FEU-MAKATI- IABF

S U B J E C T: INCOME TAXATION 1
STSEMESTER
,SY 2012-2013
LONG QUIZ #1
NAME_______________________ANSWER KEY_________________ I.D. NO.________________
DECEMBER 4, 2012
CHAPTER 1-GENERAL PRINCIPLES AND CONCEPTS OF TAXATION
I. MATCHING TYPE-PART I
W______1. INTERNATIONAL COMITY
A______2.TAXATION
V______3. EMINENT DOMAIN POWER
E______4 PERSONAL, POLL OR CAPITATION TAX
B______.NECESSITY THEORY
!______". POLICE POWER
C.______#.BENEFIT-RECEIVED THEORY
$______%. AD VALOREM TAX
L______&. GENERAL, FISCAL OR REVEN!E TAX
O______10. M!NICIPAL OR LOCAL TAX
T______11.SIT!S OF TAXATION
S______12.INCOME TAX
D______13. NON-DIVERSION
I______14. INDIRECT TAX
M______1. SPECIAL OR REG!LATORY TAX
H______1". DIRECT TAX
R______1#. REGRESSIVE TAX
G______1%. EXCISE OR PRIVILEGE TAX
F______1&. PROPERTY TAX
'______20. SPECIFIC TAX
N______21. NATIONAL TAX
(______22. PROGRESSIVE OR GRAD!ATED TAX
P______23. PROPORTIONAL
A_____- IS THE PROCESS OR MEANS BY WHICH THE SOVEREIGN, THROUGH ITS
LAWMA$ING BODY, RAISES INCOME TO DEFRAY THE NECESSARY EXPENSES OF THE
GOVERNMENT.
B_____-THE THEORY THAT THE EXISTENCE OF GOVERNMENT IS A NECESSITY.
C_____ THE THEORY THAT STATES THAT THERE ARE RECIPROCAL DUTIES OF
PROTECTION AND S!PPORT BETWEEN THE STATE AND ITS INHABITANTS.
D_____-TAX MONEY COLLECTED FOR SPECIAL P!RPOSE MUST BE APPLIED ONLY FOR
THAT PURPOSE
E_____-TAX OF A FIXED AMO!NT IMPOSED ON INDIVID!ALS RESIDING WITHIN A
SPECIFIED TERRITORY WITHOUT REGARD TO THEIR PROPERTY OR THE OCCUPATION IN
WHICH THEY MAY BE ENGAGED. EXAMPLE: COMMUNITY TAX (FORMERLY RESIDENCE TAX)
OR CEDULA.
F_____-TAX IMPOSED ON PROPERTY, WHETHER REAL OR PERSONAL, IN PROPORTION
EITHER TO ITS VAL!E OR WITH SOME OTHER REASONABLE METHOD OF
APPORTIONMENT. EXAMPLE: REAL ESTATE TAX
G_____-TAX IMPOSED UPON THE PERFORMANCE OF AN ACT, THE EN'OYMENT OF
PRIVILEGE OR THE ENGAGING IN OCC!PATION. EXAMPLES: INCOME TAX, VALUE
-ADDED TAX , PERCENTAGE TAX
H_____-TAX WHICH IS DEMANDED FROM THE PERSON WHO IS INTENDED TO PAY IT.
EXAMPLES: COMMUNITY TAX, INCOME TAX
I_____-TAX WHICH THE TAXPAYER CAN SHIFT TO ANOTHER EXAMPLES: BUSINESS
TAXES, CUSTOMS DUTIES
J_____-TAX OF A FIXED AMO!NT IMPOSED BY HEAD OR N!MBER, OR BY SOME
STANDARD OF WEIGHT OR MEAS!REMENT.-EXAMPLES: EXCISE TAXES ON DISTILLED
SPIRITS, CIGARS, CIGARETTES
_____-TAX OF A FIXED PROPORTION OF THE AMO!NT OR VAL!E OF PROPERTY
WITH RESPECT TO WHICH THE TAX IS ASSESSED. EXAMPLES: REAL ESTATE TAX,
CUSTOMS DUTIES, INCOME TAX
L_____-TAX IMPOSED TO RAISE REVENUE FOR THE GOVERNMENT. EXAMPLES: INCOME
TAX, BUSINESS TAXES
M_____-TAX TO ACHIEVE SOME SOCIAL OR ECONOMIC ENDS IRRESPECTIVE OF
WHETHER REVENUE IS ACTUALLY RAISED OR NOT. EXAMPLES: PROTECTIVE TARIFFS ON
IMPORTED GOODS
N_____-TAX IMPOSED BY NATIONAL GOVERNMENT. -EXAMPLES: NIRC-COVERED
TAXES(INCOME TAX, DONOR!S TAX, VAT, ETC.)
O_____-TAX IMPOSED BY M!NICIPAL CORPORATIONS OR LOCAL GOVERNMENTS.
-EXAMPLES: TAX ON OCCUPATIONS, FLOOD TAX
P_____-TAX BASED ON A FIXED PERCENTAGE OF THE AMO!NT OF PROPERTY,
INCOME OR OTHER BASIS TO BE TAXED. EXAMPLES: REAL ESTATE TAX, VAT.
"_____-TAX THE RATE OF WHICH INCREASES AS THE TAX BASE INCREASES.
EXAMPLES: INCOME TAX, ESTATE TAX, DONOR!S TAX
R_____-TAX THE RATE OF WHICH DECREASES AS TAX BASE INCREASES
S_____- A TAX ON ALL YEARLY PROFITS ARISING FROM PROPERTY, PROFESSIONS, TRADES
OR OFFICES OR A TAX ON A PERSON!S INCOME, EMOLUMENTS, PROFITS AND THE LIE.
