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Contents
1 TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. TAXATION
NARAYAN CHANGDER
1.1 TAXATION
1. True or False:Social Security cannot pay 4. Non-Taxable Income for married status is
you your full benefits if you do not have A. Rp54.000.000
enough credits.
B. Rp45.000.000
A. True
C. Rp5.400.000
B. False
D. Rp4.500.000
2. A taxpayer that derived income solely 5. The benefit of section 54 is available only
from business is required to file BIR Form to an individual or a HUF.
1700.
A. True
A. TRUE
B. False
B. FALSE
Explanation:False. BIR Form 1700 is used 6. Goods and Services tax are the example
for compensation income. BIR Form 1701 of
is used for business income and mixed in- A. GST
come. B. Direct Tax
3. are funds used not only to keep the C. Indirect tax
government machinery going, but also to D. IT
enable the government to carry out its var-
ious fiscal functions of allocation, distribu- 7. If Lilly earns $1200 per week, what
tion, and stabilization would her tax payable be?
A. Public revenues
B. Grants
C. Fiscal Policy
D. Monetary Policy A. $10945
1. A 2. B 3. A 4. D 5. A 6. C 7. D
1.1 TAXATION 3
B. $11954 12. money taken by the government for public

C. $10387 use

D. $11827 A. boycott
B. smuggle
8. GST rates applicable on goods and services
are: C. taxes/taxation
A. 0% 5% 12% 18% 26% D. parliament
B. 0% 6% 12% 18% 28% 13. A non resident Indian is not liable to pay
C. 0% 5% 12% 18% 28% tax on his income received in India.
D. 0% 5% 12% 16% 28% A. True

B. False
9. Not everything is taxed at the same rate.
In many states, are exempt from sales 14. the tax you pay on money you receive
tax. from various sources
A. excise tax
B. corporate income tax
C. income tax
D. estate tax
15. Companies pay this tax on their profits.
A. income tax
A. Clothing
B. inheritance tax
B. Groceries
C. stamp duty
C. Toys
D. corporation tax
D. Shoes
16. A tax that only applies to certain products
10. All of the following are government ser-
vices EXCEPT A. Social Security Tax
B. Excise Tax
C. Income Tax
D. Progressive Tax
17. A direct tax cannot be shifted to another.
A. True
A. Food Inspectors B. False
B. FBI
18. This amendment gave our government the
C. Public schools power to collect taxes based on people’s
D. Farms income.
11. An employee must be able to provide evi- A. 15th
dence of all expenses if required by B. 16th
A. False C. 17th
B. True D. 18th
8. C 9. B 10. D 11. B 12. C 13. B 14. C 15. D 16. B 17. A 18. B

1.1 TAXATION 4
19. Jake wants to purchase a video game for B. A sum of money that the State Man-
$10. Jake hands the cashier a $10 bill plus dates its businesses pay in order to sup-
two $1 bills for tax. What tax is Jake pay- port the cleaning of their parking lot.
ing? C. A sum of money that the Federal Gov-
A. Payroll Tax ernment charges its citizens to clean up
their messes.
B. Income Tax
D. A sum of money that the State or Fed-
C. Sales Tax
eral Government mandates its citizens
NARAYAN CHANGDER
D. Property Tax pay in order to support the government it-
self and all of its services.
20. GST is imposed on the production of all ser-
vices and goods, except 25. If the income is below 1, 00, 000, or 1,
A. Liquor intended for human ingestion 00, 000 the tax rate is
B. Tobacco A. 30%
B. NIL
C. Health care service
C. 20%
D. All of the above
D. 10%
21. which of the following is true
26. GST is imposed on the production of all ser-
A. the government doesn’t collect taxes vices and goods, except
B. the more you earn the higher taxes are A. Liquor intended for human ingestion
C. you don’t pay taxes until 25 B. Tobacco
D. if you receive under 1000 you don’t pay C. Health care service
taxes
D. All of the above.
22. Income Tax is levied on the of a person.
27. The tax payer liability is determined with
A. Total Income reference to his or her.
B. Total Income-Debt A. Financial status
C. Gross Total Income B. Residential status
D. Net Income-Debt C. All of the above
23. Money from taxes is called? D. None of the above
A. Greenbacks 28. Which is true?

B. continentals A. The less you make, the more you get
taxed.
C. Revenue
B. The more you make, the higher per-
D. Wampum
centage tax is taken out.
24. What are Taxes? C. The more you make the lower you get
A. A sum of money that the Federal gov- taxed.
ernment pays its citizens for good behav- D. If you are cool, you don’t get taxed at
ior. all.
19. C 20. A 21. B 22. A 23. C 24. D 25. B 26. A 27. B 28. B 29. B
1.1 TAXATION 5
29. Profits & Gains of any business or profes- A. Not be subject to tax because the
sion carried on by the assessee is taxable transaction was between parties who are
u/h PGBP. not Philippine residents.

A. for the whole year B. Be taxable because the condominium
is a real property located within Philippine
B. at any time during the year
territory.
C. in the last year
C. Not subject to tax because the transac-
D. Consistently tion was consummated outside the Philip-
pine territory and paid in foreign currency.
30. When correctly levied this tax is the same
regardless if it is new, old, small or large.
D. none of above
A. income tax
34. What is tax evasion?
B. retirement tax
A. is not declared to the tax authorities
C. property tax
B. false declaration to tax authorities
D. mortgage tax
C. both A and are wrong
31. What is the formula for calculating Taxable D. both A and are correct
Income?
A. Gross Income-Tax Payable 35. Who is taxpayer for VAT?
B. Deductions + Tax Payable A. Government
C. Gross Income + Deductions B. Seller

C. Buyer
D. Gross Income-Deductions
D. Distributor
32. what is NOT true about taxes
36. This tax is levied on both goods and ser-
A. the government collects them
vices.
B. you pay them every hour A. excise tax
C. you can store them in the bank B. import tax
D. none of above C. customs suty tax
33. In 2015, Mr.Canes, a Filipino and perma- D. traiff tax
nent resident of Oslo, Norway, purchased
37. Which statement describes a progressive
a two-bedroom condominium unit at Rock-
tax?
well, Makati City for the use of his family
members. The purchase price came from A. a tax that has a higher percentage rate
his earnings in Norway. In 2017, he de- as income rises
cided to sell the unit to Mr. Hockey, a per- B. a tax that increases government in-
manent resident of London. The contract come over time
was entered into in Oslo, and was paid for
in Euros. Mr. Hicks intended to use the C. a tax that places an increasing burden
proceeds to purchase a coffee shop in Bo- on the poor
racay. For purposes of Philippine Taxation, D. a tax that rises in line with the rate of
the sale of the condominium unit shall: inflation
30. C 31. D 32. B 33. B 34. D 35. C 36. A 37. A

1.1 TAXATION 6
38. What below would be included in the de- 42. the basic retirement program run by fed-
scription of “Goods” under article 2(52) eral government
of the CGST Act, 2017?I) MoneyII) Action- A. Social Security
able claimIII) SecurityIV) Growing crop-
sChoose the correct choice from the list be- B. Medicare
low. C. Department of Defense
A. IV only D. US Retirement Services Inc.
B. II & III 43. Classification of taxes as to subject matter
NARAYAN CHANGDER
C. II & IV or object includes all, EXCEPT:
D. I & II A. Personal, poll or capitation tax
B. Property tax
39. The amount of money in your paycheck af-
ter taxes are taken out. C. Excise tax
D. Direct tax
A. net pay
B. gross pay 44. GST stands for Goods and Services Tax,
and it is a tax system that covers a wide
C. regular pay
range of
D. disability income A. Goods
40. An excise tax is often called a “hidden” B. Services
tax because C. Goods, companies and imports
D. Products, systems, and exports
45. VAT stands for
A. Very Autocratic Triangle
B. Virtual Appliance technology
C. Very Artistic Teacher
D. Value Added Tax
A. sellers cut out the tax altogether.
B. buyers exercise their right to purchase 46. Income-tax in India is charged at the
the product. rate(s) prescribed by
C. buyers hide the products in their cart. A. The Finance Act
D. sellers usually include the amount of B. The Income-tax Act
the tax in the price of the item. C. The Central Board of Direct Taxes
41. Which of the following are chargeable D. The Ministry of Finance

incomes?I. School feesII. EmploymentIII. 47. The following is an example of income de-
DividendsIV. Royalties rived from capital, namely
A. I and II A. Flower
B. III and IV B. Sales turnover
C. I, II and III C. Gift
D. II, III and IV D. Salary
38. C 39. A 40. D 41. D 42. A 43. D 44. C 45. D 46. A 47. A 48. A
1.1 TAXATION 7
48. If premium paid on the policy exceeds 52. This tax is levied on the estates of those
10% of Sum Assured who have died.

A. No Exemption from income tax on the A. progressive tax
maturity of policiesUNDER SECTION 10 B. second party tax
(10D)
C. inheritance tax
B. Exemption under section 10(10D) on
D. family tax
Maturity amount received
53. Tax can be vetoed by the president before
49. Which of the following are the impor- becoming as a law.President can not im-
tances of taxation?I. Economic growthII. pose/make tax laws.
Government revenueIII. Infrastructure de-
velopmentIV. Private funding A. TRUE; TRUE
A. I and III B. TRUE; FALSE
B. II and III C. FALSE; FALSE

D. FALSE; TRUE
C. I, II and III
D. II, III and IV 54. to cancel or get rid of an act
A. boycott
50. During your working years, social security
tax takes a percentage of your earnings. B. repeal
Then when you retire or are disabled C. parliament
D. represent
55. Taxes are collected by
A. Businesses
B. Parents
C. Foreign countries
D. Government
A. your social security tax is used to pay
medical costs. 56. England was furious after the colonists re-
belled against the Tea Act. What was the
B. you become eligible to receive monthly name of the harsh new laws they created
payments. to punish the colonists?
C. you lose your benefits. A. The Tea Act
D. you can leave your Social Security ben- B. The Horrible Act
efits to your loved ones when you die.
C. The Insatiable Act
51. Wedding gift to customer D. The Coercive Acts
A. Allowed a deduction of 100%
57. What is not subject to domestic tax is
B. Allowed a deduction of 50% A. Individuals who are in Indonesia for
C. Not allowed a deduction of 100% more than 183 days in a 12 month period
D. Not allowed a deduction of 50% B. Individuals who at one time are in In-
Explanation:Not wholly and exclusively indonesia and have the intention to reside
curred under S 33(1) in Indonesia
49. C 50. B 51. C 52. C 53. A 54. B 55. D 56. D 57. D

1.1 TAXATION 8
C. Individuals residing in Indonesia B. Returning the package to the federal

D. Individuals who are in Indonesia for and state governments.
no more than 183 days in a 12 month pe- C. GST calculation and settlement
riod D. All of the above
58. What impact will a sales tax have on the
63. This type of taxes is passed in to the con-
supply curve?
sumer and very rarely is it passed back-
A. It will result in a movement down the wards to the supplier or wholesaler
NARAYAN CHANGDER
supply curve
A. supplier tax
B. It will result in a movement up the sup-
B. inventory tax
ply curve
C. manufacture tax
C. It will result in a shift of the supply
curve to the right. D. third party tax
D. It will result in a shift of the supply 64. The letter used by Taxpayers to report the
curve to the left calculation and/or payment of tax, tax ob-
jects, and/or non-tax objects, and/or as-
59. What are taxes according to the method
sets and liabilities in accordance with the
of collection?
provisions of tax legislation is
A. direct and indirect
A. GDP
B. profit (income), value added, resource,
property, action B. STP
C. national and local C. SSP
D. cadastral, declaration and previous D. SPT
60. In India, the GST is based on the dual 65. Sum rcd for not carrying out any activity
model GST adopted in: in relation to any business is taxable u/h
A. UK A. Style
B. Canada B. Salary
C. USA C. PGBP
D. Japan D. Agreement is Void
61. This is often called a “death tax, “ since it 66. The Indian government uses direct and in-
is collected after a wealthy person dies. direct taxation.Which is a direct tax?
A. estate tax A. corporate (profits) tax
B. medicare B. customs duty
C. social security C. goods and services tax
D. property tax D. petrol tax
62. The products & services networking 67. The term total revenue would not include
(GSTN) performs the following activities the following items:
A. Inward deliveries that are taxed on an
A. Facilitating registration effective payment basis
58. D 59. A 60. B 61. A 62. D 63. B 64. D 65. C 66. A 67. A
1.1 TAXATION 9
B. Exempt supplies 73. What did the Stamp Act tax?

