CHAPTER 3

CHAPTER
EXAM
Read Instructions first.

NO CHEATING
NO ERASURES
NO QUESTIONS ARE TO BE ENTERTAINED DURING THE
EXAM
TRUE OR FALSE

A FILIPINO STAYING ABROAD FOR

MORE THAN 180 DAYS IS CLASSIFIED
AS A NON RESIDENT CITIZEN
ENGAGED IN BUSINESS.
TRUE OR FALSE

CASH SALARY OF AN EMPLOYEE IS

AN EXAMPLE OF CONSTRUCTIVE
RECEIPT OF INCOME.
TRUE OR FALSE

TRANSFERS FOR INSUFFICIENT

CONSIDERATION ARE SUBJECT TO
BOTH INCOME AND TRANSFER TAX.
TRUE OR FALSE

BARTER OF GOODS IS SUBJECT TO

INCOME TAX
TRUE OR FALSE

AN ESTATE OF A FILIPINO CITIZEN

JUDICIALLY ADMINISTERED IN THE
PHILIPPINES IS A TAXABLE ESTATE
TRUE OR FALSE

A TRUST DESIGNATED BY THE

DONOR AS AN IRREVOCABLE IS A
TAXABLE TRUST
TRUE OR FALSE

PROCEEDS OF CROP INSURANCEDO

NOT CONSTITUTE TAXABLE INCOME
TRUE OR FALSE

A REVOCABLE TRUST IS REQUIRED

TO PAY INCOME TAX
TRUE OR FALSE

RETURN OF CAPITAL MERELY

MAINTAINS NET WORTH WHILE
RETURN ON CAPITAL INCREASES
NET WORTH
TRUE OR FALSE

AN UNEMPLOYED FILIPINO
RESIDING IN THE PHILIPPINES IS
CLASSIFIED AS A RESIDENT CITIZEN.
ENUMERATION

GIVE TWO ITEMS OF INCOME THAT

ARE EXEMPTED BY LAW FROM
TAXATION
ENUMERATION

THE ELEMENTS OF GROSS INCOME

CLASSIFICATION

A CITIZEN WHO WOULD GO ABROAD

UNDER A STUDENT VISA IS
CLASSIFIED AS A ____________
 CLASSIFICATION

AN AMERICAN WHO WISHES TO STAY IN

THE PHILIPPINES AS AN IMMIGRANT
AND IS STAYING IN SIARGAO FOR MORE
THAN 180 DAYS IS CLASSIFIED AS A
_________.
CLASSIFICATION

A CORPORATION INCORPORATED
UNDER FOREIGN LAW
IDENTIFICATION

A BUSINESS UNDERTAKING FOR A

PARTICULAR PURPOSE
IDENTIFICATION

THE SITUS OF TAXATION FOR GAIN

ON SALE OF REAL PROPERTY.
COMPUTATION
NATSU DRAGNEEL PAID P30,000 ANNUAL PREMIUM
ON A LIFE INSURANCE CONTRACT WHICH WOULD
PAY HIM P1,000,000 IN CASE OF HIS DEATH. AFTER
PAYING FOR 5 YEARS, NATSU DRAGNEEL ASSIGNED
THE POLICY TO GRAY FULLBUSTER FOR P180,000.
COMPUTE THE RETURN OF CAPITAL.
 COMPUTATION
MIRAJANE STRAUSS WAS ONE OF THE PASSENGERS OF A BUS THAT
FELL OFF A CLIFF. MIRAJANE SUED THE BUS COMPANY AND WAS
AWARDED AN INDEMNITY OF P1,000,000 FOR THE FF:
P600,000 FOR HEALTH IMPAIRMENT CAUSED BY ARM AMPUTATION
P300,000 FOR LOSS OF HER SALARIES DURING HOSPITALIZATION
P100,000 FOR HER ATTORNEY’S FEES
WHAT IS MIRAJANE’S RETURN ON CAPITAL?
SITUATIONAL
LUCY HEARTFILIA, A NON RESIDENT FILIPINO CITIZEN,
LENT MONEY TO ERZA SCARLET, A RESIDENT KOREAN.
THE INDEBTEDNESS WAS COLLATERALIZED BY A
PROPERTY LOCATED IN JAPAN.

THE INTEREST INCOME IS EARNED WHERE?