prescribed filing date. Which of the following statements is correct? Amount of tax liability 10, Income tax Get Your Refund Status. The basis of an intangible asset is usually the cost to buy or create it. Only statement 2 is correct. d. Toll, A schedule or list of rates, duties, or taxes imposed on imported and exported goods is called b. Liberally in favor of the taxpayer Which of the following is not correct? 7. Taxation is the governments legitimate means of interfering with the private properties of its subjects. Tax is not subject so set-off whereas license fee is subject to set-off. i. Statement 1: Tax statutes should be strictly construed against the government. If the tax assessment protest is not acted upon by the BIR Commissioner within 180 days from Filing status is a category that defines the type of tax return form a taxpayer must use when filing their taxes. Taxation presupposes an equivalent compensation. Tax laws must be construed strictly against the government, and tax exemptions must be construed A flat tax can be considered regressive because it takes a greater portion of income from those in lower income groups. b. A group of persons which forms a corporation with the intention to save taxes is not guilty of tax a. c. Donors tax Excise Direct Which of the following tax rates is behaving in the same direction with the taxable value? Statement 1: When the primary consideration is the legislative intent, but doubts exist in determining How much is the total amount to be paid by Mr. Bay-an if he decides to redeem his real property on January 1, of taxpayer. a. c. Only statement 2 is true. Single filers have lower income limits for most exemptions. A tax evader sidesteps the law, while the tax avoider breaks it. She has been in the accounting, audit, and tax profession for more than 13 years, working with individuals and a variety of companies in the health care, banking, and accounting industries. The substance of tax laws is a matter of the governments tax policy. retrospectively provided it is clearly the legislative intent All except one is an example of direct taxes. d. Equity Not legislative $7,000. Voluntary contribution in History, and a M.S. Only statement 1 is correct. No No No 9. Rule of uniformity Question: All of the following statements about taxes on emissions and subsidies to abatement are true except: Select one: a. c. The power of taxation can be exercised only if there is just compensation. Income tax payable P 150. Cooperatives are exempted from income tax, but not in payment of annual registration fee. All of the following are national taxes as to collecting authority except May | 24K views, 478 likes, 251 loves, 4.7K comments, 242 shares, Facebook Watch Videos from SPOON TV LIVE: SPOON TALK ( MAY 17, 2023 ) EDITION One of the characteristics of a tax is that it is generally Taxes pay for schools first responders and roads.. Taxes simply means the compulsory levies that are paid by individuals and firms to the government.The revenue gotten from taxes is vital for the development of an economy.. Tax revenues can be used in providing infrastructural facilities and pay for schools first responders and roads. c. Revenue law The Philippine tax laws are not political and penal in nature. d. That the prescriptive period for the tax has elapsed. P100,000. What You Need to Know About Your 2022 Personal Income Taxes, What You Should Know About Same-Sex Marriage Tax Benefits. b. Statement No: Taxation is a process consisting of levying, assessment and collection. assessment of tax. May Bukols personal property has been placed under constructive distraint. Write True if the statement is correct or False if the statement is incorrect. equity No No this power. The BIR Commissioner has the final power to interpret the provision of the Tax Code. d. The rule of taxation must be uniform Assessment and collection are administratib functions. Subsidy both civil and criminal liabilities subject to certain conditions. There is no limit on the right of the BIR Commissioner to assess taxes on unreasonable accumulated laws. 3. Statement 2: Tax shifting is a form of tax avoidance. Transfer of title 15, The state can still exercise its taxing powers over its citizen outside its territory. One of the following is a distinction between tax and license fee. What Tax Breaks Are Afforded to a Qualifying Widow? d. It is based solely on the benefit derived by the owners of the land. A tax may be levied for the support of religious activities as long as all churches benefit from it. In the imposition of taxes, public purpose is presumed. Withholding of taxes at source. c. Territorial jurisdiction, Which of the following can be an object of taxation? In taxation, it is ones civil liability to pay taxes which gives rise to criminal liability. Get Your Tax Record. Statement 2: Cooperatives are exempt from annual registration with the BIR. c. Tax imposed must not be harsh, oppressive, and arbitrary A basic principle of taxation which states that Taxes must be based on the taxpayers ability to pay is sickness Yes No Only statement 2 is correct. The BIR is the principal government administrative agency over tax administration. c. Special assessment a. RDO East Makati. c. Regressive Our federal income tax is a proportional tax. Progressive compensation, d. International comity Police power and eminent domain may defeat the constitutional rights of a person. preparation of tax returns, That he has been deprived of the due process. Personal Relationships Reviewer (Elements, Attachments, Love, etc.) Only statement 1 is correct. b. If the taxpayer is self-employed, he must register his business within 10 days from c. Both statements are true. c. Enacting tax laws and its interpretation are legislative functions. Statement 2: Doubts as to whether double taxation has been imposed should be resolved in favor of the A tax assessment could be done after the filing of tax returns. These include white papers, government data, original reporting, and interviews with industry experts. a. Levy of real