Professional Documents
Culture Documents
TAX-Chap 2-3 Question and Answer
TAX-Chap 2-3 Question and Answer
B. As to subject matter
1. Personal, poll or capitation - A tax on persons who are residents of a particular
territory
Example: community tax (formerly residence tax)
C. As to incidence
1. Direct Tax – When both the impact and incidence of taxation rest upon the same
tax payer, the tax is said to be direct. The tax is collected from the person who is
intended to pay the same. The statutory taxpayer is the economic taxpayer.
Example: corporate or individual income tax, community tax
2. Indirect tax – when the tax is paid by any person other than the one who is
intended to pay the same, the tax is said to be indirect. This occurs in the case of
business taxes where the statutory tax payer is not the economic tax payer.
Example: VAT, percentage tax
The statutory tax payer is the person named by law to pay the tax.
An economic taxpayer is the one who actually pays the tax.
D. As to amount
1. Specific Tax - A tax of a fixed amount imposed on a per unit basis such as per
kilo, liter or metered.
Example: tax on cigarettes, wines, fermented liquor
2. Ad valorem – a tax of a fixed proportion imposed upon the value of the tax object.
Example: Real state tax, excise tax on automobiles or jewelries
E. As to rate
1. Proportional tax – This is a flat or fixed rate tax. The use of proportional tax
emphasizes equality as its subjects all taxpayers with the same rate without
regard to their ability to pay.
Example: VAT, percentage tax, real state tax
3. Regressive tax – this tax imposes decreasing tax rates as the tax base increase.
This is the total reverse of progressive tax. Regressive tax is regarded as anti-
poor. It directly violates the Constitutional guarantee of progressive taxation.
Example: we have no regressive taxes
4. Mixed tax – this tax manifest tax rates which is a combination of any of the above
types of tax.
F. As to imposing authority
1. National tax – tax imposed by the national government
Examples
a. Income tax – tax on annual income, gains or profit
b. Estate tax – tax on gratuitous transfer of properties by a decedent of death
c. Donor’s tax – tax on gratuitous transfer of properties by a living donor
d. Value added tax – consumption tax collected by VAT business taxpayer
e. Other percentage tax - consumption tax collected by non-VAT business
taxpayer
f. Excise tax – tax on sin products and non-essentials commodities
Example: Alcohol, cigarettes, metallic minerals.
g. Documentary stamp tax – a tax on documents instruments loan agreements
and paper evidencing the acceptance, assignment, sale or transfer of an
obligation, right or property incident thereto.
AS TO PAYMENT CRITERIA
1.Value added tax 200,000/QUARTER
2.Excise Tax 1,000,000/YEAR
3.Income tax 1,000,000/YEAR
4.Withholding tax 1,000,000/YEAR
5.Percentage tax 200,000/QUARTER
6.Documentary stamp tax 1,000,000/YEAR
AS TO CONDITIONS AND OPERATIONS
1.Gross receipts or sales 1,000,000,000 IN A YEAR
2.Net worth 300,000,000 AT YEAR END
3.Gross purchases 800,000 IN THE PRECEDING
YEAR
1. B
2. A
3. C
4. C
CHAPTER 3:
Exercise Drill No.2
Check the box where each of the following items is taxable:
1. B
2. C
3. C
4. A
CASE PROBLEM 1:
REQUIRED:
COMPUTE THE TOTAL INCOME EARNED FROM SOURCES
1.WITHIN THE PHILIPPINES- (P1,040,000)
2. OUTSIDE OF THE PHILIPPINES- (P760,000)
CASE PROBLEM 2:
REQUIRED:
COMPUTE THE TOTAL INCOME EARNED FROM SOURCES
1. WITHIN THE PHILIPINES- (P750,000)
2. WITHOUT THE PHILIPPINES- (P340,000)
CASE PROBLEM 3:
1. A ( 1,960,000;1,360,000)