Taxation Review

Timeline
Income Taxation

Week Topics

1st week Review orientation, discussion of guidelines and

Discussion of General Principles in Taxation

2nd week Characteristic and classification of tax, Tax

administration

3rd week Introduction to Income Taxation

4th week Tax Schemes, Accounting periods and methods

5th week Final taxation and capital gains taxation

6th week Summative Test

7th week Regular income taxation (Exclusions and Inclusions)

8th week Fringe benefits tax

9th week Gains from dealings in properties and Deductions

from gross income

10th week Taxation for Individuals

11th week Taxation for Corporation

12th week Summative Test

Transfer and Business Taxes and Additional Board exam topics related to Taxation

13th and 14th week Estate taxation

15th week Donors Taxation

16th and 17th week Value Added Taxes (VAT)

18th week Other percentage taxes (OPT)

19th week Summative Test

20th week LGC, Preferential Taxation, SCL, R.A 10754, BMBE

Law, PEZA,TIEZA,DTA,BOI

Prepared by:
James Dane T. Adayo
Recap Questions
1. Miss Leenah, a secretary in Nam Ho Corporation, received a house and lot amounting to
P680,000. Ownership will be transferred to Leenah. Assuming that Leenah is a Filipino and at the
same time resident of the Philippines, compute for the fringe benefits tax.

2. Seo Jin Woo sold its unlisted domestic shares costing P350,000 with a par value of P300,000
directly to Park Hong Do for P500,000. Compute for the capital gains tax.
a. P7,500 c. P10,000
b. P5,000 d. P9,888

3. Lee Dong Wok, a Korean national, residing in South Korea visited the Philippines last 2016. Upon
his visit, he won P200,000 in an local gameshow in ABS-CBN. How much is the capital gains tax
to be paid by Dong Wok?

4. Miss Elah, is working as an Audit Manager in an auditing firm in Makati City. The following are
her dependents:
Meep 2 years old, her daughter
John 22 years old, her son
 Gayle Sister
Rosanna Grandmother
Kristine Cousin, physically disabled
Ron Workmate
How much is Miss Elah’s total additional exemption?

a. 75,000 c. 100,000
b. 50,000 d. 125,000
5. A doctor who earns P800,000 annually in his professional fee is subject to ___% withholding tax

a. 15% b. 10% c. 12% d. 15%

 Taxation Review Quiz Number 1-General Principles of Taxation
Name: Date:
Instructions: Write your answer at the left side of each item number below.
1. The power of taxation is exercised by
A. The President C. Bureau of Internal Revenue
B. The Supreme Court D. Congress
2. No person shall be imprisoned for debt or non-payment of poll tax. This is a(an)
A. Inherent limitation C. International limitation
B. Constitutional limitation D. Territorial limitation
3. In every case of doubt, tax exemptions are construed
A. Strictly against the government and the taxpayer.
B. Liberally in favor of the government and the taxpayer.
C. Strictly against the government and liberally in favor of the taxpayer.
D. Liberally in favor of the government and strictly against the taxpayer.
4. Which is not a legislative act?
a. Assessment of the tax c. Determining the subject of the tax
b. Setting the amount of tax d. Determining the purpose of the tax
5. An example of a tax where the concept of progressivity finds application is the
A. income tax on individuals.
B. excise tax on petroleum products.
C. value-added tax on certain articles
D. amusement tax on boxing exhibitions
6. This requires that all subjects or objects of taxation, similarly situated are to be treated alike or put on
equal footing both in privileges and liabilities.
a. Due process c. Progressive taxation
b. Uniformity d. None of the above
7. It is also known as tax dodging.
a. Tax exemption c. Tax avoidance
b. Tax evasion d. Transformation
8. Which power of the State is the most superior?
a. Taxation c. Eminent domain
b. Police power d. Exploitation
9. The power to demand proportionate contributions from persons and property to defray the expenses of
the government.
A. Power of taxation C. Power of imminent domain
B. Police power D. Power of recall
10. Subject to inherent and constitutional limitations, the power of taxation is regarded as supreme,
plenary, unlimited and comprehensive.
A. Basis of taxation C. Scope of taxation
B. Situs of taxation D. Theory of taxation
11. An escape from taxation where the tax burden is transferred by the one on whom the tax is imposed or
assessed to another.
A. Shifting C. Transformation
B. Exemption D. Capitalization
12. In every case of doubt, tax statutes are construed
A. Strictly against the government and the taxpayer.
B. Liberally in favor of the government and the taxpayer.
C. Strictly against the government and liberally in favor of the taxpayer.
D. Liberally in favor of the government and strictly against the taxpayer.
13. Which of the following has no power of taxation?
A. Provinces C. Barangays
B. Cities D. Barrios
14. The point on which a tax is originally imposed is impact of taxation.
II. The point on which a tax burden finally rests or settles down is incidence of taxation.
A. True; True C. False; true
B. True; false D. False; false
15. The use of illegal or fraudulent means to avoid or defeat the payment of tax.
A. Exemption C. Avoidance
B. Shifting D. Evasion