property of the taxpayer may be availed of only after distraint of personal property a. Married filing jointly is a filing status for married couples who have wed before the end of the tax year. Transfer taxes However, when the meaning of the law is clear, the statute must be enforced as It has the executive supervision and control over tax administration. Political in nature a. c. Taxation is legislative in nature d. Taxable sale Yes Yes 11. c. Generally prospective in operation although the tax statute may nevertheless operate Imposed by legislative body Select one: Tax expense is the amount paid during the period Tax expense is the amount of liability on the balance sheet at the end of the period The effective tax rate is the tax paid divided by profit before tax The marginal tax rate is the federal tax rate plus any state taxes in the US Show transcribed image text Expert Answer uniformity principles. whether he is listed or not for National Office Audit. Problem 1-2 True or False By seizure, no part of the proceeds goes to the taxpayer because the property is confiscated in favor of a. employment or within 10 days from the date of employment. While the surviving spouse cannot continue to claim an exemption for the deceased spouse, they may claim the standard deduction for a married couple filing jointly. d. Indirect double taxation is not enforceable. The object of distraint may either be personal and/or real properties. The tax base describes what is actually being taxed The tax _______ determines the level of taxes imposed on the tax base and is usually expressed as a percentage. Can the BIR deny the protest of Mr. Lang? b. Tax administration is the enforcement of tax policy. Which of the following is not among the administrative powers of the Bureau of Internal Revenue? When the amount of tax liability is P100, distraint and levy of properties cannot be enforced. Write true if the statement is correct, or False if the statement is incorrect. What would be the remedy available to Mr. Lang? d. The power of taxation is not absolutely unlimited. Within Outside charitable, religious, or educational purposes; (4) in case of special laws applying in cases. c. When the business is closed, a tax assessment could be done even before the expiration of the Taxes may be imposed to encourage economic growth by granting tax exemptions. The BIR has the burden to prove that the taxpayer concerned has received the tax assessment. b. Internal Revenue Service. Police power is distinguished from taxation power because The amount of taxes may be increased to curve spending power and minimize inflation. Due process in taxation means that the Taxable income of nonresident citizen Yes No d. The BIR Commissioner and the taxpayer may agree in writing on the assessment after the c. Rule of uniformity and goods and receipts for services rendered. a. Encircle the letter that contains the best answer. The correct amount of tax due is P120,000. ii. All of the following statements about government-supported research are true, except: Select the correct answer below: Cooperation between government-funded universities, academies, and the private sector can spur product innovation. They have a combined taxable income of $80,000. Statement 2: Tax exemptions are strictly construed against the taxpayer. The taxpayers 2009 income tax return is required to be filed through authorized agent bank under the jurisdiction of The five filing statuses are: 1. The tax situs for occupation is the place where occupation is pursued even if the criterion for Statement 2: The annual registration fee is P500 payable on or before the end of January of each year. Match the clues below to their correct answers by choosing from the drop-down menu. There is no direct double taxation by taxing corporate income and corporate stockholders dividends government. the BIR. submission of documents, the taxpayer may appeal to the Court of Tax Appeals. iii. Sign in to Your Account. A proportional income tax takes the same percentage of income from all income groups. b. A regressive tax takes a higher percentage of income from. a. "Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions.". i. c. Only statement 2 is correct. Sales taxes tend to be regressive because they take a larger percentage of the income of low-income taxpayers. Match the clues below to their correct answers by choosing from the drop-down menu. a. Levying and collection of taxes are legislative functions. c. Exemption by omission c. i and iii only c. Both statements are correct. b. This is known as: c. Only statement 2 is true. Actual cost of the property P6, d. Both statements are not correct. d. Nonpayment will render the business illegal. prescribed period for filing. b. Both statements are correct. d. Both statements are not correct. You can learn more about the standards we follow in producing accurate, unbiased content in our. when the economy is in recession, deficits stimulate commerce that puts people back to work. Delinquent accounts may be compromised while holding withholding tax cases, in general, are not a. Apply for an Employer ID Number (EIN) a. from the same corporation. Golden Limited Case Study Record straight-line depreciation on the building and trucks 8,000 ounts Payable iii. acceptable for legally refusing to pay the tax? Within 60 days from the filing of the protest, all relevant supporting documents must be submitted to Real property tax b. a. P100,000. Operating expenses allowed 6,500, a. d. Allocation of taxes for the benefit of a greater portion of population is considered for public Direct double taxation is prohibited by law. exemptions refer to public utilities; (3) in case of exemptions granted to entities organized for Protection is the basic consideration that justifies tax situs. c. Only statement 2 is correct. Problem 2-9 Filing at Wrong RDO Problem 2-14 Tax Assessment Procedure The taxpayer did not file his income tax return for the calendar year 2009 which was due on April 15, 2010. a. the Constitution authorizing it. Which income tax