T_____-PLACE OF TAXATION OR THE STATE OR POLITICAL UNIT W#C HAS JURISDICTION TO
IMPOSE TAX OVER ITS INHABITANTS
U_____-THE POWER TO PROTECT CITI)ENS AND PROVIDE FOR SAFETY AND WELFARE
OF SOCIETY
V_____-THE POWER TO TA$E PRIVATE PROPERTY (WITH JUST COMPENSATION) FOR
P!BLIC !SE
W_____-COURTEOUS RECOGNITION, FRIENDLY AGREEMENT, INTERACTION AND RESPECT
ACCORDED BY ONE NATION TO THE LAWS AND INSTITUTIONS OF ANOTHER
I.MATCHING TYPE-PART II
M_____1. DO!BLE TAXATION
I______2.MAR$ING D!TY
L______3. TAX IMPRESCRIPTIBILITY
$______4. PROSPECTIBILITY OF TAX LAWS
'______. D!MPING D!TY
A______".INHERENT LIMITATIONS
W_____#. E(!ITABLE RECO!PMENT
R______%. TRANSFORMATION
G______&. DISCRIMINATORY D!TY
F______10. POC$ET VETO
S______11. EXEMPTION FROM TAXATION
E______12. ITEM VETO
C______13. E(!AL PROTECTION OF LAW
N______14. TAX EVASION
H______1. CO!NTERVAILING D!TY
O______1". TAX AVOIDANCE*TAX MINIMI)ATION
P______1#. TAX OPTION
(______1%. SHIFTING
D______1&. !NIFORMITY R!LE OF TAXATION
T______20. EXPRESSED EXEMPTION
!______21. IMPLIED EXEMPTION OR BY OMISSION
B______22. CONSTIT!TIONAL LIMITATIONS
V______23. CONTRACT!AL EXEMPTION
A_____-NAT!RAL RESTRICTIONS TO SAFEGUARD AND ENSURE THAT THE POWER OF
TAXATION SHALL BE EXERCISED BY THE GOVERNMENT ONLY FOR THE BETTERMENT OF
THE PEOPLE WHOSE INTEREST S#B SERVED, ENHANCED AND PROTECTED
B_____-PROVISIONS OF THE CONSTITUTION THAT RESTRICT THE SUPREME, PLENARY,
UNLIMITED AND COMPREHENSIVE EXERCISE BY THE STATE OF ITS INHERENT POWER TO
TAX
C_____-ALL PERSONS SUBJECT TO LEGISLATION SHALL BE TRETED ALIE UNDER SIMILAR
CIRCUMSTANCES AND CONDITIONS BOTH IN THE PRIVILEGES CONFEREED AND
LIABILITIES IMPOSED
D_____-TAX OPERATES WITH THE SAME FORCE AND EFFECT IN EVERY PLACE WHERE THE
SUBJECT MAY BE FOUND
E_____-THE POWER TO VETO ITEMS IN APPROPRIATION BILLS WITHOUT AFFECTING
OTHER PROVISIONS OF SUCH BILLS
F_____-THE POWER TO DISAPPROVE LEGISLATIVE ACT BY THE PRESIDENT WITH THE
RESULT THAT BILLS SHALL FAIL TO BECOME LAWS
G_____-SPECIAL DUTY WHOSE PURPOSE IS TO OFFSET ANY FOREIGN DISCRIMINATION
AGAINST OUT LOCAL COMMERCE
H_____-IMPOSED TO OFFSET ANY FOREIGN SUBSIDY GRANTED TO IMPORTED GOODS TO
THE PREJUDICE OF OUR LOCAL INDUSTRIES
I_____-ADDITIONAL DUTY TAX GENERALLY IMPOSED ON IMPORTED ARTICLES AND#OR
CONTAINERS WITH IMPPROPER CLASSIFICATION
J_____ADDITIONAL DUTY TAXES IMPOSED ON IMPORTED GOODS WITH PRICES
LESSER THAN THEIR FMV TO PROTECT LOCAL INDUSTRIES
____-A TAX BILL MUST ONLY BE APPLICABLE AND OPERATIVE AFTER BECOMING A LAW
L_____-UNLESS OTHERWISE PROVIDED BY THE TAX LAW ITSELF, TAXES IN GENERAL
ARE NOT CANCELLABLE
M_____-ACT OF THE SOVEREIGN BY TAXING TWICE FOR THE SAME P!RPOSE IN THE
SAME YEAR UPON THE SAME PROPERTY OR ACTIVITY OF THE SAME PERSON
N_____-!NLAWF!L MEANS TO LESSEN THE PAYMENT OF TAX
O_____-REDUCING OR TOTALLY ESCAPING PAYMENT OF TAXES THROUGH LEGALLY
PERMISSIBLE MEANS
P_____-CHOICE TO PAY LOWER TAX RATES IN SOME TRANSACTIONS AS PERMITTED BY
TAX LAWS
"_____-TRANSFER OF TAX BURDEN TO ANOTHER
R_____-THE PRODUCER ABSORBS THE PAYMENT OF TAX TO REDUCE PRICES AND TO
MAINTAIN MARET SHARE
S_____-GRANT OF IMMUNITY, EXPRESSED OR IMPLIED, TO A PARTICULAR PERSON,
CORPORATION, OR TO PERSONS OR CORPORATIONS OF A PARTICULAR CLASS, FROM A
