Intax Identification Flashcards
(159 cards)
1
Q
Who is classified as an individual with a fixed place of abode in the Philippines but is not engaged in any business or profession.
A
Resident Alien
2
Q
An individual whose business does not realize gross sales exceeding P100k in any 12 months period.
A
Marginal Income Earner
3
Q
A Filipino Citizen who earns income from both from the Philippines and abroad but maintains a permanent home in the Philippines.
A
Resident Citizen
4
Q
An individual who is a foreigner, earns income from sources within the Philippines, and stays in the country for more than 180 days within a taxable year.
A
Non-Resident Alien Not Engaged in Trade or Business
5
Q
The tax rate applicable to a taxpayer earning solely from self-employment or practice of profession with gross sales below P3 million, at their option.
A
8% Income Tax Rate
6
Q
The threshold for VAT registration in the Philippines.
A
3 Million
7
Q
The percentage of business tax applicable to non-VAT taxpayers like nightclub owners.
A
18%
8
Q
The entity responsible for collecting taxes in the Philippines.
A
Bureau of Internal Revenue
9
Q
The due date for the first installment payment of estimated tax.
A
April 15
10
Q
Law that provides tax incentives for Barangay Micro Business Enterprises.
A
RA 9178
11
Q
A business exempt from income tax on operations.
A
Barangay Micro Business Enterprise
12
Q
They are entitled to 20% VAT discount on specified goods and services.
A
Senior Citizens
13
Q
What is the tax treatment for a non-resident alien earning income from sources within the Philippines?
A
Taxed only on income from sources within the Philippines
14
Q
Non-resident aliens are taxed only on income derived from.
A
Sources within the Philippines
15
Q
It occurs when illegal efforts are made to escape the payment of tax.
A
Tax Evasion
16
Q
Powers are not explicitly stated in the Constitution that allow the government to perform essential duties.
A
Inherent Powers
17
Q
The legislative body responsible for imposing and collecting taxes in the state.
A
Congress
18
Q
That which may be felt or touched and are necessarily corporal, either real or personal properties.
A
Tangible Properties
19
Q
It is double taxation in its strict sense. It is prohibited because it comprises imposition of the same tax on the same property for the same purpose by the same state during the same taxing period.
A
Direct Duplicate Taxation
20
Q
Paying the owner the full monetary equivalent of the property taken for public use.
A
Just Compensation
21
Q
The primary source of governmental revenue through compulsory levies on individuals or property.
A
Power of Taxation
22
Q
The government allows absolute forgiveness or waiver of its right to collect what is due in order to give the tax evader who is wishes to reform a chance to start anew.
A
Tax Amnesty
23
Q
The limitation that restricts the exercise of taxation power to within the geographical boundaries of the state.
A
Territorial Jurisdiction
24
Q
The activity of property sought to be regulated affects the public welfare.
A
Lawful Subject
25
The means employed must be reasonable and must conform to the safeguards guaranteed by the Bill of Rights.
Lawful Means
26
This power is to protect citizens and provide safety and welfare of society.
Police Power
27
This power to take private property (with just compensation) for public use.
Eminent Domain
28
The tax power to enforce contributions to support the government, and other inherent powers of the state.
Power of Taxation
29
It may be exercised only by the government. The property taken in the exercise of this power is destroyed because it is noxious or intended for a harmful purpose.
Police Power
30
It affects only property rights. It may be exercised by some private entities.
Eminent Domain
31
It affects only property rights by the government. The property taken under this power shall likewise be intended for a public use or purpose.
Power of Taxation
32
The power by which a sovereign state, through its legislative body, raises and accumulated revenue from its inhabitants.
Taxation
33
It is an object of taxation which refer to natural or juridical.
Persons
34
It is an object of taxation, whether real, personal, tangible or intangible properties.
Properties
35
Under Excise Objects, it is the act of conducting activities related to any business or profession.
Transaction
36
Under Excise Objects, it is a benefit derived through gratuities transfer by fact of death or donation.
Privilege
37
Under Excise objects, it is an advantage accruing from anything.