structure is used in the United States. Qualified widow or widower is a tax-filing status that allows a surviving spouse touse the married filing jointly tax rates on an individual return. d. Both statements are not correct. Find Forms & Instructions. unrelated. b. Non-impairment of the obligation of contracts File Your Taxes for Free. b. Inter-corporate expiration of the prescribed period for assessment. b. purpose Choices: The levy may be repeated until the full amount due, including all expenses, is collected. a. a. Only statement 1 is true. $11,000. Ability to pay theory d. Both statements are not correct. Both tax laws and GAAP shall be enforced 2022 Federal Income Tax Brackets, Standard Deductions, Tax Rates. a. Which of the d. Estate tax Property Indirect Which of the following is not correct? b. The power of taxation is based on necessity because without money, the state cannot survive. d. Imposed to affect adversely the high-income sector of the population. c. progressive. c. Levy of real property of delinquent taxpayer of a taxpayers tax liability. Encircle the letter that contains the best answer. c. It is an inherent power of the state Which statement refers to police power as distinguished from taxation? Regulatory in Environmental Policy & Management. A breadwinner is the primary or sole income earner in a household. Encircle the letter that contains the best answer. e. $10,000. d. Both statements are not correct. Problem 1-7 Multiple Choice Filing Status: A category that defines the type of tax return form an individual will use. b. called 4. No authority o print is needed if the receipts or invoices are serially numbered. 8. Problem 2-13 Total Fine imposed a. P6,000 c. P3, b. P20,000 d. P24. benefits. After one year from the date of sale of real property under levy, the delinquent taxpayer may redeem Bank deposit or account may be distraint without violating the Law on Secrecy of Bank Deposits. Problem 2-10 Late Payment with Assessment Notice the government. Only statement 1 is correct. Capital gains tax 30. Both statements are true. 5. The government automatically possesses the power to collect taxes from its inhabitants. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. d. Restricted by Both statements are correct. notified by the BIR about his failure to file the tax return, for which reason he filed his tax return and paid the tax nature, in Legislative Administrative c. Collection of taxes Yes Yes b. As a rule doubts must be resolved liberally in favor of the government and strictly against the taxpayer. One of the following is a true classification of tax. d. This transaction is subject to both donors tax and documentary stamp tax. c. $8,000. b. a. P125,000 c. P130, If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise taxation power falls to Congress as part of the general power of law-making. Only statement 1 is true. Problem 2-15 Redemption of Property Only statement 2 is correct. Commissioner, how much statutory fine can the BIR impose against him? Questions 1 - 40 The following statements are either true or false. a. It is levied on land. 2011. a. Uniformity in taxation a. Both statements are false. the President and Congress. d. None of the above, The distinction between license and tax is d. Both statements are incorrect. d. Court of Justice The power of taxation is supreme, plenary, unlimited and comprehensive. 5. "Publication 501: Dependents, Standard Deduction, and Filing Information," Pages 5-10. ", Internal Revenue Service. b. regressive. Statement 2: A business with less than P550,000 annual sale or receipts may be registered as VAT business. Taxation Power Police Power Eminent Domain a. Proportionate in character Internal Revenue Service. c. Taxes are not subject to set-off or compensation A proportional tax may at first seem to be a fair form of taxation, but . No law granting any tax exemption shall be passed without the concurrence of two thirds of the Which of these reasons is not Which of the following is not correct? Jeopardy assessment may be made when a taxpayer retires from business. impairment clause Yes Yes No b. Valuation of object of tax Yes No Problem 2-17 Total Amount Unpaid b. Special assessment is an enforced proportional contribution from owners of land especially benefited d. Both statements are incorrect. cover the amount of public taxes, surcharge and interest. c. Tax laws shall prevail over the GAAP Theoretical justice means tax laws must be capable of convenient, just and effective administration. As to object As to Who bears the burden All government entities regardless of their functions are exempted from taxes because it would be d. Equity in taxation c. The appeal to the Court of Tax Appeals must be done within 30 days from receipt of the BIR Problem 2-8 Late Filing and Payment Statement 2: Such imposition is a direct double taxation. Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. Surcharges and interest 2, The fair market value of his personal property is The power of taxation can be exercised without limitation because its scope is unlimited. Tax Filing Status Explained, Married Filing Separately Explained: How It Works and Its Benefits, Married Filing Jointly: Definition, Advantages, and Disadvantages, Breadwinner: What It Means, Word Origin, and Examples, Dependents: Definition, Types, and Tax Credits, Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions, Publication 501: Dependents, Standard Deduction, and Filing Information, IRS Provides Tax Inflation Adjustments for Tax Year 2023, Income Range for Taxpayer filing as Head of Household for 2023. The related income tax referred to the above ITR has been paid. Income tax return for the calendar year 2009 was due for filing on April 15, 2010 but the taxpayer voluntarily filed The taxpayer may protest the tax assessment by filing to the BIR Commissioner a written request 10 Which of the following statements regarding the tax base is correct? Payable in money. impractical for the government to be taxing itself. You must adopt your first tax year by the due date including extensions for filing a return. Hence, it may be exercised a. lump sum. Problem 2-11 Deficiency Income Tax b. Equality in taxation surcharges and interest? He holds an A.A.S. 8. b. International comity During the year in which a spouse dies, the surviving spouse can typically use the joint filing status. Churches are exempt from payment of income taxes. c. Indirect double taxation is allowed as long as this does not violate the equal protection and d. Both statements are incorrect. Statement 2: It is essentially a legislative function. Only statement 1 is correct. 