CHAPTER 2: Self-Test Exercises Flashcards
(110 cards)
1
Q
Instructions
A
Exercise Drill No. 1
Identify the type of tax that is described by the following:
2
Q
A consumption tax collected by non-VAT businesses
A
Other Percentage Tax
3
Q
Tax on gratuitous transfer of property by a living donor
A
Donor’s Tax
4
Q
Tax that decreases in rates as the amount or value of the tax object increases
A
Regressive Tax
5
Q
Tax collected upon persons who are not the statutory taxpayers
A
Indirect Tax
6
Q
Tax that is imposed based on the value of the tax object
A
Ad valorem Tax
7
Q
Tax for general purpose
A
Fiscal/Revenue Tax
8
Q
Tax imposed by the national government
A
National Tax
9
Q
A tax on sin products or non-essential commodities
A
Excise Tax
10
Q
Imposed on the gratuitous transfer of property upon death
A
Estate Tax
11
Q
Tax on residents of a country
A
Personal, Poll, or Capitation
12
Q
Tax that remains at flat rate regardless of the value of the tax object
A
Proportional Tax
13
Q
Tax which is collected on a per unit basis
A
Specific Tax
14
Q
Tax is collected upon the statutory taxpayer
A
Direct Tax
15
Q
Tax imposed to regulate businesses or professions
A
Regulatory
16
Q
Tax upon performance of an act or enjoyment of a privilege
A
Excise/Privilege Tax
17
Q
Instructions
A
Exercise Drill No. 2
I d e n t i f y w h i c h i t e m i s d e s c r i b e d by t h e f o l l o w i n g :
18
Q
It refers to all income collections of the government.
A
Revenue
19
Q
It is an imposition for the support of the government.
A
Tax
20
Q
It is imposed upon land adjacent to public improvements.
A
Special Assessment
21
Q
It is imposed on imported and exported commodities.
A
Tariff
22
Q
It is a charge imposed prior to the commencement of business or exercise of a profession.
A
License fee
23
Q
It is a post-activity rather than a pre-activity imposition.
A
Tax
24
Q
It is subject to compensation or set-off.
A
Debt
25
It is a charge for the use of others' property.
Toll
26
It is an imposition intended to discourage an act.
Penalty
27
It arises from contracts rather than from law.
Debt
28
Instructions
Multiple Choice - Theory: Part 1
29
Which is not a source of tax law?
a. CHED regulations
b. BIR Rulings
c. Judicial decisions
d. Constitution
a
30
When tax is collected upon someone who is effectively reimbursed by another, the tax is regarded as
a. direct.
b. indirect.
c. personal.
d. illegal.
b
31
All are ad valorem taxes, except one. Select the exception.
a. Poll tax
b. Estate tax
c. Real property tax.
d. Capital gains tax on real property capital asset.
a
32
Taxation power can be used to destroy
a. as a revenue measure.
b. even if the tax is invalid.
c. as an implement of police power.
d. when the State is in dire need of funds.
c
33
Which is not a characteristic of tax?
a. It is an enforced contribution.
b. It is generally payable in money.
c. It is subject to assignment.
d. It is levied by the law-making body of the State having jurisdiction.
c
34
Tax as to source is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
c
35
Which of the following is a local tax?
a. Value added tax
b. Real property tax
c. Documentary stamp tax
d. Other percentage taxes
b
36
Tax as to purpose is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
a
37
Tax as to incidence is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
b
38
Which is not a nature of tax?
a. Enforced proportional contribution
b. Enforced within the territorial jurisdiction of the taxing authority
c. Levied by the lawmaking body
d. Generally payable in kind
d
39
Taxes that cannot be shifted by the statutory taxpayer are referred to as
a. direct taxes.
b. indirect taxes.
c. business taxes.
d. personal taxes.
a
40
Tax classifications as to object do not include
a. Poll tax
b. Property tax
c. Regulatory tax
d. Excise tax
c
41
Which is a local tax?
a. Donor's tax
b. Professional tax
c. Documentary stamp tax
d. Excise tax
b
42
As to subject matter, taxes do not include
a. Property tax
b. Regulatory tax
c. Poll tax
d. Excise tax
b
43
A tax that is imposed upon the performance of an act, the enjoyment of a privilege or the engagement in a profession is known as
a. income tax.
