Midterm Exam

A detailed educational illustration of taxation concepts, such as income tax, corporate taxes, and tax law, featuring symbols like a calculator, money, and tax forms.

Midterm Exam: Taxation Essentials

Test your knowledge on the foundations of taxation with our Midterm Exam. This quiz is designed for students studying tax laws and anyone interested in understanding the complexities of taxation.

  • Challenge yourself with a variety of question formats.
  • Explore topics such as types of taxes, taxation principles, and legal frameworks.
  • Perfect for exam preparation or self-assessment!
30 Questions8 MinutesCreated by CalculatingTaxation42
Type of taxes according to graduation or rate, except:
Schedular
Progressive
Regressive
Proportionate
_____ is the gradual diminution of the value of tangible asset with respect to its useful life due to its wear and tear or obsolescence.
Taxes are generally not subject to set-off because the government and the taxpayer are not mutual creditors/debtors of each other.
True
False
Non Resident Foreign Corporation may be taxed by the Philippines with the following income earned in the Philippines, except:
Annuities
Rents
Insurance Proceeds
Interests
Income received for success in a game of chance
Winnings
Pot money
Prize
Award
____ ____ means all persons subject to legislation be treated alike under same circumstances and conditions
The ______ states that the State will not survive without the funding provided by taxation.
_____ _____ are earned without the active participation of the taxpayer/income earner.
Examples of exempted corporations (generally), except:
Exclusive Cemetery company
Business Leagues
Non-Stock Educational Institutions
Public School
A non-stock, non-profit organization is...
One where ownership is not divided into stocks and the profits earned are recognized as income by the shareholders
One where ownership is not divided into stocks and it does not earn profit
One where ownership is not divided into shares and it does not record a profit to be reported for income tax purposes
One where ownership is not divided into shares and the profit is injected back to the operations of the business rather than given to the owners
The non-impairment clause of the Constitution can be defeated by a law promulgated by the government in exercising its
Double taxation is prohibited
True
False
An element of a valid classification under the Equal Protection Clause of the Constitution.
Based on substantive distinctions
Based in substantial qualifications
Based on substantial distinctions
Based on substantive qualifications
Taxes cannot be subject to set-off because
There are other means by which the government can exact payment other than taxes
The government and the taxpayers are mutual creditors of each other
The government cannot take credit as payment
The government and the taxpayers are not mutual creditors and debtors of each other
Since the power of taxation is inherent in Government, all its units also exercise the same inherent power to tax
True
False
The current BIR Commissioner, has the power to interpret tax laws and decide on disputed tax assessments.
True
False
Christmas bonus, 13th month pay, and other benefits received by employees are excluded from gross income if the total amount is less than ninety thousand pesos (Php90,000).
True
False
Examples of exempted income, except:
Retirement Pay (Registered)
SSS/GSIS benefits
Allowance to Military Personnel
13th Month Pay and other bonuses that 90k above
Classification of Taxes according to Subject Matter, except
Excise
Capitalization
Property
Capitation
Tips and gratuities are considered taxable income-thus, subjected to withholding tax.
True
False
Prizes and winnings are subject to 20% final tax, except if the amount is PhP10,000 or less.
True
False
Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt
Annuity
Interest
Installment
Dividend
Considered related parties, except:
Fiduciary with another Fiduciary having the same Grantor
Grantor-Fiduciary
Fiduciary-Beneficiary
Lawyer-Client
____ is a tax imposed at 10% of the improperly accumulated taxable income of corporations that permit its earnings to accumulate instead of being divided or distributed to shareholders.
____ of taxation means the place of taxation
Any gain derived and realized from capital, labor, or both. In general, it is any flow of wealth or advantage as a return ___ capital.
Minimum Corporate Income Tax or MCIT is Imposed on the fourth year immediately following the year of commencement of operations at two percent (2%) of gross income, when it is greater than normal income tax. Each year that MCIT is imposed, an MCIT balance is created and can be carried over for the next three (3) years. This balance can be used to offset the amount of normal income tax (should it be greater than MCIT).
True
False
Exemption religious, charitable, and educational institutions from taxation covers only property taxes
True
False
_____ _____ are other benefits given by the employer to the employee, usually of value and related to the better performance or holistic growth of the employee.
The most important requisite for deductibility of bad debt is to ensure that the subject debt is ____ _____ form the books of the taxpayer
{"name":"Midterm Exam", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Test your knowledge on the foundations of taxation with our Midterm Exam. This quiz is designed for students studying tax laws and anyone interested in understanding the complexities of taxation.Challenge yourself with a variety of question formats.Explore topics such as types of taxes, taxation principles, and legal frameworks.Perfect for exam preparation or self-assessment!","img":"https:/images/course3.png"}
Powered by: Quiz Maker