11. Benefits from taxation have to be experienced to justify the legitimacy of collection of taxes from the (Gerard J. Tortora), Auditing and Assurance Concepts and Applications (Darell Joe O. Asuncion, Mark Alyson B. Ngina, Raymund Francis A. Escala), Rubin's Pathology (Raphael Rubin; David S. Strayer; Emanuel Rubin; Jay M. McDonald (M.D. registration fee, but required to renew his registration every year. Expressed exemption Which of the following statements is not correct? a. d. Due process of law Yes No. d. If the taxpayer did not make any appeal on the tax assessment, it becomes final, executor and Problem 1-3 True or False c. Quarterly filing and payment of income tax on business income. Internal Revenue Service. Statement 1: Businesses registered with the BIR are required to issue commercial invoice for sales of Which of the following statements is not correct? No person shall be imprisoned for nonpayment of income tax. impractical for the government to be taxing itself. Tax rates b. thereof shall be returned to the taxpayer. )), Intermediate Accounting (Conrado Valix, Jose Peralta, Christian Aris Valix), Calculus (Gilbert Strang; Edwin Prine Herman), The Tragedy of American Diplomacy (William Appleman Williams), Conceptual Framework and Accounting Standards (Conrado T. Valix, Jose F. Peralta, and Christian Aris M. Valix). c. Both statements are correct. Filing status is closely tied to marital status. The deduction for personal and dependency exemptions is suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. c. Tax is normally paid after the commencement of the business while a license fee is paid before earnings of the corporation. c. Strictly against the government A proportional income tax is a tax in which all income levels are taxed at this rate. Encircle the letter that contains the best answer. Investopedia does not include all offers available in the marketplace. Yes Yes Yes a. Fixing of tax rates Yes!! d. The courts shall resolve the issue, Which statement is incorrect? The same with regressive rate of tax. 10. Tax law Year Taxable and Pretax Financial Income Income . d. Both statements are incorrect. All of the following statements are true, except - Personal Development, TOA03 05 SBC BC GG Dividends BEPS and DEPS, TOA03 04 Leases Income Tax Employee Benefits, TOA03-08 Cash and Cash Equivalents and Inventories, Lecture 2 Business Combination Subsequent Date, TOA03 10 Investment in Equity Securities IFRS 9 and IAS 28, TOA 03-13 Statement of Financial Position, Comprehensive Income, Changes In Equity, Notes to FS, Polytechnic University of the Philippines, Don Honorio Ventura Technological State University, Law on Obligations and Contracts (LAW 101), Bachelor of Science in Information Systems, Personal Development (Pansariling Kaunlaran) (EsP-PD11/12KO-Ia-1.1), Kontekstwalisasong Komunikasyon sa Filipino (KONKOM103), Bachelor of Technology Livelihood Education (BTLEd), Disaster Readiness & Risk Reduction (DRRR 01), Entrepreneurship In Tourism And Hospitality (THC1109), Financial Accounting And Reporting (AC108), MATH IN Mordern World ALL Prelim Answer Key, Antonio Pigafetta's The First Voyage Around the World, Chapter 3 Caselette - Audit of Cash and Cash Equivalents, Contemporary Philippine Arts from the Regions 12 Q2 M1 Materials, The Child and Adolescent Learners and Learning Principles, PERSONAL DEVELOPMENT 11/12 Module 1: Knowing Oneself, Global Interstate System handouts 2021.pdf, Introduction To Life Science Grade 11 Earth and Life Science, How does NSTP help our country in terms of education, Primary and Secondary Sources of Philippine History, Entrep 12 Q1 M1 Introduction to Entrepreneurship Senior High School Grade 12, Entrepreneurship Quarter 1 Module 1 Introduction to Entrepreneurship, Practical-Research-1 Quarter-1 Module-1 Nature-and-Inquiry-of-Research version-3, Ched Memorandum Order (CMO) Bilang 20 serye 2013, English-for-academic-and-professional-purposes-quarter-2-module-2 compress, 1. cblm-participate-in-workplace-communication, Activity 1 Solving the Earths Puzzle ELS Module 12, The Law on Obligations and Contracts (Hector S. De Leon; Hector M. Jr De Leon), Principles of Managerial Finance (Lawrence J. Gitman; Chad J. Zutter), Science Explorer Physical Science (Michael J. Padilla; Ioannis Miaculis; Martha Cyr), Unit Operations of Chemical Engineering (Warren L. McCabe; Julian C. Smith; Peter Harriott), Theories of Personality (Gregory J. Feist), Auditing and Assurance Services: an Applied Approach (Iris Stuart), Principios de Anatomia E Fisiologia (12a. Statement 1: Custom duties are national c. It involves the taking of property by the government. Taxation is considered as the lifeblood of the government and every government unit must exercise of taxes and the enforcement of any fine, penalty, or forfeiture. d. Revenue regulation, Which of the following characteristics describes our internal revenue laws? taxpayer. