits from taxation have to be experienced to justify the legitimacy of collection of taxes from the people. |
| Generally, prospective in operation although the tax statute may nevertheless operate retrospectively provided it is clearly the legislative intent. | Which of the following characteristics describes our internal revenue laws? |
| progressive | Which of the following tax rates behaves in the same direction with the taxable value? |
| To exercise the levying function of taxation | Which of the following is not within the scope of authority of the BIR Commissioner? |
| TRUE | The tax doctrine of Marshall Dictum explains that tax is a power to destroy. |
| FALSE | In general, bills need not to be signed by the President to become a law. |
| TRUE | The Philippine tax laws are not political and penal in nature. |
| FALSE | Most taxpayers elect to report income in a fiscal year basis. |
| FALSE | Tax exemption is transferable and assignable. |
| TRUE | The State can still exercise its taxing powers over its citizen, even if he resides outside the taxing State's territory. |
| Simple Neglect | It is twenty five percent (25%) surcharge. |
| Compromise | It is a contract whereby the parties, by reciprocal concessions, avoid litigation or put an end to one already commenced. |
| FALSE | A tax evader sidesteps the law, while the tax avoider breaks it. |
| TRUE | In taxation, it is one's civil liability to pay taxes which gives rise to criminal liability. |
| Property | Taxation co-exist with the four elements of the state which includes all, except |
| TRUE | All BIR approved retirement pays are exempted from income tax. |
| custom duties | The following are business taxes except |
| Passage of tax laws and ordinance through the legislature | Which of the following is not an activity involving tax administration? |
| Tax Assessment and Collection | Tax Administration is a system involving enforcement of taxes through the use of |
| FALSE | The existence of a Constitution is necessary for the exercise of the inherent powers of the Sovereign State. |
| TRUE | Dividends received by a cooperative from a domestic corporation are tax exempt. |
| FALSE | Income that is not realized is taxable. |
| Due dates | These refer to the last day for filing return and payment of tax. |
| FALSE | Taxes collected by the BIR are local taxes. |
| TRUE | Taxation is the government's legitimate means of interfering with private properties of its subjects. |
| FALSE | Cash method of reporting income can deduct prepaid expenses in the year of payment. |
| FALSE | Taxes collected by the BIR are local taxes. |
| custom duties | All of the following are not taxes except |
| FALSE | Local tax ordinances must be uniformly and equally applied throughout the country. |
| FALSE | Taxation is the primary source of government revenue. Hence, all government funds come from taxes. |
| selection of object of tax | All of the following are administrative functions of taxation except |
| FALSE | Taxation could be described as a power, as a process, or as a means. As a power, taxation is a way of apportioning the cost of government among those who are privileged to enjoy its benefits. |
| Tax Remedies | These are procedures or actions available both to the government to collect taxes and to the taxpayer to avoid abuses in the payment of taxes. |
| civil | Which of the following nature of laws describes tax laws? |
| TRUE | Revenues derived from taxes cannot be used for the exclusive use of private persons. |
| TRUE | Gross income includes other income from other sources. |
| TRUE | Passive income is subjected to normal tax only if not subjected to final tax. |
| Public Purpose | Tax affects the area or nation as a community rather than as individuals. This is a specific explanation of |
| Capital, Revenue, Receipts | Distinctions of Income |
| FALSE | If the taxpayer is an individual, his taxable income shall be computed on the basis of calendar year. |
| Jeopardy Assessment | It terminates or condenses the taxpayer's period. |
| Surcharges | It is a civil penalty imposed by law in addition to the main tax required to be paid dud to delinquency or misrepresentation of taxes. |
| FALSE | No person shall be imprisoned for nonpayment of income taxes. |
| Assessment | This refers to the process of taxation to determine the amount of tax based on existing tax law. |
| TRUE | Normal taxes are usually subject to creditable withholding tax. |
| Installment of payments. → Annuities, Reward for an event. → Winning, By month. → Salary, Illegal source of income → Embezzlement, Reward for a contest. → Prize, By hour, day, week. → Wage, Allowance on his retirement. → Pension, Amount of wealth plus savings and earnings. → Income, Leasehold improvement is recognized. → Outright Method, Total earnings from whatever source. → Gross Income | Select the right answer. |