C. Export of goods or services or both

D. Persons with the very same PAN ad-
dress supplying across state lines
68. when you are rich and pass out you have
to pay these
A. sales tax
B. estate tax A. paper and documents
C. GDP B. houses
D. income tax C. farm animals
69. A mixed income earner is a taxpayer who D. imports
is engaged in business and also in the prac-
tice of profession. 74. Which of the following acts are considered
as obstruction of the implementation of
A. TRUE
tax provisions?
B. FALSE
Explanation:False. Mixed income earner A. Failure to notify the tax administration
refers to an individual that earns income of any change in registration
from compensation and business or prac- B. B. Attempt to obstruct tax collection
tice of a profession. and collection
70. The idea that it should be clear when taxes C. C. Failed to keep accounting records
are due, how much is due, and how they and other documents or did not issue busi-
should be paid. ness invoices
A. Simplicity D. D. Delay in filing and paying taxes
B. Efficiency
75. A special reduction in taxes that the gov-
C. Equity
ernment allows for a particular purpose
D. Certainty
A. tax break
71. Investments under the following are al- B. tax allowance
lowed under 80C deduction
C. flat tax
A. Life Insurance
B. Bank Savings Account D. tax loss
C. Debt Mutual Fund 76. If Mr.Ravi has joined a new job on
D. Infrastructure Bonds 1/10/2020 after quitting his old job on
15/8/2020, his previous year will be
72. AY for the year 2020-2021 is
A. 1/10/2019 to 31/3/2020
A. 2020-2021
B. 2019-2020 B. 15/8/2019 to 31/3/2020
C. 2021-2022 C. 1/4/2019 to 31/3/2020
D. 2022-2023 D. None of the above
68. B 69. B 70. D 71. A 72. C 73. A 74. A 75. A 76. C 77. B
1.1 TAXATION 10
77. This tax is levied at a certain percentage C. USA

of the workers income and matched by the D. Canada
employer and it pays for social security
and medicare. 82. Income tax is levied on
A. income tax A. monthly basis
B. payroll tax B. yearly basis
C. self tax C. half-yearly basis
NARAYAN CHANGDER
D. government tax D. quarterly basis
78. One major goal of taxation could be: 83. Tax avoidance is illegal.
A. The redistribution of some wealth from A. true
high income earners to low income earn- B. false
ers.
B. To achieve equality and equity in the 84. How many cars and ducks were sold in all?
distribution of income.
C. To Redistribute funds towards
projects which benefit the most important
citizens in an electorate
D. To achieve equity in the distribution of
income by satisfying all stakeholders.
A. 7
79. An individual is said to be resident in India
B. 3
if
C. 4
A. It is in India in the previous year for a
period of 182 days or more D. 8
B. It is in India for period of 60 days or 85. The definition of the person includes
more during the previous and 365 days or
A. An individual
more during the four years immediately
proceeding previous yea B. A Company
C. None of the above C. And HUF
D. none of above D. All
80. State of Finland’s Budget is prepared by 86. Define boycott.
A. Ministry of Finance
B. the president
C. the leader of Church
D. the whole Parliament of Finland
81. Which country does not have VAT:

A. Australia
B. Mexico
78. A 79. A 79. B 80. A 81. C 82. B 83. B 84. A 85. D 86. A
1.1 TAXATION 11
A. An organized campaign to refuse to 92. Choose the correct option

buy certain products

B. import tax
C. Citizen soldiers who could be ready to
fight at a minute’s notice A. RM 14.40
D. to surrender B. RM 144
87. Work credits are based on: C. RM 28.80
A. Total wages (money earned) for the D. RM 288
year
B. Self-employment income for the year 93. What does abbreviation VAT stand for?
C. How many sick days you have left A. voluntary adulting tax
D. None of these B. value availability tax
88. A taxpayer deriving mixed income will C. value added tax

also use BIR Form 1701. D. vehicle added tax
A. TRUE
94. Brenda has a taxable income of
B. FALSE R33846.16 per month, before rebates
Explanation:False. Mixed income earner and receives a bonus of the same amount.
refers to an individual that earns income Calculate her tax payable.
from compensation and business or prac-
tice of a profession.
89. The service tax rate is w.e.f 1.6.2015
A. 12%
B. 18%
C. 14%
D. 16% A. R102 214, 02
90. Money that the government collects from B. R113 607.02

people and businesses is called a C. R120 428, 02
A. Income D. none of above
B. Tax
95. Louis’s dad pays a tax to the federal gov-
C. charge
ernment each year based off the money
D. estate he earns from his lawn mowing business.
What type of tax does Louis’s dad pay
91. Mr. X, partner of M/s XYZ, is assessable
each year?
as
A. Firm A. Payroll Tax
B. HUF B. Income Tax
C. An Individual C. Sales Tax
D. None of the Above D. Property Tax
87. A 87. B 88. A 89. C 90. B 91. C 92. C 93. C 94. B 95. B 96. A
1.1 TAXATION 12
96. is a sum of money for the use of some- 101. Statement A. Abolition of the hated Trib-
thing. It is the consideration which is paid ute and its replacement of Cedula Tax was
for the use of a road, bridge, or the like, under the Tax Reform of 1886.Statement
of a public nature. B. Reduction of the 40-day annual forced
A. Toll labor (polo) to 15 days was under Tax Re-
form of 1884.
B. Penalty
A. Statement A is true and Statement B is
C. Tax false
NARAYAN CHANGDER
D. Debt B. Statement B is true and Statement A is
false
97. Which of the following is an example of
tax evasion? C. Both statements are true
A. When a business under declares their D. Both statements are false
level of profit.
102. Administrative sanctions imposed for
B. When Joe Citizen claims an excessive late deposit of Income Tax are:
number of deductions.
A. Flower
C. When a firm moves to a country with
B. shop
lower taxes than their home country
C. Ascension
D. All of the previous / other answers are
correct. D. Criminal
98. The money you earn BEFORE deductions is 103. Transaction in which a contract for the
your purchase or sale of any commodity includ-
ing stocks and shares is periodically or ul-
A. net pay
timately settled otherwise than by the ac-
B. gross pay tual delivery or transfer of the commodity
C. status or scrips is known as
D. total A. Wagering transaction
B. Speculative transaction
99. Which of the below import duties would
be imposed? C. Deemed Speculation business
A. CGST D. None of these
B. SGST 104. How much is the service tax rate?

C. IGST A. 5%
D. CGST and SGST B. 6%
100. You pay this tax when you get paid your C. 10%
earnings D. 15%
A. unemployment rate 105. The tax imposed on the acquisition of
B. Income tax rights to land and/or buildings is
C. gdp A. PBB
D. economy B. PPh Final
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1.1 TAXATION 13
C. BPHTB 111. Countries with low taxation may:

D. PPN A. encourage MNCs to locate in their

countries
106. Which one of these does NOT collect
taxes from citizens? B. encourage Individuals to work/live in
that country
A. the state
C. increase capital (financial inflows) to
B. Lutheran Church
their countries.
C. Red Cross
D. All of the previous answers/options
D. the municipality are correct.
107. on the basis of residence, the assessees 112. How many heads of income will come un-
are divided in to how many categories? der calculation of total income?
A. 2 A. 6
B. 3 B. 2
C. 4 C. 4
D. 5 D. 5
108. Expenses for Annual General Meeting of 113. What is value added tax percentage of
company groceries?
A. 1%
B. Allowed a deduction of 50%
B. 14%
C. Not allowed a deduction of 100%
C. 50%
D. Not allowed a deduction of 50%
D. 100%
Explanation:Not allowed a deduction of
50% 114. It refers to the use by the taxpayer of il-
109. How many credits do you need to receive legal means in escaping, defeating or less-
full retirement benefits at retirement age ening the tax due. This is also known as
(67)? “tax dodging”, this implies malice, fraud,
or bad faith on the part of taxpayer.
A. You need 40 credits (10 years of work)
A. Shifting
B. You need 30 credits (7.5 years of work)
B. Capitalization
C. You need 20 credits (5 years of work)
C. Tax Avoidance
D. You automatically get them
D. Tax Evasion
110. The rateable value of a flat is $108 000.
If the rates are charged at 5% p.a., find 115. Illegal incomes are under Income Tax
the rates of the flat per quarter. Act.
A. $5400 A. Taxable
B. $2700 B. Exempt
C. $1350 C. Taxable in certain cases only
D. $1250 D. Exempt in certain cases only

1.1 TAXATION 14
116. One of the Nature or characteristics of month for pension, R544 per month for an-
the State’s power to tax is that, it is leg- nuity and R850 per month for medical Aid,
islative in character; hence, only the leg- will have to pay tax.
islature can impose taxes (although the
power may be delegated).
A. True
B. False
NARAYAN CHANGDER
117. Ms. Bartolome resides in Cavite and has A. True
a beauty salon in Taguig. She, therefore,
B. False
must pay her business tax in?
A. Cavite 121. another name for British government
B. Anywhere in the Philippines A. Parliament
C. Taguig
B. Representation
D. Any place as long as near Cavite
C. Sons of Liberty
118. Tax paid by the individual upon whom the D. none of the above
tax is levied
A. tariff 122. Assessment year is a
B. first part A. Year which income is earned
C. direct B. Year which tax rate increase
D. indirect
C. Year which tax is paid
119. Based on the provisions on the ATP, D. Year which tax rate declined
which of the following is correct?
A. The taxable value of the supply is the 123. taxes on goods that are imported to the
price of the goods or services that the U.S. from other countries
seller takes from the buyer. A. income tax
B. The VAT invoice must be issued no
B. tariff
later than 15 days after the delivery of the
goods or the completion of the service or C. estate taxes
payment.
D. property taxes
C. Taxable supplies include passenger
transport by the state-owned public trans- 124. The rental income of a shop is $22 000
port system. per month. If the property tax rate is
D. The taxable value of imported goods 15%, how much property tax should the
is the customs value, including insurance owner of the shop pay for a year?
and shipping costs, plus customs duty, ex- A. $2640
cluding special taxes on certain goods and
services. B. $3300
C. $31 680
120. .A 40-year old person earning R12 500
per month in 2021 and paying R450 per D. $39 600

