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Question 1 Which of the following local sales of goods or property and services will not be effectively subject to VAT at zero-rate? Sales to Development Bank of the Philippine (DBP)Sales to International Rice Research Institute (IRRI) Sales to enterprises duly registered and accredited with the Philippine Economic Zone Authority (PEZA)Sales to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority (SEMA) 4.2 Taxation - VAT (Easy)Question 2 Donor’s Tax RateOverBut not overThe tax shall beplusOf excess over1,000,0003,000,00044,0008%1,000,0003,000,0005,000,000204,00010%3,000,000Hotel Zalora, VAT-registered, offers different services to its guest. The following data taken fromthe books of the taxpayer are for the first month of the first quarter of 2014:RevenuesCollections Hotel rooms (local guest)800,000700,000Dining hall:Sale of food and refreshments1,000,000850,000Sale of wine, beer and liquor700,000600,000Videoke bar:Sale of food and refreshments600,000550,000Sale of wine, beer and liquor500,000450,000
How much is the output tax using 12% VAT rate?258,000None of the choices432,000378,0004.2 Taxation - VAT (Difficult)Question 3 Congress passed a law allowing the payment of taxes in kind/services. This violates the principleoftheoretical justiceadministrative feasibilityeconomic efficiencyfiscal adequacy4.2 Taxation - General Principles of Taxation (Difficult)Question 4 Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxationViolates substantive due processDoes not violate substantive due processViolates the right to equal protectionDoes not violate the right to equal protection4.2 Taxation - General Principles of Taxation (Average)Question 5
Which of the following is included in gross income?Life insurance proceedsCompensation for injuries or sicknessAmounts received by insured as return of premiumShare in the net income of a general professional partnership4.2 Taxation - Income Tax Individuals (Average)Question 6 The power to tax is the power to destroy. Is this always so?Yes. Tax laws should always be enforced because without taxes the very existence of the State is endangeredYes. The tax collectors should enforce tax law even if the results to the destruction of the property rights of a taxpayerNo. The Supreme Court may nullify a tax law, hence, property rights are not affectedNo. The Executive Branch may decide not to enforce a tax law which it believes to be confiscatory.4.2 Taxation - General Principles of Taxation (Difficult)Question 7 Joe Champs, an Irish residing in London, received dividends from Toronto Company, a companyregistered in Toronto, Canada but whose profits are totally sourced from its fishing business in the Philippines. The dividends received by Joe arenot taxable in the Philippines since Joe is a nonresident alientaxable in full in the Philippinestaxable only in the Philippines if Joe gains residency in the Philippinestaxable in the Philippines to the extent of 50% of the gross amount of the dividends he receives