true or false Flashcards
Estates are taxed on income received during the period of administration or settlement.
truee
Estates and trusts are allowed a personal exemption of P20,000 (Per TRAIN, they are no longer allowed this exemption)
falsee
A trust must be irrevocable to be taxable.
truee
Estate taxation applies to the income generated by an estate (Estate tax applies to property transfer, not income).
falsee
A beneficiary has an equitable title to property in a trust.
truee
Income accumulated in a foreign-administered trust is deductible from gross income (Such deductions are not allowed in foreign-administered trusts).
falsee
A fiduciary may distribute or retain income, depending on the terms of the trust.
truee
In a revocable trust, the trustee is taxed on the income (The grantor is taxed in a revocable trust).
falsee
Income from an estate under judicial settlement is taxable.
truee
Gross income for estates and trusts includes similar items as for individual taxpayers.
truee
GPPs are taxed as corporations.
falsee
The distributive share of GPP partners is taxable individually.
truee
GPPs are allowed to deduct OSD and itemized deductions simultaneously.
falsee
A co-ownership becomes a taxable partnership if it generates income through business activities.
truee
Co-owners are taxed individually on their distributive share if limited to property preservation.
truee
General co-partnerships are considered tax-exempt for their business operations.
falsee
A GPP may opt to claim itemized deductions or OSD but cannot switch within the same year.
truee
A partner’s share in a taxable partnership’s income is taxed as dividends.
truee
Income received from a GPP is subject to a final tax at the corporate level.
falsee
The profit-sharing ratio is used to distribute losses if no agreement exists on loss division.
truee
Are tips accounted for by the employer?
falsee
Are tips subject to withholding tax?
falsee
Are service charges collected by the employer distributed to employees taxable?
truee
Are tips part of gross compensation?
truee
Compensation income includes allowances, honoraria, and taxable fringe benefits.
truee
Gains from dealings in property form part of gross income.
truee
Passive income subject to final tax is excluded from gross income when computing taxable income.
truee
Dividends received by an individual taxpayer always form part of taxable gross income.
falsee
Living quarters and meals provided for the convenience of the employer are excluded from compensation income.
truee
Employee bonuses are considered de minimis benefits and are always exempt from income tax.
falsee
Medical assistance not exceeding PHP 10,000 per annum is considered a taxable benefit.
falsee
Monetized unused vacation leave credits up to 10 days are tax-exempt for private employees.
truee
Pensions received as retirement pay are always subject to income tax.
falsee
Prizes and winnings are always part of gross income.
truee
Tips paid directly to employees are exempt from tax.
falsee
Tips are subject to withholding tax.
falsee
Gratuities received by an employee must be reported to the employer.
falsee
Employers must withhold tax on tips received by employees.
falsee
Tips are considered part of an employee’s taxable income.
truee
Tips from customers are included in gross income.
truee
Service charges distributed to employees are exempt from tax.
falsee
Tips paid in cash are treated differently from tips paid via credit card.
falsee
Tips are considered a benefit for tax purposes.
falsee
Voluntary tips are always subject to withholding tax
falsee
Tips paid directly to an employee by customers are subject to withholding tax.
falsee
Tips received by employees are considered taxable income.
truee
Gratuities must be declared as part of the gross income in tax filings.
truee
Employers are required to report employee gratuities to the tax authority.
falsee
Tips and gratuities are tax-exempt in the Philippines.
falsee
A mandatory service charge is considered a tip.
falsee
Tips form part of the employee’s gross income even if not declared.
truee
Tips given to employees are always fixed amounts.
falsee
Gratuities voluntarily paid by customers are not subject to withholding tax.
truee
Tips directly paid by customers to employees must be included in payroll computation.
falsee
Dividends received by a non-resident alien not engaged in business are subject to a 15% final tax.
falsee
Stock dividends are always non-taxable.
falsee
Prizes and awards received in recognition of civic achievement are taxable.
falsee
Annuities are taxable to the extent that they represent a return of premium.
falsee
PCSO winnings up to PHP 10,000 are subject to a 20% final tax.
falsee
Dividends received by a domestic corporation are exempt from income tax.
truee
Tax informer’s rewards are subject to a 10% tax rate on the recovered amount.
truee
Compensation income is taxed based on the place of performance of the service.
truee
Retirement benefits are always taxable, regardless of conditions.
falsee
Non-resident aliens engaged in business are subject to a 20% final tax on dividends.
truee