1.1 TAXATION 15
125. Which of the following income is not 130. Which does not include the Personal In-
chargeable u/h PGBP? come Tax rate layer

A. PGBP carried by an assessee at any A. 35% for income above 5 billion rupiah
time during the PY B. 15% for income above 60 million ru-
B. Income derived by a trade from spe- piah to 250 million rupiah
cific services performed for its members C. 30% for income above 250 million ru-
C. Winnings from lottery piah to 500 million rupiah
D. Salary rcd by a partner of a firm from D. 5% for income up to 60 million rupiah

the firm in which he is a partner
131. This expression doesn’t mean “inheri-
tance tax”
126. The property tax paid by an owner of a
flat is $10 800 this year. If the property A. capital transfer tax
tax rate is 15%, find the quarterly rental B. estate tax
income of the flat.
C. death duty
A. $6000
D. excise duty
B. $7500
132. In substituted filing, the employer files
C. $22 500
the BIR Form 1700 for their employees.
D. $24 000 A. TRUE
127. Which is a tax? B. FALSE
Explanation:False. In substituted filing,
A. Penalty the employer files BIR Form 1604 which
B. Debt the BIR takes as a substitute for BIR Form
1700.
C. Custom Duties
D. Permit 133. This was a tax during Spanish Period paid
by the Filipinos to Spain in the amount of
128. The rule of taxation shall not be uniform 3 reales. These were required for the cost
and equitable. The Congress shall evolve of Christianization, including the construc-
a progressive system of taxation. tion of the churches and the purchase of
materials for religious celebrations.
A. True
A. Sanctorum
B. False
B. Tribute
129. Which of the following is not among the C. Donation from Zamboanga
inherent limitations of the power to tax?
D. Community Box
A. The tax revenues must only be used for
public purpose. 134. State taxes include:
B. There should be proper delegation of A. VAT
legislative power to tax. B. hotel tax
C. There are territorial jurisdictions. C. advertising tax
D. Equal protection of the law D. utility tax

1.1 TAXATION 16
135. The following is the value of service un- 140. “Board” means the Central Board of Indi-
der Article 15(1): rect Taxes and Customs constituted under
the
A. Wholesale cost
A. Central Boards Indirect Taxes Act,
B. Market price
1963
C. Retail price maximum B. Central Boards of Revenue Act, 1963
D. The amount of the transaction C. Central Boards Indirect Taxes & Cus-
NARAYAN CHANGDER
toms Act, 1963
136. What tax must be paid for your house
each year? D. Central Boards of Taxation Act, 1963
A. PAYE 141. How many people like soccer best?

B. Car Tax
C. Corporation Tax
D. Local Property Tax
137. A tax cut may:

A. Increase economic growth in the short
term
B. Increase incentives to work
A. 5
C. Reduce government revenue
B. 4
D. All of the previous/other answers are
correct. C. 8
D. 6
138. An order to pay tax debts and tax collec-
tion costs is called 142. Peter has an annual taxable income of
R221 549, 00 before rebates. Calculate
A. Tax assessments his tax payable.
B. Order of Seizure
C. Forced Letter
D. Letter of Reprimand
139. Taxation is
A. When you take some time out and lie
on your lie or couch A. R40 306, 00
B. Offer 916.00
B. When the government takes money
from your income or through spending to C. R44 206.00
pay for goods and services in the country. D. none of above
C. When people give money to charity
143. The total annual income of Su Chin in
D. When you get really upset and an- 2020 was RM 68 490. She donated RM
noyed that no-ones listening to you 1 000 to a local library and the total tax

1.1 TAXATION 17
relief claimed by her was RM 12 360. Cal- C. Sales Tax

culate the chargeable income of Su Chin. D. Property Tax

A. RM 55 130
147. Entertainment to employees of related
B. RM57, 130
companies
C. RM 81 850
D. RM 79850
B. Allowed a deduction of 50%
144. . Where any asset is acquired by the as- C. Not allowed a deduction of 100%
sessee during the previous year and is put
D. Not allowed a deduction of 50%
to use for the purposes of business or pro-
Explanation:Not wholly and exclusively in-
fession for a period of less than depre-
curred under S 33(1)
ciation shall be allowed at 50 per cent of
the allowable depreciation 148. In Finland income taxation is
A. 180 Days A. flat
B. 250 Days B. aggressive
C. 100 Days C. progressive
D. 210 Days D. only for rich people
145. What is the total amount of Jose’s deduc-
149. As per Section 2(4) of the Customs Act,
tions for this paycheck?
1962, “bill of entry” means a bill of entry
referred to in
A. Section 45
B. Section 46
C. Section 47
D. Section 48
150. It refers to a tax levied to an individual

for a general public purpose. Almost all
taxes are an example of this classification.
A. $104.48 A. Special Tax
B. $104.84 B. General Tax
C. $68.39 C. Ad Valorem Tax
D. None of the above D. Specific Tax
146. Jason pays taxes each year to the federal 151. Income tax is collected on all types of in-
government based off his yearly income. come except
These taxes help pay for thinks like roads,
A. Agricultural Income
bridges, and fire fighters. Which type of
tax does Jason pay? B. Industrial Income
A. Payroll Tax C. Capital Gain
B. Income Tax D. Household property

1.1 TAXATION 18
152. To avail the benefit of section 54, the as- C. Payment of tax on time
set transferred should be , being a res- D. Differment of tax
idential house property
A. Short-term capital asset 157. Choose the correct option
B. Long-term capital asset

C. Short-term or long-term capital asset
as per the choice of the assessee
A.
NARAYAN CHANGDER
D. Short-term or long-term capital asset
as per the choice of the Assessing Officer
153. A person can be resident in more than one B.

country.
A. True C.
B. False
154. How do individual evasion tax? D.

A. self-employed people and people with
part-time jobs don’t declare their to the 158. The charging Section of PGBP is
tax authorities
A. Sec. 28
B. Self-employed workers declare to tax
authorities while part-timer workers un- B. 28(2)
declared income to the tax authorities. C. 28(1)
C. Self-employed workers do not declare D. 28(i)
to tax authorities while part-time workers
159. Under which section/sub-section of In-
declare income to tax authorities
come Tax Act, 1961, is the term “PROFES-
D. none of above SION” defined?
155. is legal compensation or reward of A. 2(34)
an officer for specific services while a B. 2(35)
tax is an enforced contribution from per- C. 2(36)
sons or property by the law-making body
by virtue of its sovereignty and for the D. 2(37)
support of the government and all public 160. Parliament passed the Stamp Act because
needs. they believed that the colonies should help
A. Taxes support troops.
B. License Fee A. False
C. Assessment B. true
D. Tariff 161. What is the timing of voucher provision
when the supply may be traced back to the
156. Objective of tax planning- voucher?
A. Avoidance of tax A. The date on which the voucher could
B. Minimise of Tax liability be issued

1.1 TAXATION 19
B. The date on which the coupon must be 167. Choose the correct option
redeemed

C. Earlier of (a) and (b)
D. whichever of (a) and (b) comes first
162. taxes are levied on the production or

sale of goods and services.
A. direct
A. Person
B. indirect
B. Resident
163. Saedah did not pay quit rent of her house. C. Citizen
What is the consequence of her action?
D. None of the Above
A. Compound of RM 150
B. The portable property can be seized. 168. How much of a tax was placed on sugar?
C. The land can be seized. A. 5 cents
D. Fine 10 times of tax undercharged. B. 3 cents
164. Rate of this tax decreases as the tax C. 1 pound

base or bracket increases. D. 1 cent
A. Regressive Tax
169. The income tax act came into force from.
B. Progressive Tax
A. 1st March 1971
C. Proportional Tax
B. 1st April 1971
D. none of above
C. 1st March 1961
165. This is how governments pay for ser-
D. 1st April 1961
vices.
A. donations 170. Which are the sources of income?
B. creating new businesses A. Salary
C. printing extra money B. Gift and Interest
D. taxes C. Business and Profession
166. The selling price of a unit of product P D. All of the above

is RM 52.80. If the sales tax imposed is
10%, calculate the original price of a unit 171. What word most closely means “quali-
of product P. fied to receive survivor benefits?”
A. RM 46 A. Eligible
B. RM.48 B. Disabled
C. RM 50 C. Survivor
D. RM 52 D. Obtain

1.1 TAXATION 20
172. Base tax for Hisham’s chargeable income B. No

in 2020 was RM 150 and tax on the next
balance is RM 375.60. It is given that za- 178. The term’ income’ includes the following
kat of RM 220 was paid in the same year. types of incomes-
Calculate income tax payable by Hisham. A. Legal
A. RM 5.60 B. Illegal
B. RM 305.60 C. Legal and illegal both
D. None of these
NARAYAN CHANGDER
C. RM 445.60
D. RM 745.60 179. There is no relation of the residential sta-
tus of individual to his citizenship.
173. Taxation Power can be delegated
A. True
A. TRUE
B. False
B. FALSE
180. Toll is a demand of proprietorship.Tax is
174. A government wants to redistribute in-
a demand of proprietorship.
come from the rich to the poor. Which
changes in taxation would help it to A. TRUE; TRUE
achieve this objective? B. FALSE, TRUE
A. a cut in corporate tax and a rise in C. TRUE, FALSE
sales tax D. FALSE, FALSE
B. a cut in VAT and a rise in income tax
181. Which of the following expenses is con-
C. a cut in capital gain tax and inheritance sidered as a purchase and can not apply
tax for a credit on the input?
D. a rise in customs duties and excise du- A. Cost of food (for guests) at the restau-
ties rant
175. The income tax Act was passed in: B. Cost of mobile phone service fee
A. 1961 C. Buying a car (4 seats)
B. 1981 D. Pay on the import of goods
C. 1971 182. What are taxes?
D. 1951
176. Which of the following is not the type of

tax?
A. Sales & property tax
B. Quick rent
C. Income tax
D. Property assessment tax
177. Do we have a taxation system in South A. the amount of money citizens and busi-
Africa? nesses charge the government so they
A. Yes can pay all their bills.

1.1 TAXATION 21
B. the amount of money citizens and busi- 187. What is the full form of GST?
nesses are required to pay so the govern- A. Goods and Supply Tax
ment can function and provide services.

