Midtems Taxation

Question 1

•The system of compulsory contributions levied by a government or other qualified body on people, corporations and property in order to fund public expenditures.

• An inherent power of the state to raise income and to demand enforced contributions for public purposes.

Answer 1

Taxation

Question 2

What are the characteristics of a sound tax system

Answer 2

•fairness
• clarity and certainty
• convenience
• efficiency

Question 3

is presumed to fall entirely on the legal taxpayers influences decisions to work, save, and invest. These decisions affect other people.

Answer 3

Personal Income Tax

Question 4

may simply result to lower corporate profits and dividends. It may reduce their income of all owners of property and businesses. The company may move toward raising the prices of their products

Answer 4

Corporate Income Tax

Question 5

Mandated to comprehend the assessment and collection of all national internal revenue taxes, fees and charges so as to promote a sustainable economic growth

Answer 5

BIR (Bureau of Internal Revenue)

Question 6

any person subject to tax whose sources of income is derived from within the Philippines

Answer 6

Tax payer

Question 7

is required for any individual taxpayer

Answer 7

TIN (Taxpayer Identification Number) is required for any individual taxpayer

Question 8

•Taxes are collected within a particular period of time know as ____

• This is the calendar year or the ____ that covers an accounting period of 12 months ending on the last day of any month other that December.

Answer 8

Taxable year
Fiscal year

Question 9

Tax on all yearly profits arising form property, possessions, trades or offices
Tax on a person’s income, emoluments and profits

Answer 9

Income Tax

Question 10

Tax imposed on donations inter-vivos or those made between living persons to take effect during the lifetime of the donor.

Answer 10

Donor’s Tax

Question 11

Tax on the right of the deceased person to transm property at death

Answer 11

Estate Tax

Question 12

Tax imposed and collected on every sale, barter, exchange or transaction deemed sale of taxable goods, properties, lease of goods, services or properties in the course of trade as they pass along the production and distribution chain

Answer 12

Value added tax (VAT)

Question 13

Tax imposed on the gains presumed to have been realized by the seller for the sale, exchange or other disposition of real property located in the Philippines, classified as capital assets

Answer 13

Capital Gains Tax

Question 14

Tax applicable to specified goods
manufactured in the Philippines for domestic sale or consumption

Answer 14

Excise Tax

Question 15

imposed on certain goods based on weight or volume capacity or any other physical unit of measurement

Answer 15

Specific Tax

Question 16

imposed on certain goods based on selling price or other specified value of the goods

Answer 16

Ad valorem tax

Question 17

Tax on documents, instruments, loan agreements and papers, agreements evidencing the acceptance, assignments, sale or transfer of an obligation, rights or property incident thereto

Answer 17

Documentary tax

Question 18

A system of collecting taxes whereby the taxes withheld on A certain income payments are intended to equal or at least approximate the tax due of the payer on said income.

Answer 18

Expanded withholding tax

Question 19

A system of collecting taxes whereby the amount of income tax withheld by the withholding agent is constituted as a full payment of the income tax due form the payer on the said income. The payer is not required to file an income tax return for the particular income.

Answer 19

Final withholding tax

Question 20

-Commonly referred to as pay as you go or pay as you earn.

-A method of collecting the income tax at source upon receipt of the income.

Answer 20

Withholding tax for compensation income

Question 21

is the process of passing the burden of the tax to others.

Answer 21

Shifting taxation

Question 22

When there is fraud through pretension and the use of other illegal devices to lessen one’s taxes

-Under-declaration of income
- Non-declaration of income and other items subject to tax
-Under-appraisal of goods subject to tariff
-Over-declaration of deductions

Answer 22

Tax evasion

Question 23

Republic act no. 8424 is also known as

Answer 23

Comprehensive Tax reform act of 1997

Question 24

Enacts laws to continually revitalize the taxation policy of the country

Answer 24

Legislative Branch