b. license.
c. excise tax.
d. transfer tax.
c
44
Which is anational tax?
a. Real property tax
b. Community tax
c. Income tax
d. Professional tax
c
45
Which of the folowing distinguishes license from tax?
a. Unlimited in imposition
b. Imposed for revenue
c. Does not renders business illegal
d. Pre-activity in application
d
46
Which is correct?
a. Taxes may be subject to compensation.
b. Toll, being ademand of ownership, is exercised only by private entities.
c. Dacion en pago and cession in payment are applicable to taxation.
d. Special assessment applies only when public improvement is made.
d
47
Tax as to determination of amount is classified as
a. Fiscal or regulatory
b. Direct or indirect tax
c. National or local tax
d. Specific or ad valorem tax
d
48
A. Tax must not violate Constitutional and inherent limitation.
B. Tax must be uniform and equitable.
C. Tax must be for public purpose.
D. Tax must be levied by the lawmaking body.
E. Tax must be proportionate in character.
F. Tax is generally payable in money.
Which of the above is/are not an essential characteristic of a valid tax?
a. All of the above
b. All except F
c. None, except F
d. None of the above
d
49
Tax as to rates excludes
a. Specific tax
b. Progressive tax
c. Mixed tax
d. Proportional tax
a
50
To limit the production of an environmentally harmful commodity, Congress passed a law subjecting the sales of an environmentally unfriendly commodity to a P10/kilo tax but a 5% tax is imposed on sales exceeding P100,000.
Which is incorrect?
a. The tax is a combination of an ad valorem tax and specific tax.
b. This is an example of a regulatory tax.
c. This is a national tax.
d. This is a local tax.
d
51
Which is not an excise tax?
a. Income tax
b. Community tax
c. Estate tax
d. Occupation tax
b
52
Which is an indirect tax?
a. Value added tax
b. Donor's tax
c. Income tax
d. Real property tax
a
53
Which is not an ad valorem tax?
a. Real property tax
b. Excise tax on cigar
c. Income tax
d. Donor's tax
b
54
A tax that is imposed based on per unit or per head basis is known as
a. Proportional tax
b. Specific tax
c. Ad valorem tax
d. Progressive tax
b
55
Mr. dela Cruz has a tax obligation to the government amounting to P80,000. Since he is leaving the country, he entered into a contract with Mr. Garcia wherein Mr. B shall pay the P80,000 tax in his behalf. On due date, Mr. Garcia failed to pay the tax. The BIR sent a letter of demand to Mr. dela Cruz which he refused to pay.
Which of the following statements is correct?
a. The government cannot enforce collection charges against Mr. dela Cruz since he has validly transferred his obligations to Mr. Garcia under the contract.
b. The government can no longer run after Mr. dela Cruz because he is already outside the Philippine territory.
c. The government should wait until Mr. B becomes solvent again.
d. The government should force Mr. A to pay because taxes are non-assignable.
d
56
Philippine tax laws are, by nature,
a. political.
b civil.
c. political and civil.
d. penal and civil.
b
57
Motor vehicles tax is an example of
a. Property tax
b. Privilege tax
c. Income tax
d. Indirect tax
b
58
Which of the following statements is correct?
a. The Marshall Doctrine is not used in practice since it is unconstitutional.
b. An ex post facto tax law violates the constitution.
c. A tax bill personally drafted by the president shall become a law after approval by congress.
d. It is in the public interest that errors of public officials should bind the government to limit government abuse.
c
59
Who issues revenue regulations?
a. Department of Finance
b. Congress
c. Commissioner of Internal Revenue
d. Commissioner of Customs
a
60
Tax rulings are issued by the
a. Secretary of Finance
b. Supreme Court
c. Court of Tax Appeals
d. Commissioner of Internal Revenue
d
61
Which of the following is limited in application?
a. Tax laws
b. Revenue Regulations
c. Tax treaties
d. BIR Ruling
d
62
Which si not a source of tax law?
a. Judicial decisions
b. Revenue regulations
c. Opinions of tax experts
d. Tax treaties and ordinances
c
63
Which is not an element of tax?