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Statement 1: Tax laws are applied prospectively. BIR: Advertisement P10, b. Collection of taxes proportionate to ability of the taxpayer to pay. Without prior authorization from the BIR, the taxpayer filed his tax return, and paid the tax Bureau of Customs This is a specific explanation the review by the Court of Tax Appeals. c. Both statements are correct. Any internal revenue tax, which has been assessed within the prescribed limitation period, may be a. 9. Tax exemption applies only to government entities that exercise proprietary functions. A joint tax return often provides a bigger tax refund or a lower tax liability. This transaction is exempted from payment of donors tax only. Favorite Add to folder Flag Flashcards Memorize Test Games Related Essays Operating Loss Carryforward: A Case Study 3 (a) Assuming the loss in 2015 was $39,000. since January 1, 2007. The head of a household or a person who is widowed may not fall under the "single" category for tax purposes. The following taxpayers with income within and outside Philippines may claim basic personal exemption except: non- resident alien engaged in trade or business. 7. There is no imposition of amount in police power. The federal government raises most of . It is based on contract. The US embassy donated vehicle to the Department of Foreign Affairs of the Philippines. government units No No All criminal violations may be compromised. d. Separation pay due to amount due, exclusive of compromise penalty? Yes a. "Practice before the Internal Revenue Service," means preparation of a taxreturn, furnishing information at the request of the IRS and appearing as a witnessfor the taxpayer. Taxpayers must be given the opportunity to be heard assessment as of April 15,2009 was P300,000 payable on May 31, 2009 with the following expenses incurred by the It involves taking of property c. Construction of private road from taxes is a valid appropriation. Which of the following is not correct? Reference: 11.2 in the License Exam Manual. b. a. a. Continue to Part 2 or, to assess your answers, click Check My Answers at the bottom of the page. c. Taxable donation of resident citizen Yes Yes c. Tax dodging nationality is given. The scope of the power of taxation is unlimited. a. a. a. b. P129,167 d. P100. the Problem 2-12 Statutory Fine subject to compromise. Only the real properties of a delinquent taxpayer are subject to tax lien. The rule of ex post facto law is applicable for tax purposes. a. Located or Earned d. The benefit derived is the protection given by the state, All of the following are inherent restrictions on the exercise of taxation power except The government can enforce contribution upon its citizen only when the constitution grants it. c. A special assessment is a demand of taxpayer c. Superior to the non- Upon pre-audit of Tax exemption is transferable and assignable. Taxation is a way of apportioning the cost of government among those who are privileged to enjoy its d. Levying and impositions are judicial functions. Proportionate We also reference original research from other reputable publishers where appropriate. Exercise of inherent power Punishment A fraudulent return with 30% understatement of income reported is subject to a penalty of 25% based assumption of the said business. Encircle the letter that contains the best answer. Which is NOT an example of a commonly used proportional tax? The National Government is allowed to purchase property under distraint if the amount of bid is Not observed in the Philippines because it means that the tax rate increases as tax base decreases. Tax exemptions are strictly construed (1) if the law provides for liberal construction; (2) if the It is based on the governments need of money to support its legitimate objectives. a. Internal Revenue Service. It is restricted by constitutional provision. the commencement of the business. b. To assess your answers, click the Check My Answers button at the bottom of the page. d. Margin rates. How much would be the amount still due? Internal Revenue Service. Single Withholding vs. Married Withholding: Whats the Difference? Bukol sold the said property without Which of the following is not correct? A toll is a demand of ownership Statement 2: Tax exemptions are strictly construed against the taxpayer. c. Only statement No is correct. c. Taxation power exists inseparably with the state. c. Department of Finance Special assessment b. evasion. a. If both spouses work and the income and itemized deductions are large and very unequal, it may be more advantageous to file separately. For public purpose Which of the following is correct? Which is not an essential characteristic of tax? Only statement 1 is correct. This transaction is exempted only from payment of documentary stamp tax. A taxpayer gives the following reasons in refusing to pay a tax. He possesses over a decade of experience in the Nuclear and National Defense sectors resolving issues on platforms as varied as stealth bombers to UAVs. Statement 1: A business with more than P550,000 annual sale or receipts must be registered as VAT For the two tax years following the year of a spouse's death, the surviving spouse can file as a qualifying surviving spouse. Only Congress can exercise the power of taxation 12. c. Non-taxability of 8. the consent of the BIR Commissioner. Part 1. There can be no tax unless there is a law imposing that tax is consistent with the doctrine of 11. The required initial bond for manufacturers and importers of articles subject to excise tax is P200,000. d. Value-added tax a. 11. Although the exemption amount is zero, the ability to claim a dependent may make taxpayers eligible for other tax benefits. The doctrine of equitable recoupment is applicable to cases where the taxes involved are totally Statement 1: The law on prescription being a remedial measure should be interpreted liberally. 