CHAPTER 4

Question 1

Taxable on world income

Answer 1

RC, DC

Question 2

Taxable only on Philippines

Answer 2

NRC, RA, NRA-ETB, NRA-NETB, RFC, NRFC

Question 3

3 INCOME TAX SCHEME

Answer 3

FINAL INC TAX
CAPITAL GAINS TAX
REGULAR INC TAX

Question 4

3 INCOME TAX TREATMENT

Answer 4

EXEMPT
FINAL TAX
REGULAR INC TAX

Question 5

HOW MUCH INCOME SUBJECT IN FINAL TAX

Answer 5

9 INCOME

Question 6

HOW MUCH INCOME SUBJECT IN EXEMPT

Answer 6

22 EXEMPT

Question 7

3 ELEMENTS OF GROSS INCOME

Answer 7

RETURN ON CAPITAL (INCREASE ON NETWORTH)
REALIZED BENEFIT
IT SHOULD NOT BE EXEMPT BY THE LAW

Question 8

IN REGULAR INCOME TAX:

INDIVIDUAL

GROSS INCOME LESS ALLOWABLE DEDUCTION =

Answer 8

TAXABLE INCOME (THEN TAXABLE INC X TAX TABLE)

Question 9

TAXABLE INCOME IS TAX ________

Answer 9

TAX BASED

Question 10

TAX DUE IS?

Answer 10

BINABAYARAN NA TAX

Question 11

IN REGULAR INCOME TAX:

CORPORATION

TAXABLE INCOME x WHAT PERCENTAGE?

Answer 11

20% OR 25%

Question 12

WHOS ARE NOT TAXABLE IN REGULAR INC TAX

Answer 12

NRA-NETB, NRFC

Question 13

2 ACCOUNTING PERIOD

Answer 13

REGULAR AND SHORT ACCOUNTING PERIOD

Question 14

2 REGULAR PERIOD

Answer 14

CALENDAR
FISCAL

Question 15

WHO R ALLOWED IN USING CALENDAR PERIOD

Answer 15

CORPORATE AND INDIVIDUAL

Question 16

WHO R ALLOWED IN USING FISCAL PERIOD

Answer 16

CORPORATE ONLY

Question 17

5 INSTANCES OF SHORT ACCOUNTING PERIOD

Answer 17

NEWLY COMMENCED BUSINESS
DISSOLUTION OF BUSINESS
CHANGE OF ACCOUNTING PERIOD
DEATH OF THE TAXPAYER
TERMINATION OF THE PERIOD BY COMMISIONER

Question 18

TYPES OF RETURN

Answer 18

INCOME TAX RETURN
WITHHOLDING TAX RETURNS
INFORMATION RETURNS

Question 19

PAYMENT OF INCOME TAX

Answer 19

PAY AS YOU FILE

Question 20

PENALTIES FOR LATE FILING OR PAYMENT OF TAX

SURCHARGE

Answer 20

25% BASIC TAX FOR FAILURE TO FILE OR PAY
50% WILFULL NEGLECT

Question 21

PENALTIES FOR LATE FILING OR PAYMENT OF TAX

INTEREST

Answer 21

12% PER ANNUM (OLD)
6% (UPDATED)

Question 22

PENALTIES FOR LATE FILING OR PAYMENT OF TAX

COMPROMISE

Answer 22

IN LIEU OF CRIMINAL PROSECUTION OVER A TAX VIOLATION
(5O % REDUCTION NOW)

Question 23

PENALTIES FOR LATE FILING OR PAYMENT OF TAX

SURCHARGE

(FOR MICRO OR SMALL TAX PAYER)

Answer 23

10%