TAX UPON PROPERTY OR AN EXCISE W#C PERSONS AND CORPORATIONS GENERALLY W#IN
THE SAME TAXING DISTRICT ARE OBLIGED TO PAY
T_____-EXEMPTIONS THAT ARE STAT!TORY LAWS IN NAT!RE AS PROVIDED BY
CONSTITUTION, STATUTE, TREATIES, ORDINANCES, FRANCHISES OR SIMILAR LEGISLATIVE
ACTS
U_____-WHEN TAX IS IMPOSED ON A CERTAIN CLASS OF PERSONS, PROPERTIES OR
TRANSACTIONS W#O MENTIONING OTHER CLASSES, THOSE NOT MENTIONED ARE
DEEMED EXEMPTED
V_____-THOSE LAWFULLY ENTERED INTO BY THE GOV!T IN CONTRACTS UNDER EXISTING
LAWS
W_____-A LAW DOCTRINE W#C STATES THAT A TAX CLAIM FOR REFUND, W#C IS
PREVENTED BY PRESCRIPTION, MAY BE ALLOWED AS PAYMENT FOR UNSETTLED TAX
LIABILITIES IF BOTH TAXES ARISE FROM THE SAME TRANSACTION IN W#C OVERPAYMENT
IS MADE AND UNDERPAYMENT IS DUE
I. MATCHING TYPE-PART III
P_____1. STAT!TES
A_____2. DOCTRINE OF SET-OFF TAXES
W_____3. LOCAL TAX ORDINANCES
N_____4.INTERNAL REVEN!E TAXES
B_____. PENALTY
O_____". PRINCIPLE OF +PARI MATERIA,
R_____#. TAX TREATIES AND CONVENTIONS
E_____%. TOLL
S_____&.REVEN!E REG!LATIONS
H_____10. TARIFF
I_____11. S!BSIDY
P_____12. STAT!TES
M_____13.INTERNAL REVEN!E LAW
!_____14.BIR R!LINGS
G_____1. C!STOMS D!TIES
V_____1". '!DICIAL DECISIONS
C_____1# REVEN!E
D_____1%. DEBT
T_____1&. REVEN!E MEMORAND!M CIRC!LARS
F_____20. LICENSE FEE
(_____21. EXEC!TIVE ORDERS
'_____22. MARGIN FEE
$_____23. SPECIAL ASSESSMENT
L_____23. TAX LAW
A_____-TAXES ARE NOT SUBJECT TO SET-OFF OR LEGAL COMPENSATION BECAUSE THE
GOV!T AND THE TAXPAYER ARE NOT MUTUAL CREDITOR AND DEBTOR OF EACH OTHER
B____-ANY SANCTION IMPOSED, AS A PUNISHMENT FOR VIOLATIONS OF LAW OR ACTS
DEEMED INJURIOUS
C_____-ALL FUNDS OR INCOME DERIVED BY THE GOV-T
D_____-AN OBLIGATION TO PAY OR RENDER SERVICE FOR A DEFINITE FUTURE PERIOD OF
TIME BASED ON CONTRACT
E_____-COMPENSATION FOR USE OF SOMEBODY ELSE!S PROPERTY DETERMINED BY THE
COST OF THE IMPROVEMENT
F_____-CONTRIBUTION BY THE GOV!T PRIMARILY TO RESTRAIN AND REG!LATE
B!SINESS OR OCC!PATION
G_____-IMPOSITION ON IMPORTED GOODS TO PROTECT LOCAL INDUSTRY
H_____-SCHEDULE OR LIST OF RATES, DUTIES OR TAXES IMPOSED ON IMPORTED GOODS
I_____-MONETARY AID DIRECTLY GRANTED OR GIVEN BY THE GOV!T TO AN INDIVIDUAL OR
PRIVATE COMMERCIAL ENTERPRISES DEEMED BENEFICIAL TO THE PUBLIC
J_____-TAX ON FOREIGN EXCHANGE DESIGNED TO CURB THE EXCESSIVE DEMANDS ON
OUR INT!L RESERVES
_____-AN AMOUNT COLLECTED BY THE GOV!T FOR THE PURPOSE OF REIMBURSING
ITSELF FOR CERTAIN EXTENDED BENEFITS REGARDING CONSTRUCTION OF PUBLIC
WORS
L_____-BODY OF LAWS W#C CODIFIES ALL NATIONAL TAX LAWS INCLUDING INCOME,
ESTATE, GIFT, EXCISE, STAMP AND OTHER TAXES
M_____-INCLUDES ALL LAWS LEGISLATED PERTAINING TO THE NAT-L GOV-T TAXES, W#C
IS EMBODIED IN THE NIRC
N_____-TAXES IMPOSED BY THE LEGISLATIVE BODY OTHER THAN CUSTOMS DUTIES
ON IMPORTS
O_____-TAX LAWS S#B INTERPRETED W# REFERENCE TO OTHER TAX LEGISLATIONS AND
THEIR EFFECT AS A WHOLE MAY BE GIVEN CONSIDERATION
P_____-LAWS ENACTED AND ESTABLISHED BY THE WILL OF THE LEGISLATIVE DEPT. OF
THE GOV!T
"_____-REGULATIONS ISSUED BY THE PRESIDENT OR SOME ADMINISTRATIVE AUTHORITY
UNDER HIS DIRECTION FOR THE PURPOSE OF INTERPRETING, IMPLEMENTING, OR
GIVING ADMINISTRATIVE EFFECT TO A PROVISION OF THE CONSTITUTION OR SOME
LAW OR TREATY
