[Topic 1] Business Taxes Flashcards
Business taxes are:
a. imposed upon onerous transfers such as sale, barter, exchange, or importation
b. imposed upon gratuitous transfers such as donation inter-vivos and donation mortis causa
c. imposed upon gratuitous and onerous transfers
d. none of the above
imposed upon onerous transfers such as sale, barter, exchange, or importation
Under the tax code, the following are major internal revenue business taxes, except:
a. VAT
b. Percentage tax
c. Excise tax
d. Income tax
Income tax
Which is correct?
a. Without a business pursued in the Philippines (except importation) by the taxpayer, value added tax cannot be imposed
b. “In the course of trade or business” means the regular conduct or pursuit of a commercial or an economic acitivity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a non-stock, non-profit private organization
c. Services rendered in the Philippines by a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular
d. All of the above.
a. Without a business pursued in the Philippines (except importation) by the taxpayer, value added tax cannot be imposed
b. “In the course of trade or business” means the regular conduct or pursuit of a commercial or an economic acitivity, including transactions incidental thereto, by any person regardless of whether or nor the person engaged therein is a non-stock, non-profit private organization
c. Services rendered in the Philippines by a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular
Which statement is false? Transactions considered “in the course of trade of business,” and therefore subject to the business taxes include:
a. Regular conduct or pursuit of a commercial or an economic activity by a stock private organization
b. Regular conduct or pursuit of a commercial or an economic activity by a non-stock, non-profit private organization
c. Isolated services in the Philippines by non-resident foreign persons
d. Isolated sale of goods or services for a gross selling price or receipts of P950,000
Isolated sale of goods or services for a gross selling price or receipts of P950,000
The provisions of VAT law shall apply to person whose undertakings are intended to be pursued on a going concern basis where the end view is to realize unrestricted amounts of pecuniary gains or profits from those who may avail of the goods they sell or the services they render. Which of the following statements is correct?
a. Services rendered in the Philippines by a citizen or resident person shall be considered as being rendered in the course of trade or business even if the performance is not regular.
b. Services rendered in the Philippines by a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular.
c. Both a and b
d. Neither A nor B
Only statement B is correct.
b. Services rendered in the Philippines by a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular.
Statement 1: Business taxes are based on gross income.
Statement 2: Business tax is in addition to income taxes.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
Only statement 2 is correct.
Statement 2: Business tax is in addition to income taxes.
Business taxes are based on gross sales or gross receipts
Statement 1: Gross selling price means the total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter, or exchange of the goods or properties, excluding VAT.
Statement 2: The excise tax, if any, on such goods or properties shall form part of the gross selling price.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
Both statements are correct.
Statement 1: Gross selling price means the total amount of money or its equivalent which the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter, or exchange of the goods or properties, excluding VAT.
Statement 2: The excise tax, if any, on such goods or properties shall form part of the gross selling price.
Which of the following statements is correct? In the case of sale, barter or exchange or real property subject to VAT.
a. Gross selling price shall mean the consideration stated in the sales document or the fair market value, whichever is higher.
b. Fair market value shall mean whichever is higher of the fair market value as determined by the BIR Commissioner or the fair market value as shown in schedule of values of the Provincial and City Assessors.
c. Gross selling price, in the absence of zonal value or fair market value as determined by the BIR Commissioner, shall refer to the market value shown in the latest real property tax declaration or the consideration, whichever is higher.
d. All of the above
All of these statements are correct.
a. Gross selling price shall mean the consideration stated in the sales documentor the fair market value, whichever is higher.
b. Fair market value shall mean whichever is higher of the fair market value as determined by the BIR Commissioner or the fair market value as shown in schedule of values of the Provincial and City Assessors.
c. Gross selling price, in the absence of zonal value or fair market value as determined by the BIR Commissioner, shall refer to the market value shown in the latest real property tax declaration or the consideration, whichever is higher.
Which of the following statements is correct?
I. VAT may be imposed together with other percentage tax
II. VAT may be imposed together with excise tax
III. VAT and other percentage tax may be imposed together with income tax
a. II only
b. III only
c. II and III only
d. I, II and III
II and III are both correct.
II. VAT may be imposed together with excise tax
III. VAT and other percentage tax may be imposed together with income
Which of the following statements is correct?
a. The seller of goods/services is the one statutorily liable to pay VAT
b. The “burden of tax” is borne by the final consumers although the producers and suppliers of these goods and services are the ones who have to file their VAT returns to the BIR. Hence, what is transferred or shifterd to consumers is not the “liability to pay the tax” but the tax burden.
c. Both “a” and “b”
d. Neither “a” nor “b”
Both “a” and “b” are correct.
a. The seller of goods/services is the one statutorily liable to pay VAT
b. The “burden of tax” is borne by the final consumers although the producers and suppliers of these goods and services are the ones who have to file their VAT returns to the BIR. Hence, what is transferred or shifterd to consumers is not the “liability to pay the tax” but the tax burden
As to tax rate, VAT is an example of:
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
Proportional tax
Which is correct?
a. All VAT-exempt taxpayers shall be subject to other percentage taxes.
b. A taxpayer who is subject to percentage tax on his gross receipts will also be subject to income tax on his net income.
c. Both “a” and “b”
d. Neither “a” nor “b”
Only Statement B is correct.
b. A taxpayer who is subject to percentage tax on his gross receipts will also be subject to income tax on his net income.
Georgia is a manufacturer of “GJ supermini-cigarrettes.” In making sales, taxes on the products and transactions are passed on to the buyers. For VAT purposes, which of the following forms part of the gross selling price?
a. VAT
b. Percentage tax
c. Excise tax
d. Income tax
Excise tax
Alex imported cigarettes for sale in the Philippines. What business tax will Alex pay?
1st answer: He will pay VAT on importation and on the sale of the cigarettes
2nd answer: He will pay excise tax on importation of the cigarettes
a. Both answers are correct
b. Both answers are incorrect
c. Only the 1st answer is correct
d. Only the 2nd answer is correct
Both answers are correct.
1st answer: He will pay VAT on importation and on the sale of the cigarettes
2nd answer: He will pay excise tax on importation of the cigarettes
Which is correct?
A. An excise tax which imposes a tax based on weight or volume capacity or any other physical unit of measurement is called specific tax.
B. An excise tax which imposes a tax based on selling price or other specified value of the article is called ad valorem tax
C. A percentage tax which is imposed whether the transaction resulted in a gain or loss is called transaction tax.
D. All of the above
All statements are correct.
A. An excise tax which imposes a tax based on weight or volume capacity or any other physical unit of measurement is called specific tax.
B. An excise tax which imposes a tax based on selling price or other specified value of the article is called ad valorem tax
C. A percentage tax which is imposed whether the transaction resulted in a gain or loss is called transaction tax.
