Final Exam
Final Exam: VAT and Taxation Essentials
Test your knowledge on vital aspects of VAT and taxation with our comprehensive quiz! This quiz is designed for students, educators, and professionals looking to deepen their understanding of tax regulations and exemptions.
What you'll find in this quiz:
- 42 thoughtfully crafted questions
- Multiple-choice format to challenge your knowledge
- Instant feedback on your answers
A feature of a zero-rated VAT transaction is:
Input VAT may be creditable
The transaction is no longer recorded since it’s zero-rated
It results to an output tax
Input VAT may not be creditable
Persons liable for VAT:
In the course of trade or business would have gross annual receipts/sales of more than 3M Pesos
In the course of trade or business would have gross annual receipts/sales of at least 3M Pesos
Any person engaged in trade or business of selling goods or services outside the country
In the course of trade or business would have net annual receipts/sales of 3M Pesos
Vat exempt transactions:
Does not generate both input and output VAT
Do not allow any tax credit of VAT nor are subjected to output VAT
Do not allow for the credit of input VAT but allows recognition of an output VAT
Generates an output VAT but no input VAT
Characteristics of a Tax Assessment from the BIR, except:
Written
Contains the legal basis and the corresponding regulation violated, if any
Contains the factual basis of the assessment
Does not serve as a basis for the application of surcharges and fees
Common examples of taxable passive income, except:
Royalty Income
Dividend Income of Resident Foreign Corporations from Domestic Corporations
Dividend Income of Non-Resident Citizen from Domestic Corporations
Interest income on bank deposits
An example of a VAT exempt transaction:
Export Sale of goods by a VAT-Exporter Entity
Sale of specialty feeds for cock fighting
Sale of adobong manok by Antok’s Chicken
Services rendered by an employee for an employer
Injunctions are generally not allowed but may be granted by the Court of Appeals
True
False
Steps in Taxpayer’s Remedies, except:
Filing of a Return
Filing of a Protest after the receipts of a Final Assessment Notice
Appeal to the Court of Appeals en banc
Filing of a Reply from receipt of a Preliminary Assessment Notice
A taxpayer may apply for the non-payment of the tax due through a valid compromise
True
False
Shifting of the tax liability is the main component of indirect taxes.
True
False
Rentals for commercial use are subject to VAT regardless of the amount of monthly rental fees
True
False
Theoretical Justice requires the application of the rules of the court in mediating tax disputes
True
False
With MCIT, Optional Standard Deduction of 40% of Gross Income is no longer considered
True
False
Fiscal Adequacy refers to the capacity of the State to cover its expenses through funds from investors
True
False
The amount of MCIT credit is equal to the difference between the MCIT and the NCIT in years MCIT is payable
True
False
Value Added Tax is a percentage tax, indirect tax, a tax on consumption, and a privilege tax
True
False
If a return is filed before its deadline, the number of days filed in advanced are considered creditable days
True
False
The amount of MCIT credits may be used to reduce the amount of the supposed NCIT payable to zero
True
False
If the monthly rental of residential units are more than 15,000, these shall be considered VAT transactions
True
False
A return filed after the due date shall earn interest but may be reduced by the number of creditable advanced-submission days
True
False
Under the law, only the Commissioner has the capacity to conduct the examination of a taxpayer’s records
True
False
The acts of the government and its authorized agents cannot be presumed to be correct
True
False
Assessments by the State can be made even before the filing of the tax return
True
False
The MCIT is applicable starting on the fourth taxable year of the corporation’s existence
True
False
When in doubt, tax exemptions are generally construed in favor of the taxpayer.
True
False
A preliminary assessment notice is not required in cases of mathematical errors
True
False
The power of Taxation, Eminent Domain, and Police Power all rest upon necessity because there can be no effective government without them
True
False
Value Added Tax is a percentage tax, indirect tax, a tax on consumption, and a privilege tax
True
False
If the monthly rental of residential units are more than 15,000, these shall be considered VAT transactions
True
False
Remedies given to the Government, except:
Levy
Reinvestigation
Distraint
Forfeiture
For regular returns, the Government has three years to assess the taxpayer and five years to collect, from the the time of filing the return
True
False
The Commissioner may delegate its authority on the following, except:
Issue Rulings
Compromise/Abate Taxes
Assign/re-assign officers
Issue Revenue Regulations
Not involved in dispute resolution of tax remedies:
Court of Appeals
Trial Court
Supreme Court
Court of Tax Appeals
Which is not an attribute of taxation?
Levied on persons or property
Enforced contribution
Payable in money or assets
Proportionate in character
For Fraudulent Returns, the government has 10 years from the time of discovery within which to conduct a formal assessment of a taxpayer.
True
False
Which is not a principle of a sound tax system?
Fiscal Adequacy
Equality and Uniformity
Administrative Feasibility
Theoretical Justice
_______ means that the system of tax should make sure that the Government will always get enough funds to pay for its expenses
The Commissioner of Internal Revenue, with all 7 Deputies and respective field officers, such as RO's and RDO's comprise the basic structure of the BIR
True
False
For Fraudulent Returns, the government has 10 years from the time of___________to conduct a formal assessment of a taxpayer.
Tax matters that can be compromised, except:
Delinquencies
Civil Tax Cases
Pending FAN
Criminal Tax Fraud
Causes of Willful Neglect, except:
False or Fraudulent returns
Willful neglect to file ITR
30% under-declaration of income
Fails to pay the full amount of tax
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