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INCOME TAXATION > MIDTERM CHAP. 1-2 > Flashcards

MIDTERM CHAP. 1-2 Flashcards

1
Q

Who is classified as an individual with a fixed place of abode in the Philippines but is not engaged in any business or profession

A

Resident Alien

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2
Q

An individual whose business does not realize gross sales exceeding P100k in any 12 month period

A

Marginal Income Earner

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3
Q

A Filipino citizen who earns income from both from the Philippines and abroad but maintains a permanent home in the Philippines

A

Resident Citizen

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4
Q

An individual who is a foreigner, earns income from sources within the Philippines, and stays in the country for more than 180 days within a taxable year

A

Non-Resident Alien Engaged in Trade or Business

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5
Q

The tax rate applicable to a taxpayer earning solely from self-employment or practice of profession with gross sales below P3 million, at their option

A

8% Income tax rate

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6
Q

The threshold for VAT registration in the Philippines

A

3 Million

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7
Q

The percentage of business tax applicable to non-VAT taxpayers like nightclub owners

A

18%

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8
Q

The entity responsible for collecting taxes in the Philippines

A

Bureau of Internal Revenue

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9
Q

The due date for the first installment payment of estimated tax

A

April 15

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10
Q

Law that provides tax incentives for Barangay Micro Business Enterprises

A

RA 9178

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11
Q

Enumerate the 3 types of Non-Resident Alien taxpayers in the Phiippines

A
  1. Employed by RHQs & ROHQs, Offshore Banking units and Petroleum contractors and subcontractors
  2. Non-Resident Alien Engaged in Trade or Business
  3. Non-Resident Alien Not Engaged in Trade or Business
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12
Q

Enumerate some kinds of fringe benefits taxable under Philippine tax law

A

a. Housing
b. Expense account
c. Vehicle
d. Household personnel
e. Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted
f. Membership fees, dues
g. Expenses for foreign travel
h. Holiday and Vacation expenses
i. Education assistance to the employee or his dependents
j. Life or health Insurance and other non-life insurance premiums

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13
Q

List some allowable deductions for youtubers as business expenses under the NIRC

A

a. Filming expenses
b. computer equipment
c. subscription and software licensing fees
d. internet & communication expenses
e. home office expenses
f. office supplies
g. business expenses
h. depreciation expenses
i. bank charges & shipping fees

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14
Q

True or False:
A non-resident citizen’s income from outside he Philippines is taxable in the Philippines

A

False

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15
Q

True or False:
Income of a non-resident alien not engaged in trade or business is taxed at a flat rate of 25%

A

True

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16
Q

True or False:
A non-resident citizen who has stayed abroad for over 183 days is exempt from income tax in the Philippines on foreign income

A

True

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17
Q

True or False:
A company can opt for the 8% income tax rate on his business income since his gross receipts d not exceed the VAT threshold

A

True

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18
Q

True or False:
The company would be subjected to a maximum tax rate of 24% on her youtube earnings if she does not inform Google LLC of her residency in the Philippines

A

True

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19
Q

True or False:
Mixed income earners can avail of the 8% income tax rate for both compensation & business income

A

False

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20
Q

True or False:
Non-operating income should be included in the computation of tax liabilities for businesses

A

True

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21
Q

True or False:
The P250k deduction applied to both compensation income and income from business or mixed income earners

A

False

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22
Q

True or False:
A taxpayer earning compensation income and owning a business with gross receipt exceeding P3 million is subjected to VAT

A

True

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23
Q

True or False:
Social media influences are exempt from business tax if their income is below P250k.

A

False

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24
Q

First installment due date of estimated tax

A

April 15

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25
Q

Second installment due date of estimated tax

A

August 15

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26
Q

Third installment due date of estimated tax

A

November 15

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27
Q

A business exempt from income tax on operations

A

Barangay Micro Business Enterprise

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28
Q

They are entitle to 20% VAT discount on specified goods and serviced

A

Senior citizens

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29
Q

What is the tax treatment for a non-resident alien earning income from sources within the Philippines?

