JERICO ALAJENIO Assignment - February 20, 2020
1. To be considered physically present abroad most of the time during the taxable year
a contract worker must have been outside the Philippines for not less than:
a. 180 days b. 183 days c. 185 days d. 190 days
2. Denzell Wetta, an American management expert is hired by a Philippine Corporation
to assist in its organization and operation for which he has to stay in the Philippines
for 5 months. He came to the Philippines for this definite purpose but the nature of
his job may require him to extend his stay and live temporarily in the Philippines. The
American management expert intends to leave the Philippines as soon as his job is
done. For income tax purposes, the American management expert shall be
classified as:
a. Resident alien c. Nonresident alien engaged in
trade or business
b. Resident citizen d. Nonresident alien not engaged in
trade or business
3. Which of the following individual taxpayers is taxed on income from sources within
and without the Philippines?
a. A citizen of the Philippines residing therein
b. A non-resident citizen
c. An individual citizen of the Philippines who is working and deriving income
abroad as an overseas contract worker
d. An individual, whether a resident or not of the Philippines
4. A nonresident alien individual engaged in trade or business in the Philippines shall
be subject to an income tax in the same manner as an individual, on taxable income
received from:
a. All sources within the Philippines
b. All sources within and outside the Philippines
c. All sources outside the Philippines
d. None of the above
5. A nonresident alien individual who shall come to the Philippines shall be deemed a
nonresident alien doing business in the Philippines if he stays therein for an
aggregate period of how many days during any calendar year?
a. More than 183 days c. 180 days or less
b. More than 180 days d. More than 190 days
6. These are arbitrary amounts allowed, in the nature of a deduction from the amount
of gross compensation income and or net business and/or professional income, as
the case may be, for personal, living or family expenses of an individual taxpayer.
a. Tax credit b. tax refund c. personal exemptions d. ordinary
deductions
7. For purposes of determining the tax provided in the Tax Code, there shall be allowed
a basic personal exemption of:
8. Statement 1: There can be double taxation in the Philippines.
Statement 2: Double taxation is illegal if it violates the uniformity of taxation.
a. Only first statement is correct c. Only second statement is correct
b. Both statements are correct d. Both statements are incorrect
9. Tax laws, being imposition of burden, are construed:
a. Strictly against the taxpayer c. Strictly against the
government.
b. By filling a case before a regular court. d. By strict adherence to opinions of tax
expert.
10. Which among the following is not a characteristic of tax laws?
a. They are part of political law c. They are civil in character
b. They are not part of criminal law d. They are special law
11. A fundamental rule in taxation is that the property of one country may not be taxed
by another country. This is known as:
a. international law c. international inhibition
b. international comity or courtesy d. reciprocity
12. Which statement is false?
a. The value-added tax is a property tax.
b. The estate tax is a direct tax
c. The power of taxation is inherent in sovereignty being essential to the existence
of every government. Hence, even if not mentioned in the Constitution the state
can still exercise the power.
d. It is essentially a legislative function. Even in the absence of any constitutional
provision, taxation power falls to Congress as part of the general power of law
making.
13. In case of conflict between the tax code and generally accepted accounting
principles (GAAP):
a. Both tax codes and GAAP shall be enforced
b. GAAP shall prevail over tax code
c. Tax code shall prevail over GAAP
d. The issue shall be resolved by the courts
14. A proportional tax:
a. Individual income tax c. Donor’s tax
b. Corporate income tax d. Estate tax
15. A form of tax escape through which one is given tax immunity wherein others are
subjected to tax:
a. Shifting b. Tax exemption c. Tax immunity d. Tax avoidance
16. Mr. Responsible, single has the following dependents who are living with and
entirely dependent upon him for chief support.
Andrew, child with his ex-girlfriend
Barbie, legitimate child of his sister, legally adopted by Mr. Responsible
Caring, mother, 85 years old, widow, bedridden
Donato, godfather, 80 years old
Mr. Responsible can claim additional exemption on: income tax.
17. Which is not essential characteristic of tax?
a. it is unlimited as to amount c. it is payable in money
b. it is a regular payment d. it is proportionate in
character
18. Which of the following is taxable?
a. 13th month pay and other benefits in excess of P 30,000 (should be
P90,000)
b. A non-stock and non-profit educational institution
c. Government educational institution
d. The salary receives by a statutory Minimum Wage Earner (MWE)
19. Which statement is false?
a. Income derived by the political subdivision of the government is not taxable.
b. Payments for hospitalization not exceeding P 2,400 per year is allowed as a
deduction for corporate taxpayer
c. Individual taxpayer can claim the optional standard deduction of 40%
d. Bequest refers to real property transferred from one person to another by
will.
20. Which is not essential characteristic of tax?
c. it is unlimited as to amount c. it is payable in money
d. it is a regular payment d. it is proportionate in character
21. In case of conflict between tax and generally accepted accounting principles
(GAAP):
a. both tax laws and GAAP shall be enforced c. GAAP shall prevail over tax
laws
b. Tax laws shall prevail over GAAP d. The issue shall be resolved by the
courts
22. The City of Davao, claiming that it can impose taxes under the Local Government
Code, imposed a tax on banks (in addition to the percentage tax on banks imposed
in the National Internal Revenue Code). The banks within the City of Manila objected
for the various reasons given below. Which would justify the objection of the banks?
a. the power of taxation cannot be delegated c. uniformity of taxation
b. the rule on double taxation d. none of the above