Interest
38
What scope of taxation power which the taxation has unlimited area of application and only restricted by the inherent and constitutional limitation.
Plenary or Complete
39
What scope of taxation that it has a wide scope of coverage. It covers all persons, properties, rights and transactions subject to taxation, unless expressly exempted by laws within the sovereign.
Comprehensive
40
What scope of taxation that has the highest decree of application and it considered as the strongest among the inherent power of the state.
Supreme
41
Under this principle, the taxation is a power emanating from necessity to preserve the state's sovereignty.
Principle of Necessity
42
Under this principle of taxation, it is based on the reciprocal duties, the government collects taxes from the subjects of taxation in order that it may be able to perform its functions and provide services to them.
Principle of Benefit-received of benefit-protection theory
43
The primary purpose of the taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities without which the government cannot function. What Purpose of Taxation?
Revenue or Fiscal
44
Taxation may also be employed for purposes of regulation or control. What Purpose of Taxation?
Non-revenue or Regulatory
45
This process involves the passage of tax laws or ordinances through the legislature or through a local lawmaking body. What stage of taxation.
Levy or Imposition
46
This process involves the act of administration and implementation of tax laws by the executive through its administrative agencies such as the Bureau of Internal Revenue (BIR) or Bureau of Customs (BOC). What stage of taxation?
Payment
47
This is a process of claiming for tax illegally collected or mistakenly paid. What stage of taxation?
Refund
48
The principle of a sound tax system which the sources of tax revenue should coincide with, and approximate the needs of government exepnditures.
Fiscal Adequacy
49
The principle of a sound tax system which the tax laws should be capable of convenient, just and effective administration.
Administration Feasibility
50
The principle of a sound tax system wherein the tax burden should be in proportion to the taxpayer's ability to pay.
Theoretical Justice or Equality
51
This states that a tax bill must only be applicable and operative after becoming law. What certain document in taxation is this?
Prospective Application of Tax Laws
52
It states that unless otherwise provided by the tax law itself, taxes in general are not cancelable. What certain document in taxation is this?
Imprescriptibility of Taxes
53
It refers to the imposition of taxes on the same income, assets or financial transactions at 2 different points in time. What certain document is this?
Double Taxation
54
It constitutes double taxation in the objectionable or prohibited sense. What kind of double taxation is this?
Duplicate Double Taxation
55
It is permissible and not repugnant to the Constitution. What kind of double taxation is this?
Indirect Duplicate Taxation
56
This arises when the taxes are imposed by the local or national government within the same state. What kind of double taxation is this?
Domestic
57
It refers to the imposition of comparable taxes in two or more states on the same taxpayers in respect of the same subject matter and for identical periods. What kind of double taxation is this?
International
58
The doctrine of escape from taxation permits the taxpayer to minimize (if not escape) payment of tax by lawful means. What certain document is this?
Escape from Taxation
59
It occurs when illegal efforts are made to escape the payment of a tax.
Tax Evasion
60
It connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes.
Tax Evasion
61
It occurs when legally permissible attempts are made to minimize or reduce the tax to be paid.
Tax Avoidance
62
It is the use of legal methods of reducing taxable income or tax owed.
Tax Avoidance
63
It is a legal means used by the taxpayer to reduce taxes.
Tax Avoidance
64
It has the legal right to decrease the amount of what otherwise would be his taxes or altogether avoid them by means which the law permits.
Taxpayer
65
What is the tax avoidance forms where taxpayers choose a transaction with a lower tax rate, as permitted by tax laws?
Tax Option
66
What is the tax avoidance form where the tax burden is transferred from the statutory taxpayer to another, without violating the law?
Shifting
67
It is a form of tax shifting wherein the tax burden of tax is transferred from the manufacturer then to the distributor and finally to the ultimate consumer of the product.
Forward Shifting
68
It is a form of shifting wherein the tax burden in transferred from the ultimate consumer through factors of distribution to the factors of production.
Backward Shifting
69
It is a form of shifting wherein the tax burden is shifted two or more times either forward or backward.
Onward Shifting
70
A tax avoidance form which refers to the reduction in the price of the taxed object equal to the capitalized value of future taxes which the purchases expect to be called upon to pay.
