Gaceta, Judy Ann M.
BSA-3B
INCOME TAXATION
MODULE 2
Assessment Task 2
Exercise Drill No. 1
Identify the type of tax that is described by the following;
1. A consumption tax collected by non VAT businesses.
2. Tax on gratuitous transfer of property by a living donor.
3. Tax that decreases in rates as the amount or value of the object increases.
4. Tax upon performance of an act or enjoyment of a privilege.
5. A tax imposed by the national government.
6. A tax on sin products or non-essential commodities.
7. Tax imposed to regulate business or protection.
8. Tax that is imposed based on the value of the tax object.
9. Tax imposed on the gratuitous transfer of property upon death.
10. Tax collected upon persons who are not the statutory taxpayers.
Answers:
1. Other Percentage Tax 6. Excise Tax
2. Donor’s Tax 7. Regulatory Tax
3. Regressive Tax 8. Ad Valorem
4. Excise/ Privilege Tax 9. Estate Tax
5. National Tax 10. Indirect Tax
II. TRUE or FALSE
1. Real estate tax is a national tax.
2. Passive income is subject to a separate and final tax
3. The Constitution is a source of tax law.
4. Income tax is an excise tax.
5. Progressive tax is not imposed in the Philippines.
6. The Bureau of Internal Revenue function under the supervision and control of
the Department of Finance.
7. Toll is a demand of proprietorship, is paid for the use of another’s property
and may be imposed only by the Government.
8. In case of conflict between tax laws and generally accepted accounting
principles (GAAP), GAAP shall prevail over tax laws.
9. Regulatory tax is intended to achieve some social or economic end.
10. The Commissioner of the Bureau of Internal Revenue has the power to
suspend business operations of a taxpayer.
Answers:
1. FALSE 6. TRUE
2. TRUE 7. FALSE
3. TRUE 8. FALSE
4. TRUE 9. TRUES
5. FALSE 10. TRUE
III. Multiple Choice
1. In case of conflict between tax laws and generally accepted accounting
principles (GAAP).
a. GAAP shall prevail over tax laws.
b. tax laws shall prevail over GAAP.
c. the issue shall be resolved by the courts.
d. both tax laws and GAAP shall be enforces.
2. One of the characteristics of internal revenue laws is that they are
a. penal in nature.
b. criminal in nature.
c. political in nature.
d. generally prospective in applicable.
3. It is proportional contribution by persons and property levied by the
lawmaking body of the State by virtue of its sovereignty for the support of
the government and all public needs.
a. taxes
b. license fees
c. special assessment
d. none of the above
4. Which statement is false? Income tax
a. is always a direct tax.
b. is always based on gross amount.
c. is a tax on person’s income, emoluments or profits.
d. is a tax on all yearly profits arising from property, profession, trade or
business.
5. Provincial, city, municipal and barangay ordinances may impose taxes subject
to limitations by the Local Government Code. The following, except one, are
existing taxes thereunder. Which is it?
a. professional tax
b. community tax
c. travel tax
d. real property tax
6. One of the following is not among the basic principles of a sound tax system.
Which one is it?
a. fiscal adequacy
b. collection of tax
c. theoretical justice
d. administrative feasibility
7. One characteristics of a tax is that
a. it is generally assignable.
b. it is generally based on contract.
c. it is generally payable in money
d. none of the above
8. Which is not an excise tax?
a. Income tax
b. Community tax
c. Estate tax
d. Occupation tax
9. Which is not a source of tax law?
a. CHED regulations
b. BIR rulings
c. Judicial decisions
d. Constitution
10. Which is not a nature of tax?
a. Enforced proportional contribution
b. Enforced within the territorial jurisdiction of the taxing authority
c. Levied by the law making body
d. Generally payable in kind.
Answers:
1. B 2. D 3. A 4. A 5. C
6. B 7. C 8. B 9. A 10.D
