true or false

Question 1

Estates are taxed on income received during the period of administration or settlement.

Answer 1

truee

Question 2

Estates and trusts are allowed a personal exemption of P20,000 (Per TRAIN, they are no longer allowed this exemption)

Answer 2

falsee

Question 3

A trust must be irrevocable to be taxable.

Answer 3

truee

Question 4

Estate taxation applies to the income generated by an estate (Estate tax applies to property transfer, not income).

Answer 4

falsee

Question 5

A beneficiary has an equitable title to property in a trust.

Answer 5

truee

Question 6

Income accumulated in a foreign-administered trust is deductible from gross income (Such deductions are not allowed in foreign-administered trusts).

Answer 6

falsee

Question 7

A fiduciary may distribute or retain income, depending on the terms of the trust.

Answer 7

truee

Question 8

In a revocable trust, the trustee is taxed on the income (The grantor is taxed in a revocable trust).

Answer 8

falsee

Question 9

Income from an estate under judicial settlement is taxable.

Answer 9

truee

Question 10

Gross income for estates and trusts includes similar items as for individual taxpayers.

Answer 10

truee

Question 11

GPPs are taxed as corporations.

Answer 11

falsee

Question 12

The distributive share of GPP partners is taxable individually.

Answer 12

truee

Question 13

GPPs are allowed to deduct OSD and itemized deductions simultaneously.

Answer 13

falsee

Question 14

A co-ownership becomes a taxable partnership if it generates income through business activities.

Answer 14

truee

Question 15

Co-owners are taxed individually on their distributive share if limited to property preservation.

Answer 15

truee

Question 16

General co-partnerships are considered tax-exempt for their business operations.

Answer 16

falsee

Question 17

A GPP may opt to claim itemized deductions or OSD but cannot switch within the same year.

Answer 17

truee

Question 18

A partner’s share in a taxable partnership’s income is taxed as dividends.

Answer 18

truee

Question 19

Income received from a GPP is subject to a final tax at the corporate level.

Answer 19

falsee

Question 20

The profit-sharing ratio is used to distribute losses if no agreement exists on loss division.

Answer 20

truee

Question 21

Are tips accounted for by the employer?

Answer 21

falsee

Question 22

Are tips subject to withholding tax?

Answer 22

falsee

Question 23

Are service charges collected by the employer distributed to employees taxable?

Answer 23

truee

Question 24

Are tips part of gross compensation?

Answer 24

truee

Question 25

Compensation income includes allowances, honoraria, and taxable fringe benefits.

Answer 25

truee

Question 26

Gains from dealings in property form part of gross income.

Answer 26

truee

Question 27

Passive income subject to final tax is excluded from gross income when computing taxable income.

Answer 27

truee

Question 28

Dividends received by an individual taxpayer always form part of taxable gross income.

Answer 28

falsee

Question 29

Living quarters and meals provided for the convenience of the employer are excluded from compensation income.

Answer 29

truee

Question 30

Employee bonuses are considered de minimis benefits and are always exempt from income tax.

Answer 30

falsee

Question 31

Medical assistance not exceeding PHP 10,000 per annum is considered a taxable benefit.

Answer 31

falsee

Question 32

Monetized unused vacation leave credits up to 10 days are tax-exempt for private employees.

Answer 32

truee

Question 33

Pensions received as retirement pay are always subject to income tax.

Answer 33

falsee

Question 34

Prizes and winnings are always part of gross income.

Answer 34

truee

Question 35

Tips paid directly to employees are exempt from tax.

Answer 35

falsee

Question 36

Tips are subject to withholding tax.

Answer 36

falsee

Question 37

Gratuities received by an employee must be reported to the employer.

Answer 37

falsee

Question 38

Employers must withhold tax on tips received by employees.

Answer 38

falsee

Question 39

Tips are considered part of an employee’s taxable income.

Answer 39

truee

Question 40

Tips from customers are included in gross income.

Answer 40

truee

Question 41

Service charges distributed to employees are exempt from tax.

Answer 41

falsee

Question 42

Tips paid in cash are treated differently from tips paid via credit card.

Answer 42

falsee

Question 43

Tips are considered a benefit for tax purposes.

Answer 43

falsee

Question 44

Voluntary tips are always subject to withholding tax

Answer 44

falsee

Question 45

Tips paid directly to an employee by customers are subject to withholding tax.

Answer 45

falsee

Question 46

Tips received by employees are considered taxable income.

Answer 46

truee

Question 47

Gratuities must be declared as part of the gross income in tax filings.

Answer 47

truee

Question 48

Employers are required to report employee gratuities to the tax authority.

Answer 48

falsee

Question 49

Tips and gratuities are tax-exempt in the Philippines.

Answer 49

falsee

Question 50

A mandatory service charge is considered a tip.

Answer 50

falsee

Question 51

Tips form part of the employee's gross income even if not declared.

Answer 51

truee

Question 52

Tips given to employees are always fixed amounts.

Answer 52

falsee

Question 53

Gratuities voluntarily paid by customers are not subject to withholding tax.

Answer 53

truee

Question 54

Tips directly paid by customers to employees must be included in payroll computation.

Answer 54

falsee

Question 55

Dividends received by a non-resident alien not engaged in business are subject to a 15% final tax.

Answer 55

falsee

Question 56

Stock dividends are always non-taxable.

Answer 56

falsee

Question 57

Prizes and awards received in recognition of civic achievement are taxable.

Answer 57

falsee

Question 58

Annuities are taxable to the extent that they represent a return of premium.

Answer 58

falsee

Question 59

PCSO winnings up to PHP 10,000 are subject to a 20% final tax.

Answer 59

falsee

Question 60

Dividends received by a domestic corporation are exempt from income tax.

Answer 60

truee

Question 61

Tax informer's rewards are subject to a 10% tax rate on the recovered amount.

Answer 61

truee

Question 62

Compensation income is taxed based on the place of performance of the service.

Answer 62

truee

Question 63

Retirement benefits are always taxable, regardless of conditions.

Answer 63

falsee

Question 64

Non-resident aliens engaged in business are subject to a 20% final tax on dividends.

Answer 64

truee