TAX

Question 1

process or means by which the sovereign
through its law making body imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government.

Answer 1

TAXATION

Question 2

promoting public welfare by restraining
and regulating the use of liberty and property.

Answer 2

Police Power

Question 3

the State raises revenue to defray
the necessary expenses of the government.

Answer 3

POWER OF TAXATION

Question 4

power of the state to acquire private property for the public purpose upon
payment of just compensation.

Answer 4

Power of Eminent Domain

Question 5

Provide funds of property to promote general welfare

Answer 5

PRIMARY PURPOSE : REVENUE

Question 6

Device for regulation or control

Answer 6

SECONDARY PURPOSE: REGULATORY

Question 7

• Preserve the state’s sovereignty
• To give protection and facilities

Answer 7

Necessity Theory

Question 8

Government’s basic function

Answer 8

Lifeblood Theory

Question 9

Reciprocal duties of protection and support between the state and its inhabitants.

Answer 9

Basis of Taxation

Question 10

• National
• Local

Answer 10

Scope

Question 11

Personal

Property

Excise

Answer 11

Subject matter

Question 12

Direct

Indirect

Answer 12

Who bears the burden

Question 13

Determination of fixed amount

Answer 13

• Specific Tax
• Ad valorem

Question 14

the state or political unit which has jurisdiction to impose a particular tax.

Answer 14

Place of taxation

Question 15

sum of money for the use of something

Answer 15

Toll

Question 16

a sanction imposed as a punishment

Answer 16

Penalty

Question 17

proportional contribution from owners of lands for special benefits

Answer 17

Special Assessment

Question 18

all funds or income derived by the government

Answer 18

REVENUE

Question 19

pecuniary aid directly granted the government to an individual or private
commercial enterprise

Answer 19

Subsidy

Question 20

charge imposed under the police power

Answer 20

Permit/license fee

Question 21

taxes imposed exported from or imported into a country.

Answer 21

Custom duties-

Question 22

book of rates containing kinds of merchandise with corresponding duties to
pay

Answer 22

Tariff-

Question 23

There is a burden of two or more impositions

Answer 23

DOUBLE TAXATION

Question 24

transfer of tax burden

Answer 24

Shifting-

Question 25

producer pays the tax and endeavor to recoup himself by improving his process of production

Answer 25

Transformation -

Question 26

use of illegal means

Answer 26

Evasion-

Question 27

– exploitation of legally permissible alternative

Answer 27

Tax avoidance

Question 28

grant of immunity

Answer 28

Exemption –

Question 29

reduction in the selling price

Answer 29

Capitalization –

Question 30

are natural persons with income derived from within the territorial jurisdiction of taxing authority.

Answer 30

INDIVIDUAL TAXPAYERS

Question 31

A Filipino citizen who permanently resides in the Philippines

Answer 31

RESIDENT CITIZEN

Question 32

Leaves the Philippines during the taxable year to reside abroad ; atleast 183 days

Answer 32

NON-RESIDENT CITIZEN

Question 33

Filipino citizens who are physically present in a foreign country as a consequence of their employment. Their salaries and wages are paid by an employer abroad.

Answer 33

OVERSEAS CONTRACT WORKER (OCW)/OVERSEAS FILIPINO WORKER (OFW)

Question 34

* Individual whose residence is within the Philippines and who is not a citizen thereof.

Answer 34

RESIDENT ALIEN

Question 35

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

Answer 35

NON-RESIDENT ALIEN

Question 36

– Alien is carrying on a business in the Philippines – Has stayed in the Philippines for more than 180 days

Answer 36

NON-RESIDENT ALIEN ENGAGE IN TRADE OR BUSINESS

Question 37

– has stayed in the Philippines for 180 days or less

Answer 37

NON-RESIDENT ALIEN NOT ENGAGE IN TRADE OR BUSINESS

Question 38

– refers to income such as compensation income, business income, and income from practice of profession

Answer 38

Ordinary or regular income (GRADUATED RATE)

Question 39

– subject to final withholding taxes are certain passive incomes from sources within the Philippines such as II, DI, R, P & OW

Answer 39

Passive income (FINAL WITHHOLDING TAX)

Question 40

- Capital gains from sale of shares of stocks of a domestic corporation and sale of real property in the Philippines

Answer 40

Capital gains subject to gains tax (CAPITAL GAIN TAX)

Question 41

defined as a sole proprietor or an independent contractor who reports income earned from self employment.

Answer 41

Self Employed

Question 42

a “person formally certified by a professional body belonging to a specific profession

Answer 42

Professional

Question 43

deriving income from both from self-employment and compensation (arising from employer-employee relationship).

Answer 43

Mixed income earner

Question 44

include all the property held by the taxpayer (whether or not connected with his trade or business) not included in the definition of ordinary assets.

Answer 44

Capital assets

Question 45

assets not used or held for sale in the ordinary course of business are classified as capital assets.

Answer 45

CAPITAL ASSETS

Question 46

Shares of stock of a domestic corporation sold directly to a buyer

Answer 46

15% of capital gain

Question 47

Sale of real properties located in the Philippines

Answer 47

CGT = 6% of which is higher between GSP (gross selling price) and FMV (fair market value)

Question 48

Shares of stock sold or disposed of through the local stock exchange are subject to a PERCENTAGE TAX

Answer 48

Stock Transaction Tax

Question 49

the family home of the individual taxpayer which refers to his dwelling house including his family.

Answer 49

PRINCIPAL RESIDENCE

Question 50

method of collecting income tax in advance from the recipient of income through the payor thereof, which is constituted by laws the withholding agent of government.

Answer 50

Creditable Withholding Taxes

Question 51

a worker in the private sector paid the statutory minimum wage.

Answer 51

MINIMUM WAGE EARNER

Question 52

The rate of minimum wage earner was fixed by

Answer 52

Regional Tripartite Wage and Productivity Board