A

Taxed only on income from sources within the Philippines

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30
Q

Characteristic of a Resident cItizen

A

permanently resides in the Philippines

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31
Q

A non-resident citizen is defined as

A

a citizen residing abroad with the intention to stay permanently

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32
Q

Non -resident aliens are taxed only on income derived from

A

sources within the philippines

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33
Q

occurs when illegal efforts are made to escape the payment of tax

A

Tax evasion

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34
Q

Powers are not explicitly stated in the Constitution that allow the government to perform essential duties

A

Inherent powers

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35
Q

the legislative body responsible for imposing and collecting taxes in the state

A

congress

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36
Q

refers to the advantage accruing from anything

A

interest

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37
Q

that which may be felt or touched and are necessarily corporal, either real or personal properties

A

tangible properties

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38
Q

It is double taxation in its strict sense. It is prohibited because it comprises imposition of the same tax on the same on the same property for the same purpose by the same state during the same taxing period.

A

Direct Duplicate Taxation

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39
Q

Paying the owner the full monetary equivalent of the property taken for public use

A

Just Compensation

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40
Q

the primary source of governmental revenue through compulsory levies on individuals or property

A

Power of Taxation

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41
Q

the government allows absolute forgiveness or waiver of its right to collect what is due in order to give the tax evader who is wishes to reform a chance to start anew

A

Tax Amnesty

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42
Q

The limitation that restricts the exercise of taxation power to within the geographical boundaries of the state

A

Territorial Jurisdication

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43
Q

Enumerate the 3 inherent powers of the state

A
  1. Police Power
  2. Power of Eminent Domain
  3. Power of Taxation
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44
Q

Enumerate the objects of taxation

A
  1. Person
  2. Property
  3. Excise Objects
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45
Q

Enumerate the justification for the exercise of eminent domain

A
  1. For public use
  2. Just compensation
  3. taking the property is necessity
  4. follow proper procedures/accordance to due process law
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46
Q

Enumerate the stages in the exercise of taxation

A
  1. Levy or Imposition
  2. Assessment and Collection
  3. Payment
  4. Refund
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47
Q

Enumerate the requisites of a valid police measure =

A
  1. Lawful Subject
  2. Lawful Means
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48
Q

The activity of property sought to be regulated affects the public welfare

A

Lawful Subject

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49
Q

The means employed must be reasonable and must conform to the safeguards guaranteed by the Bill of Rights

A

Lawful Means

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50
Q

This power is to protect citizens and provide safety and welfare of society

A

Police Power

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51
Q

This power to take private property (with just compensation) for public use

A

Eminent Domain

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52
Q

The tax power to enforce contributions to support the government, and other inherent powers of the state

A

Taxation Power

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53
Q

It may be exercised only by the government. The property taken in the exercise of this power is destroyed because it is noxious or intended for a harmful purpose.

A

Police Power

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54
Q

It affects only property rights. It may be exercised by some private entities.

A

Power of Eminent Domain

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55
Q

It affects only property rights by the government. The property taken under this power shall likewise be intended for a public use or purpose.

A

Power of Taxation

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56
Q

The power by which a sovereign state, through its legislative body, raises and accumulated revenue from its inhabitants

A

Taxation

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57
Q

It is a power by which a sovereign state, through its legislative body, raises and accumulated revenue from its inhabitants

A

Taxation

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58
Q

Enumerate the Nature of tax

A
  1. Inherent power of sovereignty
  2. Essentially a legislative function
  3. For public purposes
  4. Territorial in operations
  5. Tax exemption of government
  6. The strongest among the inherent powers of the government
  7. Subject to Constitutional and Inherent Limitation
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59
Q

How can the government can discourage unnecessary consumption and production and ensure that resources are used more efficiently?

A

By imposing taxes on goods and services

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60
Q

Enumerate the Principle of Taxation.

A
  1. Principle of Necessity
  2. Principle of Benefit-Received of Benefit-Protection Theory
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61
Q

Enumerate the Purpose of Taxation

A
  1. Revenue or Fiscal
  2. Non-Revenue or Regulatory
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62
Q

Enumerate the Purposes of Taxes

A
  1. Rising Revenues
  2. Economic Stability
  3. Fair distribution of Income
  4. Optimum Allocation of Resources
  5. Protection policy
  6. Social welfare
  7. Higher employee level
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63
Q

What are the 4r’s of Taxation?