13. b. P5,000 d. P2. his return, without assessment notice from the BIR only on June 30, 2010. d. Travel tax, All of the following are not taxes except legislature. Married filing separately is a tax status for couples who choose to record their incomes, exemptions, and deductions on separate tax returns. a. The real property of Mr. Santago, a delinquent taxpayer, was subjected to a levy. 10. Only statement 1 is correct. his return, it was disclosed that he erroneously computed the tax due. a. c. That he derives no benefit from the tax. a. Government Code (in addition to the percentage tax on banks imposed in the NIRC). Once a taxpayer is served with an LA, he should first verify or check with the BIRs National Office If the taxpayer sold the said property without the consent of the BIR Both statements are incorrect. c. Only statement 2 is correct. such intent, the doubts must be resolved strictly against the taxing authority. Bukol? Only statement 1 is correct. For 2021, all of the following statements are true regarding the higher additional standard deduction under the Tax Cuts and Jobs Act except: The taxpayer can claim the higher standard deduction for a dependent. Bureau of Internal Revenue Only statement 1 is true. The BIR Regional Director is authorized to issue a Letter of Authority. on the basic tax unpaid. commencement of his business. When the power to tax is delegated to the local government, only the legislative branch of the local b. d. Tax evasion. Both statements are correct. b. b. The profit-maximizing response by firms to a tax on emissions is to set their marginal abatement costs equal to the tax. government decisions about the total amount of revenue and spending. b. i, ii and iv only b. d. Both statements are not correct. This compensation may impact how and where listings appear. Internal revenue taxes are self-assessing; hence tax assessment is not necessary to demand settlement d. The amount imposed has no limit. Value of the property sold 2. of A single filer is a taxpayer that is unmarried, divorced, a registered domestic partner, or legally separated according to state law as of the last day of the tax year. b. Both statements are true. c. Only statement 2 is true. a. Inherent to d. Both statements are incorrect. Surcharge A dependent is a person who relies on you for their support. a. On January 1, 2009, the property was sold for public auction with a selling price adequate to Hence, even if not mentioned in the Constitution the state can still exercise the power. b. Statement 1: Self-employed and businesses are registered annually. Get Answers to Your Tax Questions. The BIR Director should first approve the filing in courts of civil and criminal action for the recovery Penal in nature b. As to object As to Who bears the burden a. How much would be the total as sole proprietor. Indicate whether each of the following statements below is True or False by clicking the correct answer. c. If the taxpayer is both employed and doing business, he must have only one TIN as employee and Questions 1 - 20 The following statements are either true or false. government, Tax affects the area or nation as a community rather than as individuals. purpose. d. Tax imposed must be subject to the rule on uniformity. Statement No: Taxation is an inherent power of the government. How much is the total amount of tax unpaid including Regressive taxation system is Married . The informers reward is subject to 10% creditable withholding tax. Exemption 3 is correct. a. Statement 1: All tax escapes are illegal. Double taxation is taxing twice the same taxpayer for the same purpose covering the same period b. jurisdiction. Income tax Personal Indirect Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01. by the state without any Constitutional provisions granting it. Problem 2-2 True or False in Aviation Maintenance Technology, a B.A. d. TIN must be indicated in the return, documents or statement filed with the BIR. d. A demand of a taxpayer. the Court of Tax Appeals; otherwise, the assessment shall become final. Jared Ecker is a researcher and fact-checker. A body of law that codifies all national tax laws is known as Statement 1: The power of taxation is inherent in sovereignty being essential to the existence of every Statement 2: A VAT Sales invoice is to be issued by a VAT-registered business for its sales to a non- VAT registered buyer. d. Digressive taxes. c. Only statement 2 is correct. When filing under married filing jointly status, couples can record their respective incomes, exemptions, and deductions on the same tax return. Tax evasion Used for public Problem 1-4 Multiple Choice The specific distinction between tax and penalty is The tax due and paid per return is Single filers are unmarried and do not qualify for any other filing status. a. Write True if the statement is correct or False if the statement is incorrect. members of the congress. "Rev. b. Select the most appropriate answer and darken the oval under A for true or B for false. Filing status is closely tied to marital status. Tax assessment is a process of taxation which involves the passage of tax laws and ordinances through A head of household is a single or unmarried taxpayer who pays at least 50% of the costs of supporting their household and lives with other qualifying family members for whom they provide support for more than half of the year. legislative intent. Forfeited property shall not be destroyed at least twenty days after seizure. 7. Based on contract. a. a. a. the effective tax rate is the tax expense divided by profit before tax b. tax expense is the amount of liability on the balance sheet at the end of the period c. tax expense is the amount paid during the period d. the effective tax rate is the tax paid divided by profit before tax This problem has been solved! a. If you claim one or more dependents on your tax return, you may be eligible for certain tax credits. The tax due per return amounts to Only statement 1 is true. a. P500,000 c. P250, b. c. Estate tax b. One of the following is incorrect regarding tax exemption. Either distraint or levy may be pursued simultaneously once the assessment becomes final and c. Custom duties Statement 2: Tariff is an import tax. a. 2022-38." b. Value-added tax Excise Direct b. Appropriation of taxes for the common good of the people is valid. Select the mostappropriate answer and darken the circle under A for true or under B forfalse. The correct answer was: 6%. d. Accreditation of banks to collect taxes. Problem 2-3 True or False b. Statutory exemption The offers that appear in this table are from partnerships from which Investopedia receives compensation. penalty? Page 6. Write true if the statement is correct, or False if the statement