Capitalization
71
A tax avoidance form which the producer absorbs the payment of tax to reduce prices and to maintain market share.
Transformation
72
A Tax Avoidance form which the tax exemption as a privilege is personal and, in any ways, cannot be transferred or assigned by the person to whom it is given without the consent of the state.
Exemption
73
It is a form of tax avoidance in which the state grants a general pardon by intentionally overlooking its authority to impose penalties on persons guilty of tax evasion or violating a particular revenue or tax law.
Tax Amnesty
74
What is the form of tax avoidance where the state desists or refrains from exacting, inflicting or enforcing something as well as to restore what has already been taken?
Tax Condonation or Tax Remission
75
It denotes a 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 which persons and corporation generally within the same taxing district are obliged to pay.
Exemption from Taxation
76
This doctrine of law states that a tax claim for refund which is prevented by prescriptions, may be allowed to be used in any payments for unsettled tax liabilities of both taxes arise from the same transaction in which overpayment is made and underpayment is due.
Equitable Recoupment
77
This doctrine states that taxes are not subject to set-off for legal compensation because the government and the taxpayer are not mutual creditor and debtor of each other.
Set-off Taxes
78
It is affected through court proceedings could only be allowed if the act involves a direct and illegal disbursement of public funds derived from taxation.
Taxpayer suits
79
This doctrine provides that comprises are generally allowed and enforceable when the subject matter thereof is not prohibited from being compromised and the person entering such compromise is truly authorized to do so.
Comprise
80
The government can compel payment of tax and forfeiture of property through the exercise of police power.
Power to destroy
81
It literally means place of taxation. The general rule is that the taxing power cannot go beyond the territorial limits of the taxing authority.
Situs of taxation
82
It is the instrument for carrying out the decisions of any government in power with as regards to mobilizing revenue for economic development.
Tax Administration
83
It seeks additional taxes and new sources of revenue but the successful tax administration of some existing taxes would provide a considerable part of the needed additional revenue.
Tax Policy
84
It is principally responsible for the fiscal policies and general management of the Philippine government's financial resources.
Department of Finance
85
It is mandated by law to assess and collect all national internal revenue taxes, fees and charges, and to enforce all forfeitures, penalties and fines connected therewith, including the execution of judgements in all cases decided in its favor by the court of tax appeal and their ordinary court.
Bureau of Internal Revenue
86
It refers to a formal report prepared by the taxpayer or his agent in a prescribed form showing an enumeration of taxable amounts and description of taxable transactions, allowed deductions, amount of tax and tax payable to the government.
Tax Return
87
It is a procedures or actions available both to the government to collect taxes and to the taxpayer to avoid abuses in the payment of taxes.
Tax Remedies
88
It refers to the span of time allowed by the law to the BIR to investigate a taxpayer's tax discrepancy to enforce collection of taxes.
Assessment Period
89
It is the seizure by the government of personal property to enforce the payment of taxes, followed by its public sale of taxes accruing thereto are not voluntarily paid.
Distraint of personal property
90
It is the seizure by the government of immovable property in order to enforce the payment of taxes.
Levy of real property
91
It is a request to the taxpayer to permit the bearer thereof to conduct that necessary examination of said books and records, enzyme either by the BIR Commissioner his deputy, officials of the investigating division, regional director, assistant director, or the revenue district officer.
Letter of Authority
92
It is the one that is brought, to enforce, redress or protect private rights.
Civil Action
93
It is a penal prosecution. It is an action suit or cause instituted to punish an infraction of the criminal laws.
Criminal Action
94
It is committed when the violator has knowingly and willingly filed a fraudulent return or neglected to file a return with intent to evade the tax.
Tax Crime
95
96
It is basically a criminal case.
Tax Fraud or Evasion Case
97
It refers to the last day for filing return and payment of tax.
Due dates
98
It is a civil penalty imposed by law in addition to the main as required to be paid due to the frequency or misrepresentation of taxes.
Surcharge
99
It means failure on the part of the taxpayer to pay the tax due on the date fixed by law or indicted in the assessment notice or letter of demand.