B. Goods and Services Tax
C. the amount of money citizens and busi-
nesses are required to pay so they are pro- C. General Sales Tax
tected from criminal organizations. D. Government Sales Tax
D. the amount of money citizens and busi-
nesses pay the government because it 188. Paid for by the people to support the gov-
makes them happy. ernment which in turn provides services
for it’s people.
183. Capital gain taxable under which section A. donations
A. Section 5 B. taxes
B. Section 25
C. income
C. Section 10
D. insurance
D. Section 45
189. Employees may deduct their medical aid
184. How many credits can you earn in one contributions before calculating tax.
year?
A. True
A. 1
B. False
B. 2
C. 3 190. Who is the biggest employer in the na-
tion?
D. 4
185. How many more dolls were sold than

ducks?
A. Amazon
A. 4
B. 3 B. Google
C. 0 C. The Federal Government
D. 1 D. Ford Motor Company
186. People pay this tax on the money they 191. Who primarily uses our tax money?
earn. (hint:choose 2 correct answers)
A. corporation tax A. Your employer
B. income tax B. The State government
C. capital gains tax C. The Federal government
D. tariffs D. Local businesses

1.1 TAXATION 22
192. Financial year means a year commencing Reassessment(IV) Any assessment in

on- which the duty assessed is NIL.Select the
A. 31st March of the period correct answer from the options given be-
low:
B. 1” day of the April
A. (I) & (II)
C. Mid of the year
B. (I), (II) & (IV)
D. None of these
C. (I), (II) & (III)
NARAYAN CHANGDER
193. Tax on documents that is payable from D. All (I) to (IV)
the time the document is signed by inter-
ested parties, or when the document is 198. Encashment of leave salary at the time of
completed or submitted to another party, retirement is fully exempt in the case of:
if the document is only made by one party A. Central Government employee
is called
B. State Government employee
A. Customs
C. Both Central and State Government
B. Import Duty employees
C. BPHTB D. Government employee and employee
D. Stamp Duty of local authority
194. Reducing the amount of tax you pay to a 199. The government has adopted a contrac-
legal minimum is called tionary fiscal policy focused on taxation.
A. creative accounting This policy will:
B. tax avoidance A. Lead to an appreciation of the currency
C. tax evasion B. Reduce any inflationary pressures in

the economy.
D. tax harbours
C. Increase economic growth in the long
195. What is a refusal to buy goods called? term
A. congress D. Lead to an increase in interest rates.
B. repeal 200. Carol has an annual taxable income of
C. boycott R542 134 before rebates. Calculate her
D. bankrupt tax payable.
196. I was surprised that she say such

rude words.
A. Must
B. Would
C. Will
D. Should A. R140 306, 00
B. R137 607.24
197. As per Section 2(2) of the Customs Act,
1962, “assessment” includes(I) Provi- C. R144 206.00
sional assessment(II) Self-assessment(III) D. none of above

1.1 TAXATION 23
201. Allowed expenses will only be expenses B. FALSE

from January to December of a particular Explanation:False. Additional exemptions
year. of P 25, 000.00 are given for each quali-

A. False fied dependent.
B. True 207. what tax do you recieve from your job

A. sales
202. The income tax act came into force all
over india except. B. income
A. Andaman & Nicobar C. estate
B. Maldives D. excise
C. Jammu & Kashmir 208. The source of tax payment is:

D. None of the above A. wages
B. profit
203. Remuneration to Partners is taxable in
the hands of the Partner to the extent. C. interests
A. Always D. all answers are correct
B. Not taxable at all 209. A type of tax levied on individuals who

inherit the estate of a deceased person.
C. deductible to the firm
A. payroll tax
D. not deductible to the firm
B. consumption tax
204. Colonists were infuriated by the tea act C. inheritance tax
because
D. value added tax
A. They came to North America because
E. income tax
they hate tea.
B. Tea is not better than coffee 210. What are three benefits provided by the
FICA Tax?
C. England gave the West India company
a monopoly on tea A. Survivor Benefits
D. England gave the East India Company B. Retirement Pension
a monopoly on tea. C. Disability Benefits
D. Life Insurance
205. Tax Planning is medium of reducing tax-
A. Legal way 211. Taxes are levied for public purpose or pur-
poses.
B. Moral Way
A. True
C. Wise way
B. False
D. All of the above
212. The highest CGST rate legally permitted
206. All individual taxpayers are granted a for intrastate supplies is
personal exemption of P 50, 000.00 and
A. 18%
additional exemptions of P 50, 000.00 for
each qualified dependent up to a maximum B. 40%
of four dependents. C. 20%
A. TRUE D. 20%+cess

1.1 TAXATION 24
213. How much taxes were collected in Finland 217. what tax do you pay when you buy a
year 2019? house
A. 1 million euros A. economy
B. 11 million euros B. GDP
C. 1 billion euros C. Employment rate
D. property tax
D. 101 billion euros
218. Optical standard deduction scheme al-
NARAYAN CHANGDER
214. An enforced proportional contribution lows the business to claim deduction of
from owners of lands for special benefits 40% gross sales.
resulting from public improvements.
A. TRUE
A. Tax
B. FALSE
B. Special Assessment Explanation:False. The base of the stan-
C. Permit dard deduction is defined based on the
form of business organization. The base
D. Eminent Domain is gross receipts or gross income for
sole proprietorship or corporation respec-
215. A government collects the following rev- tively.
enue in a year.What is the amount of indi-
rect tax revenue? 219. This means that the property is taxable
in the State where it has its actual situs,
specifically in the place where it is located,
even though the owner resides in another
jurisdiction.
A. The law of the situated property
B. Power of Taxation
A. $30 m C. Public Finance
B. $70 m D. Fiscal Administration
C. $100 m 220. Surcharge is calculated on the annual in-

come above
D. $500 m
A. 10L
216. Daphney is a 30 year old receptionist. B. 15L
She earned R82 500 in 2020. She did
C. Accept
not earn any extra income but contributed
R550 a month on her retirement annuity. D. 50L
She did not have to pay tax in 2020. 221. an individual or business entity that is ob-
ligated to pay taxes to a federal, state, or
local government.
A. taxation
B. tax credit
A. True C. taxpayers
B. False D. tax rate

1.1 TAXATION 25
222. An amount of money citizens and busi-

nesses are required to pay so that they C.
government can function and provide ser-

vices.
A. Supply and Demand D.
B. Security
C. Tax 227. The tax system should attempt to
achieve its aims without any undesirable
D. Tariff side effects. Eg. It should not lead to dis-
incentives to work. This principle of taxa-
223. What taxes do you pay when you buy tion is called:
fuel for your car
A. Equity
A. sales tax
B. Economical
B. property tax
C. Productivity
C. income tax D. Efficiency
D. excise tax
228. Criminal organizations tend to pass
224. The federal government’s health care sys- money through a series of companies in
tem for people aged 65 and over very complicated transactions to disguise
its origin from the tax inspectors and the
A. Welfare police called
B. Tariff A. tax evasion
C. SNAP / EBT B. laundering money
D. Medicare C. tax avoidance
D. tax shelters
225. Personal taxes include:
A. Land tax 229. How much has Jose paid in Disability tax
so far this year?
B. VAT
C. Duty
D. Income tax
226. Choose the correct option
A.
A. $.60
B. $1.80
B. C. $5.34
D. None of the above

1.1 TAXATION 26
230. Ideally taxes should be based on taxpay- 235. another name for tax(es)
ers ability to pay. In other words taxes A. fine
should be:
B. fee
A. Lead to equality
C. commission
B. Reduce Inequality
D. duty
C. Equitable (fair)
236. Which of the following is not included in
D. Rational
NARAYAN CHANGDER
taxable income-
231. Stamp Duty may be levied on: A. Income from smuggling activity
B. Casual income
A. The purchase of Demerit Goods
C. Gifts of personal nature subject to a
B. The purchase or sale of Property
maximum of ‘50, 000 received in cash
C. The purchase or sale of Luxury Goods D. Income received in kind.
D. The purchase of gas.
237. Income-tax in India is charged at the
232. In most countries the income tax system rates prescribed by-
can be considered: A. The Finance Act of the assessment
A. An example of regressive taxation year
B. The Income-tax Act, 1961
B. An example of proportional taxation
C. The Central Board of Direct Taxes
C. An example of progressive taxation
D. The Finance Act of the previous year
D. An example of indirect taxation.
238. It is a term for when a taxing authority,
233. Legal efforts that can be taken by the usually a government, levies or imposes a
taxpayer or tax bearer against an objec- tax.
tion decision, the taxpayer can take fur- A. Tax payers
ther legal action to the tax court called
B. Tax Credits
A. Object
C. Tax rate
B. Banding
D. Taxation
C. Bookkeeping
239. Which is illegal way of non payment or
D. Investigation minimizing of tax?
234. Entertaiment given to potential client in A. Tax Avoidance
a closed transaction B. Tax Exemption
A. Allowed a deduction of 100% C. Tax Evasion
B. Allowed a deduction of 50% D. Indirect Double Taxation
C. Not allowed a deduction of 100% 240. Brenda’s net pay is $525/week. Her
D. Not allowed a deduction of 50% gross is $700. How much money is de-
Explanation:Not wholly and exclusively in- ducted from her paycheck each week?
curred in S.33(1) A. $525.00

1.1 TAXATION 27
B. $700.00 246. As per Income Tax Act, 1961, income tax

C. $175.00 is charged on the income of at a rates
which are prescribed by the Finance Act of

D. $125.00 relevant assessment year
241. The determination of the situs of taxa- A. Current Year
tion depends on various factors include the B. one year before previous year
following, except
C. previous year
A. Nature of the tax
D. None of the Above
B. Subject matter thereof
247. The official date for when taxes are due
C. Source of the income
A. January 15
D. The ability to pay of the taxpayer
B. February 15
242. Tax withheld on income in connection C. March 15
with work, services and/or activities is
D. April 15
called
A. Income Tax Article 21 248. Which of the following are non-taxable
supplies in accordance with current regula-
B. Income Tax Article 22
tions?
C. Income Tax Article 23
A. Insurance Services
D. Income Tax Article 25 B. Public postal service
243. A supplier that consists of two or even C. Solid-liquid collection and disposal ser-
more services would be classified as the vices
provision that describes the variables that D. Electricity and clean water
are subject to a higher rate of taxation.
A. Composite 249. when you die this tax is collected
A. Market
B. Mixed
B. GDP
C. Both (a) and (b)
C. sales tax
D. estate tax
244. The Philippine individual income tax is
characterized by increasing tax rate as the 250. An individual, being foreign national,
tax base increase. came to India first time during the pre-
vious year 2019-20 on 01-01-2020 for
A. TRUE 200 days, his residential status for the
B. FALSE previous year 2019-20 is.
A. Non-resident
245. IGST is billed as soon as the stock is
B. Resident but not ordinarily resident in
A. Federal
India
B. Intra-UT
C. Resident and ordinarily resident in In-
C. Intra-state dia
D. All of the above D. Resident in India