| TRUE | Gain from redemption of shares in mutual fund is exempted from income tax. |
| FALSE | In installment method, the excess of mortgage assumed over cost of property sold is considered as part of the initial payment. |
| FALSE | All government entities regardless of their functions are exempted from taxes because it would be impractical for the government to be taxing itself. |
| TRUE | The net worth method is commonly used in determining the taxable income of taxpayers with complete accounting records. |
| Marshall Dictum | The power to tax includes the power to destroy because the taxpayer has no option but to pay the tax imposed to him. |
| Tax Avoidance | It is a scheme of reducing payment of taxes through legally permissible means. |
| Disputed Assessment | This tax assessment is being asked to be cancelled because there is a question as to its validity or legality. |
| FALSE | Local tax ordinances must be uniformly and equally applied throughout the country. |
| FALSE | Tax exemption is transferable and assignable. |
| FALSE | The benefits from taxation have to be experienced to justify the legitimacy of collection of taxes from the people. |
| FALSE | The deferred payment method adopts the present value of reporting income. |
| Bureau of Internal Revenue | It is the government agency primarily in charge to assess and collect all taxes and charges imposed. |
| FALSE | All amounts received from a life insurance annuity are taxable. |
| FALSE | Taxation could be described as a power, as a process, or as a means. As a power, taxation is a way of apportioning the cost of government among those who are privileged to enjoy its benefits. |
| FALSE | Taxation is the primary source of government revenue. Hence, all government funds come from taxes. |
| Tax Administration | It is a system of collecting taxes in accordance with the country's tax policies. |
| Reciprocity | Which of the following remedies against double taxation requires tax treaty? |
| Secretary of Justice | A government officer considered as tax enforcer by having the power to ascertain the validity of tax laws subject to the review of the Courts of Justice |
| TRUE | The tax doctrine of Marshall Dictum explains that tax is a power to destroy. |
| TRUE | As a rule, excess amount of liquidating dividends over cost of shares surrendered is taxable. |
| TRUE | Revenues derived from taxes cannot be used for the exclusive use of private persons. |
| TRUE | Protection is the basic consideration that justifies tax situs. |
| TRUE | All damage recoveries are not taxable. |
| Within the Philippines, Partly within the Philippines, Partly without the Philippines, Outside Philippines | Where are the sources of Income come from? |
| TRUE | In taxation, it is one's civil liability to pay taxes which gives rise to criminal liability. |
| TRUE | Taxation is the government's legitimate means of interfering with private properties of its subjects. |
| Commissioner Caesar R. Dulay | Who is the BIR Commissioner? |
| FALSE | All government entities regardless of their functions are exempted from taxes because it would be impractical for the government to be taxing itself. |
| TRUE | Sovereign equality dictates that a nation cannot impose taxes on the property of another country. |
| real property tax | All of the following are National taxes as to collecting authority except |
| Salary, Gambling, Bonus, Rebates | Below are the legal sources of income. Select three sources of income. |
| TRUE | An increase in the value of property is income. |
| TRUE | Sovereign equality dictates that a nation cannot impose taxes on the property of another country. |
| TRUE | Protection is the basic consideration that justifies tax situs. |
| TRUE | In tax capitalization, the buyer absorbs the payment if tax and includes the same as part of the cost of the acquired property. |
| Tax Lien | It is a legal claim granted to the government to secure the proper payment of the tax, surcharges, interest and costs on all property subject to levy or distraint. |
| TRUE | The Philippine tax laws are not political and penal in nature. |
| may have a House version and a Senate version approved separately and then consolidated, with both houses approving the consolidation version. | Which statement is wrong? A revenue bill |
| TRUE | In tax capitalization, the buyer absorbs the payment if tax and includes the same as part of the cost of the acquired property. |
| FALSE | A tax evader sidesteps the law, while the tax avoider breaks it. |
| TRUE | Tips are taxable. |
| FALSE | The existence of a Constitution is necessary for the exercise of the inherent powers of the Sovereign State. |
| rule of uniformity | All of the following are inherent restrictions on the exercise of taxation power, except |
| FALSE | The monetary value of availed vacation and sick leaves is compensation income. |