Delinquency
100
It may result from fraudulent returns reported to the BIR by the taxpayer.
Misrepresentation
101
It is the payment of surcharge is mandatory and the BIR is not vested with any authority to waive the collection thereof.
Statutory Surcharge
102
It is classified as simple neglect and willful neglect
Tax Surcharges
103
Before the payment of tax, the taxpayer can reduce or totally escape the payment of tax through legally permissible means such as applying for tax exemption in the sale of his principal classified asset or choosing the lesser tax rate applicable to the taxable transaction.
Tax Avoidance
104
The income tax treatment varies depending on the kind of taxable income of the taxpayer.
Schedular system
105
It provides for a different tax treatment of different types of income so that a separate tax return is required to be filed for each type of income and the tax is computed on a per return or per schedule basis
Schedular system
106
It is a system where the tax treatment views indifferently the tax base generally treats in common all categories of taxable income of the taxpayer.
Global Treatment
107
It is a Filipino citizen who permanently resides in the Philippines.
Resident Alien
108
A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.
Non-Resident Alien
109
It is interpreted to mean presence abroad for at least 183 days during the taxable year.
Most of the Time
110
An individual whose residence is within the Philippines and who is not a citizen thereof.
Resident Alien
111
It is considered a resident or non-resident depending on his intention with regard to the length and nature of his stay.
Alien
112
An individual whose residence is not within the Philippines and who is not a citizen thereof.
Non-Resident Alien
113
It refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of more than 180 days during any calendar year.
Non-Resident Alien Engaged in Trade or Business
114
It refers to a non-resident alien who shall come to the Philippines and stay for an aggregate period of 180 days or less during any calendar year.
Non-Resident Alien Not Engaged in Trade or Business
115
It means all remuneration for services performed by an employee for his employer under an employer-employee relationship, unless specifically excluded by the Code.
Compensation Income
116
An individual performing services under an employer-emloyee relationship.
Employee
117
Individuals whose source of income is purely derived from an employer-employee relationship.
Compensation Income Earners
118
It refers to an employee holding neither managerial nor supervisory as defined under existing provisions of the labor code of the Philippines, as amended.
Rank and File Employee
119
any person for whom an individual performs or performed any service, of whatever nature, under an
Employer
120
it exists when a person for whom services were performed has the right to control and direct an individual who performs the services, not only as to result of the work to be accomplished but also as to the details, methods and means by which it is accomplished.
Employer and Employee Relationship
121
it means any good, service or other benefit furnished or granted in cash or in kind other than the basic compensation, by an employer to an individual employee.
Fringe Benefits
122
it refers to a worker in the private sector who is paid with a statutory minimum wage rate, or to an employee in the public sector with compensation income of not more than the statutory minimum wage rates in the non-agricultural sector where the worker/employee is assigned.
Minimum Wage Earner
123
an individual earning compensation income from employment, and income from business, practice of profession and/or other sources aside from employment.
Mixed Income Earner
124
refer to a Filipino citizen employed in foreign countries who are physically present in a foreign country as a consequence of their employment thereat.
OCWs or OFWs
125
a sole proprietor or an independent contractor who reports income earned from self-employment.
Self-Employed
126
A person formally certified by a professional body belonging to a specific profession by virtue of having completed a required examination or course of studies and/or practice, whose competence can usually be measured against an established set of standards.
Professional
127
Refers to the total amount or its equivalent representing the contract price, compensation, service fee, rental or royalty, including the amount charged for materials supplied with the services, and deposits and advance payments actually or constructively received during the taxable period for the services performed or to be performed for another person, except returnable security deposits for purposes of these regulations.
Gross Receipts
128
refers to the total sales transactions net of VAT, if applicable, reported during the period, without any other deduction.
Gross Sales
129
It is subject to the 8% income tax rate option.
Gross Sales
130
Refers to the pertinent items of gross income specified in the code, less deductions if any, authorized for such types of income by the code or other special laws.
Taxable Income
131
refers to the ceiling fixed by law to determined VAT registrable taxpayers.
