MARY OUR HELP

Technical Institute for Women (Cebu), Inc.

College Department

TAXATION

FINAL EXAMINATION

Name: ________Devie Mae M. Tapic__________________Date: ___December 5

2022________Course:____4TH year____ Score: ________

I. Multiple Choice (1-30) (Take this in the google form)

1. The taxes that measured by a certain percentage of the gross selling price or gross value in money of
goods sold, bartered, exchanged, or imported, or gross receipts or earnings derived by any person
engaged in the sale of services.
a. Income tax
b. Value-added tax
c. Donor’s tax
d. Percentage tax
2. It means all amounts received by the prime or principal contractor undiminished by any amount paid to
any subcontractor under a subcontract arrangement.
a. Sales receipts
b. Gross receipts
c. Gross income
d. Net income
3. Entity authorized by the Central Bank to perform quasi-banking activities which refer to borrowing funds
from 20 or more lenders at any one time, for the borrower’s own account or for relending to a third
party.
a. Cooperative
b. Bank
c. Financial intermediary
d. Associations
4. Business tax that is imposed on persons who sell or lease goods, properties or services in the course
of their business.
a. Income tax
b. Value-added tax
c. Donor’s tax
d. Percentage tax
5. The filing and paying of percentage tax is done.
a. Monthly
b. Quarterly
c. Semi-annually
d. Weekly
6. Uniform tax imposed on each sale, barter, exchange, or lease of goods, properties, or services in the
course of trade or business as they pass along the production and distribution chain.
a. Income tax
b. Value-added tax
c. Donor’s tax
d. Percentage tax
7. It is also levied on every importation of goods, whether or not in the course of trade or business.
a. Income tax
b. Value-added tax
c. Donor’s tax
d. Percentage tax
8. The tax rate of value-added tax.
a. 5%
b. 10%
c. 20%
d. 12%
9. It means the value-added tax due from or paid by a VAT-registered person in the course of his trade or
business on importation of goods, properties, or local purchases of goods or services including lease or
use of property from a VAT-registered person.
a. Value-added tax
b. Output tax
c. Input tax
d. VAT payable
10. It means the value-added tax due on the sales or lease of taxable goods, properties, or services by a
Vat-registered person or person required to register under the law.
a. Value-added tax
b. Output tax
c. Input tax
d. VAT payable
11. Act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who
accepts it.
a. Income tax
b. Value-added tax
c. Donor’s tax
d. Percentage tax
12. Donation that is made between the living persons to take effect during the lifetime of the donor.
a. Inter vivos
b. Mortis causa
c. Donation
d. Gift
13. Donation that is made in the nature of testamentary disposition, that is, shall take effect upon the death
of the donor.
a. Inter vivos
b. Mortis causa
c. Donation
d. Gift
14. Tax levied on the act of giving.
a. Donee’s tax
b. Gift tax
c. Donor’s tax
d. Estate tax
15. Tax levied on the act of receiving.
a. Donee’s tax
b. Gift tax
c. Donor’s tax
d. Estate tax
16. It means the refund, the investigation, assessment, determination, litigation or collection of a tax liability
of any person.
a. Tax policy
b. Taxes
c. Tax reform
d. Tax administration
17. It means improving the efficiency and effectiveness of the tax collection and enforcement system.
a. Tax policy
b. Taxes
c. Tax reform
d. Tax administration
18. The accelerated revenue-generating strategy allowing specific taxpayer groups to pay past due tax
obligations over a limited period of time in exchange for the forgiveness of a portion of certain tax
liabilities, including interest, penalties and criminal prosecution.
a. Tax policy
b. Tax amnesty
c. Tax reform
d. Tax administration
19. It includes the guidelines developed by the government regarding how taxes are imposed, in what
amounts, and to whom.
a. Tax policy
b. Taxes
c. Tax reform
d. Tax administration
20. Opportunity for people who owe back taxes to pay some or all of what they owe, often with some
penalties and interest waived.
a. Tax policy
b. Tax amnesty
c. Tax reform
d. Tax administration
21. Martha bought chicken joy amounting to Eighty pesos (₱80.00) VAT exclusive. How much did Martha
pay?
a. ₱80.00
b. ₱90.00
c. ₱89.60
d. ₱88.00
22. Martha bought chicken joy amounting to Eighty pesos (₱80.00) VAT inclusive. How much did Martha
pay?
a. ₱80.00
b. ₱90.00
c. ₱89.60
d. ₱88.00
23. All of the following except one are subject to VAT.
a. Importation in their original state of agricultural and marine food products.
b. Importation of passenger or cargo vessel of more than 1,000 tons to be used by the importer himself as
operator
c. Importation of personal and household effects belonging to residents of the Philippines returning from
abroad.
d. Importation of non-food agricultural, marine, and forest products in their original state.
24. A non-VAT registered entity and whose sales for the year did not exceed the VAT threshold is
a. Exempt from VAT
b. Subject to 0% VAT
c. Subject to percentage tax
d. Subject to 12% VAT
25. The following are kinds of valued-added taxes, which is not included?
a. VAT on sales of goods or properties
b. Vat on importation of goods
c. VAT on sale of services/use or lease of properties
d. VAT on exchange pf foreign currencies
26. The best source of tax laws.
a. Statutes
b. Court decisions
c. Constitution
d. BIR rulings
27. The actual effort by the government to affect the exaction of what is due from the taxpayer.
a. Assessment
b. Levy
c. Payment
d. Collection
28. All are taxes imposed in National Internal Revenue Code (NIRC), except
a. Income tax
b. VAT
c. Percentage tax
d. Travel tax
29. It concerns the overall quantity of taxes to collect which can inversely affect the level of economic
activity.
a. Tax policy
b. Microeconomic aspect
c. Macroeconomic aspect
d. Tax admi40nistration
30. It concerns issues of fairness and allocative efficiency.
a. Tax policy
b. Microeconomic aspect
c. Macroeconomic aspect
d. Tax administration

