INCOME TAX

Question 1

Which is not a requisite of gross income?
a.Return on capital
b.Realized benefit
c. Exempted by law
d. not exempted by law

Answer 1

C

Question 2

Which is not subject to income tax?
a.Donation
b.Sale of service
c. sales of goods
d. barter of goods

Answer 2

B

Question 3

When paid for, which of the following items may involve a return on capital?
a.House an lot
b.Life
c. dignity
d. health

Answer 3

A

Question 4

Why is income subject to taxation?
a.Income is the most prevalent source of a taxpayer’s wealth
b.Income is the best measure of taxpayer’s ability to pay tax
c.Rich people tend to have more income than the poor
d.Any of these

Answer 4

B

Question 5

Which is specifically exempted from income taxation by virtue of legal exemption?
a.Minimum wage
b.Gain on sale of prohibited drug
c.Unrealized gain
d.All of these

Answer 5

A

Question 6

A resident alien naturalized in accordance with Philippine laws is a
a.Resident citizen
b.Resident alien
c.Non-resident alien engaged in trade or business
d.Non-resident alien not engaged in trade or business

Answer 6

A

Question 7

Who is not a resident alien?
a.An alien who stayed in the Phil. For more than two years
b.An alien who married and stayed in the Phil. For one year
c.And alien who stayed in the Phil. For more than one year
d.An alien who established his intention before the CIR to stay in the Phil. For an extended period of time

Answer 7

B

Question 8

A Filipino who has been abroad for more than 183 days is classified as a
a.Resident alien
b.Non-resident alien
c.Non-resident citizen
d.Non-resident citizen not engaged in trade or business

Answer 8

C

Question 9

Which of the following is not an income taxpayer classification?
a.Resident citizen
b.Non-resident alien
c. resident foreign corporation
d. general professional partnership

Answer 9

D

Question 10

An alien who stayed less than one year in the Philippines is classified as a non-resident alien not engaged in trade or business if he stayed herein for less than
a.180 days
b.1 year
c. 183 days
d. 2 years

Answer 10

A

Question 11

A foreign corporation which is not authorized to conduct business in the Philippines is a
a.Domestic corporation
b.Resident corpo
c. non-resident corpo
d. de jure corpo

Answer 11

C

Question 12

A foreign corporation which operates a branch in the Philippines is a
a.Domestic corporation
b. Resident Corpo
c. non-resident corpo
D. de jure corpo

Answer 12

B

Question 13

A partnership which dominantly operates business abroad is a
a.Domestic corporation
b.Resident corpo
c. non-resident corpo
d. de jure corpo

Answer 13

A

Question 14

Which is required to pay income tax?
a.Revocable trust
b.Estates under extrajudicial settlement
c.Co-ownership
d.Business partnership

Answer 14

D

Question 15

Which of the following taxpayers is taxable only on income earned from the Philippines?
a.Resident alien
b.Domestic corporation
c.resident citizen
d. all of these

Answer 15

A

Question 16

All of the following are taxable only on income earned from sources within the Philippines, except
a.Resident alien
b.Non-resident citizen
c. non-resident corporation
d. domestic corporation

Answer 16

D

Question 17

Which is an incorrect statement regarding of situs of income?
a.Service income earned in the domicile of the taxpayer
b.Interest income is earned in the residence of the debtor
c.Royalty is earned where the intangible is employed
d.Rent is earned in the location of the property

Answer 17

A

Question 18

Which statement is correct regarding situs of income?
a.The gain on the sale of real property is earned in the location of the property
b.The gain on sale of any property is earned in the place of sale
c. Merchandising income is earned in the residence of the properties
d. Manufacturing income is earned in the place of sale

Answer 18

A

Question 19

Gains on sale of goods manufactured and sold by the taxpayer within the Philippines is subject to tax
a.Wherever sold
b.If sold abroad only
c. without the Philippines only
d. within the Philippines only

Answer 19

D

Question 20

Which is correct with regard to the final income taxation?
a.Taxpayers need to file an income tax return
b.It cover all items of passive income from whatever sources
c.It applies to all items of gross income of any non-residents sources within the Philippines
d.It applies to passive income earned abroad

Answer 20

A

Question 21

Which statement is correct regarding final income tax?
a.Items of income subjected to final tax can still be subjected to regular tax
b.Final tax applies only on certain passive income earned within Philippines
c.Items of income exempt under final tax are subject to regular tax
d.Final income tax applies to all passive income from Philippines

Answer 21

B

Question 22

What is the final tax on interest income on 6-year deposit on dividends?
a. 20%
b.12%
c.5%
d.0%

Answer 22

A