MIDTERM QUIZ NO.

2
I. Write the word/words of the correct answer for each item.
1.Those imposed by the national government under the national Internal Revenue Code and other
laws, particularly the tariff and Customs code. What kind of tax is this?
2._______Is a person a Trust Company named in the will by the testator to carry out its provisions.
3. It’s a person, a Trust Company, appointed by a court to administer and distribute The state of the
decedent if there is no will or if no executor is named in the will, or if the name executor does not
act.
4. This refers to the ½ net share of the surviving spouse in the conjugal property, after deducting the
ordinary obligations properly chargeable to such property.
5. These consist of the amounts permitted by law to be deducted from the value of the gross state.
6. It’s a total value of all property, whether real or personal, tangible or intangible, belonging to the
decedent at the time of his death, situated within or outside the Philippines, where such decedent
was a resident or citizen of the Philippines.
7. Are those imposed upon the gratuitous disposition of private property.
8. These individuals are exempted from an income tax. Pursuant to the provisions of the tax code
and other general or special laws.
9. It refers to a bill or exchange or order instrument drawn on a bank, payable on demand.
10. Those which local governments may impose for particular needs, such as the taxes imposed
under the local government code.
11. It refers to payment of tax liabilities to authorized Agent Bank in the currencies that are legal
tender in the Philippines.
12. It refers to the system whereby a taxpayer, through a bank debit memo, advise, authorizes
withdrawals from his or its existing bank accounts for payment of tax liabilities.
13. Must BIR stand for.
14. It is a tax and the net income or the entire income received or realized in one taxable year.
15. Is a system where the tax treatment views indifferently the tax base and generally treats in
common all categories of taxable income of the taxpayer without any distinction as to their type or
nature, and subjects them the single set of graduated or fixed tax rates.
16. The term is also used to refer to all incomes of the taxpayer which are subject to tax or which are
not exempted from taxation.
17. It includes partnerships, no matter how created or organized, joint stock companies, joint
accounts associations or insurance companies. It does not include general professional partnerships
and joint venture.
18. Are incomes that are exempt from the tax. They are not to be included in the tax return unless
information regarding it is specifically called for.
19. Are subtracted from gross income to arrive at net income.
20. They are deductions allowable to corporations, which may be availed off by insurance companies
and proprietary educational institutions and hospitals, which are nonprofit.
21. What does OST stand for?
22. What does GPP means?
23. It is the sworn statement or declaration executed in accordance with law on a required form
wherein the taxpayer states the facts as to the nature and extent of his or its tax liability for a
taxable year, including the computation of the tax due.
24. It is the grocery state less allowable deductions and specific exemptions.
25. It is a tax on the right of the heirs are beneficiaries to receive the estate of the deceased person.
II. Write the word NATIONAL if the statement is a fact and LOCAL if it is untrue.
26. In requiring payment through the banks, the purpose is to avoid, whenever possible, direct
receipt of tax payments by BIR employees.
27. Income tax is regarded as a tax on persons, property, funds, or profits.
28. Only resident citizens and domestic corporations are taxed on income derived from abroad.
29. Under the tax code, the method of taxing compensation and business or professional income is
entirely scheduler.
30. Proprietary educational institutions and nonprofit hospitals are liable to attacks of only 10% of
their taxable income.
31. Trust is an arrangement created by will, agreement or law under which title to property is held
by one person or trustee for the benefit of another beneficiary.
32. Exclusions are incomes that are included for taxing.
33. A general professional partnership or GPP is not subject to income tax.
34. A corporation may employ either a calendar year or fiscal year as a basis for filing its annual
income tax return.
35. Estate tax is an excise tax.
36. A surviving spouse will have a ½ net share of the conjugal properties after deducting the original
ordinary obligations properly chargeable to such property.
37. All corporations subject to tax shall render quarterly income tax returns of their gross income
and deductions on accumulative basis for the preceding quarter or quarters, and a final or
adjustment return covering the total taxable income for the preceding calendar or fiscal year.
38. Only the ordinary deductions are deducted from the conjugal or Community property from
which as diminished shall be taken the ½ share of the surviving spouse.
39. In the case of funeral expenses, the amount allowable as deduction is the amount actually paid
or incurred, or 5% of the gross estate, whichever is lower, but in no case to exceed 200,000.
40. The income tax is paid by the person subject thereto at the time the return is filed. this is called
the This is called the “pay-as-you-file system.