EA#6

1. 13th month pay and other benefits are taxable only up to P90,000. FALSE
2. The Situs of taxation has an impact on the extent of the reportable gross income. TRUE
3. The reportable gross income from business or the exercise of a profession is net of cost
of goods sold or services. TRUE
4. Benefits of veterans of war or retired US army personnel are excluded in gross income.
TRUE
5. Pensions of retirement benefits are inclusions in gross income subject to regular income
if the employee is terminated due to any cause within his control. TRUE
6. Every individual taxpayer is exempt from income tax on compensation up to P250,000
annually but the same exemption does not apply to business income. TRUE
7. Compensation income is an inclusion in gross income subject to regular tax except
compensation income of special aliens. TRUE
8. The gross income from business is measured as sales or gross receipt less cost of sales
or cost of services. TRUE
9. All taxpayers are subject to regular income tax. TRUE
10. No deductions shall be allowed against taxable income. TRUE
11. Gross sales is net of sales, allowances and discounts. TRUE
12. Business expenses can be deducted against all types of gross income subject to regular
tax. FALSE
13. Compared to exclusions, deductions is included in the amount of gross income but both
exclusions and deduction are not reflected in the amount of taxable income. TRUE
14. Gross receipts include other receipts incidental to the primary operations of the
business. TRUE
15. Items of income which are included in gross income subject to final tax are excluded in
gross income subject to regular income tax. TRUE
16. Non-taxable compensation are items of compensation that are excluded against gross
income. TRUE
17. Social security benefits, retirement gratuities and other benefits from foreign
governments are included in gross income. FALSE
18. Social security benefits, retirement gratuities and other benefits from foreign
governments are excluded in gross income. TRUE
19. The P250,000 income tax exemption for individuals is designed to be in lieu of their
personal and business expenses. FALSE
20. The taxable compensation income is computed as gross compensation less the non-
taxable compensation income. TRUE
21. Only the mandatory portion of GSIS, SSS, Philhealth and union dues can be excluded in
gross compensation income. TRUE
22. All taxpayers are subject to regular income tax. TRUE
23. Prizes in athletic compensations sanctioned by the PH government are exclusions in
gross income subject to final tax, but are inclusions in gross income subject to regular
income tax. FALSE
24. Items of gross income subject to final tax and capital gains tax are excluded in gross
income subject to regular income tax.TRUE
25. GSIS and SSS benefits are included in gross income to the extent they exceed P90,000.
FALSE
26. Compensations for injuries and sickness constitutes profit, hence, an inclination in gross
income. FALSE
27. The income of the PH government from essential public functions is exempt from any
income tax. TRUE

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 28. Income earned outside the PH by OFW is tax exempt because they are considered non-
resident citizens. TRUE
29. Administrative and selling expenses are included in the cost of services. FALSE
30. The tax due of an individual is determined by means of a schedule of tax rates. TRUE
31. For all taxpayers, taxable income means the pertinent items or gross income not subject
to capital gains tax and final tax less allowable deductions. TRUE
32. Taxable income is synonymous to net income. FALSE
33. The employers share to SSS, Philhealth and Pag-ibig contributions are an exclusions in
gross income. TRUE
34. No deductions of whatever nature is allowed against compensation income, except
mandatory deductions and exempt benefits. TRUE
35. Items of income subject to final tax or capital gains tax are exclusions in gross income
subject to regular income tax. TRUE
36. Individual taxpayers are natural persons with income derived within the territorial
jurisdiction of a taxing authority. TRUE

This study source was downloaded by 100000831417108 from CourseHero.com on 12-17-2021 04:30:42 GMT -06:00

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