2nd Exam

INCOME TAX 2ND EXAM
Q1. Although the power of taxation is basically legislative in character, it is NOT the function of Congress
to:
COLLECT THE TAX LEVIED UNDER THE LAW
Q2. An example of a tax where the concept of progressivity finds application is the:
INCOME TAX ON INDIVIDUALS
Q3. Gross compensation income is defined as taxable income arising from an employer/employee
relationship and includes the following, except:
BONUSES AND OTHER BENEFITS OF AT LEAST PHP90,000
Q4. Gross income subject to tax does not include the following, except:
AMOUNT RECEIVED BY INSURED AS RETURN ON PREMIUM
Q5. Statement 1: A non-resident alien is deemed engaged in trade or business if, in any calendar, they
stay in the Philippines for an aggregate period of at least 180 days. | Statement 2: If the non-resident
alien individual’s stay for an aggregate period of 180 days or less during any calendar year, then they are
deemed not to be engaged in trade or business.
ONLY THE SECOND STATEMENT IS TRUE
Q6. Statement 1: A resident citizen is taxable on all income derived from worldwide sources. For the
other categories, the individual is taxable only on income derived from sources within the Philippines
subject to 25% flat rate based on gross income. | statement 2: For employment income, the source of
income is the place where the services are rendered, regardless of the place or manner of payment, the
place where contract was negotiated, or the payer’s place of residence.
ONLY THE SECOND STATEMENT IS TRUE
Q7. Statement 1: Ad Valorem tax is a tax of fixed proportion of the value of the property with respect to
which the tax is assessed. (e.g. excise tax on cigar, cigarettes and liquors). | Statement 2: Specific tax is
tax of fixed amount imposed by the head or number, or by some standard of weight or measurement.
(e.g. VAT, income tax, donor’s tax and estate tax.)
BOTH STATEMENTS ARE FALSE
Q8. Statement 1: Double taxation in the broad sense pertains to the direct double taxation. This means
that the taxpayer is taxed twice by the same taxing authority, within the same taxing jurisdiction, for the
same property and same purpose. | Statement 2: Double taxation is strict sense pertains to indirect
double taxation. This extends to all cases in which there is a burden of two or more impositions. It is the
double taxation other than those covered by direct double taxation.
BOTH STATEMENT ARE FALSE

Q9. Statement 1: Nonresident Alien Engaged in Trade and Business in the Philippines passive income is
subject to final tax with no option of itemized and optional deduction. | Statement 2: Furthermore, a
non – resident aliens engaged in trade or business are subject to tax at 25 percent of their gross income.
ONLY THE FIRST STATEMENT IS TRUE
Q10. Statement 1: Tax laws may be enacted for the promotion of private enterprise or business for as
long as it gives incidental advantage to the public of the state. | Statement 2: Tax laws are inherently
legislative; therefore, may not be delegated.
BOTH STATEMENT ARE FALSE
Q11. The actual effort exerted by the government to affect the exaction of what is due from the
taxpayer is known as:
COLLECTION
Q12. The Davao School of Business and Accountancy (DSBA), a private educational institution which is
offering tertiary education is registered with and accredited by the CHED. Which of the following is
exempt from tax? What kind of tax?
THE SCHOOL BUILDING BEING RENTED BY THE SCHOOL – FROM REAL PROPERTY TAX
Q13. Which of the following real estates is classified as an ordinary asset?
BOTH (A) AND (B)
Q14. Which of the following statement is/are correct? i. Taxation is a process. | ii. Enactment of Tax
Laws is part of the taxation process | iii. The Constitution expressly conferred to the power of Taxation
to the President of the Philippines. | iv. Taxation requires voluntary contribution from inhabitant to
support the government.
i and ii only
Q15. Which of the following taxes is a final capital gains tax?
TAX ON THE SALE OF UNLISTED/ UNTRADED SAHRES OF STOCK
Q16. Which of the following transactions is exempt from the final capital gains tax?
NONE OF THE FOREGOING
Q17. Nairobi paid P20,000 annual premium on a life insurance contract which would pay her P1,000,000
in case of her death. After paying for 4 years, Nairobi assigned the policy to Denver for P120,000.
Computed the return on capital.
40,000
Q18. Arturo Roman died. His heirs collected the P2,000,000 proceeds of his life insurance policy. Arturo
Roman previously paid a total payment of P500,000 in premiums. Determine the exclusion in gross
income.
2,000,000
Q19. Helsinki received the following items during the year:
P200,000 donation from a girlfriend
P100,000 service fee from professional services
P300,000 inheritance from his deceased grandfather
P100,000 income from illegal gambling
P50,000 gain on sale of his personal car
P250,000 profits from his bar restaurant
Compute the total income subject to income tax.
500,000
Q20. Bogata has the Following items of income:
Philippines Abroad
Business Income P200,000 P100,000
Professional Fees 100,000 50,000
Compensation income 400,000 -
Rent Income 300,000 200,000
Interest Income 30,000 40,000
Assuming that Bogata acquired all the income for the period ended January 6, 2021 and that accordingly
he arrived last January 3, 2020 in the Philippines compute the total income subject to Philippine income
tax.
1,030,000
Q21. Bogata has the Following items of income:
Philippines Abroad
Business Income P200,000 P100,000
Professional Fees 100,000 50,000
Compensation income 400,000 -
Rent Income 300,000 200,000
Interest Income 30,000 40,000
Assuming that Bogata is a Filipino citizen who went abroad just for a vacation but was extended for a
period of 183 days because of the lockdown. Compute the total income subject to Philippine income tax.
1,420,000
Q22. Instruction: There are two relating questions for this information so save your solution paper.
However, for this item just answer the 1. Net income to date for the last quarter.
Professor Tokyo, a self-employed taxpayer, single, has the following cumulative quarterly gross income
and deductions. Determined her 1. Net income to date for the last quarter and her 2. Grand total tax
due (after deducting w/holding taxes).
Jan-March April-June July-Sept OC-Dec
Gross Income 500,000.00 600,000.00 750,000.00 1,500,000.00
Deductions 150,000.00 200,000.00 180,000.00 280,000.00
Withholding tax 13,000.00 15,000.00 18,000.00 20,000.00
Again, how much is the net income to date for the last quarter?
2,540,000
Q23. Instruction: There are two relating questions for this information so save your solution paper.
However, for this item just answer the 1. Grand total tax due (after deducting w/holding taxes)
Professor Tokyo, a self-employed taxpayer, single, has the following cumulative quarterly gross income
and deductions. Determined her 1. Net income to date for the last quarter and her 2. Grand total tax
due (after deducting w/holding taxes).
Jan-March April-June July-Sept OC-Dec
Gross Income 500,000.00 600,000.00 750,000.00 1,500,000.00
Deductions 150,000.00 200,000.00 180,000.00 280,000.00
Withholding tax 13,000.00 15,000.00 18,000.00 20,000.00
Again, how much is the Grand total tax due (after deducting w/holding taxes)?
439,300