II. True or False (31-40) Take this in the google forms.

31. The value-added tax (VAT) is a percentage tax. True
32. The tax is based on net receipts except where the basis of tax is the total premium collected. True
33. VAT is a privilege tax. True
34. VAT is a direct tax and the amount of tax may be shifted or passed on to the buyer, transferee, or
lessee of goods, properties, or services. False
 35. VAT is a tax on consumption. True
36. Gift tax is an excise tax. True
37. Property received as gift does not create taxable income to the done, but any income derived from
property after he becomes the owner is taxable to him. True
38. A country’s tax framework is a key policy instrument that is to negatively influence the country’s
economy. False
39. Tax reform must be strengthened to accompany the needed policy. True
40. Taxation provides a means to redistribute economic resources toward those with high income or
special needs. True
III. Essay (41-60)

Essay Rubrics  
5 points – answer is substantial
3-4 points – answer is adequate
1-2 points - answer is inadequate  

41-45 What do you think are the reasons to avail percentage tax instead of VAT?

Although percentage tax is a direct tax, VAT is an indirect tax. However, because percentage tax
(NON-VAT) is a direct tax, the taxpaying party bears this burden alone and it cannot be passed
along to consumers. The Selling Price or Service will be equivalent to the Amount Received in
Total.

46-50 Donations mortis causa are subject to estate tax as they are considered under the Tax Code as
transfers made in contemplation of death of the donor. Why would donations mortis causa not subject to
donor’s tax?

The donation mortis causa will be complete and valid upon death, provided that the DMC is
not cancelled while the person is still alive. The Donee is granted total title and it is
recognized as a gift for life. The subject matter of the gift therefore falls outside of the
Donor's estate upon death

51-55 In your opinion, what is the effect of VAT to the goods or commodities you buy?

VAT is a tax you pay on most goods and services. When VAT rate increase it raises the
consumer price. Beside it a ffects on food market rates, volumes of food demand, government
expenditure value-added tax income, consumer and producer gains as well. VAT is normally included in
the price you see in shops, but there are some exceptions.

56-60 As a student, how would you help the government in generating revenue from tax.
First and foremost, a trustworthy and accountable local government must be in place. Because better
public services would enhance people's trust in government . In my side as a student nor an individual
living in the society I will responsible to pay for taxes, like tuition fee ect.. With that I will be able to
influence other people to be responsible enough as individual and To influence government nor Taxmaker
by making the tax system simpler, fairer, and more efficient, additional – and a more sustainable.