Income Taxation

 TAX 6148 Income Taxation

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