1.1 TAXATION 28
251. A Filipino citizen residing in the Philip- C. EEE

pines is levied taxes for income derived D. TTT
inside the Philippines only.
A. TRUE 257. Charging Section of PGBP
B. FALSE A. 28
Explanation:False. A Filipino citizen resid- B. 26
ing in the Philippines is levied taxes for in-
C. 31
NARAYAN CHANGDER
come derived inside and outside the Philip-
pines. D. 45
252. Which amongst the following is not a 258. NPS deduction under section 80CCD is
head of Income? A. 50000 maximum
A. Salaries B. Included in 150000 of 80C
B. Income from house Property C. 50000 in addition to 150000 of 80C
C. Capital gains D. 20000
D. Income from exports
259. The goal of tax planning generally is to
253. Under a progressive income tax, who
A. Minimize taxes
would pay the largest proportion of her in-
come in taxes? B. Maximize after-tax wealth
A. A schoolteacher C. Support the federal government
B. The owner of a small business D. Minimize IRS scrutiny
C. A millionaire 260. The idea that the collection of taxes
D. A student on financial aid shouldn’t take too much time or money.
254. The federal income tax is a A. Simplicity
A. regressive tax B. Efficiency
B. flat tax C. Equity
C. progressive tax D. Certainty
D. personal choice 261. Expenditure incurred by a company for

the purpose of promoting family planning
255. The Stamp Duty rate in effect from Jan- among its employees, being of a capital na-
uary 1 2021 is ture
A. Rp5.000 A. Is fully allowed as deduction
B. Rp10.000 B. Allowed as deduction in 10 equal instal-
C. Rp20.000 ments in 10 years starting from the year of
D. Rp15.000 incurring
C. 1/5 of expenditure is allowed as de-
256. Tax exemption in Life Insurance is duction in the previous year
A. EET D. is not allowed as deduction being cap-
B. ETE ital in nature

1.1 TAXATION 29
262. Placing a stamp on an item showed that 268. The principles of a sound tax system
the tax had not been paid for the item which means that the sources of revenue
should be sufficient to meet the demands

A. false
of public expenditures.
B. true
A. Fiscal adequacy
263. What type of tax does the graph below
B. Equality or theoretical justice
represent?
C. Administrative feasibility
D. Fiscal Responsibility
269. A company may be not ordinarily resident

in a year
A. True
A. progressive tax
B. False
B. regressive tax
270. Medicare is a tax taken out of your pay-
264. A teacher at the school may deduct his check and is
home loan before calculating tax.
A. True
B. False
265. a tax the government collects when a per-

son dies and is often called a “death tax”
A. income tax
B. tariff
A. the federal government’s retirement
C. estate taxes program.
D. property taxes B. the federal government’s elder care in-
stitution.
266. What is not included in the tax credit is
A. Income Tax Article 23 C. the federal government’s health care
system for people age 65 and over.
B. Income Tax Article 25
D. a really poor substitute for private
C. Income Tax Article 29
health insurance.
D. Income Tax Article 24
271. Reducing the amount of tax you pay to a
267. What tax people pay out of their legal minimum is called:
salaries?
A. tax avoidance
A. capital tax
B. inheritance tax B. tax shelters
C. company tax C. tax evasion

D. income tax D. none of above

1.1 TAXATION 30
272. Sales tax is the tax you pay 278. During your working years, social secu-
rity tax takes a percentage of your earn-
ings. Then when you retire or are disabled
A. when you buy something.
NARAYAN CHANGDER
B. when you sell something.
C. when you barter.
A. your social security tax is used to pay
D. when you give something as a gift. medical costs.
273. A tax paid on property, sales transac- B. you become eligible to receive monthly
tions, imports, and so on is a/an payments.
A. direct tax C. you lose your benefits.
B. indirect tax D. you can leave your Social Security ben-
efits to your loved ones when you die.
C. value-added tax
D. capital gains tax 279. As per income tax act, 1961, income tax
is charged on the income of at a rates
274. 3 types of taxes which are prescribed by the finance act of
A. property tax relevant assessment year.
B. sales tax A. Current year
C. scale tax B. One year before previous year
D. regressive tax C. Previous year
275. Income Tax is administered by
A. State Government 280. The following diagram shows the effect
of introducing a tax. What is the resultant
B. Finance Minister producers’ revenue?
C. Central Board of Direct Taxes
D. Supreme Court
276. GST was implemented in India from

A. 1st January 2017
B. 1st April 2017
C. 1st March 2017
D. 1st July 2017
277. Colonists believed that they should not A. OZXQ1

be taxed if they did not agree to the taxes. B. OPAQ1
A. True C. OP1TQ1
B. False D. OPYQ

1.1 TAXATION 31
281. The graph shows the impact of a tax on 285. Income chargeable u/s 28 includes:
the supply of petrol (gas).What can be con- A. a) Income from business, profession
cluded from this graph?

or vocation
B. Any amount received by any person, by
whatever name called, holding an agency
in India for any part of the activities relat-
ing to the business of any other person,
at or in connection with the termination of
the agency or the modification of any of
the terms and conditions relating thereto
C. Any amount received by any person,
A. the government will receive no tax rev-
for or in connection with the vesting in the
enue
Government or any corporation owned or
B. the impact of the tax will be shared be- controlled by the Government under any
tween the consumer and the producer law for the time being in force, of the man-
C. the impact of the tax will fall entirely agement of any property or business
upon the consumer D. All of Above
D. the impact of the tax will fall entirely 286. are farmers exempt from paying tax?
on the producer24
A. YES
282. What is the purpose of Social Security? B. NO
A. to protect the safety of our nation’s C. NONE OF THE ABOVE
harbors
D. none of above
B. to provide a trained military
287. Income tax is a tax on the net income or
C. to help Americans pay the bills when the entire income realized in one taxable
they can no longer work year.
D. to provide low cost healthcare A. TRUE
283. An assessee is always a person but a per- B. FALSE
son need not to be assessee the statement
288. I haven’t decided yet where to go for my
is
holiday. I go to Greece.
A. May be
A. should
B. True
B. may
C. False C. can
D. Partial true D. would
284. In which city did colonists leave tea to rot 289. Parliament created the Tea Act to help
on the docks? which company?
A. Raeigh A. The British Tea company
B. Charleston B. The West India Company
C. New London C. The East India Company
D. Georgetown D. The British Tea Company

1.1 TAXATION 32
290. The tax period for excises is recognised: C. Standard supervisor industries
A. calendar year D. Small saving investment
B. calendar month
296. The Internal Revenue Service is the pri-
C. quarter
mary implementing agency in charge of tax
D. all answers are incorrect collections in the Philippines.
291. Our tax money is spent on all of the fol- A. TRUE
NARAYAN CHANGDER
lowing EXCEPT: B. FALSE
Explanation:False. The Bureau of Inter-
nal Revenue is the primary implementing
agency in charge of tax collections in the
Philippines.
297. When may the value of the transaction

get discounted from the supplying value
calculation?
A. Social Security
B. The Military A. When the parties to a contract are con-
nected, price isn’t the only factor to con-
C. Private School Education sider.
D. National Parks
B. When the parties to the contract are
292. The price we pay for civilization. linked or when affordability is not the only
factor.
A. wealth
B. incomes C. It could not be turned down.
C. taxes D. When the items are sold with relatively

little gross margins.
D. insurance
293. Employees are obligated to pay 1% of 298. What type of graph is this?
their net salary to the fund.
A. True
B. False
294. I have to pay this tax so I can live on my

property
A. Property tax
B. income tax
C. excise tax
D. sales tax A. bar graph
295. SSI stands for B. pictograph

A. Small scale industries C. tally chart
B. Small scale investment D. none of above

1.1 TAXATION 33
299. While measuring the indexed cost of ac- 304. Income Tax is as to subject matter.
quisition, is irrelevant
A. Personal, poll or capitation tax

A. Cost of acquisition
B. Property Tax
B. Cost inflation index of the year of im-
provement of capital asset C. Excise Tax
C. Cost inflation index of the year of ac- D. Direct Tax
quisition of capital asset
D. Cost inflation index of the year of trans- 305. A tax that must be paid on particular le-
fer of capital asset gal documents that have to be officially
300. Which of the following transactions are checked, especially when buying a house
subject to stamp duty? A. wealth tax
A. Placing real estate as equity in the
B. corporation tax
company
B. Transfer any part or all shares of the C. stamp duty
company D. inheritance tax
C. Contracts for the sale of goods or ser-
vices related to government budget 306. Taxes are voluntary proportional contri-
D. Legal documents related to the regis- butions from persons and property levied
tration of the company, the closure of the by the law-making body of the State by
company or the dissolution of the merger virtue of its sovereignty for the support
company of the government and all public needs.
301. Colonists disguised themselves as what A. TRUE

the night of the Boston Tea Party?
B. FALSE
A. Pilgrims Explanation:Taxes are enforced/required
B. Squanto and not voluntary.
C. Mohawk Indians
307. Value-added tax is an indirect tax.
D. Commoners
A. True
302. to sneak goods into a country/place
B. False
A. boycott
B. duty 308. What are the advantages of different tax
C. taxation systems?
D. smuggle A. A progressive tax is designed to redis-
tribute wealth and income
303. Sum of various heads is called
A. gross total income B. To ensure social equality, reduce the
gap between the rich and the poor
B. taxable income
C. total income C. Both A and B
D. none of these D. none of above

1.1 TAXATION 34
309. How much did Jose earn this pay period?
NARAYAN CHANGDER
A. $1335.00
B. $445.00 A. property taxes
C. $340.52 B. estate taxes
D. None of the above C. tariffs
310. taxed paper products, playing cards, dice D. food taxes
A. Townshend Act 314. . Bonus paid by the employer to the em-
B. Quartering Act ployee is
C. Sugar Act A. Fully Taxable
D. Stamp Act B. Partly Taxable
311. An amount you can earn without paying C. Fully Exempted

tax on it D. None of these
A. tax relief
315. If Damon has a taxable income of
B. tax break $86450 what would he pay as a Medicare
C. tax allowance Levy being 2%?
D. flat tax A. $1729
312. For which of the following Rules can be B. $1850

made by the Central Government u/s 156 C. $1675
of the Customs Act, 1962?
D. $1724
A. Transaction Value
B. Form of Bill of Entry 316. the federal government’s health care sys-
tem for people age 65 and over
C. Import & export manifest
A. Social Security
D. Conditions for transshipment & re-
moval of good without payment of duty B. Medicare
C. US Healthcare
313. Other taxes include all of the following
EXCEPT D. US Retirement Services Inc.

1.1 TAXATION 35
317. Tax as to subject matter or object 322. Which of the following are some of the
A. Property Tax deductible expenses for income tax pur-
poses?