A
  1. Revenue
  2. Redistribution
  3. Repricing
  4. Representation
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64
Q

It is an object of taxation which refer to natural or juridical

A

Persons

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65
Q

It is an objects of taxation, whether real, personal, tangible or intangible properties

A

Properties

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66
Q

Enumerate the Excise Objects

A

a. Transaction
b. Privilege
c. Right
d. Interest

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67
Q

Under Excise Objects, it is the act of conducting activities related to any business or profession

A

Transaction

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68
Q

Under Excise objects, it is a benefit derived through gratuites transfer by fact of death or donation

A

Privilege

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69
Q

Under Excise object, it is a power, faculty or demand inherent in one person and incidental to another

A

Right

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70
Q

Under Excise objects, it is an advantage accruing from anything

A

Interest

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71
Q

Enumerate the Scope of Taxation Power

A
  1. Plenary or Complete
  2. Comprehensive
  3. Supreme
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72
Q

What scope of taxation power which the taxation has unlimited area of application and only restricted by the inherent and constitutional limitation

A

Plenary or Complete

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73
Q

What scope of taxation that it has a wide scope of coverage. It covers all persons, properties, rights and transactions subject to taxation, unless expressly exempted by laws within the sovereign.

A

Comprehensive

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74
Q

What scope of taxation that has the highest decree of application and it considered as the strongest among the inherent power of the state.

A

Supreme

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75
Q

Under this principle, the taxation is a power emanating from necessity to preserve the state’s sovereignty.

A

Principle of Necessity

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76
Q

Under this principle of taxation, it is based on the reciprocal duties, the government collects taxes from the subjects of taxation in order that it may be able to perform its functions and provide services to them

A

Principle of benefit-received of benefit-protection theory

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77
Q

The primary purpose of the taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities without which the government cannot function. What Purpose of Taxation?

A

Revenue or Fiscal

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78
Q

Taxation may also be employed for purposes of regulation or control. What Purpose of Taxation?

A

Non-Revenue or Regulatory

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79
Q

Enumerate the 1987 Philippine Constitutions Limitations

A
  1. Due process law
  2. Equal protection of law
  3. Rule of uniformity and equity
  4. Non-impairment of contracts
  5. Origination of appropriation, revenue and tariff bills
  6. President’s power to veto separate items in revenues or tariff bills
  7. Congress granting tax exemptions
  8. Exemption from taxation of properties actually, directly and exclusively used for religious, charitable or educational purposes
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80
Q

Enumerate the 4 stages of taxation

A
  1. Levy or Imposition
  2. Assessment and Collection
  3. Payment
  4. Refund
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81
Q

This process involves the passage of tax laws or ordinances through the legislature or through a local lawmaking body. What stage of taxation?

A

Levy or Impostion

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82
Q

This process involves the act of administration and implementation of tax laws by the executive through its administrative agencies such as the Bureau of Internal Revenue (BIR) or Bureau of Customs (BOC). What stage of taxation?

A

Assessment and Collection

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83
Q

This process involves the act of compliance by the taxpayer in contributing his share to pay the expenses of the Government. What stage of taxation?

A

Payment

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84
Q

This is a process of claiming for tax illegally collected or mistakenly paid. What stage of taxation?

A

Refund

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85
Q

Enumerate the Principles of a sound tax system

A
  1. Fiscal Adequacy
  2. Administrative Feasibility
  3. Theoretical Justice or Equality
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86
Q

The principle of a sound tax system which the sources of tax revenue should coincide with, and approximate the needs of, government expenditures.

A

Fiscal Adequacy

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87
Q

The principle of a sound tax system which the tax laws should be capable of convenient, just and effective administration.

A

Administrative feasibility

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88
Q

The principle of a sound tax system wherein the tax burden should be in proportion to the taxpayer’s ability to pay.

A

Theoretical Justice or Equality

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89
Q

List some certain documents in taxation

A
  1. Prospective applications of tax laws
  2. Imprescriptibility of Taxes
  3. Double Taxation
  4. Escape from taxation
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90
Q

This states that a tax bill must only be applicable and operative after becoming law. What certain document in taxation is this?

A

Prospective applications of tax laws

91
Q

It states that unless otherwise provided by the tax law itself, taxes in general are not cancelable. What certain document in taxation is this?

A

Imprescriptibility of Taxes

92
Q

It refers to the imposition if taxes on the same income, assets or financial transactions at 2 different points in time. What certain document is this?