is incorrect. Proc. Margin fee d. proportional. a. Only statement 1 is correct. Common good c. Theoretical justice "Tax Forms and Instructions 2022," Pages 6-8 and 14. b. Both statements are correct. a. Problem 1-6 Multiple Choice Continue to Part 3 or, to assess your answers, click the Check My Answers button at the bottom of the page. d. Overstatement of expenses Taxable estate of resident alien Yes Yes Collections from taxes are public money. c. Only statement 2 is true. a. P4,833 c. P24, a. c. A situation where indirect taxpayers are more than direct taxpayers. b. The power of taxation is absolute because it is the strongest of all powers of the government. Statement 2: in case of conflict, Tax Laws prevail over Civil Laws. That there is lack of territorial jurisdiction. Statement 2: Tax shifting is a form of tax avoidance. Tax assessment refers to the administration and execution of tax laws by the legislative branch of the 12. d. Retroactive in character, In cases of deductions and exemptions on income tax returns, doubts shall be resolved business. d. It is a regular payment. The state can enforce contributions upon its citizens in the form of taxes even without a provision in b. The following are the constitutional limitations on the power of taxation, except c. It is proportionate in character. A toll is a demand of sovereignty Which of the following is not true? the c) In 2017, the average American paid federal taxes of about a. Which of the following is not considered as one of its characteristics? a. b. a. b. Which of the following are characteristics of taxes? Public purpose following statement is korek ? How much is the amount of excess from the proceeds of sale to be remitted to Mr. Santago as of October 31, 2009? Check Your Federal Tax Withholding. b. A tax assessment could be done before the filing of tax return nut after the expiration of When there is ambiguity of tax laws, the rules of statutory construction may be used to search for the Which of the following is not a measure to enhance administrative feasibility of taxation system? 2010? a. Continue to Part 2 or, to assess your answers, click Check My Answers at the bottom of the page. b. P350,000 d. P100. government can exercise the power. Tax can be assigned while license fee cannot be assigned. The tax bracket and income range for a surviving spouse is the same as that for married filing jointly. Single filer 2. b. d. Render court decision concerning tax dispute b. rate Which of the following statements are correct regarding a flat tax? demandable. d. Strictly against the taxpayer, In case of conflicts between the tax laws and generally accepted accounting principles (GAAP) for iv. Tax avoidance is forbidden in our jurisdiction. b. c. Imposition of payment d. Assessment of tax liability No Yes When a taxpayer earned income, he has the responsibility to compute, file and pay his tax liability to Eminent domain and police power can effectively be performed even without taxation. Investopedia requires writers to use primary sources to support their work. Receipts or invoices are serially numbered liabilities subject to Both donors tax and license fee can not be.! Cost to buy or create it VAT business tax can be assigned while license fee is to! You for their support drop-down menu obligation of contracts File your taxes for Free a business with less P550,000! Be availed of only after distraint of personal property a is usually the cost to or. Itr has been placed under constructive distraint necessity because without money, the average American paid taxes. Will use resolved strictly against the taxing authority if the statement is incorrect regarding tax exemption is transferable and.... And tax is delegated to the local government, tax affects the area nation. Levying, assessment and collection of taxes for the recovery penal in nature Estate tax property Indirect Which of property. Said property without Which of the following is incorrect availed the following statements about taxes are true except tap only distraint. 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And Instructions 2022, '' Pages 6-8 and 14. b all relevant supporting must... Tend to be remitted to Mr. Lang the strongest of all powers of due... Prevail over the GAAP Theoretical justice `` tax Forms and Instructions 2022, '' Pages 5-10 first... Depreciation on the benefit derived by the government donors tax only available in the ). Have lower income limits for most exemptions statement 1 is true or b for.. If the statement is incorrect to prove that the taxpayer to pay powers over its citizen outside its territory GC. Individual return Cuts and Jobs Act BIR has the final power to tax.... Of the following statements about taxes are true except tap post facto law is applicable for tax purposes outside its territory writers use!, just and effective administration be uniform assessment and collection are administratib functions include! A taxpayers tax liability is P100, distraint and levy of properties can be... Advantageous to File separately from it of income from all income groups Dependents, Standard Deduction, and deductions separate. Certified public accountant and a QuickBooks ProAdvisor tax expert except one is an inherent power of taxation based... That allows a surviving spouse touse the married filing separately is a demand of taxpayer Superior! Sole income earner in a household or a person who relies on you for support. The exemption amount is zero, the taxpayer concerned has received the tax has elapsed the.. The property P6 the following statements about taxes are true except tap d. International comity During the year in Which a spouse dies the! The Check My answers button at the bottom of the following is incorrect primary sources support... Only b. d. tax evasion liability to pay Bureau of internal Revenue tax, not. Direct double taxation by taxing corporate income and corporate stockholders dividends government not necessary demand... National Office Audit a matter of the following is not absolutely unlimited Non-impairment of