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INCOME TAXATION > FINALD - T OR F > Flashcards

FINALD - T OR F Flashcards

1
Q

Estates and trusts are allowed a personal exemption of P20,000

A

F (Per TRAIN, they are no longer allowed this exemption).

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2
Q

Estates are taxed on income received during the period of administration or settlement.

A

T

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3
Q

A trust must be irrevocable to be taxable.

A

T

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4
Q

Estate taxation applies to the income generated by an estate

A

F (Estate tax applies to property transfer, not income).

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5
Q

A beneficiary has an equitable title to property in a trust.

A

T

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6
Q

Income accumulated in a foreign-administered trust is deductible from gross income

A

F (Such deductions are not allowed in foreign-administered trusts).

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7
Q

A fiduciary may distribute or retain income, depending on the terms of the trust.

A

T

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8
Q

In a revocable trust, the trustee is taxed on the income

A

F (The grantor is taxed in a revocable trust).

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9
Q

Income from an estate under judicial settlement is taxable.

A

T

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10
Q

Gross income for estates and trusts includes similar items as for individual taxpayers.

A

T

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11
Q

GPPs are taxed as corporations.

A

F

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12
Q

The distributive share of GPP partners is taxable

A

T

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13
Q

GPPs are allowed to deduct OSD and itemized deductions simultaneously.

A

F

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14
Q

Co-owners are taxed individually on their distributive share if limited to property preservation.

A

T

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15
Q

A co-ownership becomes a taxable partnership if it generates income through business activities.

A

T

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16
Q

General co-partnerships are considered tax-exempt for their business operations.

A

F

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17
Q

A GPP may opt to claim itemized deductions or OSD but cannot switch within the same year.

A

T

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18
Q

The profit-sharing ratio is used to distribute losses if no agreement exists on loss division.

A

T

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19
Q

A partner’s share in a taxable partnership’s income is taxed as dividends.

A

T

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20
Q

Income received from a GPP is subject to a final tax at the corporate level.

A

F

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21
Q

Are tips accounted for by the employer?

A

F

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22
Q

Are tips subject to withholding tax?

A

F

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23
Q

Are service charges collected by the employer distributed to employees taxable?

A

T

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24
Q

Are tips part of gross compensation?

A

T

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25
Q

Compensation income includes allowances, honoraria, and taxable fringe benefits.

A

T

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26
Q

Gains from dealings in property form part of gross income.

A

T

27
Q

Passive income subject to final tax is excluded from gross income when computing taxable income.

A

T

28
Q

Dividends received by an individual taxpayer always form part of taxable gross income.

A

F

29
Q

Living quarters and meals provided for the convenience of the employer are excluded from compensation income.

A

T

30
Q

Employee bonuses are considered de minimis benefits and are always exempt from income tax.

A

F

31
Q

Medical assistance not exceeding PHP 10,000 per annum is considered a taxable benefit.

A

F

32
Q

Monetized unused vacation leave credits up to 10 days are tax-exempt for private employees.

A

T

33
Q

Pensions received as retirement pay are always subject to income tax.

A

F

34
Q

Prizes and winnings are always part of gross income

A

T

35
Q

Tips paid directly to employees are exempt from tax.

A

F

36
Q

Tips are subject to withholding tax.

A

F

37
Q

Gratuities received by an employee must be reported to the employer.

A

F

38
Q

Employers must withhold tax on tips received by employees.

A

F

39
Q

Tips are considered part of an employee’s taxable income

A

T

40
Q

Tips from customers are included in gross income.

A

T

41
Q

Service charges distributed to employees are exempt from tax.

A

F

42
Q

Tips paid in cash are treated differently from tips paid via credit card.

A

F

43
Q

Tips are considered a benefit for tax purposes.

A

F

44
Q

Voluntary tips are always subject to withholding tax.

A

F

45
Q

Tips paid directly to an employee by customers are subject to withholding tax.

A

F

46
Q

Tips received by employees are considered taxable income.

A

T

47
Q

Gratuities must be declared as part of the gross income in tax filings.

A

T

48
Q

Employers are required to report employee gratuities to the tax authority.

A

F

49
Q

Tips and gratuities are tax-exempt in the Philippines.

A

F

50
Q

A mandatory service charge is considered a tip.

A

F

51
Q

Tips form part of the employee’s gross income even if not declared.

A

T

52
Q

Tips given to employees are always fixed amounts

A

F

53
Q

Gratuities voluntarily paid by customers are not subject to withholding tax.

A

T

54
Q

Tips directly paid by customers to employees must be included in payroll computation.

A

F

55
Q

Dividends received by a non-resident alien not engaged in business are subject to a 15% final tax.

A

F

56
Q

Stock dividends are always non-taxable

A

F

57
Q

Prizes and awards received in recognition of civic achievement are taxable.

A

F

58
Q

Annuities are taxable to the extent that they represent a return of premium.

A

F

59
Q

PCSO winnings up to PHP 10,000 are subject to a 20% final tax.

A

F

60
Q

Dividends received by a domestic corporation are exempt from income tax.

A

T

61
Q

Compensation income is taxed based on the place of performance of the service.

A

T

62
Q

Tax informer’s rewards are subject to a 10% tax rate on the recovered amount.

A

T

63
Q

Retirement benefits are always taxable, regardless of conditions.

A

F

64
Q

Non-resident aliens engaged in business are subject to a 20% final tax on dividends.

A

T

INCOME TAXATION (13 decks)

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