R_____INTERNATIONAL AGREEMENTS W# FOREIGN COUNTRIES REGARDING TAX
ENFORCEMENT AND EXEMPTIONS
S_____-RULES OR ORDERS HAVING FORCE OF LAW ISSUED BY EXECUTIVE AUTHORITY OF
THE GOV!T TO ENSURE UNIFORM APPLICATION OF THE TAX LAW
T_____-ADMINISTRATIVE RULINGS AND OPINIONS W#C ARE LESS GENERAL
INTERPRETATIONS OF TAX LAWS BEING ISSUED FROM TIME TO TIME BY BIR
COMMISSIONER OR BOC COMMISSIONER
U_____-EXPRESSED OFFICIAL INTERPRETATION OF THE TAX LAWS AS APPLIED TO
SPECIFIC TRANSACTIONS
V_____-DECISIONS FOR APPLICATION MADE CONCERNING TAX ISSUES BY THE PROPER
COURTS EXERCISING JUDICIAL AUTHORITY OF COMPETENT JURISDICTION
W_____-TAX ORDINANCES ISSUED BY THE PROVINCE, CITY, M!NICIPALITY AND
BARANGAY SUBJECT TO SUCH LIMITATIONS AS PROVIDED BY THE LG CODE AND REAL
PROPERTY TAX CODE
I. M!LTIPLE CHOICE
$. INHERENT POWER(S) OF THE STATE
A) POLICE
B) EMINENT DOMAIN
C) TAXATION
D. ALL OF THE ABOVE
%. THE POWER OF TAXATION IS A POTENT POWER AND THEREFORE IS
A. HOWEVER S!B'ECT TO CONSTIT!TIONAL AND INHERENT
LIMITATIONS
B) ABSOLUTE
&. THE ELEMENT(S) OF A STATE
A) PEOPLE
B) TERRITORY
C) SOVEREIGNTY
D) GOVERNMENT
E. ALL OF THE ABOVE
'. LOCAL GOVERNMENTS DO NOT POSSESS THE INHERENT POWER OF THE
STATE
A. TR!E
B) FALSE
(. IN ITS STRICTEST SENSE, THE POWER TO MAE TAX LAWS CAN NOT BE
DELEGATED TO OTHER BRANCHES OF THE GOV!T
A. TR!E
B) FALSE
). THE POWER TO VALUE PROPERTY, ASSESS AND COLLECT TAXES ARE
A. ADMINISTRATIVE IN NAT!RE AND CAN BE DELEGATED
B) LEGISLATIVE IN NATURE AND CAN NOT BE DELEGATED
*. AN EXAMPLE OF INTERNATIONAL COMITY LIMITATION ON THE POWER OF
TAXATION IS
A) NON-TAXABILITY OF PCSO AND PHILHEALTH
B. THE TAX EXEMPTION OF PROPERTIES !SED BY DIPLOMATS OR
HEAD OF STATES IN THE EXERCISE OF SOVEREIGN POWERS
AND DIPLOMATIC F!NCTIONS
+. AS A GENERAL RULE, AGENCIES PERFORMING GOV!TAL FUNCTIONS ARE
EXEMPT FROM TAX UNLESS EXPRESSLY TAXED, WHILE THOSE PERFORMING
PROPRIETARY FUNCTIONS ARE SUBJECT TO TAX UNLESS EXPRESSLY
EXEMPTED
A. TR!E
B) FALSE
,. WHICH OF THE FOLLOWING IS NOT INHERENT LIMITATION ON POWER TO
TAX
A) TAXES MAY BE LEVIED ONLY FOR PUBLIC PURPOSE
B. D!E PROCESS OF LAW
C) TAXATION MAY NOT BE DELEGATED
$-. WHICH OF THE FOLLOWING IS NOT CONSTIT!TIONAL LIMITATION
ON POWER TO TAX
A. TAXATION IS S!B'ECT TO INTENATIONAL COMITY
B) E"UAL PROTECTION OF LAW
C) RULE OF UNIFORMITY AND E"UITY
$$. THAT THE LAW S#B REASONABLE AND NOT OPPRESSIVE DESCRIBES
A. S!BSTANTIVE D!E PROCESS
B) PROCEDURAL DUE PROCESS
$%. CONGRESS SHALL EVOLVE A
A) REGRESSIVE SYSTEM OF TAXATION
B. PROGRESSIVE SYSTEM OF TAXATION
$&. ITEM VETO IS ALSO NOWN AS
A. PARTIAL VETO
B) VETO EN TOTO
$'. POCET VETO IS ALSO NOWN AS
A) PARTIAL VETO
B. VETO EN TOTO
$(. NON-PROFIT, NON-STOC EDUCATIONAL INSTITUTIONS ARE
A. TAX-EXEMPT
B) TAXABLE
$). NO LAW GRANTING ANY TAX EXEMPTION SHALL BE PASSED WITHOUT
THE CONCURRENCE OF A MAJORITY OF _________OF CONGRESS
A. ALL MEMBERS
B) "UORUM
$*. NON-PAYMENT OF A POLL TAX SENDS THE DELIN"UENT TAXPAYER TO
PRISON
A) TRUE
B. FALSE
$+. NECESSITY THEORY AS BASIS OF TAXATION IS NO DIFFERENT FROM
BEBEFIT-RECEIVED THEORY
A) TRUE
B. FALSE
$,. THE PURPOSE(S) OF TAXATION
A) REVENUE PURPOSE
B) REGULATORY PURPOSE
C) COMPENSATORY PURPOSE
D. ALL OF THE ABOVE
%-. THE OBJECT(S) OF TAXATION
A) PERSONS
B) PROPERTIES
