BA 223 – Income Taxation

Second Semester, SY 2021-2022

Midterm Examination

Name: ARBY JAY D. GARCIA Course &Year: BSBA 2D

Instruction: Read carefully the statements or questions before you write your answers. Please submit
your answers in pdf or through my messenger account: Angela B. Casios.

Test 1: Identification. Write the appropriate term or phrase that corresponds to each statement. 1
point will be given for every correct answer.

1. The reciprocal obligations or duty between the state and the citizens or its inhabitants- This is one of
the theory in which taxation was based.

2. Equal or Equally- What level of protection or welfare does the government should provide its citizens
who are paying different amounts of taxes?

3. The National internal Revenue Law-This is the law in which taxation was based.

4. Local government Tax law -What do you call taxes imposed by a certain municipality or province or
region?

5. Fiscal Adequacy-This is one of the principles of a sound taxation in which taxes should only
compensate for the necessary projects and programs of the government.

6. Administrative Feasibility-This is one of the principles of a sound taxation in which the imposition and
implementation of taxes should be consistent.

7. Limitation on Territorial Jurisdiction- is one of the limitations of taxation in which a given country can
only impose taxes within its territory and cannot impose taxes on foreign government, unless these
foreigners are earning income from that country.

8. Raise Revenue-This is the main purpose of taxation.

9. Regressive System of Taxation- In this type of taxation system, there are more indirect taxes.

10. Tax Law-This basis is not accepted for exempting a taxpayer from paying taxes.

11. Non-resident Citizen-This is a taxpayer who is a Filipino citizen but is residing or staying most often in
another country.

12. Resident Alien-This is a taxpayer who is a foreigner but is staying most of the time here in the
Philippines.

13. Non-resident Alien- This is a taxpayer who is a foreigner and is here in the Philippines only for a
vacation and who incidentally earned income while he is staying here.

14. Worldwide sources-If a taxpayer is a resident citizen, what sources of income are subject to tax?

15. Passive income-These are the types of income in which the taxpayers just wait for their share of
income without exerting much effort.

16. The place where the services is rendered-Overseas Filipino workers are taxed on their income from
what source?

17. Taxable income-These are the gross income under the tax code minus the allowable deductions.

18. Optional standard deduction-This is an allowable deduction which is equal to forty percent of the
gross sales or receipts for individuals and corporations.

19. Graduated income tax rates of 0% to 35% on their net taxable income plus of net 12%-If the
taxpayer is earning mixed income and the gross receipts from the business income is more than three
million what is the applicable tax rate to be used in determining the tax due or payable?

20. Fringe Benefits-These are goods, services or benefits given by the business entity to their managerial
personnel.
21. De minims benefits-These are facilities or privileges of a small amount given by the employer to its
employees for their welfare.

22. Taxable income-his term refers to all income which is taxable.

23. Compensation income-This is the term for any gain received by the taxpayer from different sources.

24. 25% of their gross income- Non-resident aliens not engaged in trade or business will be taxed at
what tax rate?

25. BIR FORM 100 1700-What is the treatment for the social security contributions in determining tax
due or payable?

26. Trust -This is the party who will receive the inheritance from the estate of another party.

27. Trust -This is a relationship in which one party gives another party the right to hold the title to a
property for the benefit of the third party.

28. BIR FORM NO.1701-What income tax form will a resident alien, non-resident citizen or non-resident
alien engaged in trade, business or practice of their profession within the Philippines use in filing their
ITR?

29. Revenue Collection officer of duty Authorized City or municipal Treasurer- Aside from the
authorized agent bank, where can the taxpayer pay their income tax due if they are non-eFPS filer?

30. Electronically - If the taxpayer is an Epps filer, where can they pay their tax due?

31. Amount Information form (AIF) or the Certificate of the Independent Certified Public Amount
(ICPA) with Audited financial statements- What form may not be accomplished by the taxpayer’s gross
annual sales being more than three million?
32. BIR form 1701-This document will be attached to the annual income tax return for corporations and
partnerships?

33. Withholding Tax- If the income tax payments of the taxpayer were more than the tax due or
payable, this can be deducted to the next taxable year’s income tax due. What term can be used for this
item?

34. Not more than 250,000- This is an amount taken from the salary of an employee to be set aside for
payment of his/her income tax due at the end of the taxable year.

35. Trustor- Who initially makes a trust arrangement in transferring the property for the beneficiary?