B. Ad Valorem Tax
A. Special tax on import of goods
C. Specific Tax
B. Direct / indirect loss on sale / ex-
D. Direct Tax change of movable property between re-
lated persons
318. A Tax which directly paid to the gover-
ment is known as C. Additional taxes, interest on late pay-
ments and penalties arising from viola-
A. Direct tax
tions of legal provisions
B. Indirect tax
D. Income tax
C. Perquisite tax
323. This tax helps fund the basic retirement
D. Excise duty program run by the federal government.
319. Under Income tax Act “Person” means
A. Hindu Undivided Family
B. Company
C. Local Authority
D. All of the Above
A. Social Security Tax
320. Why might a country tax cars based on
their engine size? B. Property Tax
A. They want to encourage the purchase C. Medicare Tax
of solar powered vehicles D. Sales Tax
B. Larger vehicles may generate more
pollution and use more gas. 324. Income Tax computed on
C. They want to encourage greater public A. Capital

transport use B. Income
D. They want to discourage red necks & C. fixed Assets
hoons who usually buy large cars. D. Business Gain
321. is the inherent power of the 325. How many heads are there for the com-
sovereign, exercised through the legisla- putation of income
ture, to impose burdens upon subjects and
objects within its jurisdiction for the pur- A. Three
pose of raising revenues to carry out the B. Six
legitimate objects of government.
C. Five
A. Police Power D. Four
B. Eminent Domain
326. What taxes come out of a person’s pay-
C. Taxation check and pay for a retirement program for
D. Fiscal Revenue older people?

1.1 TAXATION 36
A. Sales Tax 331. What did colonists in New York and and
Philadelphia do when shipments of tea
B. Social Security Tax
came to them?
C. Property Tax
A. They threw the tea overboard
D. Medicare Tax
B. They burned the tea
327. Money paid by the government to sick C. they drank the tea
and unemployed people
D. they refused the shipments and sent it
NARAYAN CHANGDER
A. income tax back to England
B. tariffs
332. Business includes any
C. estate tax
A. Trade & Commerce
D. social security B. Manufacture
328. What is one of the ways for companies C. Any Adventure in the nature of Trade,
to avoid tax on profits? Commerce, Manufacture
A. Companies can bring forward capital D. All of the above
expenditure so that at the end of the year
all the profits have been used up 333. What reductions from the transaction
cost are permitted?
B. Companies can subtract expenditures
from taxable income A. Customer discounts, subject to terms
and restrictions.
C. Both A and B are wrong
B. Packing Fees, subject to terms and re-
D. none of above strictions.
329. What is taxation? C. Amount paid on the authority of the
provider by the customer, subject to re-
A. A way to delay the payment of tax to a quirements.
later time
D. Freight expenses are borne by the
B. The tax people pay on their wages and provider in connection with CIF response
salaries to demand, subject to certain restrictions.
C. A compulsory fee that individuals or
corporations must pay to the government 334. A Foreign Company which has its Control
& Management partly situated in India
D. none of above A. A Non-Resident Company

B. A Resident Company
330. The Government of India wishes to
help the very poorest people.Which policy 335. Which of the following is NOT an objec-
would be most likely to achieve this? tive of most government
A. lowering capital gains tax A. Stable prices
B. lowering housing subsidies B. High unemployment
C. lowering indirect taxation C. Balance of payment equilibrium
D. lowering inheritance tax D. Improved standards of living

1.1 TAXATION 37
336. Assessment year is known as 341. The sources of revenue taken as a whole
A. The year in which assessee earn the should be sufficient to meet the expanding
expenditures of the government regard-

income
less of business conditions, export, taxes,
B. The year in which assessee pays the trade balances, and problems of economic
tax on income earn in PY adjustment, this cannon of a sound tax
C. The year in which assessee pay tax in system referred to as:
advance A. Fiscal Adequacy
D. The year in which assessee find ex- B. Theoretical Justice
cuse to not to pay any taxes
C. Administrative Feasibility
337. It is a tax on the purchase of a good or
D. Siombiotic Relationship
service
A. payroll tax 342. taxes people pay on the land they own
B. consumption tax A. income tax
C. inheritance tax B. tariff
D. value added tax C. estate taxes
E. income tax D. property taxes
338. UNREALISED RENT MEANS 343. To avail the benefit of section 54, within
A. NO TENANT a period of or after the date of
transfer of the old house, the taxpayer
B. TENANT OCCUPYING THE HOUSE BUT should purchase a new residential house
NOT PAYING THE RENT in India.
C. CHEQUE RECEIVED FOR RENT IS NOT
A. 1 year before, 3 years
REALISED
B. 2 years before, 2 years
D. none of above
C. 1 year before, 2 years
339. This kind of tax means that the more
D. 3 years before, 1 year
money you earn, the higher the rate of tax
you have to pay. 344. There would be no in a truly free mar-
A. flat rate ket economy.
B. progressive tax A. taxes
C. income tax B. trade
D. tax break C. social security tax
340. They should make everyone a foreign D. supply and demand
language.
345. The amount and period that can be
A. learned claimed depend on the number of years of
B. learn employment and salary.
C. learning A. False
D. learnt B. True

1.1 TAXATION 38
346. The primary purpose of taxation on the A. Yes, he needs to pay RM 619.50
part of the government is to provide funds
B. No, he will get refund of RM 619.50
or property with which to promote the
from IRB.
general welfare and the protection of its
citizens and to enable it to finance its mul- C. Yes, he needs to pay RM 2 269.50
tifarious activities.
D. No, he will get refund of RM 2 269.50
A. True from IRB.
B. False
NARAYAN CHANGDER
352. Which word is not in use in word combi-
347. Which one of the below taxes is included nations with “tax”?
in the GST?
A. impose
A. Central sales tax
B. charge
B. Central excise duty
C. VAT C. levi
D. All of the above D. levy
348. Which one of the below will not be added 353. Under the Customs Act, 1962, the regu-
to supply value? lations making power is delegated to
A. GST A. Central Board of Indirect Taxes and
B. Interest Customs (CBIC)
C. Late fee B. Respective State Governments
D. Commission C. Partly to the Central Government and
partly to the respective State Govern-
349. In which circumstances will the greatest
ments
amount of the tax be borne by the con-
sumer? D. Central Government
A. PED-ELASTIC, PES-INELASTIC
354. Maximum deductions under section 80C
B. PED-INELASTIC, PES-ELASTIC is
C. PED-INELASTIC, PES-INELASTIC
A. 1, 00, 000
D. PED-ELASTIC, PES-INELASTIC
B. 1, 50, 000
350. Assessee means
C. 2, 00, 000
A. The person who is liable to pay tax
D. 2, 50, 000
B. An individual who escape tax
C. Every Indian 355. Ourr tax money is spent on all of the fol-
D. Every citizen of India lowing EXCEPT.
A. Social Security
351. Income tax payable by Mr. Lee is RM2
419.50. His salary was deducted monthly B. The Military
by RM 150.00 for monthly tax deduction
C. Private School Education
(PCB). Does Mr. Lee need to pay any more
income tax after the monthly deductions? D. National Parks

1.1 TAXATION 39
356. Simon has a monthly taxable income of 360. What is the formula for Net income?
R6680, 00, before rebate. Calculate his A. Gross Income + Deductions
tax.

B. Gross Income-Deductions
C. Tax Payable-Deductions
D. Gross Income-Medicare Levy
361. Payment rcd by the employer on the ma-

turity of the Keyman Insurance Policy is
taxable u/h
A. R10 306.80
A. PGBP
B. R13 607, 80
B. Salary
C. R14 428, 80
C. Style
D. none of above
D. None
357. cover proceeds from sales of fixed 362. As per Section 2(1) of the Customs Act,
capital assets or scrap thereof and pub- 1962, means any authority competent
lic domain and gains on such sales like to pass any order or decision under this
sale of public lands, buildings and other Act, but does not include the Board, Com-
structures, equipment, and other proper- missioner (Appeals), or Appellate Tribunal.
ties recorded as fixed assets.
A. Adjudicating Authority
A. Tax Revenue
B. Proper Authority
B. Extra-ordinary Income
C. Proper Officer
C. Capital Revenue
D. Custom Authority
D. Borrowings
363. In 2008, the government of Argentina
358. A tax on the value of a person’s assets if imposed a tax on exports of wheat and
their value is above a particular amount soya beans.What was the most likely aim
A. stamp duty of this tax?
B. tax exile A. to increase agricultural output
C. wealth tax B. to increase exports
D. tax burden C. to reduce a budget surplus
D. to reduce the rise in domestic food
359. A tax collection system that authorizes prices
taxpayers to calculate, calculate, pay and
report for themselves the amount of tax 364. Tax collections during January to Septem-
that must be paid ber 2021 amounted to
A. Official Assesment System A. 2.03 trillion
B. Self Assessment System B. 1.85 trillion
C. Witholding System C. 71.8 billion
D. Real Stelsel D. 14.3 billion

1.1 TAXATION 40
365. What are three ways you have benefited 370. The three inherent powers of the State
from taxes today? includes all, except
A. Zoo’s, Arena’s, and Big C A. Taxation
B. Highway signs, highways, and bike re- B. Police Power
flectors C. Eminent Domain
C. Police officers, teachers, and the inter- D. Public Borrowings
net
371. What did the Townshend acts do?
NARAYAN CHANGDER
D. Schools, libraries, and Clean Communi-
ties A. Put a tax on sugar
B. Put a tax on tea
366. Income from a business in Pakistan is tax-
C. Put a tax on paper goods
able in the case of non resident in India
D. put a tax on any goods imported to the
A. True
colonies.
B. False
372. Which is an example for Indirect tax
367. what type of tax do you pay when shop- A. Wealth Tax
ping
B. Gift tax
A. estate tax
C. Income tax
B. income tax
D. Excise Act
C. sales tax
373. The following is how the tax revenue is
D. property tax used except
368. Stamps were placed on A. agricultural and industrial purposes
A. Newspapers, pamphlets and playing B. healthcare
cards C. education
B. newspapers and shirts D. government policy implementation
C. barrels, playing cards and documents tool
D. none of above 374. The idea that people in the same circum-
stances must pay the same amount.
369. Under GST smartphones is taxed @
A. Simplicity
B. Efficiency
C. Equity
D. Certainty
375. colonists how to provide a bed, candle,
food, and drinks
A. 0% A. Townshend Act
B. 5% B. Quartering Act
C. 12% C. Sugar Act
D. 18% D. Stamp Act

1.1 TAXATION 41
376. What duties are taxes on intra-State sup- C. Accounts statement

plies?

