Unit 1

Question 1

Who opens the gate of independence?

Answer 1

Jose Rizal

Question 2

Philippines exercises tax

Answer 2

State

Question 3

Life; Cannot be separated

Answer 3

Inherent

Question 4

Enforcement and regulation to provide general welfare

Answer 4

Police power

Question 5

Everything is under the king (State)

Answer 5

Regalian doctrine

Question 6

Who makes law (e.g. house of rep, congress)

Answer 6

Legislative

Question 7

Executes law (e.g. LTO, agencies)

Answer 7

Executive

Question 8

Decides what is right or wrong (e.g. judges)

Answer 8

Judiciary

Question 9

“King owns everything.”

Answer 9

Regalian domain

Question 10

Tax loss should be efficient and effective

Answer 10

Administrative Feasibility

Question 11

Expenses should at least meet or within the source of income

Answer 11

Fiscal Adequacy

Question 12

Refers to the elements of state; residing within its territory

Answer 12

Population

Question 13

Status given by the international body; such as state is independent

Answer 13

Sovereignity

Question 14

Collegiate body that manages its population within its territory

Answer 14

Government

Question 15

Kind of tax loss being used in the Philippine jurisdiction; ability of the taxpayer to pay

Answer 15

Theoretical Justice

Question 16

Kind of taxpayer which is natural born; person

Answer 16

Individual taxpayer

Question 17

Refere to juridical type of person (e.g. partnership, cooperative)

Answer 17

Corporation

Question 18

Kind of taxpayer who is considered a Filipino citizen and lives in the Philippine jurisdiction

Answer 18

Resident citizen

Question 19

Kind of taxpayer who is considered to be Filipino but does not reside within the Philippine jurisdiction

Answer 19

Non-resident citizen

Question 20

Tax rate of interest, royalties…

Answer 20

20%

Question 21

This theory dictates that taxes should be collected. If not, the State will not live on its own

Answer 21

Lifeblood doctrine

Question 22

This theory dictates that payment of taxes is necessary with the expectancy of benefit in return

Answer 22

Benefits received doctrine or Symbiotic Theory

Question 23

When a taxpayer exceeded 3 million gross sales within the taxable year, a taxpayer shall be subjected to this kind of tax

Answer 23

Value Added Tax (VAT)

Question 24

If a taxpayer did not exceed 3 million within the taxable year, what kind of tax would a taxpayer be liable on top of this income tax?

Answer 24

Percentage tax (3%)

Question 25

It is a system of taxation which provides that taxes rates increase as tax base increases. More income you earn, more tax you pay, vice versa

Answer 25

Progressive

Question 26

When you earn income, you pay tax (15%-22%)

Answer 26

Income tax

Question 27

Sin tax (e.g. cigarettes, liquor)

Answer 27

Excise tax

Question 28

Gross receipts exceeds 3 million per year

Answer 28

Value Added Tax (VAT)

Question 29

Kind of excise tax

Answer 29

Donor’s tax

Question 30

Right of a deceased person to transmit his/her rightful heirs and beneficiaries on some tranfers

Answer 30

Estate tax

Question 31

When the same property is taxed twice when it should only be tax once

Answer 31

Double taxation

Question 32

Situs of taxation: where the act is committed

Answer 32

Performance/service

Question 33

Situs of taxation: where the payment was made

Answer 33

Payment of interest (interest income)

Question 34

Situs of taxation: where the property is located; immovable, land

Answer 34

Sale of Real Property

Question 35

Situs of taxation: where the goods are used; movable

Answer 35

Sale of goods

Question 36

50% where manufactured, 50% where its consumed

Answer 36

Sale of manufactured goods

Question 37

“All wealth that flows to the taxpayer, except for a mere return of capital.” (Under Sec. 32)

Answer 37

Income

Question 38

Proceeds of life insurance (income)

Answer 38

Not taxable

Question 39

Return of premium (capital)

Answer 39

Not taxable

Question 40

Payment due to injuries

Answer 40

Not taxable

Question 41

Income tax + VAT or Percentage tax

Answer 41

Business Income

Question 42

Last poem the Jose Rizal wrote

Answer 42

“Mi Ultimo Adios”