C) EXCISE OBJECTS
D. ALL OF THE ABOVE
%$. THE SCOPE OF THE TAX LAW SHALL COVER
A) PAST TRANSACTIONS
B) PRESENT TRANSACTIONS
C) FUTURE TRANSACTIONS
D) ALL OF THE ABOVE
E. B. AND C. ONLY
%%. TAX AVOIDANCE IS THE ______MEANS OF LESSENING THE PAYMENT OF
TAX WHILE TAX EVASION IS THE __________MEANS OF LESSENING THE
PAYMENT OF TAX
A) ILLEGAL. LEGAL
B. LEGAL/ ILLEGAL
%&. WHICH OF THE FOLLOWING IS NOT A FORM OF TAX AVOIDANCE
A. E(!ITABLE RECO!PMENT
B) TAX OPTION
C) SHIFTING
D) TRANSFORMATION
E) EXEMPTION
%'. THE PHILIPPINE INTERNAL REVENUE TAXES ARE GENERALLY _________IN
NATURE
A. CIVIL
B) POLITICAL
C) PENAL
%(. TAX EXEMPTIONS ARE STRICTLY CONSTRUED AGAINST THE
A. TAXPAYER
B) GOV!T
%). WHENEVER THERE IS A CONFLICT BETWEEN THE TAX CODE AND THE
CIVIL CODE, THE CIVIL CODE SHALL PREVAIL OVER THE TAX CODE
A) TRUE
B. FALSE
%*. RA +'%' AA NIRC#CTRP TOO EFFECT
A) JANUARY $, $,,)
B) JANUARY $, $,,*
C. 'AN!ARY 1, 1&&%
%+. TAX ORDINANCES ISSUED BY THE PROVINCE, CITY, MUNICIPALITY AND
BARANGAYS ARE GOVERNED BY
A) RA +'%'
B. LOCAL GOV-T CODE AND REAL PROPERTY TAX CODE
%,.TARIFF OR TAX BILLS EMANATE FROM:
A. HO!SE OF REPRESENTATIVES
B) SUPREME COURT
C) SENATE
&-. THE PHILIPPPINES FOLLOWS THIS SYSTEM OF TAXATION
A) REGRESSIVE SYSTEM OF TAXATION
B. PROGRESSIVE SYSTEM OF TAXATION
&$. INCO DOUBT, TAX LAWS ARE
A) NEUTRALLY INTERPRETED
B) INTERPRETED STRICTLY AGAINST THE TAXPAYER AND LIBERALLY IFO THE GOV!T
C. INTERPRETED LIBERALLY IFO THE TAXPAYER AND STRICTLY AGAINST THE
GOV-T
&%. EVEN WITHOUT BASIS, INTENTIONALLY DECREASING THE INCOME AND INCREASING
TAX DEDUCTIONS IS AN EXAMPLE OF
A) TAX AVOIDANCE
B. TAX EVASION
&&. AVAILING OF TAX DEDUCTIONS ALLOWED BY LAW IS
A. TAX AVOIDANCE
B) TAX EVASION
&'. THIS DEPARTMENT HAS SUPERVISION AND CONTROL OF THE BIR
A) DEPT. OF JUSTICE
B) DEPT. OF TRADE AND INDUSTRY
C. DEPT OF FINANCE
&(. THE CURRENT BIR COMMISSIONER IS
A. $IM HENARES
B) CHI/ ESCUDERO
C) LEILA DE LIMA
D) MANNY PAC"UIAO
&). THE REVENUE REGIONAL OFFICES AND REVENUE DISTRICT OFFICES OF BIR ARE
UNDER
A) INFORMATION SYSTEMS GROUP
B) RESOURCE MANAGEMENT GROUP
C. OPERATIONS GRO!P
&*. THIS COURT HAS EXCLUSIVE APPELLATE JURISDICTION ON TAX CASES
A) REGIONAL TRIAL COURT
B) COURT OF FIRST INSTANCE
C. CO!RT OF TAX APPEALS
&+. WHICH OF THE FOLLOWING DOES NOT BELONG TO THE GROUP
A. REAL PROPERTY TAX
B) PERCENTAGE TAX
C) INCOME TAX
D) ESTATE TAX
E) DONOR!S TAX
F) VALUE-ADDED TAX
G) EXCISE TAX
H) DOCUMENTARY STAMPS TAX
&,. A RESIDENT PHIL. CITI/EN IS TAXABLE FOR ALL INCOME
A) W#IN THE PHIL.
B) W#OUT THE PHIL.
C) W*IN AND W*O!T THE PHIL.
'-. IN RELATION TO 0&, ABOCE, MR.X, A RESIDENT PHIL. CITI/EN HAS INCOME EARNED
IN THE PHIL. AMOUNTING TO P(--,---. MALAYSIA, P&--,---. INDONESIA, P%--,---. HIS
TAXABLE INCOME IS
A. P1,000,000
B) P%--,---
C) P&--,---
D) P(--,---
'$. A NON-RESIDENT PHIL. CITI/EN IS TAXABLE FOR ALL INCOME
A. W*IN THE PHIL.
B) W#OUT THE PHIL.
C) W#IN AND W#OUT THE PHIL.
'%. IN RELATION TO 0'$ ABOVE, MR. Y, A NON-RESIDENT PHIL. CITI/EN HAS INCOME
FOR THE YEAR EARNED IN THE PHIL. AMOUNTING TO P*--,---. THAILAND, P$(-,---.
CHINA, P%--,---. HIS TAXABLE INCOME IS
A. P#00,000
B) P%--,---
C) P$(-,---
D) P$,-(-,---
'&. AN ALIEN INDIVIDUAL (RESIDENT OR NOT) IS TAXABLE FOR ALL INCOME
A) W*IN THE PHIL.