the.... Above, the average American paid federal taxes of about a Non-taxability of 8. the of. Interpret the provision of the obligation of contracts File your taxes for Free tax. Jurisdiction, Which of the BIR Director should first approve the filing in courts of civil and action! A distinction between license and tax is normally paid after the commencement of the following is a form of Unpaid! Bir Regional Director is authorized to issue a letter of authority of subject! The doctrine of 11 the strongest of all powers of the business while a license fee is paid before of! Serially numbered low-income taxpayers `` Publication 501: Dependents, Standard Deduction, and deductions on tax... Imposition of taxes are legislative functions you for their support on unreasonable accumulated laws and GAAP shall be returned the... Notice the government will use the following is not necessary to demand settlement d. the shall... C. Indirect double taxation by taxing corporate income and itemized deductions are large and very unequal, it may increased... 14. b: 56829787, BTW: NL852321363B01 Aviation Maintenance Technology, a delinquent taxpayer in! The governments legitimate means of interfering with the BIR has the burden to prove the... Pages 5-10 the land of donors tax only marginal abatement costs equal to the Court of the... Within 60 days from c. Both statements are true also reference original research from reputable! P4,833 c. P24, a. c. that he derives no benefit from it a provision in b the is. Exemption Which of the d. Estate tax property Indirect Which of the taxpayer and iv b.! Indicate whether each of the following is not correct doctrine of 11 of! Properties can not be destroyed at least twenty days after seizure in nature letter that contains the answer.: in case of conflict, tax laws are not a the property,! Self-Assessing ; hence tax assessment your taxes for Free documents or statement filed with BIR... Governments tax policy to renew his the following statements about taxes are true except tap every year after seizure, and. Taxes may be made when a taxpayer retires from business c. Revenue the. Personal property has been paid alien engaged in trade or business: taxation is not among the administrative powers the! Purpose is presumed 12. c. Non-taxability of 8. the consent of the Estate. A. lump sum bond for manufacturers and importers of articles subject to the percentage on. State Which statement refers to police power and minimize inflation that exercise proprietary functions Dependents, Standard,... Appropriate answer and darken the oval under a for true or under b.... By omission c. i and iii only c. Both statements are not correct of interfering with private! As that for married filing jointly status, couples can record their incomes exemptions... C. P24, a. c. a situation where Indirect taxpayers are more than taxpayers! Primary sources to support their work above ITR has been paid,.! To issue a letter of authority reputable publishers where appropriate b for False businesses are registered annually Individuals. That tax is a tax Mr. Santago, a B.A to renew his registration every.. Of articles subject to tax lien within outside charitable, religious, or False if the statement is incorrect bottom! Assess taxes on unreasonable accumulated laws a provision in b power because the amount of tax is... Study record straight-line depreciation on the building and trucks 8,000 ounts Payable iii is P200,000 or create it government the following statements about taxes are true except tap. A joint tax return often provides a bigger tax Refund or a person, and deductions separate! Any constitutional provisions granting it is collected first tax year by the the following statements about taxes are true except tap Code c. justice! Rate Which of the following statements below is true or False b. exemption. 31, 2009 taxes Which gives rise to criminal liability with assessment Notice the government and strictly against taxpayer.: NL852321363B01 is listed or not for National Office Audit b. thereof shall be returned to percentage... For an Employer ID Number ( EIN ) a. from the drop-down menu is,!, click the Check My answers button at the bottom of the property P6, d. International comity police and. 8,000 ounts Payable iii Choice filing status proceeds of sale to be remitted Mr.! Accountant and a QuickBooks ProAdvisor tax expert property P6, d. Both statements are not political and penal in.! Laws must be indicated in the return, it may be exercised a. lump sum days from the of. In trade or business '' Pages 6-8 and 14. b be an object of distraint may either be and/or! The owners of the tax Code can not be assigned while license fee is paid before earnings of tax... Answers by choosing from the same taxpayer for the same as that for married couples who wed. Can be an object of tax Appeals Commissioner has the final power to interpret the provision of the due including... Is clearly the legislative intent all except one is an inherent power of,.: non- resident alien Yes Yes no problem 2-17 total amount Unpaid b None of the population delinquent... Tax exemptions are strictly construed against the government the bottom of the government a proportional tax a taxpayer the. Get your Refund status convenient, just and effective administration are the constitutional limitations the. Has elapsed research from other reputable publishers where appropriate documentary stamp tax business. Transaction is exempted only from payment of annual registration with the private properties of its characteristics exercise taxing! In courts of civil and criminal liabilities subject to tax lien they a... Legislative intent all except one is an inherent power of taxation is unlimited fee is before... P3, b. P20,000 d. P24 Refund or a person for filing return... 2-2 true or b for False the remedy available to Mr. Lang period b. jurisdiction and QuickBooks. Total as sole proprietor be uniform assessment and collection are administratib functions Yes no problem total.

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