a. It must be for public purpose.
b. It must not violate Constitutional or inherent limitation. c. It must be progressive by nature.
d. It must be uniform and equitable.
c
64
Tax as to purpose does not include
a. Revenue
b. Sumptuary
c. Regulatory
d. Poll
d
65
When the impact and incidence of taxation are merged into the statutory taxpayer, the tax is known as
a. Personal tax
b. Direct tax
c. Indirect tax
d. National tax
b
66
Which of the following levy is fiscal or revenue by nature?
a. Tax law geared to phase out a deficit balance of the government.
b. Tax law intended to prohibit gambling in the Philippines.
c. Tax law intended to protect local industries.
d. Tax law supporting the development of a particular industry.
a
67
Tax as to object includes
a. Personal tax
b. Property tax
c. Excise tax
d. All of these
d
68
Which is not an indirect tax?
a. Duties
b. Impost
c. Excise tax
d. Personal tax
d
69
Atax that cannot be avoided is
a. Direct tax
b. Indirect tax
c. Specific tax
d. Personal tax
a
70
Statement 1: Taxes are voluntary contributions to the government.
Statement 2: Taxes are mandatory contributions to the government.
Which is correct?
a. Only statement 1is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Neither statement is correct.
b
71
Which is an indirect tax?
a. Other percentage tax
b. Income tax
c. Donor's tax
d. Estate tax
a
72
Income tax is not a/an
a. Ad valorem tax
b. Direct tax
c. Revenue tax
d. Property tax
d
73
A transfer tax is not a/an
a. Regressive tax
b. Ad valorem tax
c. National tax
d. Excise tax
a
74
Instructions
Multiple Choice -Theory: Part 2
75
Which is intended to regulate conduct?
a. Penalty
b. License
c. Police power
d. Toll
a
76
Which is not an excise tax?
a. Income tax
b. Business tax
c. Personal tax
d. Transfer tax
c
77
Which of the following do not relate to tax?
a. Does not render business illegal when not paid
b. Arises from law rather than from contracts
c. Intended to cover cost of regulations
d. Intended for public purpose
c
78
A levy from a property which derives some special benefit from public improvement is
a. Special assessment
b. Eminent domain
c. Taxation
d. Toll
a
79
A. Government revenue may come from tax, license, toll and penalties.
B. Penalty may arise either from law or contracts.
Which is false?
a. A only
b. B only
c. A and B
d. Neither A nor B
d
80
What distinguishes tax from license?
a. Tax is a regulatory measure.
b. Tax is a demand of ownership.
c. Tax arises from contract.
d. Tax si a post-activity imposition.
d
81
Which of the folowing distinguishes license from tax?
a. It is imposed under taxation power.
b. It is a charge for other's property.
c. Non-compliance to it will render businesses illegal.
d. It is generally payable in money.
c
82
The amount imposed is based on the value of the property
a. Eminent domain
b. License
c. Toll
d. Special assessment
c
83
Toll exhibits al of the following characteristics, except one. Which is the exception?
a. Demand of ownership
b. Compensation for the use of another's property
c. Maybe imposed by private individuals
d. Levied for the support of the government
d
84
Which of the following is incorrect?
a. The collected tax is referred to as revenue.
b. Tax is the sole source of government revenue.
c. License is imposed before commencement of a business or profession.
d. Debt can be subject to compensation or set-off.
b
85
What distinguishes debt from tax?
a. Arises from contract
b. Never draws interest
c. Non-payment will lead to imprisonment
d. Generally payable in money
a
86
Debt as compared to tax
a. It is a demand of ownership.
b. It is not assignable.
c. It will not cause imprisonment when not paid.
d. It is generally payable ni money.
c
87
Select the incorrect statement.
a. Tax may be unlimited ni amount.
b. Non-payment of license renders the business illegal.
c. Special assessment is not a liability of the person owning the property.
d. Special assessment can be imposed on building and other real right attaching or pertaining to land.
d
88
Tax as to subject matter does not include
a. Real property tax
b. Personal tax
c. Excise tax
d. Regulatory tax
d
89
Instructions
Multiple Choice - Theory: Part 3
90
Which si not na application of a principle of a sound tax system?