A. CGST
B. SGST 382. Types of taxes are
C. CGST and SGST A. Direct and Indirect Tax

D. IGST B. Income and VAT Tax
C. Excise and Income Tax
377. What term is this definition of? “To dis-
suade people from consuming some non- D. Direct and Other Tax
essential goods and services.”
383. Profits made by selling assets are gener-
A. taxation
ally liable to a
B. perks
A. capital gains tax
C. excise tax
B. sales tax
D. corporate income tax
C. capital transfer tax
378. Tax Overpayment Assessment Letter is
D. wealth tax
issued if
A. The tax owed is less than the tax credit 384. How many pounds of unsold tea did the
B. Tax payable is the same as tax credit East India Company have?
C. The tax owed is greater than the tax A. 18 million pounds
credit B. 17 million pounds
D. Zero tax payable and zero tax credit
C. 12 pounds
379. to act for or on behalf of someone D. 18, 000 pounds
A. boycott
385. It is added to a product at every point on
B. representation the supply chain where value is added.
C. parliament
A. payroll tax
D. taxation
B. consumption tax
380. When taxes can adapt to changes in the C. inheritance tax
economic environment, we call this princi-
ple of taxation: D. value added tax
A. Responsiveness E. income tax

B. Adaptability 386. Reducing of tax liability by showing
C. Flexibility lower income-
D. Wishful Thinking A. Tax Avoidance
381. Show the true result of the operation B. Tax Planning
A. Inflation accounting C. Tax Evasion
B. Accounting standards D. All of the above

1.1 TAXATION 42
387. What are low tax countries called? B. Allowed a deduction of 50%
A. tax evasion C. Not allowed a deduction of 100%
B. tax avoidance D. Not allowed a deduction of 50%
Explanation:Not wholly and exclusively in-
C. tax shelters
curred under S 33(1)
D. tax havens
393. What is the main function of taxation?
388. A 67 year old person receives R10 100 A. To raise revenue to finance govern-
NARAYAN CHANGDER
per month as a pension in 2020. He will ment expenditure
have to pay tax of 2500 per month.
B. To economic growth, high employment,
and low inflation
C. Can help one understand human
thought and behavior
D. none of above
A. False
B. True 394. When was GST implemented in India?
389. When is a tax regressive?

A. when some goods have a lower tax
than others
B. when the tax as a proportion of income
decreases as income increases
C. when the tax is linked to the rate of in-
A. 1st August 2017
flation
B. 1st July 2017
D. when the tax is on incomes rather than
on goods or services C. 1st March 2017
D. 1st February 2017
390. I to sleep recently.
395. how many types of tax in the philippines
A. haven’t been able
A. 10
B. mustn’t
B. 12
C. can’t
C. 3
D. couldn’t
D. 4
391. taxed lead, paint, paper, tea
396. What are the taxes levied on an intra-
A. Townshend Act state supply?
B. Quartering Act
C. Sugar Act
D. Stamp Act
392. Cash contribution for customer’s annual

dinner

1.1 TAXATION 43
A. CGST 401. After claiming benefit under section 54,

B. SGST and CGST if new house is transferred within a pe-
riod of from the date of its acquisi-

C. IGST tion/completion of construction, then the
D. SGST benefit granted under section 54 will be
withdrawn.
397. If Elliot earned a taxable income of A. 1 year
$81000 which level of tax would he have
to pay B. 3 years
C. 5 years
D. 7 years
402. Based on the tax law and the prakas on

payroll tax, employees are allowed to re-
A. 2 quest a reduction in the tax base for depen-
dent children and the federation. Which of
B. 1
the following points gives the right to re-
C. 4 duce the tax base?
D. 5 A. The dependent child of the employee
E. 3 who is currently 5 years old and has not
yet attended school
398. What act taxed the tea that was brought B. The dependent child of the employee
into the colonies? who is currently 15 years old and has
A. The Quartering Act dropped out of school
B. The Tea Act C. The dependent child of an employee

who is currently 20 years old and currently
C. The Sugar Act studying at a public high school
D. The Stamp Act D. Unemployed husband
399. Taxes are the enforced proportional con- 403. GST stands for Goods and Services Tax,
tributions from persons and property and it is a tax system that covers a wide
levied by the law-making body of the range of
State by virtue of its sovereignty for the
support of the government and all public A. Goods
needs. B. Services
A. True C. Goods, companies and imports
B. False D. Products, systems, and exports
400. a tax on profits made by corporations 404. Governments impose income taxes on fi-
nancial income generated by all entities
A. excise tax
within their jurisdiction, including individ-
B. corporate income tax uals and businesses.
C. income tax A. payroll tax
D. estate tax B. consumption tax

1.1 TAXATION 44
C. inheritance tax 409. The following items should be included in

D. value added tax the supply value:
A. Any non-GST taxes, levies, cesses, or
E. income tax
fees levied by the supplier independently.
405. The power to tax involves the power to B. Interest, late fees, or penalties for fail-
destroy. ure to pay any compensation for any ship-
A. True ment on time.
NARAYAN CHANGDER
B. False C. Subsidies that are directly propor-
tional to the price, except subsidies
406. Taxation is the of the state. granted by the federal and provincial gov-
ernments.
A. brain
D. All of the above.
B. lifeblood
C. heart 410. Current assets are also known as
D. skeleton A. Invested capital
Explanation:Like blood which acts as a B. Assets
support to every human organ so it could
C. Cash
perform every duty inside the body, tax
acts as the blood which supports govern- D. Working capital
ment.
411. Experts who carry out independent work
407. The net chargeable income of Miss Che- who receive or earn income in connection
ung is $180 000. How much salaries tax with work, services or activities are
should she pay? A. Government employees
B. Notary
C. Fisherman
D. Trader
412. Gift with business logo for customer’s an-

nual dinner
A. $17 100 A. Allowed a deduction of 100%
B. $18 600 B. Allowed a deduction of 50%
C. $22 400 C. Not allowed a deduction of 100%
D. $30 600 D. Not allowed a deduction of 50%
Explanation:Proviso (vi) to para 39(1)(l)
408. Income of a trade or professional associ-
ation, from specific services performed for 413. Making false declarations to the tax au-
its members shall be thorities is called
A. Exempt A. fiscal policy
B. Taxable u/h PGBP B. tax avoidance
C. Taxable u/h IFOS C. tax evasion
D. Partly taxable & partly exempt D. tax havens

1.1 TAXATION 45
414. Under which section/sub-section of In- 419. A tax on wages and salaries is
come Tax Act, 1961, is the term “BUSI- A. flat tax
NESS” defined?

B. wealth tax
A. 2(13)
C. regressive tax
B. 2(14)
D. progressive tax
C. 2(15)
420. Any some received under key man insur-
D. 2(16) ance policy taken on the life of the em-
ployee shall be
415. The HUF is said to be resident in India if
A. Taxable under the head Business or
profession
A. The control and management of its af-
fairs is wholly or partly situated in India B. Taxable under the head income from
other sources
B. The control and management of its af-
fairs is partially situated out of India C. Taxable in the hands of employee
D. Either from business/profession or in-
C. The control and management of its af-
come from other sources
fairs is wholly or partly in out of India
D. None of the above 421. What was the name of the group the
protested the Stamp Act?
416. VAT is a direct tax A. The daughters of liberty
A. TRUE B. the continental congress
B. FALSE C. the house of lords
D. the sons of liberty
417. If sales tax is 10 percent, and a new pair
of sneakers costs $70, how much do you 422. This was a general tax during Spanish Pe-
actually have to pay? riod paid by the Filipinos to Spain which
A. $77 amounted to eight reales and paid by 18
to 50 years old males.
B. $71
A. Sanctorum
C. $80
B. Tribute
D. $100
C. Donation from Zamboanga
418. When the administration of certificates D. Donation from Zamboanga
concerning the coupon is not recognizable,
what is the supply period? 423. A person follows calendar year for ac-
counting. For taxation, he has to follow:
A. A)The date on which the voucher was
issued A. Calendar year only:1stJanuary to 31st
December
B. B)The date on which the coupon must
B. Financial year only:1st April to 31st
be redeemed
March
C. C)Earlier of (a) and (b)
C. Any of the Calendar or Financial year
D. whichever of (a) and (b) comes first as per his choice

1.1 TAXATION 46
D. He will to follow extended year from 429. Her parents wouldn’t let her out.
1st January to next 31st March (a period A. went
of 15months)
B. going
424. It is the privilege of not being imposed
C. go
a financial obligation to which others are
subject: D. gone
A. tax credit 430. All assesses are required to follow:
NARAYAN CHANGDER
B. tax amnesty
A. Uniform previous year which must be
C. tax incentive calendar year only
D. tax exemption B. Uniform previous year which must be
425. to ban or stop buying certain goods financial year only
A. repeal C. Any period of 12 months
B. tax D. Period starting from 1st July to 30th

June only
C. boycott
D. smuggle 431. What does the term “tax shelter” mean?
426. What you spend your income on? A. delaying the payment of taxes to a
later time
A. expenditures
B. do not pay tax
B. luxuries
C. is not declared to the tax authorities
C. necessities
D. none of above
D. cost of living
427. Travis county charges tax each year on 432. Profits from the sale of assets may be
the house that Jennifer owns. She pays subject to this tax.
around $6, 500 in taxes each year on the A. capital gains tax
house that she owns. What type of tax is
B. stamp duty
this?
C. estate duty
A. Estate Tax
B. Sales Tax D. income tax
C. Income Tax 433. VAT is a tax on

D. Property Tax A. Income
428. Your parents pay a tax each year of B. Company profit
$3500 that is based off the value of your C. Death
home. Which type of tax do your parents
pay each year? D. Spending
A. Payroll Tax 434. The residential status of an assessee may
B. Income Tax change in every the previous year
C. Sales Tax A. True
D. Property Tax B. False

1.1 TAXATION 47
435. Indirect taxes include: 440. Customs Act, 1962 extends to

A. VAT, excises A. Whole of India excluding Jammu &

Kashmir
B. Income tax, inheritance tax
B. Whole of India
C. Properly tax, land tax
C. Whole of India excluding Jammu &
D. All answers are correct Kashmir and Union Territories
436. Mr. Mann owns a ranch that has 45 acres D. Whole of India excluding Jammu &
of land. Each year Mr. Mann pays $5, 340 Kashmir and Special Economic Zones
in taxes on the land for his ranch. Which
441. The Philippine revenues are derived from
type of tax does Mr. Mann pay?
sources, except
A. Payroll Tax A. Taxes
B. Income Tax B. Grants
C. Sales Tax C. Capital Revenue
D. Property Tax D. Goods
437. GST is imposed on the production of all 442. If Mr Wong paid $7200 as salaries tax,
services and goods, except find his net chargeable income.
A. Liquor intended for human ingestion
B. Tobacco
C. Health care service
D. All of the above
438. Income Tax is A. $60 000

A. a direct tax B. $70 000
B. an indirect tax C. $110 000
C. a business tax D. $360 000
D. none of the above 443. Which is not a basic principle of sound tax
system?
439. What type of graph is this? A. Equality
B. Administrative Feasibility
C. Fiscal Adequacy
D. Benefits-received Principle
444. Strongest among the Inherent powers of
the state
A. bar graph A. Police Power
B. pictograph B. Eminent Domain
C. tally chart C. Taxation
D. none of above D. All are equal

1.1 TAXATION 48
445. British merchants began to lose business 449. a tax that only applies to certain products
because of the new taxes. They asked par- and is often called a “hidden” tax
liament to repeal the stamp act. What is A. excise tax
a synonym for repeal?
B. sales tax
A. Burn
C. income tax
B. cancel
D. Social Security tax
C. fly
450. Tax that is applied to manufactured
NARAYAN CHANGDER
D. pizza goods
446. The due date for payment of PPh Article A. tariff

23 by tax withholding agents is B. first part
A. 5th of the following month C. direct
B. The 10th of the following month D. indirect
C. The 15th of the following month 451. If a product is relatively elastic, an in-
crease in sales tax will:
D. The 20th of the following month
A. Increase revenue for the government
447. How do we calculate the average rate of but decrease revenue for the seller
tax? B. Decrease revenue for the government.
A. Total Income divided by total tax x 100 C. result in inelastic supply
B. Total Income Tax Paid divided by the D. lead to increased demand for compli-
Age Group x 100 ments and substitutes.
C. Total Income Tax Paid divided by In- 452. Under the Customs Act, 1962, the rule-
come x 100 making power is delegated to
D. Total Income divided by the applicable A. Central Board of Indirect Taxes and
tax bracket. Customs (CBIC)
B. Central Government
448. Sales tax on an item may include all of
the following EXCEPT C. Respective State Governments
D. Partly to the Central Government and
partly to the respective State Govern-
ments
453. Why do we need to pay taxes?