B) W#OUT THE PHIL.
C) W#IN AND W#OUT THE PHIL.
''. IN RELATION TO 0'& ABOVE, MR. A, AN ALIEN INDIVIDUAL,HAS INCOME EARNED IN
THE PHIL. AMOUNTING TO P%,---,---. BRUNEI, P',---,---. MYANMAR, P$,(--,---. HIS
TAXABLE INCOME IS
A. P2,000,000
B) P*,(--,---
C) P(,(--,---
'(. A DOMESTIC CORPORATION IS TAXABLE FOR ALL INCOME
A) W#IN THE PHIL.
B) W#OUT THE PHIL.
C) W*IN AND W*O!T THE PHIL.
'). IN RELATION TO 0'( ABOVE, ABC CORP., A DOMESTIC CORPORATION, HAS INCOME
EARNED IN THE PHIL. AMOUNTING TO P$-,---,---. JAPAN, P%,---,---. SAUDI ARABIA,
P$,---,---. ITS TAXABLE INCOME IS
A) P$-,---,---
B. P13,000,000
C) P%,---,---
D) P$,---,---
'*. XY/ CORP., A FOREIGN CORPORATION, HAS INCOME EARNED IN THE PHIL.
AMOUNTING TO P$--,---,---. CANADA, P(,---,---. USA, P%-,---,---. ITS TAXABLE
INCOME IS
A. P100,000,000
B) P(,---,---
C) P%-,---,---
D) P%(,---,---
E) P$%(,---,---
'+.TULIRO CORP. ENDS ITS TAXABLE YEAR JUNE &-. IT IS FOLLOWING
A. FISCAL YEAR
B) CALENDAR YEAR
',. THIS IS A IND OF SUMMONS OR SUBPOENA THAT CIR MAY ISSUE AND WHOSE
OBJECT IS THE PRESENTATION OF BOOS OF ACCOUNTS OR OTHER ACCOUNTING
RECORDS RELEVANT TO THE CIR!S IN"UIRY AS TO DETERMINE THE TAX LIABILITY OF A
TAXPAYER
A. S!BPOENA D!CES TEC!M
B) SUBPOENA TESTIFICANDUM
(-. IN RELATION TO 0(- ABOVE, IF THE OBJECT IS FOR PERSON SUMMONED TO GIVE HIS
TESTIMONY RELEVANT TO THE CIR!S IN"UIRY, IT IS
A. S!BPOENA TESTIFICAND!M
B) SUBPOENA DUCES TECUM
($.ISSUANCES SIGNED BY THE SEC. OF FINANCE, UPON RECOMMENDATION OF CIR, THAT
SPECIFY, PRESCRIBE, OR DEFINE RULES AND REGULATIONS FOR THE EFFECTIVE
ENFORCEMENT OF THE PROVISIONS OF NIRC AND RELATED STATUES
A) REVENUE MEMORANDUM ORDERS
B) BIR RULINGS
C. REVEN!E REG!LATIONS
(%. REAL ESTATE TAX IS AN EXAMPLE OF PPRIVILEGE TAX
A) TRUE
B. FALSE
(&. CUSTOMS DUTIES ON IMPORTED GOODS IS AN EXAMPLE OF INDIRECT TAX
A. TR!E
B) FALSE
('. UNDER EMPLOYER-EMPLOYEE RELATIONSHIP, TRADE, BUSINESS OR PROFESSION
EXCLUDES PERFORMANCE OF SERVICES BY THE TAXPAYER AS AN EMPLOYEE
A. TR!E
B) FALSE
CHAPTER II-TAX ADMINISTRATION
I. MATCHING TYPE
L_____1. RECEIPT
A_____2.TAX ADMINISTRATION
M_____3.TAX ASSESSMENT
B_____4.LEVY OR IMPOSITION OF TAXES
O_____.ASSESSMENT PERIOD
N_____". TAX RET!RN
C_____#.ASSESSMENT
E_____%. FISCAL ADE(!ACY
D_____&. PAYMENT OF TAX
I_____10. B!REA! OF INTERNAL REVEN!E 0BIR.
G_____11. ADMINISTRATIVE FEASIBILITY
P_____12. IN'!NCTION
!_____13. FORFEIT!RE
T_____14. SEI)!RE
$_____1. SALES OR COMMERCIAL INVOICE
F_____1". E(!ALITY OR THEORETICAL '!S
'_____1#. 'EOPARDY ASSESSMENT
CC_____1%.DEFICIENCY
H_____1&. DEPARTMENT OF FINANCE 0DOF.
BB_____20. S!RCHARGE
(_____21. DISTRAINT OF PERSONAL PROPERTY
AA_____22. DELIN(!ENCY
R_____23. LEVY OF REAL PROPERTY
)_____24. CRIMINAL ACTION
S_____2. TAX LIEN
Y_____2". CIVIL ACTION
X_____2#. NATIONAL TAX REGISTER
V_____2%. COMPROMISE
W_____2&. LETTER OF A!THORITY
A_____- A SYSTEM INVOLVING ENFORCEMENT OF THROUGH ASSESSMENT AND
COLLECTION
B_____-INVOLVES THE PASSAGE OF TAX LAWS OR ORDINANCES THROUGH THE
LEGISLATURE. INVOLVES THE GRANTING OF TAX EXEMPTIONS, TAX AMNESTIES, AND TAX
REMEDIES
C_____ -ACT OF ADMINISTRATION AND IMPLEMENTATION OF THE TAX LAWS BY THE
EXECUTIVE THROUGH ITS ADMINISTRATIVE AGENCIES SUCH AS THE BIR OR BOC
D_____-A PROCESS INVOLVING THE ACT OF COMPLIANCE BY THE TAXPAYER IN
CONTRBUTING HIS SHARE TO DEFRAY THE EXOENSES OF THE GOV!T
E____-SOURCES OF REVENUE SHOULD BE S!FFICIENT TO MEET THE DEMANDS OF
PUBLIC EXPENDITURES.
