Income Taxation

Income Taxation

An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.


AnswersQuestions
TRUEThe 13th month pay and other benefits amounting to P82,000 and below are not taxable.
TRUEThe State can still exercise its taxing powers over its citizen, even if he resides outside the taxing State's territory.
FALSEThe 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?
progressiveWhich of the following tax rates behaves in the same direction with the taxable value?
To exercise the levying function of taxationWhich of the following is not within the scope of authority of the BIR Commissioner?
TRUEThe tax doctrine of Marshall Dictum explains that tax is a power to destroy.
FALSEIn general, bills need not to be signed by the President to become a law.
TRUEThe Philippine tax laws are not political and penal in nature.
FALSEMost taxpayers elect to report income in a fiscal year basis.
FALSETax exemption is transferable and assignable.
TRUEThe State can still exercise its taxing powers over its citizen, even if he resides outside the taxing State's territory.
Simple NeglectIt is twenty five percent (25%) surcharge.
CompromiseIt is a contract whereby the parties, by reciprocal concessions, avoid litigation or put an end to one already commenced.
FALSEA tax evader sidesteps the law, while the tax avoider breaks it.
TRUEIn taxation, it is one's civil liability to pay taxes which gives rise to criminal liability.
PropertyTaxation co-exist with the four elements of the state which includes all, except
TRUEAll BIR approved retirement pays are exempted from income tax.
custom dutiesThe following are business taxes except
Passage of tax laws and ordinance through the legislatureWhich of the following is not an activity involving tax administration?
Tax Assessment and CollectionTax Administration is a system involving enforcement of taxes through the use of
FALSEThe existence of a Constitution is necessary for the exercise of the inherent powers of the Sovereign State.
TRUEDividends received by a cooperative from a domestic corporation are tax exempt.
FALSEIncome that is not realized is taxable.
Due datesThese refer to the last day for filing return and payment of tax.
FALSETaxes collected by the BIR are local taxes.
TRUETaxation is the government's legitimate means of interfering with private properties of its subjects.
FALSECash method of reporting income can deduct prepaid expenses in the year of payment.
FALSETaxes collected by the BIR are local taxes.
custom dutiesAll of the following are not taxes except
FALSELocal tax ordinances must be uniformly and equally applied throughout the country.
FALSETaxation is the primary source of government revenue. Hence, all government funds come from taxes.
selection of object of taxAll of the following are administrative functions of taxation except
FALSETaxation 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 RemediesThese are procedures or actions available both to the government to collect taxes and to the taxpayer to avoid abuses in the payment of taxes.
civilWhich of the following nature of laws describes tax laws?
TRUERevenues derived from taxes cannot be used for the exclusive use of private persons.
TRUEGross income includes other income from other sources.
TRUEPassive income is subjected to normal tax only if not subjected to final tax.
Public PurposeTax affects the area or nation as a community rather than as individuals. This is a specific explanation of
Capital, Revenue, ReceiptsDistinctions of Income
FALSEIf the taxpayer is an individual, his taxable income shall be computed on the basis of calendar year.
Jeopardy AssessmentIt terminates or condenses the taxpayer's period.
SurchargesIt is a civil penalty imposed by law in addition to the main tax required to be paid dud to delinquency or misrepresentation of taxes.
FALSENo person shall be imprisoned for nonpayment of income taxes.
AssessmentThis refers to the process of taxation to determine the amount of tax based on existing tax law.
TRUENormal 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 IncomeSelect the right answer.
TRUEGain from redemption of shares in mutual fund is exempted from income tax.
FALSEIn installment method, the excess of mortgage assumed over cost of property sold is considered as part of the initial payment.
FALSEAll government entities regardless of their functions are exempted from taxes because it would be impractical for the government to be taxing itself.
TRUEThe net worth method is commonly used in determining the taxable income of taxpayers with complete accounting records.
Marshall DictumThe power to tax includes the power to destroy because the taxpayer has no option but to pay the tax imposed to him.
Tax AvoidanceIt is a scheme of reducing payment of taxes through legally permissible means.
Disputed AssessmentThis tax assessment is being asked to be cancelled because there is a question as to its validity or legality.
FALSELocal tax ordinances must be uniformly and equally applied throughout the country.
FALSETax exemption is transferable and assignable.
FALSEThe benefits from taxation have to be experienced to justify the legitimacy of collection of taxes from the people.
FALSEThe deferred payment method adopts the present value of reporting income.
Bureau of Internal RevenueIt is the government agency primarily in charge to assess and collect all taxes and charges imposed.
FALSEAll amounts received from a life insurance annuity are taxable.
FALSETaxation 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.
FALSETaxation is the primary source of government revenue. Hence, all government funds come from taxes.
Tax AdministrationIt is a system of collecting taxes in accordance with the country's tax policies.
ReciprocityWhich of the following remedies against double taxation requires tax treaty?
Secretary of JusticeA 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
TRUEThe tax doctrine of Marshall Dictum explains that tax is a power to destroy.
TRUEAs a rule, excess amount of liquidating dividends over cost of shares surrendered is taxable.
TRUERevenues derived from taxes cannot be used for the exclusive use of private persons.
TRUEProtection is the basic consideration that justifies tax situs.
TRUEAll damage recoveries are not taxable.
Within the Philippines, Partly within the Philippines, Partly without the Philippines, Outside PhilippinesWhere are the sources of Income come from?
TRUEIn taxation, it is one's civil liability to pay taxes which gives rise to criminal liability.
TRUETaxation is the government's legitimate means of interfering with private properties of its subjects.
Commissioner Caesar R. DulayWho is the BIR Commissioner?
FALSEAll government entities regardless of their functions are exempted from taxes because it would be impractical for the government to be taxing itself.
TRUESovereign equality dictates that a nation cannot impose taxes on the property of another country.
real property taxAll of the following are National taxes as to collecting authority except
Salary, Gambling, Bonus, RebatesBelow are the legal sources of income. Select three sources of income.
TRUEAn increase in the value of property is income.
TRUESovereign equality dictates that a nation cannot impose taxes on the property of another country.
TRUEProtection is the basic consideration that justifies tax situs.
TRUEIn tax capitalization, the buyer absorbs the payment if tax and includes the same as part of the cost of the acquired property.
Tax LienIt 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.
TRUEThe 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
TRUEIn tax capitalization, the buyer absorbs the payment if tax and includes the same as part of the cost of the acquired property.
FALSEA tax evader sidesteps the law, while the tax avoider breaks it.
TRUETips are taxable.
FALSEThe existence of a Constitution is necessary for the exercise of the inherent powers of the Sovereign State.
rule of uniformityAll of the following are inherent restrictions on the exercise of taxation power, except
FALSEThe monetary value of availed vacation and sick leaves is compensation income.