A. To collect money to run the govern-
ment.
B. To collect money to buy car.
A. city sales tax
454. What is Gabby’s taxable income if she
B. county sales tax
earns $59500 annually and has $1435
C. state sales tax worth of deductions?
D. household sales tax A. $58055

1.1 TAXATION 49
B. $58065 C. Scooter damaged partially by accident

C. $60935 and claim is recieved. It is treated as Rev-
enue reciept

D. $58165
D. Scooter damaged partially by accident
455. this tax is based on market value and the and claim is recieved. It is treated as cap-
local government (county, city, school dis- ital reciept
tricts).
A. property tax 460. Which of the following income is taxable
u/h PGBP?
B. city tax
A. Cash Compensatory Support & Duty
C. state tax
Drawback
D. local tax
B. Sum received under a keyman insur-
456. New Regime in personal taxation allows ance policy
deductions
C. Both of the above
A. True
B. False
C. May be 461. Who is the chairman of GST council?
D. none of above
457. It is the State or political unit which has

jurisdiction to impose a particular tax.
A. Situs of Taxation
B. Life blood theory
C. Eminent Domain A. Prime Minister
D. Police Power
B. RBI Governor
458. Agency business, rcd a sum of 5L from his C. President
principal for termination of agency. Com-
pensation amount rcd is? D. Finance minister
A. Exempt as it is capital receipt
462. What is not included as a tax subject ac-
B. Exempt as it is ex-gratia payment cording to the Income Tax Law is
C. Fully taxable u/h PGBP A. Private Person
D. Taxable u/h IFOS B. The undivided inheritance as a single
459. Find the correct Statement: unit replaces the rightful one
A. Scooter damaged partially by accident C. A lot

and claim is recieved. It is trated as rev- D. WHO
enue expenditure
B. Scooter damaged partially by accident 463. Income tax is the tax you pay on money
and claim is recieved. It is treated as Cap- you receive from all of the following
ital expenditure sources EXCEPT

1.1 TAXATION 50
B. ESSENTIALLY A LEGISLATIVE FUNC-

TION
C. FOR PUBLIC PURPOSES
D. TERRITORIAL IN OPERATION
E. NONE OF THE ABOVE
A. your job 469. A tax you pay when you buy something
NARAYAN CHANGDER
B. rent from tenants A. income tax
C. gifts you receive from your friends and
B. sales tax
relatives
C. social security tax
D. earnings on investments like stocks
D. medicaid
464. If the taxes are economical, they should:
A. respect principles of economics 470. The tax you pay when you buy some-
thing.
B. lower the tax burden on low income
earners A. excise tax
C. be easy and cheap to collect. B. sales tax
D. redistribute money to people on low in- C. income tax
comes.
D. Social Security tax
465. This kind of tax is added to a purchase
you make at a store. 471. What tax comes out of paychecks and
pays for medical care for people 65 and
A. Sales Tax older?
B. Income Tax A. Social Security
C. Property Tax
B. Property
D. Excise Tax
C. Income
466. The form ‘ITR-1’ is a form for using? D. Medicare
A. Income Tax Return
472. Which of the following statement in rela-
B. Income Tax Challan
tion to Malaysian tax system is NOT true?
C. VAT
A. A gift of money made to the govern-
D. Excise Duty ment or an approved institution is given
a deduction in income tax.
467. UIF payments are not excluded from in-
come tax calculations. B. Zakat and fitrah is a tax rebate.
A. Faithful C. Sales and service tax is charged at ev-
B. False ery stage of the products chain to con-
sumers.
468. Which of the following is not a character- D. Foreigners working in Malaysia for
istics of Taxation? less than 60 days are exempted from in-
A. INHERENT POWER OF SOVEREIGNTY come tax.

1.1 TAXATION 51
473. Nurul rents a single-storey house in 477. We have three classes of taxation
Taman Desa Permain. She receives a state-
A. Progressive, non-progressive, proac-
ment from the local state government for

tive
the quit rent of RM105 for the house.
Should Nurul pay for the quit rent? B. progressive, regressive, proactive
A. Yes, Nurul should pay the quit rent as C. progressive, non-progressive, propor-
she is currently staying in the house. tional
B. No, the quit rent should be shared D. progressive, regressive, proportional
equally between Nurul and the house
owner. 478. Curtis purchased a new pair of jeans for
C. No, the house owner should pay for $18. When Curtis pays for his jeans his to-
the quit rent. tal is almost $20 because of taxes. Which
type of tax does Curtis pay?
D. Yes, Nurul should pay the quit rent
starting from the date when she moved A. Payroll Tax
into the house.
B. Income Tax
474. Under what period when Cedula taxes C. Sales Tax
were actually abolished and later a resi-
dence tax was imposed. D. Property Tax
A. Spanish Period 479. Business and people pay income taxes.
B. Commonwealth Period Both are
C. American Period
D. Japanese Period
475. The theory of taxation, which provides

that the existence of government is a ne-
cessity; that government cannot continue
without means to pay its expenses; and
that for these means it has a right to com- A. regressive taxes
pel its citizens and property within its lim-
its to contribute. B. progressive taxes
A. Life Blood Theory C. proportional taxes

B. Benefit-Received Principle D. personal taxes
C. Sound Tax System
480. Article 22 PPh tariff levied by the Direc-
D. Reciprocity torate General of Customs and Excise on
goods import transactions with API and
476. The number of structures in India’s GST
the importer has a NPWP
model is?
A. 6 A. 2%
B. 4 B. 2, 5%
C. 3 C. 7, 5%
D. 5 D. 1, 5%

1.1 TAXATION 52
481. taxed molasses, sugar, iron, tim- B. Degressive tax rates

ber/lumber C. Progressive tax rates
A. Townshend Act D. Fixed tax rate
B. Stamp Act
487. A worker earns $60 000 a year and pays
C. Sugar Act 25% income tax. He spent $2000 on fur-
D. Quartering Act niture and$5000 on a computer and paid
20% sales tax on each.How much indirect
NARAYAN CHANGDER
482. This tax hits the low income the hard- tax did he pay?
est because all of their expenditures go to- A. $1000
wards everyday goods.
B. $1400
A. state tax
C. $15 000
B. government tax
D. $16 400
C. federal tax
488. Fill the sentence with a correct word:The
D. sales tax employee needs to provide to the em-
483. Last year I paid too much tax, so this year ployer for the taxation.
I received a tax A. a passport
A. return B. a tax card
B. receipt C. value added tax
C. rebate D. a gift
D. allowance 489. . Rate at which additional depreciation is
charged is
484. Who will announce the rate of taxation
to be imposed underneath the CGST Act? A. 30
B. 20
A. The Federal Government
C. 15
B. State Administration
D. 5
C. GST Commission
D. Central And state, following the GST 490. A tax credit is subtracted from the total
Council’s proposals tax bill.
A. True
485. This determines the total tax paid on the
B. False
assessed value of a piece of property.
A. property tax 491. Which of the below are GST’s advan-
tages?Establishment of a single national
B. mill levy
marketStrengthening the ‘Make in India’
C. tax levy programLessening the burden of confor-
D. income tax mity on taxpayersIncrease in government
revenueDual taxation, as well as double
486. The tax rate whose percentage becomes taxation, are eliminated.Select the appro-
greater if the amount that is the basis for priate answer from the choices below.
its imposition becomes greater A. 1, 3, 4, and 5 are the first, third, fourth,
A. Proportional tax rates and fifth numbers

1.1 TAXATION 53
B. 2, 3, 4 & 5 A. payroll tax

C. 1, 2, 4 and 5 B. consumption tax

D. 1, 2, 3, 4 and 5
C. inheritance tax
492. It is a tax withheld by employers from
D. value added tax
each employee’s salary and is paid to the
government. E. income tax

Taxation

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JAI SHREE RAM

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To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

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B. $11954 12. money taken by the government for public

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D. 0% 5% 12% 16% 28% A. True

8. C 9. B 10. D 11. B 12. C 13. B 14. C 15. D 16. B 17. A 18. B

23. Money from taxes is called? D. None of the above

A. Greenbacks 28. Which is true?

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B. Deductions + Tax Payable A. Government

C. Gross Income + Deductions B. Seller

30. C 31. D 32. B 33. B 34. D 35. C 36. A 37. A

41. Which of the following are chargeable D. The Ministry of Finance

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B. II and III C. FALSE; FALSE

49. C 50. B 51. C 52. C 53. A 54. B 55. D 56. D 57. D

C. Individuals residing in Indonesia B. Returning the package to the federal

C. national and local C. SSP

D. cadastral, declaration and previous D. SPT

B. Exempt supplies 73. What did the Stamp Act tax?

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77. This tax is levied at a certain percentage C. USA

80. State of Finland’s Budget is prepared by 86. Define boycott.

81. Which country does not have VAT:

A. An organized campaign to refuse to 92. Choose the correct option

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88. A taxpayer deriving mixed income will C. value added tax

90. Money that the government collects from B. R113 607.02

A. CGST D. None of these

B. SGST 104. How much is the service tax rate?

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C. BPHTB 111. Countries with low taxation may:

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D. Salary rcd by a partner of a firm from D. 5% for income up to 60 million rupiah

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A. PAYE 141. How many people like soccer best?

137. A tax cut may:

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relief claimed by her was RM 12 360. Cal- C. Sales Tax

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150. It refers to a tax levied to an individual

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B. Long-term capital asset

153. A person can be resident in more than one B.

154. How do individual evasion tax? D.

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162. taxes are levied on the production or

164. Rate of this tax decreases as the tax C. 1 pound

166. The selling price of a unit of product P D. All of the above

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172. Base tax for Hisham’s chargeable income B. No