Sample Question and Answer in Taxation

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    TAX 1/ 2ndexamination

    1. For purposes of additional exemption, a dependent means any of the following except:a. Legitimate child c. Legally adopted childb. Illegitimate child d. Senior citizen

    . If the dependent is the parent of the taxpayer who is !" years old, the taxpayer canclaim additional exemption of

    a. # $",""" b. # $,""" c. # %,""" d. #

    &. Statement I: 'he additional exemption for dependent shall be claimed by only one ofthe spouses in the case of married indi(iduals.

    Statement II: 'he husband is the proper claimant of the additional exemption for)ualified dependent children unless he explicitly wai(es his right in fa(or of his wife.a. *oth statements are correct c. +nly the 1ststatement iscorrectb. *oth statements are incorrect d. +nly the nd statementis correct

    . In the case of legally separated spouses, additional exemptions may be claimed only

    by thea. -usband c. Spouse who has custody of the chilled or childrenb. ife d. /greement of both spouses

    $. hich of the following indi(idual taxpayers is taxed on income from sources within andwithout the #hilippines0a. / citizen of the #hilippines residing therein.b. / nonresident citizen.c. /n indi(idual citizen of the #hilippines who is wor2ing and deri(ing income

    abroad as an o(erseas contract wor2er.d. /n indi(idual, whether a resident or not of the #hilippines.

    !. 3enzell, an /merican management expert is hired by a #hilippine corporation to assistin its organization and operations for which he has to stay in the #hilippines for $months. -e came to the #hilippines for this definite purpose but the nature of his 4obmay re)uire him to extend his stay and li(e temporarily in the #hilippines. 'he/merican management expert intends to lea(e the #hilippines as soon as his 4ob isdone.For income tax purposes, the /merican management expert shall be classified as:a. 5esident alienb. 6onresident alien engaged in trade or business.c. 6onresident alien not engaged in trade or business.d. 5esident citizen

    7. #aul, an /merican signer, was engaged to sing for one wee2 at the 89 /lumni-omecoming after which he returned to 8S/. For income tax purposes, #aul should beclassified as:a. 5esident alien.b. 6onresident alien engaged in trade or business.c. 6onresident alien not engaged in trade or business

    d. 5esident citizen%. hich of the following indi(idual taxpayers is taxed on income from sources within and

    without the #hilippines0a. / citizen of the #hilippines residing therein.b. / nonresident citizen.c. /n indi(idual citizen of the #hilippines who is wor2ing and deri(ing income

    abroad as an o(erseas contract wor2er.d. /n indi(idual, whether a resident or not of the #hilippines.

    . In order to be allowed a deduction for premiums paid during the taxable year forhealth;or hospitalization insurance, the family has to ha(e a gross income ofa. 6ot more than two hundred fifty thousand pesos

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    c. 6ot more than fi(e hundred fifty thousand pesos >>>>>>>>>>>>>>>>>

    1$. 'he proportional contribution by persons and property le(ied by the lawma2ing bodyof the State by (irtue of its so(ereignty for the support of the go(ernment and allpublic needs is referred to as:

    a. taxesb. special assessmentc. license feed. answer not gi(en

    1!. +ne of the characteristics of a tax is that:a. it is generally based on contractb. it is generally payable in moneyc. it is generally assignabled. answer not gi(en

    17. 'ax of a fixed proportion of the (alue of the property with respect to which the tax isassessed and re)uires the inter(ention of assessors or appraisers to estimate the (alueof such property before the amount due from each taxpayer can be determined is2nown as:

    a. specificb. ad (aloremc. special or regulatoryd. answer not gi(en

    1%. / tax must be imposed for a public purpose. hich of the following is not a publicpurpose0

    a. national defenseb. public educationc. impro(ement of the sugar industryd. none of the abo(e

    1. / tax on business is:a. direct tax

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    b. indirect taxc. property taxd. none of the abo(e

    ". In this power of the state, the person who is parting with his money;property ispresumed to recei(e a benefit:

    a. taxation

    b. police powerc. eminent domaind. none of the abo(e

    1. /ll are characteristics of the power of taxation, excepta. it is an inherent powerb. it is legislati(e in characterc. it is ci(il in characterd. it is sub4ect to inherent and constitutional limitations

    . +ur tax laws area. political in nature c. penal in natureb. ci(il in nature d. social in nature

    &. /lso 2nown as tax administrationa. ?ollection of taxes c. payment of taxesb. Le(ying of taxes d. incidence of taxation

    . In the absence of inherent and constitutional limitation, the power of tax is:a. ?omprehensi(e c. *oth a and bb. 8nlimited d. regulatory

    $. *elow are characteristics of a sound tax system, except:

    a. administrati(e feasibility and complianceb. fiscal ade)uacyc. theoretical 4ustice or e)ualityd. uniformity of taxation

    !. 'he only tax where nonpayment of which will not result to imprisonment:a. @xcise tax c. #ersonal taxb. 3onorAs tax d. #roperty tax

    7. 'hese are arbitrary amounts allowed, in the nature of a deduction from the amount ofgross compensation income and or net business and;or professional income, as thecase may be, for personal, li(ing or family expenses of an indi(idual taxpayer.

    a.'ax credit b. tax refund c. personal exemptions d. ordinary deductions%. For purposes of determining the tax pro(ided in the 'ax ?ode, there shall be allowed a

    basic personal exemption of:a. # $",""" b. # &,""" c. # $,""" d. # ","""

    . -ow much is the basic personal exemption in the case of married indi(iduals whereonly one of the spouses is deri(ing gross income0

    a. # 1"",""" b. # !,""" c. # $",""" d. # ","""&". / married indi(idual deri(ing income within the #hilippines whose spouse is

    unemployed or is a nonresident citizen deri(ing income from foreign sources, shall beentitled to a personal exemption of:

    a. # 1"",""" only b. # !,""" only c. # $",""" only d. # ",""" only

    Sec.