A

Double Taxation

93
Q

Enumerate the kinds of double taxation as to its validity

A

a. Direct Duplicate Taxation
b. Indirect Duplicate Taxation

94
Q

Enumerate the kinds of double taxation as to its scope

A

a. Domestic
b. International

95
Q

It constitutes double taxation in the objectionable or prohibited sense. What kind of double taxation is this?

A

Direct Duplicate Taxation

96
Q

It is permissible and not repugnant to the Constitution. What kind of double taxation is this?

A

Indirect Double Taxation

97
Q

This arises when the taxes are imposed by the local or national government within the same State. What kind of double taxation is this?

A

Domestic

98
Q

It refers to the imposition of comparable taxes in 2 or more states on the same taxpayers in respect of the same subject matter & for identical periods. What kind of double taxation is this?

A

International

99
Q

The doctrine of escape from taxation permits the taxpayer to minimize (if not escape) payment of tax by lawful means. What certain document is this?

A

Escape from Taxation

100
Q

It occurs when illegal efforts are made to escape the payment of a tax.

A

Tax Evasion

101
Q

It connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes.

A

Tax Evasion

102
Q

Enumerate the evidence to prove tax evasion

A

a. Failure of taxpayer to declare for taxation purposes his true and actual income derived from business for 2 consecutive years
b. Substantial under declaration of income in the income tax return for 4 consecutive years coupled intentional overstatement of deductions

103
Q

Examples of Tax Evasion

A
  1. Non-inclusion of sales
  2. Deliberate fabrication of expenses
  3. Forming an artificial person to evade taxation
  4. Deliberately reduce taxable income
  5. Malicious failure to report income to defeat tax liability
104
Q

It occurs when legally permissible attempts are made to minimize or reduce the tax to be paid

A

Tax Avoidance

105
Q

It is the use of legal methods of reducing taxable income or tax owed

A

Tax Avoidance

106
Q

Examples of Tax Avoidance

A
  1. Selling shares of stock through a stock exchange in order to avail of the lower tax rates
  2. Estate planning within the means sanctioned by the tax code has been held to be one of permissible tax minimization
107
Q

It is a legal means used by the taxpayer to reduce taxes

A

Tax Avoidance

108
Q

It has the legal right to decrease the amount of what otherwise would be his taxes or altogether avoid them by means which the law permits

A

Taxpayer

109
Q

Enumerate the several forms of tax avoidance

A

a. Tax Option
b. Shifting
c. Capitalization
d. Transformation
e. Exemption
f. Tax Amnesty
g. Tax condonation or tax remission

110
Q

What is the tax avoidance forms where taxpayers choose a transaction with a lower tax rate, as permitted by tax laws?

A

Tax Option

111
Q

What is the tax avoidance form where the tax burden is transferred from the statutory taxpayer to another, without violating the law?

A

Shifting

112
Q

Enumerate the forms of tax shifting

A

a. Forward Shifting
b. Backward Shifting
c. Onward Shifting

113
Q

It is a form of tax shifting wherein the tax burden of tax is transferred from the manufacturer then to the distributor and finally to the ultimate consumer of the product

A

Forward Shifting

114
Q

It is a form of shifting wherein the tax burden in transferred from the ultimate consumer through factors of distribution to the factors of production

A

Backward Shifting

115
Q

It is a form of shifting wherein the tax burden is shifted 2 or more times either forward or backward.

A

Onward Shifting

116
Q

A tax avoidance form which refers to the reduction in the price of the taxed object equal to the capitalized value of the future taxes which the purchases expects to be called upon to pay.

A

Capitalization

117
Q

A tax avoidance form which the producer absorbs the payment of tax to reduce prices and to maintain market share

A

Transformation

118
Q

A Tax Avoidance form which the tax exemption as a privilege is personal and in any ways cannot be transferred or assigned by the person to whom it is given without the consent of the state

A

Exemption

119
Q

It is a form of tax avoidance in which the state grants a general pardon by intentionally overlooking its authority to impose penalties on persons guilty of tax evasion or violating a particular revenue or tax law

A

Tax Amnesty

120
Q

What is the form of tax avoidance where the state desists or refrains from exacting, inflicting or enforcing something as well as to restore what has already been taken?

A

Tax Condonation or Tax Remission

121
Q

It denotes a grant of immunity, expressed or implied, to a particular person, corporation, or to persons or corporations of a particular class, from a tax upon property or an excise which persons and corporation generally within the same taxing district are obliged to pay.

