Вы находитесь на странице: 1из 7

1-1

Republic of the Philippines


ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION

Philippine
Income Taxation

Compilation
of Activities

Submitted by:
<indicate your name, course and section>
Student
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION

Activity 2:
Introduction to Income Taxation

A. Answer the following questions:


1. Which of the following is not an income taxpayer classification?
A. Resident citizen
B. Non-resident alien
C. Resident foreign corporation
D. General professional partnership
2. Why is income subject to taxation?
A. Income is the most prevalent source of a taxpayer's wealth.
B. Income is the best measure of taxpayers' ability to pay tax.
C. Rich people tend to have more income than the poor.
D. Any of these.
3. Which is not a requisite of gross income?
A. Return on capital
B. Realized benefit
C. Exempted by law
D. Not exempted by law
4. An alien who stayed less than one year in the Philippines is classified as a
non-resident alien not engaged in trade or business if he stayed herein for
less than
A. 180 days
B. 1 year
C. 183 days
D. 2 years
5. Income tax may be imposed for the following purposes, except
A. To provide large amounts of revenues
B. To limit corruption
C. To offset regressive sales and consumption taxes
D. To mitigate the evils arising from the inequalities in the distribution of
income and wealth
6. Transfers for insufficient consideration are subject to
A. Income tax
B. Transfer tax
C. Either a or b
D. Both a or b
7. Who is not a resident alien?
A. An alien who stayed in the Philippines for more than two years.
B. An alien who married and stayed in the Philippines for one year.
C. An alien who stayed in the Philippines for more than one year.
D. An alien who established his intention before the CIR to stay in the
Philippines for an extended period of time.
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION
8. A Japanese who is staying in the Philippines for 183 days is a
A. Resident alien
B. Non-resident alien
C. Non-resident alien engaged in trade or business
D. Non-resident alien not engaged in trade or business
9. Which is taxable item of income?
A. Increase in numbers of a herd of animals
B. Compensation for personal injuries
C. Moral damages
D. Interest on moral damages
10.Which is not subject to income tax?
A. Donation
B. Sale of service
C. Sales of goods
D. Barter of goods
11.The total consideration received from the sale of service constitute
A. Return on capital
B. Return of capital
C. Either a or b
D. Both a and b
12.A partnership which dominantly operates business abroad is a
A. Domestic corporation
B. Resident corporation
C. Non-resident corporation
D. De jure corporation
13.Which is not an income taxpayer?
A. Non-resident foreign corporation
B. Non-resident alien not engaged in trade or business
C. Joint venture engaged in energy operation pursuant to a service contract
with the government
D. Irrevocable trusts
14.When paid for, which of the following items may involve a return on capital?
A. House and lot
B. Life
C. Dignity
D. Health
15.Which is required to pay income tax?
A. Revocable trusts
B. Estates under extrajudicial settlement
C. Co-ownership
D. Business partnership
16.A resident alien naturalized in accordance with Philippine laws is a
A. Resident citizen
B. Resident alien
C. Non-resident alien engaged in trade or business
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION
D. Non-resident alien not engaged in trade or business
17.Which is not an item of gross income because of the absence of an
undertaking from the taxpayer?
A. Proceeds of a life insurance policy
B. Forgiveness of indebtedness as an act of gratuity
C. Revaluation surplus on properties
D. Service fees
18.Which is subject to income tax?
A. Proceeds of life insurance policy received by the family of the insured
B. Excess of proceeds over the premiums paid received by the taxpayer
C. Life insurance proceeds received by the corporation from the insurance
of deceased officer
D. None of these
19.Which of the following is exempted from income taxation because of the
absence of ability to pay?
A. Damages received from patent infringement suit
B. Unrealized income from investments
C. Gain on sale of goods
D. Inheritance
20.Which of the following constitutes taxable income?
A. Return of premium on life insurance received by the insured
B. Moral damages received from slander
C. Proceeds of crop insurance
D. Compensation for personal injury
21.Which of the following is not a constructive receipt of income?
A. Forgiveness of indebtedness in consideration of service
B. Matured detachable interest coupons
C. Deposit of income to taxpayer's bank accounts
D. Cash salary of an employee
22.Which is specifically exempted from income taxation by virtue of legal
exemption?
A. Minimum wage
B. Gain on sale of prohibited drugs
C. Unrealized gain
D. All of these
23.Which taxpayer is not a natural person?
A. Resident citizen
