The seized property of a delinquent taxpayer becomes the property of the government. This refers to

The seized property of a delinquent taxpayer becomes the property of the government. This refers to

a. Distraint
b. Levy
c. Forfeiture


Answer: c. Forfeiture

Which of the following tax rate between in same direction with the taxable value?

Which of the following tax rate between in same direction with the taxable value?

a. Proportionate
b. Progressive
c. Regressive

A fundamental rule is that the property of one country may not be taxed by another country. This is known as

A fundamental rule is that the property of one country may not be taxed by another country. This is known as

a. International Law
b. International Comity
c. Reciprocity


Answer: b. International Comity

The following is an incorrect description of taxation

The following is an incorrect description of taxation

a. Legislative and inherent for the existence of the government
b. It involves the taking of property by the government
c. The amount imposed had no limit`


Answer: a. Legislative and inherent for the existence of the government

All of the following are administrative functions of taxation except

All of the following are administrative functions of taxation except

a. Selection of object of tax
b. Equalization of assessment
c. Collection of Taxes


Answer: a. Selection of object of tax

The power to tax includes the power to destroy because the taxpayer has no option but to pay the tax is imposed to him

The power to tax includes the power to destroy because the taxpayer has no option but to pay the tax is imposed to him

a. Marshall Dicturm
b. Holmes Doctrine
c. Pan Matera Principle


Answer: a. Marshall Dicturm

Which of the following is not correct?

Which of the following is not correct?

a. Collection from taxes are public money
b. Appropriation of taxes for the common good of the people is valid
c. Construction of private road from taxes are availed appropriation


Answer: c. Construction of private road from taxes are availed appropriation

Which of the following dividends are subject to income tax?

Which of the following dividends are subject to income tax?

a. Received by domestic corporation from another domestic corporation
b. Received by a resident corporation from a domestic corporation
c. Received by domestic from nonresident foreign corporation
d. Received by nonresident foreign corporation from another nonresident foreign corporation


Answer: c. Received by domestic from nonresident foreign corporation

Which of the following is a taxable compensation income?

Which of the following is a taxable compensation income?

a. Cost of living allowance
b. De minimis benefits
c. Retirement benefit under BIR approved retirement plan
d. Retrenchment Pay


Answer: a. Cost of living allowance

Which of the following is not taxable?

Which of the following is not taxable?

a. P2,50 for 10 days sick leave actually taken
b. P1,250 for 5 days unused vacation leave converted into cash
c. P1,000 for unused vacation leave received as part of separation pay due to voluntary resignation
d. P500 availed leave


Answer: b. P1,250 for 5 days unused vacation leave converted into cash

Which of the following is not taxable compensation income?

Which of the following is not taxable compensation income?

a. Free housing given to employee
b. Social Security System Benefits
c. Retirement pay under duly BIR approved benefit plan
d. Retrenchment pay


Answer: a. Free housing given to employee

Statement 1: All vacation leave and sick leave with pay are taxable compensation income Statement 2: All unused vacation leave converted into cash are taxable

Statement 1: All vacation leave and sick leave with pay are taxable compensation income
Statement 2: All unused vacation leave converted into cash are taxable

a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect


Answer: d. Both statements are incorrect

Which of the following is a taxable compensation income?

Which of the following is a taxable compensation income?

a. Professional fee, net of creditable withholding tax
b. Separation pay due to closure of the employer's business
c. Terminal pay inclusive of P15,000 13th month pay
d. Separation pay due to early retirement


Answer: d. Separation pay due to early retirement

Which of the following is a taxable compensation income?

Which of the following is a taxable compensation income?

a. Separation pay due to resignation
b. Retirement pay under BIR approved retirement plan
c. Separation pay due to disability
d. Terminal pay by fact of death


Answer: a. Separation pay due to resignation

Statement 1: Remuneration for casual labor not in the course of an employer's trade pr business is not considered as taxable compensation income Statement 2: Additional Benefits received by the employee for the convenience of the employer are not taxable income of the employee

Statement 1: Remuneration for casual labor not in the course of an employer's trade pr business is not considered as taxable compensation income
Statement 2: Additional Benefits received by the employee for the convenience of the employer are not taxable income of the employee

a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect


Answer: c. Both statements are correct

Which of the following is taxable with income tax as its gross amount when earned within the Philippines?

Which of the following is taxable with income tax as its gross amount when earned within the Philippines?

a. Professional fee
b. Compensation income
c. Business Income
d. Royalty Income


Answer: d. Royalty Income

A stock option that entitles the holder to purchase shares of stock is called

A stock option that entitles the holder to purchase shares of stock is called

a. Equity-settlement option
b. Cash-settlement option
c. Stock-purchase option
d. Debt-equity option


Answer: a. Equity-settlement option

These benefits are relatively small value and they are not considered compensation subject to income tax

These benefits are relatively small value and they are not considered compensation subject to income tax

a. Fringe benefits
b. 13th month pay and other benefits of P82,000
c. Minimum wage
d. De minimis


Answer: d. De minimis

The amount of 13th month pay and other benefits was increased by

The amount of 13th month pay and other benefits was increased by 

a. P82,000
b. P 52,000
c. P30,000
d. P - 0 -


Answer: a. P82,000

Which of the following is/are generally subject to final tax?

Which of the following is/are generally subject to final tax?

i. Compensation Income
ii. Business Income
iii. Passive Income
iv. Capital Gain


a. i, ii, ii and iv
b. i and ii only
c. iii and iv only
d. iii only


Answer: c. iii and iv only