A

Exemption from Taxation

122
Q

Enumerate the classification of tax exemption

A
  1. Expressed Exemption
  2. Implied Exemption or by Omission
  3. Contractual Exemption
123
Q

This doctrine of law states that a tax claim for refund which is prevented by prescriptions, may be allowed to be used ay payments for unsettled tax liabilities if both taxes arise from the same transaction in which overpayment is made and underpayment is due

A

Equitable Recoupment

124
Q

This doctrine states that taxes are not subject to set-off for legal compensation because the government and the taxpayer are not mutual creditor and debtor of each other.

A

Set-off Taxes

125
Q

it is effected through court proceedings could only be allowed if the act involves a direct and illegal disbursement of public funds derived from taxation.

A

Taxpayer suit

126
Q

This doctrine provides that comprises are generally allowed and enforceable when the subject matter thereof is not prohibited from being compromised and the person entering such compromise is duly authorized to do so.

A

Comprises

127
Q

The government can compel payment of tax and forfeiture of property through the exercise of police power.

A

Power to destroy

128
Q

It literally means place of taxation. The general rule is that the taxing power cannot go beyond the territorial limits of the taxing authority.

A

Situs of Taxation

129
Q

Enumerate the essential characteristics of taxes

A
  1. enforced contribution
  2. imposed by the legislative body
  3. proportionate in character
  4. payable in the form of money
  5. imposed for the purpose of raising revenue
  6. used for a public purpose
  7. enforced on some persons
  8. commonly required to be paid at regular intervals
  9. imposed by the sovereign state within its jurisdication
130
Q

enumerate the sources of philippine tax laws

A
  1. constitution of the philippines
  2. judicial decisions
  3. executive orders
  4. special laws
  5. tax treaties and conventions with foreign countries
  6. revenue memorandum promulgated by the department of finance
  7. BIR Revenue Memorandum circulars and bureau of customs memorandum orders
  8. BIR Rulings
  9. Local government code
131
Q

It is the instrument for carrying out the decisions of any government in power with as regards to mobilizing revenue for economic development

A

Tax administration

132
Q

it seeks additional taxes and new sources of revenue but the successful tax administration of some existing taxes would provide a considerable part of the needed additional revenue

A

Tax policy

133
Q

It is principally responsible for the fiscal policies and general management of the Philippine Government’s financial resources

A

Department of Finance

134
Q

Enumerate the bureaus, agencies and goverment corporations under the supervision of DOF.

A
  1. Bureau of Internal Revenue [BIR]
  2. Bureau of Customs [BOC]
  3. Tariff Commissions [TC]
  4. Land Transportation Office [LTO]
  5. Duly and Lawfully Authorized Collectors
  6. Local Offices in charge to enforce local taxation
135
Q

It is mandated by law to assess and collect all national internal revenue taxes, fees and charges, and to enforce all forfeitures, penalties and fines connected therewith, including the execution of judgements in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts.

A

Bureau of Internal Revenue

136
Q

Enumerate the powers & duties of the BIR Commissioner

A
  1. To interpret provisions of the code and other tax laws
  2. Decide disputed tax assessments
  3. Power to obtain information, summon and examine testimonies
  4. Make assessment and prescribe additional requirements
  5. Compromise abate and refund or credit taxes
  6. Suspend the business operations of a taxpayer
  7. Delegation Power
137
Q

It refers to a formal report prepared by the taxpayer or his agent in a prescribed form showing an enumeration of taxable amounts and description of taxable transactions, allowed deductions, amount of tax and tax payable to the government

A

Tax return

138
Q

Example of Tax Return

A

BIR Form No. 1700
BIR Form No. 1701
BIR Form No. 1702
BIR Form No. 1800
BIR Form No. 1801

139
Q

It is a procedures or actions available both to the government to collect taxes and to the taxpayer to avoid abuses in the payment of taxes.

A

Tax remedies

140
Q

It refers to the span of time allowed by law to the BIR to investigate a taxpayer’s tax discrepancy to enforce collection of taxes

A

Assessment period

141
Q

Enumerate the Kinds of Tax Assessments

A
  1. Self-Assessment
  2. Prospective Assessment
  3. Disputed Assessment
  4. Final Assessment
  5. Deficiency Assessment
  6. Jeopardy Assessment
  7. Illegal or Void Assessment
142
Q

Enumerate the ways to contest the validity of an assessment

A
  1. Motion for reconsideration
  2. Motion for reinvestigation
  3. Motion for withdrawal
  4. Motion for collection
143
Q

It is the seizure by the government of personal property to enforce the payment of taxes, followed y its public sale if taxes accruing thereto are not voluntarily paid.