F_____-TAX IMPOSED SHOULD BE PROPORTIONATE TO THE TAXPAYER-S ABILITY TO
PAY.
G____TAX LAWS SHOULD BE CAPABLE OF CONVENIENT, '!ST AND EFFECTIVE
ADMINISTRATION.
H_____-THE PRINCIPAL ADMINISTRATIVE AGENCY OF THE GOV!T FOR TAX
ADMINISTRATION
I_____-THE ADMINISTRATIVE AGENCY OF THE GOV!T IN CHARGE OF THE PRIMARY
FUNCTION REGARDING THE EXECUTION OF THE NIRC AND OTHER TAX LAWS AND
REGULATIONS
'_____-TERMINATION OF THE TAX PERIOD
$_____-DOCUMENT ISSUED BY THE SELLER OF GOODS TO THE BUYER
L_____-DOCUMENT ISSUED FOR SALES OF SERVICES
M_____-PROCESS OF DETERMINING THE CORRECT AMO!NT OF TAX DUE IN
ACCORDANCE WITH THE PREVAILING TAX LAWS
N_____-FORMAL REPORT PREPARED BY THE TAXPAYER OR HIS AGENT IN A PRESCRIBED
FORM SHOWING AN ENUMERATION OF TAXABLE AMOINTS AND DESCRIPTION OF
TAXABLE TRANSACTIONS, ALLOWABLE DEUDCTIONS, AMOUNT OF TAX, AND TAX PAYABLE
TO THE GOV!T
O_____-THE PERIOD IN PROCESSING, APPRAISING, DETERMINING THE VAL!E OF
THE S!B'ECT OF TAXATION, INCLUDING THE COMPUTATION OF TAX PRESCRIPTION,
SURCHARGES AND INTERESTS TO ARRIVE AT THE SPECIFIC SUM OF TAX CHARGED TO A
PERSON OR PROPERTY
P_____-A RESTRAINING ORDER ISSUED BY THE COURT HAVING JURISDICTION OVER THE
FILED SUIT INTENDED TO FORBID THE CONTIN!ANCE OF THE ACTION OF LAW
"_____-SEI/URE BY THE GOV!T OF PERSONAL PROPERTY-TANGIBLE OR INTANGIBLE-
TO ENFORCE THE PAYMENT OF TAXES, TO BE FOLLOWED BY ITS PUBLIC SALE IF TAXES
ACCRUING THERETO ARE NOT VOLIUNTARILY PAID
R_____-SEI/URE BY THE GOV!T OF REAL PROPERTY TO ENFORCE THE PAYMENT OF
TAXES, TO BE FOLLOWED BY ITS PUBLIC SALE IF TAXES ACCRUING THERETO ARE NOT
VOLIUNTARILY PAID
S_____-A LEGAL CLAIM GRANTED TO THE GOV!T TO SECURE THE PROPER PAYMENT OF
THE TAX, SURCHARGES, INTERESTS, AND COSTS ON ALL PROPERTY SUBJECT TO LEVY OR
DISTRAINT
T_____-SEI/ED PROPERTY IS SOLD AND PROCEEDS OF SALE ARE APPLIED TO SATISFY TAX
LIABILITY AND THE EXCESS THEREOF SHALL BE RET!RNED TO THE TAXPAYER
U_____-FORFEITED (TAING OF PROPERTY W#O COMPENSATION AS A RESULT OF AN
OFFENSE COMMITTED) PROPERTY IS SOLD AND NO PART OR PROCEEDS GOES TO
THE TAXPAYER BECAUSE THE PROPERTY IS CONFISCATED IFO THE GOV!T
V_____-A CONTRACT WHEREBY THE PARTIES, BY RECIPROCAL CONCESSIONS, AVOID
LITIGATION OR PUT AN END TO ONE ALREADY COMMENCED
W_____-A RE"UEST TO THE TAXPAYER TO PERMIT THE BEARER THEREOF TO CONDUCT
THE NECESSARY EXAMINATION OF SAID BOO$S AND RECORDS, AND SIGNED BY
THE THE BIR COMMISSIONER, HIS DEPUTY, OFFICIALS OF THE INVESTIGATING DIVISION,
REGIONAL DIRECTOR, ASSISTANT DIRECTOR, OR THE RDO
X_____-A RECORD OF THE NAMES OF PERSONS RESIDING IN EACH CITY OR MUNICIPALITY
EPT AND MAINTAINED BY EVERY REVENUE REGIONAL DIRECTOR OF EVERY REGIONAL
DISTRICT
Y______-ONE THAT IS BROUGHT TO ENFORCE, REDRESS OR PROTECT PRIVATE RIGHTS
/_____-A PENAL PROSECUTION, IT IS AN ACTION, SUIT OR CAUSE INSTITUTED TO PUNISH
AN INFRACTION OF THE CRIMINAL LAWS
AA_____-FAILURE ON THE PART OF THE TAXPAYER TO PAY THE TAX DUE ON THE DATE
FIXED BY LAW OR INDICATED IN THE ASSESSMENT NOTICE OR LETTER OF DEMAND
BB_____-CIVIL PENALTY IMPOSED BY LAW AS ADDITION TO THE MAIN TAX RE"!D TO BE
PAID DUE TO DELIN"UENCY OR MISREPRESENTATION OF TAXES
