Taxation MCQ (1-10) 1. Which of the following violations cannot be subject to compromise penalties? a.

Failure to keep/preserve books of accounts and accounting records. b. Failure to keep books of accounts or records in native language or English. c. Failure to have books of accounts audited and have financial statements attached to income tax return certified by independent CPA. d. Keeping two sets of books of accounts or records.

2. One of the following is not a major business internal revenue tax in the Tax Code. a. Value-Added Tax b. Excise Tax c. Income Tax d. Percentage Tax

3. In cases of deductions and exemptions on income tax returns, doubts shall be resolved: a. Strictly against the taxpayer; b. Strictly against the government; c. Liberally in favor of the taxpayer; d. Liberally in favor of the employer.

4. The following, except one, may claim personal exemptions: a. Non-resident alien not engaged in trade or business in the Philippines; b. Non-resident alien engaged in trade or business in the Philippines; c. Resident alien; d. Citizen.

5. Value-added tax is an example of: a. Graduated tax; b. Progressive tax; c. Regressive tax; d. Proportional tax.

6. Lots being rented when subsequently sold are classified as: a. Capital assets; b. Liquid assets; c. Ordinary assets; d. Fixed assets. 7. Proceeds of life insurance includible in the taxable gross estate. a. Insurance proceeds from SSS or GSIS; b. Amount receivable by any beneficiary irrevocable, designated in the policy by the insured; c. Amount receivable by any beneficiary designated in the insurance policy; d. Proceeds of group insurance taken out by a company for employees.

8. The following are requisites for vanishing deductions to be allowable, except one: a. The estate tax of the prior succession must have been finally determined; b. The present decedent died within five (5) years from the date of the death of the decedent; c. The property with respect to which deduction is sought can be identified; d. The property must have formed part of the gross estate situated in the Philippines of the prior decedent.

9. The following are the requisites of a donation for purposes of the donor's tax, except one: a. Capacity of the donor; b. Capacity of the donee; c. Delivery of the subject matter of gift; d. Donative intent.

10. The following are the requisites in order that claims against the decedent's estate may be deductible, except: a. They must be existing against the estate; b. They must be reasonably certain as to amounts; c. They must have been prescribed; d. They must be enforced by the claimants.

Taxation MCQ (1-10) 1. ANSWER: D

2. ANSWER: C

3. ANSWER: A

4. ANSWER: A

5. ANSWER: D

6. ANSWER: C

7. ANSWER: C

8. ANSWER: D

9. ANSWER: B

10. ANSWER: C