A

Distraint of personal property

144
Q

Kinds of Distraint

A
  1. Constructive Distraint
  2. Actual Distraint
145
Q

It is the seizure by the government of immovable property in order to enforce the payment of taxes.

A

Levy of real property

146
Q

Enumerate the Other Collection Remedies

A
  1. Imposition of injunction
  2. Enforcement of tax lien
  3. Enforcement of forfeiture
  4. Entering into compromise of tax case
  5. Requiring the filing of bonds
  6. Requiring proof of filing of income tax returns
  7. Giving of rewards to informers
  8. Making arrest, search and seizure
  9. Deportation of aliens
  10. Inspection of books of accounts
  11. Use of national tax register
  12. Imposition of civil and criminal action
147
Q

This section provides that the commissioner may compromise the payment of any internal revenue tax

A

Section 204

148
Q

It is a request to the taxpayer to permit the bearer thereof to conduct the necessary examination of said books and records, and signed either by the BIR Commissioner his deputy, officials of the investigating division, regional director, assistant director, or the revenue district officer.

A

Letter of Authority

149
Q

It is the one that is brought, to enforce, redress or protect private rights.

A

Civil action

150
Q

It is a penal prosecution. It is an action, suit or cause instituted to punish an infraction of the criminal laws.

A

Criminal action

151
Q

It is committed when the violator has knowingly and willfully filed a fraudulent return or neglected to file a return with intent to evade the tax

A

Tax crime

152
Q

it is basically a criminal case.

A

tax fraud or evasion case

153
Q

it refer to the last day for filing return and payment of tax.

A

due dates

154
Q

it is a civil penalty imposed by law in addition to the main as required to be paid due to delinquency or misrepresentation of taxes.

A

surcharge

155
Q

it means failure on the part of the taxpayer to pay the tax due on the date fixed by law or indicted in the assessment notice or letter of demand

A

delinquency

156
Q

it may result from fraudulent returns reported to the BIR by the taxpayer

A

misrepresentation

157
Q

it is the payment of surcharge is mandatory and the BIR is not vested with any authority to waive the collection thereof.

A

statutory surcharge

158
Q

it is classified as simple neglect and willful neglect

A

tax surcharges

159
Q

before the payment of tax, the taxpayer can reduce or totally escape the payment of tax through legally permissible means such as applying for tax exemption in the sale of his principle classified asset or choosing the lesser tax rate applicable to the taxable transaction

A

tax avoidance

160
Q

The income tax treatment varies depending on the kind of taxable income of the taxpayer.

A

Schedular system

161
Q

It provides for a different tax treatment of different types of income so that a separate tax return is required to be filed for each type of income and the tax is computed on a per return or per schedule basis

A

Schedular system

162
Q

it is a system where the tax treatment views indifferently the tax base generally treats in common all categories of taxable income of the taxpayer.

A

Global treatment

163
Q

Enumerate the 2 classification of individuals income taxpayers

A
  1. Citizen
  2. Alien
164
Q

Enumerate the 2 kinds of Citizen

A
  1. Resident Citizen
  2. Non-Resident Citizen
165
Q

Enumerate the 2 kinds of Alien

A
  1. Resident Alien
  2. Non-Resident Alien
166
Q

It is a Filipino citizen who permanently resides in the Philippines

A

Resident Citizen

167
Q

A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.

A

Non-Resident Citizen

168
Q

It is interpreted to mean presence abroad for at least 183 days during the taxable year

A

Most of the Time

169
Q

An individual whose residence is within the Philippines and who is not a citizen thereof.

A

Resident Alien

170
Q

It is considered a resident or non-resident depending on his intention with regard to the length and nature of his stay.

A

Alien

171
Q

An individual whose residence is not within the Philippines and who is not a citizen thereof.

A

Non-Resident Alien

172
Q

It refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of more than 180 days during any calendar year.

A

Non-resident alien engaged in trade and business

173
Q

It refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of 180 days or less during any calendar year.