2nd Exam

Uploaded by

Copyright:

Available Formats

2nd Exam

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2nd Exam

Uploaded by

Copyright:

Available Formats

What is the net income for the last quarter according to the information provided?

What is the net income for the last quarter according to the information provided?

What is the total tax due after deducting withholding taxes?

What is the total tax due after deducting withholding taxes?

INCOME TAX 2ND EXAM

COLLECT THE TAX LEVIED UNDER THE LAW

INCOME TAX ON INDIVIDUALS

BONUSES AND OTHER BENEFITS OF AT LEAST PHP90,000

AMOUNT RECEIVED BY INSURED AS RETURN ON PREMIUM

ONLY THE SECOND STATEMENT IS TRUE

ONLY THE SECOND STATEMENT IS TRUE

BOTH STATEMENTS ARE FALSE

BOTH STATEMENT ARE FALSE

ONLY THE FIRST STATEMENT IS TRUE

BOTH STATEMENT ARE FALSE

Q13. Which of the following real estates is classified as an ordinary asset?

BOTH (A) AND (B)

Q15. Which of the following taxes is a final capital gains tax?

TAX ON THE SALE OF UNLISTED/ UNTRADED SAHRES OF STOCK

NONE OF THE FOREGOING

P200,000 donation from a girlfriend

P100,000 service fee from professional services

P300,000 inheritance from his deceased grandfather

P100,000 income from illegal gambling

P50,000 gain on sale of his personal car

P250,000 profits from his bar restaurant

Compute the total income subject to income tax.

Q20. Bogata has the Following items of income:

Business Income P200,000 P100,000

Professional Fees 100,000 50,000

Compensation income 400,000 -

Rent Income 300,000 200,000

Interest Income 30,000 40,000

Q21. Bogata has the Following items of income:

Business Income P200,000 P100,000

Professional Fees 100,000 50,000

Compensation income 400,000 -

Rent Income 300,000 200,000

Interest Income 30,000 40,000

Jan-March April-June July-Sept OC-Dec

Gross Income 500,000.00 600,000.00 750,000.00 1,500,000.00

Deductions 150,000.00 200,000.00 180,000.00 280,000.00

Withholding tax 13,000.00 15,000.00 18,000.00 20,000.00

Jan-March April-June July-Sept OC-Dec

Gross Income 500,000.00 600,000.00 750,000.00 1,500,000.00

Deductions 150,000.00 200,000.00 180,000.00 280,000.00

Withholding tax 13,000.00 15,000.00 18,000.00 20,000.00

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.