VAT Threshold
132
it shall mean a branch established in the Philippines by multinational companies and which headquarters do not earn or derive income from the Philippines and which act as supervisory, communications and coordinating center for their affiliates, subsidiaries or branches in the Asia-Pacific Regio and other business development.
RHQ - Regional or Area Headquarters
133
In connection with offshore banking, shall mean funds in foreign currencies which are accepted and held by an offshore banking unit or foreign currency deposit unit in the regular course of business, with the obligation to return an equivalent amount to the owner thereof, with or without interest.
Deposi
134
hall mean a branch established in the Philippines by multinational companies which are engaged in services.
ROHQS - Regional Operating Headquarters
135
shall mean an alternative from of obtaining funds from the public other than deposits, through the issuance, etc.
Deposit Substitutes
136
137
Individuals earning purely compensation income shall be taxed based on the graduated income tax rates prescribed under sec. 24 (a) of the tax code.
Compensation Income
138
shall refer to the conduct of banking transactions whereby any person, whether natural or juridical, may deposit foreign currencies forming part of the Philippine International reserves, in accordance of RA 6426 entitled "an act instituting a foreign currency deposit system in the Philippines, and for other purposes.
Foreign Currency Deposit Unit
139
arises from self-employment or practice of profession. this shall not include income from performance of services by the taxpayers as an employee.
Business Income
140
There are individuals who earn income both from compensation and self-employment.
Mixed Income Earners
141
Shall refer to that unit of a local bank or local branch of a foreign bank authorized by the BSP to engage in foreign currency-denominated transactions, pursuant to the provisions of RA 6426, as amended.
Foreign Currency Deposit Unit
142
It is subject to a separate and final tax.
Passive Income
143
shall refer to the conduct of banking transactions in foreign currencies involving the receipt of funds principally from external and internal sources and the utilization of such fund pursuant to Presidential Decree 1034 as implemented by BSP Circular 1389, as amended.
Offshore Banking System
144
It is imposed on income or gain shall no longer be included as taxable income subject to the graduated rates.
Final Tax
145
shall mean a branch, subsidiary or affiliate of a foreign banking corporation which is duly authorized by the BSP to transact offshore banking business in the Philippines in accordance with the provisions of presidential decree 1034 as implemented by BSP circular 1389, as amended.
Offshore Banking Unit
146
it is taxed at 15% final tax on a per transaction basis.
Capital Gains from sale of share of stock, not traded through local stock exchange
147
it is not place but the property, activity or service that produced the income.
Source of Income
148
It is taxed at 6% final tax on the gross selling price or current fair market value at the time is sale, whichever is higher.
Capital Gains from sale of real property
149
It is taxed at 35% final tax based on the grossed up monetary value granted to employee beginning January 1, 2018.
Fringe Benefits
150
A citizen which are taxable on all income derived from sources within and without.
Resident Citizen
151
it is subject to a separate and final tax at fixed rates ranging from 55 to 25%.
Passive Income
152
A citizen which are taxable only on income derived from sources within the Philippines.
Non-resident Citizens & Alien Individuals: Resident and Non-resident
153
It referred to in the Revenue Memorandum Circular 97-2024 includes all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms in exchange for services performed as bloggers, video bloggers or vloggers or as an influencer, in general, and from any other activities performed on such social media sites and platforms.
Social Media Influencers
154
Refer to any business enterprise engaged in the production, processing or manufacturing of products or commodities, whose total assets including those arising from loans but exclusive of the land, etc.
Barangay Micro Business Enterprises
155
They are entitled to 20% discount and exemption from VAT and certain goods and services.
Senior Citizens & PWDs
156
Shall refer to an individual voluntary retirement account established from his PERA contributions and/or his employer contributions.
Personal Equity Retirement Accounts or RA 9505
157
It is an official document issued by the BIR, through the ITAD, that certifies the tax residency of a certain taxpayer in the Philippines pursuant to the residency provision of the relevant tax treaty.
TRC or Tax Residency Certificate
158
How many does Philippines effective tax treaties to US?
43
159
It means the amount which the individual declared as income tax in his final adjusted and annual income tax return for the preceding taxable year minus the credits allowed.
Estimated Tax