A

Noon-resident alien not engaged in trade and business

174
Q

It means all remuneration for services performed by an employee for his employer under an employer-employee relationship, unless specifically excluded by the Code

A

Compensation Income

175
Q

Individuals whose source of income is purely derived from an employer-employee relationshp

A

Compensation Income Earners

176
Q

An individual performing services under an employer-employee relationship.

A

Employee

177
Q

it refers to an employee holding neither managerial nor supervisory as defined under existing provisions of the labor code of the Philippines, as amended.

A

Rank and File Employee

178
Q

any person for whom an individual performs or performed any service, of whatever nature, under an employer-employee relationship.

A

Employer

179
Q

it exists when a person for whom services were performed has the right to control and direct an individual who performs the services, not only as to result of the work to be accomplished but also as to the details, methods and means by which it is accomplished.

A

Employer and employee relationship

180
Q

it means any good, service or other benefit furnished or granted in cash or in kind other than the basic compensation, by an employer to an individual employee

A

Fringe benefits

181
Q

Enumerate some kinds of Fringe Benefits

A

a. housing
b. expense account
c. vehicle
d. household personnel
e. interest on loan at less than market rate
f. membership fees, dues and other expenses
g. expenses for foreign travel
h. holiday and vacation expenses
i. education assistance to the employee or his dependents
j. life or health insurance and other non-life insurance premiums

182
Q

it refers to a worker in the private sector who is paid with a statutory minimum wage rates, or to an employee in the public sector with compensation income of not more than the statutory minimum wage rates in the non-agricultural sector where the worker/employee is assigned.

A

Minimum Wage Earner

183
Q

an individual earning compensation income from employment, and income from business, practice of profession and/or other sources aside from employment.

A

mixed income earner

184
Q

refer to a Filipino citizen employed in foreign countries who are physically present in a foreign country as a consequence of their employment thereat.

A

OCWs or OFWs

185
Q

a sole proprietor or an independent contractor who reports income earned from self-employement.

A

Self-employed

186
Q

A person formally certified by a professional body belonging to a specific profession by virtue of having completed a required examination or course of studies and/or practice, whose competence can usually be measured against an established set of standards.

A

Professional

187
Q

Refers to the total amount or its equivalent representing the contract price, compensation, service fee, rental or royalty, including the amount charged for materials supplied with the services, and deposits and advance payments actually or constructively received during the taxable period for the services performed or to be performed for another person, except returnable security deposits for purposes of these regulations.

A

Gross Receipts

187
Q

refers to the total sales transactions net of VAT, if applicable, reported during the period, without any other deduction.

A

Gross sales

188
Q

it is subject to the 8% income tax rate option

A

Gross sales

189
Q

refers to the pertinent items of gross income specified in the code, less deductions, if any, authorized for such types of income by the code or other special laws

A

taxable income

190
Q

refers to the ceiling fixed by law to determined VAT registrable taxpayers.

A

VAT threshold

191
Q

it shall mean a branch established in the Philippines by multinational companies and which headquarters do not earn or derive income from the Philippines and which act as supervisory, communications and coordinating center for their affiliates, subisdiaries or branches in the Asia-Pacific Regio and other business development

A

RHQs - Regional or Area Headquarters

192
Q

In connection with offshore banking, shall mean funds in foreign currencies which are accepted and held by an offshore banking unit or foreign currency deposit unit in the regular course of business, with the obligation to return an equivalent amount to the owner thereof, with or without interest

A

Deposits

193
Q

shall mean a branch established in the Philippines by multinational companies which are engaged in services

A

ROHQs - Regional Operating Headquarters

194
Q

shall mean an alternative from of obtaining funds from the public other than deposits , through the issuance, etc.

A

Deposit substitutes

195
Q

shall refer to the conduct of banking transactions whereby any person, whether natural or juridical, may deposit foreign currencies forming part of the Philippine International reserves, in accordance of RA 6426 entitled “an act instituting a foreign currency deposit system in the philippines, and for other purposes”

A

Foreign Currency Deposit System (FCDS)

196
Q

Shall refer to that unit of a local bank or local branch of a foreign bank authorized by the BSP to engage in foreign currency-denominated transactions, pursuant to the provisions of RA 6426, as amended.

