Take the Taxation Law Review MCQs – Set 2 Quiz.
Taxation Law Review - Set 2 [25 items]
Question 1 |
A | The employee does not have the means to pay |
B | Valuation of benefits is easier at the level of the employer |
C | Collection of FBT is ensured because it is withheld at source |
D | Valuation of benefits is easier at the level of the employer AND collection of FBT is ensured because it is withheld at source |
Question 2 |
A | ordinary business partnership |
B | general professional partnership |
C | all choices |
D | estates and trusts |
Question 3 |
A | credit |
B | compromise |
C | refund |
D | abate |
Question 4 |
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 is not computed quarterly but on an annual basis |
D | The MCIT payments can be carried over for the next 3 years immediately following such payment |
Question 5 |
A | Distraint |
B | Tax lien |
C | Forfeiture |
D | Levy |
Question 6 |
A | tobacco products |
B | alcohol products |
C | mineral products |
D | cinematographic films |
Question 7 |
A | when the court has no jurisdiction over the offense |
B | when there is a prejudicial question |
C | when charges are manifestly false and motivated by lust for vengeance |
D | when double jeopardy is clearly apparent |
Question 8 |
A | Domestic sale of goods in the regular course of trade or business |
B | Sale of gold to Bangko Sentral ng Pilipinas |
C | Foreign currency denominated sale |
D | Export sales of goods |
Question 9 |
A | True, if what is sold is a residential unit |
B | False, it is exempt if the real estate is not classified as capital asset |
C | True, if made in the regular course of trade or business |
D | False, it is exempt if what is sold is a residential unit |
Question 10 |
[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 are enforced contributions. |
B | No. The contention is incorrect because taxes must be collected in order to support the government. |
C | No. The contention is not correct because deduction of withholding taxes is not a dimunition contemplated by the fundamental law. |
D | No. The contention is incorrect because deduction of withholding taxes is required by law. |
Question 11 |
A | if the employer closed shop |
B | if separation is due to death, sickness or injury of employee |
C | if employee resigned at the age of 60 |
D | if employee voluntarily resigned |
Question 12 |
[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 subject to 0% VAT. |
C | False, this is exempt from VAT under RA 9337 |
D | True, only if the total gross annual rentals received exceed P 1.5M |
Question 13 |
A | Taxes are enforced charges and contributions. |
B | Taxes are levied by the executive branch of the government. |
C | Taxes are pecuniary in nature. |
D | Taxes are imposed on persons and property within the territorial jurisdiction of a State. |
Question 14 |
A | before the preliminary investigation of a fraudulent tax evasion case could prosper |
B | to fix the tax liability of a taxpayer |
C | for issuance of warrant of distraint or levy |
D | establish a case for judicial action |
Question 15 |
[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 it is not within his power. |
B | No. The refusal of the mayor is unjustified because double taxation is allowed in our jurisdiction. |
C | No. The refusal of the mayor is not justified because the impositions are of different nature and character. |
D | No. The refusal of the mayor is not justified because double taxation will generate more revenues. |
Question 16 |
A | special tax |
B | regressive tax |
C | local tax |
D | specific tax |
Question 17 |
A | 40% of the basic assessed tax |
B | P1,000,000 |
C | No limitation |
D | 10% of the basic assessed tax |
Question 18 |
A | Payments made in the year of sale in addition to the down payment |
B | Down payment only made at the time of sale. |
C | Evidence of indebtedness issued by the purchaser to the seller at the time of sale |
D | Mortgage on the real property sold not exceeding the cost thereof |
Question 19 |
A | Amends his tax return |
B | Appeals to the CTA |
C | Pays the tax under protest |
D | Files a written claim for credit/refund with the BIR within 2 years from payment |
Question 20 |
[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 P200,000 |
B | Taxable to the extent of P20,000 |
C | Taxable to the extent of P180,000 |
D | Not taxable |
Question 21 |
A | False, required to register with the BIR but exempt from the payment of registration fee |
B | False, required to pay registration fee |
C | Both "false" choices are correct |
D | True |
Question 22 |
A | The MCIT payments can be carried over for the next 3 years immediately following such payment |
B | The MCIT is equal to 2% of the gross income of the corporation |
C | The taxpayer should pay the MCIT or the regular income tax whichever is higher. |
D | The MCIT is not computed quarterly but on an annual basis |
Question 23 |
A | when the court has no jurisdiction over the offense |
B | when double jeopardy is clearly apparent |
C | when there is a prejudicial question |
D | when charges are manifestly false and motivated by lust for vengeance |
Question 24 |
[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 | P1,500 |
B | P500 |
C | P1,000 |
D | Exempt |
Question 25 |
A | taxicab operators |
B | tourist buses |
C | motor tricycles |
D | common carriers transporting cargoes |
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How to report an erroneous question? See HERE.