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Taxation MCQ (1-10)
Taxation MCQ (1-10)
ANSWER: D
2. One of the following is not a major business internal revenue tax in the Tax Code.
a. Value-Added Tax
b. Excise Tax
c. Income Tax
d. Percentage Tax
ANSWER: C
3. In cases of deductions and exemptions on income tax returns, doubts shall be resolved:
ANSWER: A
ANSWER: A
a. Graduated tax;
b. Progressive tax;
c. Regressive tax;
d. Proportional tax.
ANSWER: D
a. Capital assets;
b. Liquid assets;
c. Ordinary assets;
d. Fixed assets.
ANSWER: C
7. Proceeds of life insurance includible in the taxable gross estate.
ANSWER: C
8. The following are requisites for vanishing deductions to be allowable, except one:
a. The estate tax of the prior succession must have been finally determined;
b. The present decedent died within five (5) years from the date of the death of the decedent;
c. The property with respect to which deduction is sought can be identified;
d. The property must have formed part of the gross estate situated in the Philippines of the prior decedent.
ANSWER: D
9. The following are the requisites of a donation for purposes of the donor's tax, except one:
ANSWER: B
10. The following are the requisites in order that claims against the decedent's estate may be deductible, except:
ANSWER: C
11. The Commissioner or his authorized representative is empowered to suspend the business operations and temporarily close the
business establishment of any person for:
ANSWER: D
ANSWER: D
13. A tax on the right or privilege to enter places of amusement
a. VAT
b. Franchise tax
c. Amusement tax
d. Income tax
ANSWER: C
14. One of the following is not subject to amusement tax on gross receipts
a. Disco houses
b. Cockpits
c. Professional basketball
d. Bowling alleys
ANSWER: D
ANSWER: B
16. One of the following does not form part of gross income
a. Interest
b. Royalties
c. Annuities
d. Gift, bequest and devices
ANSWER: D
17. Which of the following taxes may be deducted from gross income
a. Special assessment
b. Transfer tax
c. Documentary stamp tax
d. Income tax
ANSWER: C
18. Shares, obligations, bonds issued by a foreign corporation shall be considered as intangible personal property situated in the
Philippines if, how many percent of its business is located in the Philippines?
a. 33%
b. 50%
c. 75%
d. 85%
ANSWER: D
19. The following are examples of non-taxable compensation for injuries, except
ANSWER: B
ANSWER: C
21. The municipal council passed an ordinance imposing an occupation tax or profession or occupation of a "plant accountant."
A is the only person with such an occupation in the municipality. Which of the following is correct?
a. A can successfully challenge the validity of the ordinance as being discriminatory since he is the only adversely affected.
b. The ordinance violates the constitutional rule of equality in taxation.
c. The ordinance is a "class legislation" since it does not subject to occupation tax the other accountants.
d. The ordinance is a valid exercise of the council's power to enact laws to raise revenue under the Local Government Code.
ANSWER: D
22. A non-resident alien donor cannot claim one of the following deductions from gross gift:
ANSWER: B
23. Not a deduction from gross estate for purposes of determining net distributable estate
a. Vanishing deductions
b. Actual medical expenses
c. Losses
d. One-half share of the surviving spouse on the net conjugal property
ANSWER: A
24. For purposes of computing minimum corporate income tax of a corporation engaged in the sale of services, cost of services
means:
ANSWER: D
25. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in
relation thereto, or other matters arising under the Tax Code or other laws or positions thereof administered by the BIR is vested in
the:
ANSWER: D
26. The Secretary of Finance, upon accommodation by the Commissioner of Internal Revenue, issued a Revenue Regulation using
gross income as the tax base for corporations doing business in the Philippines. Is the Revenue Regulation valid?
a. Yes, the Secretary of Finance has the power to issue Revenue Rules and Regulations
b. Yes, gross income taxation over corporation is valid
c. No, the Secretary of Finance has no power to amend the NIRC
d. No, only the Commissioner of BIR has the authority to make revenue rules and regulations
ANSWER: C
27. Which of the following cases falls within the jurisdiction of the Court of Tax Appeals? Except:
ANSWER: B
ANSWER: D
29. Interest income received by a foreign government of financial institutions organized by a foreign government from its
Philippine bank deposits shall be
ANSWER: C
30. One of the following inhabitants is not required to pay basic community tax