B. Taxable estate
C. Non-resident alien engaged in trade or business
D. Non-resident alien not engaged in trade or business
24.A Filipino who has been abroad for more than 183 days is classified as a
A. Resident alien
B. Non-resident alien
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION
C. Non-resident citizen
D. Non-resident citizen not engaged in trade or business
25.An American who showed proof to the satisfaction of the Commissioner of
Internal Revenue of his intention to stay in the Philippines as an immigrant
is classified as a
A. Resident citizen
B. Resident alien
C. NRA – ETB
D. NRA – NETB
26.Yvonne, a resident alien, bought a car manufactured in the Philippines and
exported the same at a gain to Carla, a non-resident citizen. Which is
correct?
A. The gain is subject to tax in the Philippines since the commodity involve
is manufactured in the Philippines.
B. The gain is subject to tax in the Philippines since the buyer is a citizen of
Philippines.
C. The gain is both subject to tax In the Philippines and abroad since
commodity involved is manufactured in the Philippines.
D. The gain is taxable abroad because it is sold abroad.
27.A Canadian who is staying in the Philippines for more -than one year is a
A. Resident alien
B. Non-resident alien
C. Non-resident alien engaged in trade or business
D. Non-resident alien not engaged in trade or business
28.A corporation incorporated according to Philippines laws is a
A. Domestic corporation
B. Resident corporation
C. Non-resident corporation
D. De jure corporation
29.A foreign corporation which is not authorized to conduct business in the
Philippines is a
A. Domestic corporation
B. Resident corporation
C. Non-resident corporation
D. De jure corporation
30.Which of the following taxpayers is taxable only on income earned from the
Philippines?
A. Resident corporation
B. Domestic corporation
C. Resident citizen
D. All of these
31.Which is an incorrect statement regarding situs of income?
A. Service income is earned in the domicile of the taxpayer.
B. Interest income is earned in the residence of the debtor.
C. Royalty is earned where the intangible is employed.
D. Rent is earned in the location of the property.
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION
32.A foreign corporation which operates a branch in the Philippines is a
A. Domestic corporation
B. Resident corporation
C. Non-resident corporation
D. De jure corporation
33.Juan, a resident alien, and Pedro, a non-resident alien, executed a contract
of sale in Japan whereby Pedro shall purchase the lot owned by Juan in the
Philippines. Juan gains P 1,000,000 in the exchange. Which is true?
A. The gain is exempt since the gain is derived outside the Philippines.
B. The gain is not subject to Philippine tax since Juan is a resident alien.
C. The gain is subject to Philippine tax because Juan is a resident alien.
D. The gain is subject to Philippine tax because the property is in the
Philippines.
34.All of the following are taxable only on income earned from sources within
the Philippines, except
A. Resident alien
B. Non-resident citizen
C. Non-resident corporation
D. Domestic corporation
35.The place of taxation is
A. Situs rule
B. Situs
C. Territoriality
D. Gross income
36.Which is taxable on world income?
A. Resident corporation
B. Non-resident citizen
C. Resident citizen
D. Resident alien
37.Which statement is correct regarding situs of income?
A. The gain on the sale of real property is earned in the location of the
property.
B. The gain on sale of any property is earned in the place of sale.
C. Merchandising income is earned in the residence of the proprietor.
D. Manufacturing income is earned in the place of sale.
38.Gains on the sale of goods manufactured and sold by the taxpayer within the
Philippines is subject to tax
A. wherever sold.
B. if sold abroad only.
C. without the Philippines only.
D. within the Philippines only.
39.The total consideration received from the sale of goods at a gain represents
A. Return on capital
B. Return of capital
C. Either a or b
D. Both a and b
1-1
Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

INCOME TAXATION
40.Pedro, a non-resident citizen, lent money to Shino, a resident Chinese. The
indebtedness was collateralized by a property located in Japan. The interest
income is earned in
A. the Philippines
B. China
C. Japan
D. Japan, China and the Philippines.
41.The total consideration received from the sale of goods at a loss represents
A. Return on capital
B. Return of capital
C. Either a or b
D. Both a and b

Format (Printed/Hardcopy)
 Paper size- A4
 Font style- Trebuchet MS
 Font size- 12

Deadline:
 Softcopy:
 Hardcopy: to be announced

Reminder for Additional Materials to be Submitted:


(Just once, for compilation purposes only):
 1 clear envelop (long)
 1 expandable folder (long), colors indicated per section:
 BSA 2-1: White
 BSA 2-2: Blue
 BSA 2-3: Green
 BSMA 2-1 Red
 BSMA 2-2 Pink
 BSMA 2-3 Orange
 BSMA 2-4 Yellow