M3 PT 2

Question 1

theory and basis of taxation

Answer 1

• reciprocal duties of protection and support
• benefits received principle

Question 2

aspects of taxation

Answer 2

• levy
• collection
• allocation

Question 3

the government protects the welfare of its people in return, the people support the government

Answer 3

reciprocal duties of protection and support

Question 4

taxes are used for the benefit of the public

Answer 4

benefits received principle

Question 5

tax laws, specifying the object and amount of taxation are enacted

Answer 5

levy

Question 6

the tax laws are implemented and administered

Answer 6

collection

Question 7

distributing to various government sector and program

Answer 7

allocation

Question 8

principles of a sound tax system

Answer 8

• fiscal adequacy
• theoretical justice
• administrative feasibility

Question 9

revenues should be sufficient to defray expenditures

Answer 9

fiscal adequacy

Question 10

taxes are proportionate to the taxpayers ability to pay

Answer 10

theoretical justice

Question 11

tas laws can be implemented efficiently and effectively, avoiding necessary inconvenience and confusion

Answer 11

administrative feasibility

Question 12

employers are required to withhold taxes on employees, means that the salaries received as “take-home pay” is already net of the related income tax

Answer 12

withholding tax

Question 13

income earned without actively working for it

Answer 13

passive income

Question 14

subject to final tax

Answer 14

passive income

Question 15

interest income from bank deposit

Answer 15

20% tax rate

Question 16

interest income from foreign currency deposit

Answer 16

15% tax rate

Question 17

royalties except on books as well as other literary works and musical compositions

Answer 17

10% tax rate

Question 18

prizes and winnings exceeding 10,000

Answer 18

20% tax rate

Question 19

cash on property dividends

Answer 19

10% tax rate

Question 20

a partner’s share in the after tax profit of a partnership (except a general professional partnership)

Answer 20

10% tax rate

Question 21

how much is the annual registration fee for every separate place of business

Answer 21

500

Question 22

business taxation

Answer 22

annual registration
Value-Added tax (VAT)
Percentage Tax
Excise Tax

Question 23

imposed on any person who is in the ordinary course is business, sells, barters, exchanges, leases goods or properties/ renders servicess

Answer 23

value-added tax (VAT)

Question 24

a tax imposed on the consumption of goods or services in the philippines

Answer 24

consumption tax

Question 25

tax based on sales price

Answer 25

sales tax

Question 26

it can be shifted or passed on to the buyer

Answer 26

indirect tax

Question 27

tax rate of 250,000 and below

Answer 27

none

Question 28

tax rate of 250,000 to 400,000

Answer 28

15% over 250,000

Question 29

tax rate of 400,000 to 800,000

Answer 29

22,500 + 20% excess over 400,000

Question 30

tax rate of 800,000 to 2m

Answer 30

102,500 + 25% excess over 800,000

Question 31

above 2m to 8m

Answer 31

402,500 + 30% excess over 2m

Question 32

above 8m

Answer 32

2,202,500 + 35% excess over 8m