A

Foreign Currency Deposit Unit (FCDU)

197
Q

shall refer to the conduct of banking transactions in foreign currencies involving the receipt of funds principally from external and internal sources and the utilization of such fund pursuant to Presidential Decree 1034 as implemented by BSP Circular 1389, as amended

A

Offshore Banking System

198
Q

shall mean a branch, subsidiary or affiliate of a foreign banking corporation which is duly authorized by the BSP to transact offshore banking business in the Philippines in accordance with the provisions of presidential decree 1034 as implemented by BSP circular 1389, as amended.

A

Offshore banking unit (obu)

199
Q

it is not place but the property, activity or service that produced the income.

A

source of income

200
Q

A citizen which are taxable on all income derived from sources within and without.

A

Resident citizen

201
Q

A citizens which are taxable only on income derived from sources within the Philippines.

A

Non-resident citizens and alien individuals - residient & non-resident

202
Q

Individuals earning purely compensation income shall be taxed based on the graduated income tax rates prescribed under sec. 24 (a) of the tax code.

A

compensation income

203
Q

arises from self-employment or practice of profession. this shall not include income from performance of services by the taxpayers as an employee

A

business income

204
Q

there are individuals who earn income both from compensation and self-employment.

A

mixed income earners

205
Q

it is subject to a separate and final tax.

A

passive invome

206
Q

example of passive income

A

a. interest
b. royalties
c. prize
d. winnings
e. dividends

207
Q

it is imposed on income or gain shall no longer be included as taxable income subject to the graduated rates.

A

final tax

208
Q

it is taxed at 15% final tax on a per transaction basis

A

capital gains from sale of shares of stock, not traded through the local stock exchange

209
Q

it is taxed at 6% final tax on the gross selling price or current fair market value at the time of sale, whichever is higher

A

capital gains from sale of real property

210
Q

it is taxed at 35% final tax based on the grossed up monetary value granted to employee beginning January 1, 2018.

A

Fringe Benefits

211
Q

it is subject to a separate and final tax at fixed rates ranging from 55 to 25%.

A

passive income

212
Q

True or False:
A Minimum Wage Earner (MWE) is not exempt from income tax, and the statutory minimum wage, holiday pay, overtime pay, night shift differential pay, and hazard pay received by such MWE are subject to income tax under the law.

A

FALSE

213
Q

The option to avail the 8% income tax rate is applicable to both compensation income and business income, and it is in addition to the income tax under the graduated rates and the percentage tax under Section 116 of the Tax Code.

A

FALSE

214
Q

It referred to in the Revenue Memorandum Circular 97-2024 includes all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms in exchange for services performed as bloggers, video bloggers or vloggers or as an influencer, in general, and from any other activities performed on such social media sites and platforms

A

Social Media Influencers

215
Q

Enumerate where the social media influencers derive the income

A
  1. Youtube Partner Program
  2. Sponsored Social and Blog Posts
  3. Display Advertising
  4. Becoming a brand representative/ambassador
  5. Affiliate marketing
  6. Co-creating product lines
  7. Promoting own products
  8. Photo and Video Sales
  9. Digital courses, subscriptions, e-books
  10. Podcasts and webinars
216
Q

Enumerate the Youtubers expense

A
  1. Filming expenses
  2. Computer equipment
  3. Subscription and software licensing fees
  4. Internet and communication expenses
  5. Home office expenses
  6. office supplies
  7. business expenses
  8. depreciation expense
  9. bank charges and shipping fees
217
Q

it is an official document issued by the BIR, through the ITAD, that certifies the tax residency of a certain taxpayer in the Philippines pursuant to the residency provision of the relevant tax treaty.

A

TRC or Tax Residency Certificate

218
Q

How many does Philippines effective tax treaties to US?

A

43

219
Q

It means the amount which the individual declared as income tax in his final adjusted and annual income tax return for the preceding taxable year minus the credits allowed.

A

estimated tax

220
Q

refer to any business enterprise engaged in the production, processing or manufacturing of products or commodities, whose total assets including those arising from loans but exclusive of the land, etc.

A

BMBEs or Barangay Micro Business Enterprise

221
Q

They are entitled to 20% discount and exemption from VAT and certain goods and services

A

Senior Citizen and PWDs

222
Q

shall refer to an individual voluntary retirement account established from his PERA contributions and/or his employer contributions

A

Personal Equity and Retirement Account

INCOME TAXATION (4 decks)

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