—_ NOTES ON TAXATION_

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QUIZ

1. What is the factor in determining the Source Of Income for Services?

o Place of performance of service1

o Residence of the debtor
o Place of payment

2. Which not a principle of sound tax system?

o Fiscal Calendar(#25)
o Ability to Pay Theory
o Administrative Feasibility

3. Separation benefits given to employees who were involuntarily separated from work are subject to
Fringe Benefit Tax

o Yes
o No
o Maybe

4. Which is not for the tax laws?

o 1987 Constitution
o RA 109630 TRAIN Law
o Decisions of the Regional Trial Courts
o Iba pa:________________

5. Double Taxation violates what constitutional principle?

o Right to equal protection2

o Substantiate due process
o Procedural due process

1
All income from whatever source, derived within and without the Philippines, legal or illegal.
Sources of Income
• The place wherein the income is earned
• Governed by the situs of taxation
• Necessity to determine whether such income is subject to tax or not
• Income may be earned from:
1. Within the Philippines
2. Without the Philippines
3. Partly within and partly without the Philippines
2
(https://lawphil.net/courts/bm/barQ/2011/taxQ.html)
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 —_ NOTES ON TAXATION_
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QUIZ

6. A final withholding tax imposed on grossed-up monetary value (GMV) of fringe benefits that are
granted or are paid by an employer to an employee occupying a managerial or supervisory position

o De Minimis Benefit
o Fringe Benefit Tax(#6)3
o Fringe Benefit

7. This refers to all income derived from whatever source

o Gross Income(p.8)4
o Compensation Income
o Net Income

8. Which among the following theories of taxation is the basis for the situs of income taxation?

o Symbiotic Relationship Theory (#21)

o Lifeblood Theory
o Necessity Theory

9. Which is not a theory of taxation?

o Symbiotic Relationship Theory

o Lifeblood Theory
o Necessary Theory

10. Type of taxable income derived from the rendering of services under an employment contract

o Passive Income
o Professional Income
o Compensation Income5
3
Fringe benefits tax (FBT)
• Fringe benefits furnished to managerial and supervisory-level employees by the employer are subject to a final FBT of 35% on the grossed-up
monetary value of the benefits. (p. 23)
4
Gross Income - all income derived from whatever source
5
Sources of Income
• The place wherein the income is earned
• Governed by the situs of taxation
• Necessity to determine whether such income is subject to tax or not
• Income may be earned from:
1. Within the Philippines
2. Without the Philippines
3. Partly within and partly without the Philippines

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QUIZ

11. It is the enforced proportional contributions levied by the law-making body of the state for the
support of the government and all the public needs.

o Taxation
o Taxes(#9)
o Income
o Iba pa:______________________

12. Type of income in which the taxpayer merely waits for the amount to come in.

o Professional Income
o Passive Income(#6)
o Compensation Income

13. Benefits given to the rank and file are subject to what kind of law?

o Fringe Benefit Tax

o Withholding Tax on Compensation(#10)
o Value Added Tax

14. Which is not an inherent limitation of taxation?

o Taxation is for public purpose

o Taxation is subject to international committee(#33)
o Taxation is inherently legislative

15.Which is wrong? "The power of taxation_________________________"

o maybe delegated to the local government unit (LGU).

o is an inherent attribute of its sovereignty.
o solely vested in the Congress.(#42)

Classifications of Income for Individuals

1. Compensation income
2. Profession or Business Income
3. Passive Income
4. Capital Gain

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 —_ NOTES ON TAXATION_
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16. It is the power of the State by which the sovereign, through its law-making body, imposes burdens
for the purpose of raising revenues to defray the necessary expenses of the government.

o Taxation(#8)
o Police Power
o Eminent domain
o Iba pa____________________________.

17. This refers to all wealth (gain or profit) which flows into the taxpayer other than a mere return of
capital.

o Income(#3)
o Capital
o Taxes

18. Which is not a nature of taxation?

o Taxation is an inherent attribute of sovereignty

o Taxation is an inherent attribute of the Congress6
o Taxation is inherently legislative

19. This refers to benefits FURNISHED or granted by a employer, in cash or in kind IN ADDITION
TO BASIC SALARIES of its employees either managerial, supervisory, or rank-and-file employees.

o Fringe Benefit Tax

o Fringe Benefits(#4)
o De Minimis Benefit

20. Which is not requisite for income to be taxable?

o There must be gain an profit

o The gain must be realized or received
o The gain is excluded by law or treaty(36)

6
Because it is the only amiss option

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