CC_____-THE AMOUNT STILL DUE AND COLLECTIBLE FROM THE TAXPAYER UPON AUDIT
OR INVESTIGATION
II. M!LTIPLE CHOICE
$. THE TAX LAWS TO BE PASSED SHALL DETERMINE THE
A) IND OF TAXES
B) SUBJECTS OF TAXES
C) OBJECTIVES OF TAXES
D) THE RATE AND BASE OF TAX
E) THE MANNER OF IMPOSING AND COLLECTING TAXES
F. ALL OF THE ABOVE
%. GENERALLY, TAXES ARE SELF-ASSESSING
A. TR!E
B) FALSE
&. EXAMPLE(S) OF TAX ADMINISTRATIVE FUNCTIONS
A) VALUATION OF PROPERTY FOR TAXATION
B) E"UALI/ATION OF ASSESSMENT
C) COLLECTION OF TAXES
D. ALL OF THE ABOVE
'. PRINCIPLE(S) OF A SOUND TAX SYSTEM
A) FISCAL ADE"UACY
B) E"UALITY OR THEORETICAL JUSTICE
C) ADMINISTRATIVE FEASIBILITY
D. ALL OF THE ABOVE
(. THIS PRINCIPLE STATES THAT THE TAX BURDEN MUST BE PROPORTIONATE TO
THE TAXPAYER!S ABILITY TO PAY
A) A) FISCAL ADE"UACY
B. E(!ALITY OR THEORETICAL '!STICE
C) ADMINISTRATIVE FEASIBILITY
D) ALL OF THE ABOVE
). THE PRINCIPAL ADMINISTRATIVE AGENCY OF THE GOV!T FOR TAX
ADMINISTRATION
A) DEPT. OF TOURISM
B) DEPT. OF JUSTICE
C. DEPT. OF FINANCE
D) NONE OF THE ABOVE
*. CONSTITUTED AGENT(S) OF BIR COMMISSIONER TO COLLECT NATIONAL
INTERNAL REVENUE TAXES
A) COMMISSIONER OF CUSTOMS
B) HEAD OF APPROPRIATE GOV!T OFFICE
C) AUTHORI/ED AGENT BANS
D. ALL OF THE ABOVE
+. THE CIR HAS THE EXCLUSIVE AND ORIGINAL POWER TO INTERPRET
PROVISIONS OF NIRC AND OTHER LAWS SUBJECT TO REVIEW BY THE
SECRETARY OF FINANCE
A. TR!E
B) FALSE
,. THE TERMINATION OF THE TAX PERIOD IS AA
A. 'EOPARDY ASSESSMENT
B) PRELIMINARY ASSESSMENT
C) FINAL ASSESSMENT
$-. NOTWITHSTANDING THE BAN SECRECY ACT (RA $'-(), THE CIR CAN
IN"UIRE INTO BAN DEPOSIT A#C OF THE TAXPAYER WHEN
A) DEATH OF A TAXPAYER TO DETERMINE GROSS ESTATE
B) FILING OF CLAIM OF BANRUPTCY BY TAXPAYER TO THE PREJUDICE OF
PAYMENT OF TAX LIABILITY
C) WEDDING OF THE TAXPAYER
D. A. AND B. ONLY
$$. THE INITIAL LIN OF A TAXPAYER WITH THE BIR IS HIS
A) VOTER!S ID
B. TAXPAYER IDENTIFICATION N!MBER
C) NBI CLERANCE
$%. ALL PERSONS SUBJECT TO ANY INTERNAL REVENUE TAX ARE
RE"UIRED TO ISSUE RECEIPTS OR SALES INVOICES WHEN THE VALUE OF THE
MERCHANDISE SOLD OR SERVICE RENDERED IS
A) P&(.-- OR MORE
B) P&-.-- OR MORE
C. P2.00 OR MORE
$&. THE ORIGINAL RECEIPT SHALL BE ISSUED TO THE PURCHASER, AND
THE ISSUER SHALL EEP THE DUPLICATE IN HIS PLACE OF BUSINESS FOR
A) + YEARS
B) ( YEARS
C. 3 YEARS
$'. IN THE PHILIPPINES, THE FILING AND PAYMENT OF TAX IS UNDER
A) PAY NOW, FILE LATER SYSTEM
B. PAY-AS-YO!-FILE SYSTEM
C) FILE NOW, PAY LATER SYSTEM
$(. FOR SIMPLE NEGLECT, THE TAX SURCHARGE IS
A) *(1
B. 21
C) (-1
$). FOR WILLFUL NEGLECT, THAT TAX SURCHARGE IS
A) *(1
B) %(1
C. 01
$*. ANY TAX DEFICENCY SHALL BE SUBJECT TO THE INTEREST AT THE RATE
OF ______W#C INTEREST SHALL BE ASSESSED AND COLLECTED FROM THE
DATE PRESCRIBED FOR ITS PAYMENT UNTIL THE FULL PAYMENT THEREOF.
A) $%1
B. 201
C) %(1
$+. FOR INDIVIDUALS EARNING PURELY COMPENSATION INCOME, THE BIR
FORM TO USE IS
A) $*-%
B) $*-$
C. 1#00
$,. FOR INDIVIDUALS EARNING BOTH BUSINESS AND COMPENSATION
INCOME, THE BIR FORM TO USE IS
A) $*-%
B. 1#01
C) $*--
%-. FOR CORPORATIONS AND PARTNERSHIP, THE BIR FORM TO USE IS
A. 1#02
B) $*-$
C) $*--
.
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