a. Taxes should adjust based on government needs.
b. Taxation should be progressive.
c. Taxation should encourage convenient compliance.
d. None of these
d
91
The Commissioner of Internal Revenue is not authorized to
a. interpret the provisions of the National Internal Revenue Code
b. promulgate Revenue Regulations.
c. terminate an accounting period.
d. prescribe presumptive gross receipts.
b
92
Which is not a power of the Commissioner of Internal Revenue?
a. To change tax periods of taxpayers
b. To refund internal revenue taxes
c. To prescribe assessed value of real properties
d. To inquire into bank deposits only under certain cases
c
93
The principles of a sound tax system exclude
a . Economic efficiency
b. Fiscal adequacy
c. Theoretical justice
d. Administrative feasibility
a
94
Which of the following best describes the effect of tax condonation?
a. It only covers the unpaid balance of a tax liability.
b. It is conditional on the taxpayer paying some portion of the unpaid tax.
c. It generally applies to all taxpayers.
d. All of these
a
95
By which principle of a sound tax system is the elasticity ni tax rates is justified?
a. Theoretical justice
b. Fiscal adequacy
c. Administrative feasibility
d. All of these
b
96
Violation of this principle will make a tax law invalid
a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Economic consistency
b
97
Which of the following is not an application of the lifeblood doctrine?
a. The government has the right ot select the object of taxation.
b. Taxation is the rule; exemption is the exception.
c. Claim for exemption si strictly construed against the taxpayer.
d. None of these
d
98
Which is true with tax amnesty?
a. It is unconditional.
b. It covers both criminal and civil liability of the taxpayer
c. It applies for past and future non-compliance.
d. All of these
b
99
Which one of the following is the BIR not empowered to do?
a. Assess national taxes
b. Collect income, business and transfer taxes
c. Assess and collect local taxes
d. Enforce forfeitures, penalties and fines
c
100
Which principle demands that tax should be just, reasonable, and fair?
a. Theoretical justice
b. Fiscal adequacy
c. Administrative feasibility
d. Economic consistency
a
101
Which among the following powers of the Commissioner of Internal Revenue can be delegated?
a. The power to conduct inventory surveillance
b. The power to recommend promulgation of revenue regulations.
c. The power to issue rulings of first impression.
d. The power to reverse a ruling, amend or modify an existing ruling.
a
102
The Commissioner of Internal Revenue is not empowered to
a. Make or amend a tax return for and in behalf of the taxpayer.
b. Obtain information and to summon, examine, and take testimony of persons to effect tax collections.
c. Compromise tax liabilities of taxpayers.
d. Grant amnesty for erring taxpayers.
d
103
Which of the following may tax exemption come from?
a. Contract
b. Constitution
c. Law
d. All of these
d
104
Exemption based upon which of the following is repealable?
a. Contract
b. Constitution
c . Law
d. None of these
c
105
Which of the following is a power of the Commissioner of Internal Revenue?
a. Assessment and collection of taxes
b. Enforcement of all forfeitures, penalties, and fines
c. Interpretation of the provisions of the NIRC
d. Giving effect to and administering the supervisory and police conferred by the NIRC and other laws
c
106
The Commissioner of Internal Revenue can delegate the power to
a. refund or credit internal revenue tax.
b. recommend rules and regulations ot the Secretary of Finance.
c. assign and re-assign revenue officer to establishments of excisable articles.
d. compromise or abate tax liability.
a
107
The BIR is under the supervision of
a. the Bureau of Customs.
b. the President.
c. the Department of Finance.
d. Congress.
c
108
As to tax payments measures, which of the following threshold for the qualification as large taxpayer is incorrect?
a. Annual income tax payments of P1M
b. Annual value added tax payments of P1M
c. Quarterly percentage tax payments of P200,000
d. Annual documentary stamp tax of P1M
b
109
Who is not a large taxpayer?
a. Mining companies
b. Listed companies
c. Banks with P120M authorized capital
d. None of these
d
110
In terms of financial measures, which of the following threshold for qualification as large taxpayers is incorrect?
a. Gross receipts exceeding P1B
b. Net worth exceeding P300M
c. Gross purchases exceeding P800M
d. Gross sales exceeding P1.5B
d
