Take the Taxation Law Review MCQs – Set 2 Quiz.
Taxation Law Review - Set 2 [25 items]
Question 1 |
A | Collection of FBT is ensured because it is withheld at source |
B | Valuation of benefits is easier at the level of the employer |
C | Valuation of benefits is easier at the level of the employer AND collection of FBT is ensured because it is withheld at source |
D | The employee does not have the means to pay |
Question 2 |
[TLR0203]Citing Section 10, Article VIII of the 1987 Constitution which provides that salaries of judges shall be fixed by law and that during their continuance in office their salary shall not be decreased, a judge of a Regional Trial Court questioned the deduction of withholding taxes from his salary since it results into a net deduction of his pay.
Is the contention of the judge correct?
A | No. The contention is incorrect because taxes must be collected in order to support the government. |
B | No. The contention is incorrect because deduction of withholding taxes is required by law. |
C | No. The contention is incorrect because taxes are enforced contributions. |
D | No. The contention is not correct because deduction of withholding taxes is not a dimunition contemplated by the fundamental law. |
Question 3 |
A | credit |
B | abate |
C | compromise |
D | refund |
Question 4 |
A | to fix the tax liability of a taxpayer |
B | for issuance of warrant of distraint or levy |
C | establish a case for judicial action |
D | before the preliminary investigation of a fraudulent tax evasion case could prosper |
Question 5 |
[TLR0206] Barbaran municipality has an ordinance which requires that all stores, restaurants, and other establishments selling liquor should pay a fixed annual fee of P20,000. Subsequently, the municipal board proposed an ordinance imposing a sales tax equivalent to 5% of the amount paid for the purchase or consumption of liquor in stores, restaurants, and other establishments. The municipal mayor refused to sign the ordinance on the ground that it would constitute double taxation.
Is the refusal of the mayor justified?
A | No. The refusal of the mayor is unjustified because double taxation is allowed in our jurisdiction. |
B | No. The refusal of the mayor is unjustified because it is not within his power. |
C | No. The refusal of the mayor is not justified because double taxation will generate more revenues. |
D | No. The refusal of the mayor is not justified because the impositions are of different nature and character. |
Question 6 |
A | Levy |
B | Forfeiture |
C | Tax lien |
D | Distraint |
Question 7 |
A | alcohol products |
B | cinematographic films |
C | mineral products |
D | tobacco products |
Question 8 |
A | 40% of the basic assessed tax |
B | 10% of the basic assessed tax |
C | P1,000,000 |
D | No limitation |
Question 9 |
[TLR0208] Tino is engaged in buying and selling of fresh fruits at the Q-Mart and Aranque Markets. He is also exporting canned and preserved fruits to Japan. In 2004, he made a gross sales of P2,000,000. He is liable for VAT registration fee of :
A | P500 |
B | P1,500 |
C | Exempt |
D | P1,000 |
Question 10 |
A | if the employer closed shop |
B | if employee resigned at the age of 60 |
C | if separation is due to death, sickness or injury of employee |
D | if employee voluntarily resigned |
Question 11 |
A | True, if made in the regular course of trade or business |
B | False, it is exempt if what is sold is a residential unit |
C | True, if what is sold is a residential unit |
D | False, it is exempt if the real estate is not classified as capital asset |
Question 12 |
[TLR0209] Shirley was allowed to deduct P200,000 bad debts written off in 2003, where she had a net income before bad debts of P180,000 and a net loss of P20,000. IN 2004, she was able to recover the bad debts written off in full. The bad debts recovery is:
A | Taxable to the extent of P20,000 |
B | Taxable to the extent of P200,000 |
C | Not taxable |
D | Taxable to the extent of P180,000 |
Question 13 |
A | when there is a prejudicial question |
B | when charges are manifestly false and motivated by lust for vengeance |
C | when double jeopardy is clearly apparent |
D | when the court has no jurisdiction over the offense |
Question 14 |
A | Pays the tax under protest |
B | Amends his tax return |
C | Files a written claim for credit/refund with the BIR within 2 years from payment |
D | Appeals to the CTA |
Question 15 |
A | general professional partnership |
B | estates and trusts |
C | ordinary business partnership |
D | all choices |
Question 16 |
A | Both "false" choices are correct |
B | False, required to pay registration fee |
C | False, required to register with the BIR but exempt from the payment of registration fee |
D | True |
Question 17 |
A | Taxes are levied by the executive branch of the government. |
B | Taxes are enforced charges and contributions. |
C | Taxes are imposed on persons and property within the territorial jurisdiction of a State. |
D | Taxes are pecuniary in nature. |
Question 18 |
A | Mortgage on the real property sold not exceeding the cost thereof |
B | Payments made in the year of sale in addition to the down payment |
C | Down payment only made at the time of sale. |
D | Evidence of indebtedness issued by the purchaser to the seller at the time of sale |
Question 19 |
A | local tax |
B | special tax |
C | specific tax |
D | regressive tax |
Question 20 |
[TLR0213] If monthly rental income of a residential unit exceeds P 10,000 per unit, the same shall be subject to 12% VAT.
A | True, without any further condition. |
B | False, this is exempt from VAT under RA 9337 |
C | True, only if the total gross annual rentals received exceed P 1.5M |
D | False, this is subject to 0% VAT. |
Question 21 |
A | when double jeopardy is clearly apparent |
B | when there is a prejudicial question |
C | when charges are manifestly false and motivated by lust for vengeance |
D | when the court has no jurisdiction over the offense |
Question 22 |
A | motor tricycles |
B | taxicab operators |
C | tourist buses |
D | common carriers transporting cargoes |
Question 23 |
A | Export sales of goods |
B | Domestic sale of goods in the regular course of trade or business |
C | Foreign currency denominated sale |
D | Sale of gold to Bangko Sentral ng Pilipinas |
Question 24 |
A | The MCIT is equal to 2% of the gross income of the corporation |
B | The MCIT is not computed quarterly but on an annual basis |
C | The MCIT payments can be carried over for the next 3 years immediately following such payment |
D | The taxpayer should pay the MCIT or the regular income tax whichever is higher. |
Question 25 |
A | The MCIT is equal to 2% of the gross income of the corporation |
B | The taxpayer should pay the MCIT or the regular income tax whichever is higher. |
C | The MCIT payments can be carried over for the next 3 years immediately following such payment |
D | The MCIT is not computed quarterly but on an annual basis |
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How to report an erroneous question? See HERE.