9/18/21, 1:22 AM Final Examinations: [1203_CLWETAX_K32] - MICRO, SMALL & MEDIUM ENTERPRISES

Final Examinations
Due No due date Points 60 Questions 60 Available Sep 17 at 9:00 - Sep 18 at 11:59 1 day Time Limit 90 Minutes

Instructions
Final Examination Guidelines
This is your Final Examinations. It covers the topics relating to Taxation in the Philippines.

You will have 1.5 hours to complete the exams and only 1 attempt. You cannot leave the quiz in the middle. DOING SO WILL BE TREATED AS AN ATTEMPT.
Examinations that exceed the 1.5 hour time limit will not be considered.
In multiple choice questions, please choose the best answer.
Before submitting your answer on each number, please make sure that your answer is final. Once submitted you can no longer go back for it or be changed.
This is an independent Examinations; do not work with others.
You may use class materials (including the textbook) during the quiz.

Attempt History
Attempt Time Score
LATEST Attempt 1 50 minutes 59 out of 60

 Correct answers will be available Sep 18 at 13:00 - Sep 18 at 16:00.

Score for this quiz: 59 out of 60

Submitted Sep 18 at 1:19
This attempt took 50 minutes.

Question 1 1 / 1 pts

Sale of premium gasoline by a gas station has been subjected to both VAT and Excise Taxes without violating double taxation.

True

False

Question 2 1 / 1 pts

Tutors of a tutorial company is...

Are subject to percentage tax as small scale business.

Not subject to VAT as they are employees

Are subject to VAT as these are not tuitions.

Are not subject to VAT as these pertains to education.

Question 3 1 / 1 pts

The income of a fishball vendor in the street is...

Subject to VAT

Subject to Percentage Tax

Subject to Excise Tax

Not subject to any of the mentioned tax.

Question 4 1 / 1 pts

Sale of service to Singapore Airline to make it ready for the return flight is...

Vatable

Zero-rated

Vat exempt.

Course Chat 

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Not vatable

Question 5 1 / 1 pts

The zoom call made by a Filipino in Manila to a friend in Singapore is

subject to Percentage Tax

Subject to Excise Tax

Not subject to any tax as it is done via the internet.

Subject to VAT
Send

Question 6 1 / 1 pts

Pinky, a single mom, has an online business worth P250M that was bought out by Lazada for its own operations. From this proceeds she gave a commission to his
people in the amount of P10M for their loyalty to her. Which of the following is correct?

The sale of the business is subject to VAT.

The sale of the business is subject to transfer taxes.

Subject to donor's tax

Not subject to transfer taxes

Question 7 1 / 1 pts

Which of the following is not an privilege tax?

Estate Taxes on inheritances.

Percentage Tax on Franchise Holders

Sin Taxes to curtail consumption of alcoholic products

VAT on sale of goods and services.

Question 8 1 / 1 pts

Given the following statements:

a) Failure to comply with the basic principles of a sound tax system makes the tax void.

b) Indirect taxes are those which are imposed on one taxpayer by can be shifted to another taxpayer

Both statements are true

The first statement is false but the second is true.

The first statement is true and second is false

Both statements are false

Question 9 1 / 1 pts

Which of the following statements is true?

Only congress can pass a tax law

Citizens of the Philippines can be taxed even if they are not in the Philippines.

The President cannot refuse to implement a tax law

Congress can pass a law to tax the citizens of the Philippines for a particular emergency purpose

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Question 10 1 / 1 pts

The transfer of shares of stocks of San Miguel Corporation due to a sale from father to son...

Subject to Excise Tax and Percentage Tax

Subject to Percentage Tax but not VAT.

Subject to VAT and Percentage Taxes

Subject to VAT and Excise Tax.

Question 11 1 / 1 pts

Taxes on tobacco products are specific taxes on tobacco.

True

False

Question 12 1 / 1 pts

A transaction that is subjected to Percentage Tax cannot be subjected to VAT.

True

False

Question 13 1 / 1 pts

Given the following statements:

a) A taxpayer who opts to use optional standard deductions is no longer allowed to deduct his cost of sales from revenue

b) Minimum corporate income taxes cannot be charged against a professional advertising company.

Both statements are false

The first statement is true and second is false

Both statements are true

The first statement is false but the second is true.

Question 14 1 / 1 pts

International airlines that lands in the Philippines is subject to Percentage tax on international carriers.

True

False

Question 15 1 / 1 pts

International carriers by air or water is...

Are subject to VAT for their transport of cargo but not passengers.

not subject to percentage tax unless they are doing business in the Philippines.

Are zero rated from their transactions.

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Are subject to VAT for their sale of services

Question 16 1 / 1 pts

Input VAT is the VAT charged by a taxpayer seller to the purchaser of the goods or items.

True

False

Question 17 1 / 1 pts

Proceeds from non-life insurance policies are subject to Transfer Taxes.

True

False

Question 18 1 / 1 pts

Fees collected from homeowners by Ayala Alabang Country Club for the use of the facilities and services of the country club are...

Vatable

Non-VAT

Zero-rated

Subject to Amusement Tax

Question 19 1 / 1 pts

Sugar adjustment taxes are excise taxes imposed to stabilize the sugar industry of the Philippines.

True

False

Question 20 1 / 1 pts

There is a carpark that operates near DLSU that earns an average monthly income of P200,000. It also has a small store operated by the personnel of the carpark that
grosses an average of P100,000 a month. There is also a cellphone charging service that was installed by the owners of the carpark that grosses P30,000 a month.
Which of the following is correct.

The operator is subject to Percentage Tax

The operator is subject to VAT is some of its operation but not other parts of the business.

The operator is subject to Percentage Tax as keepers of garages.

The operator is subject to VAT.

Question 21 1 / 1 pts

All communication made by the US Embassy in the Philippines to the US State Department is exempted from the Overseas Communication Taxes.

True

False

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Question 22 1 / 1 pts

Taxes on Motor Vehicles are intended to be used for the maintenance of roads.

True

False

Question 23 1 / 1 pts

Given the following statements:

a) Deductions are not deductible from gross taxable income as ordinary and necessary expenes

b) Income Taxes are not deductible from the gross taxable income of a taxpayer.

Both statements are false

The first statement is true and second is false

The first statement is false but the second is true.

Both statements are true

Question 24 1 / 1 pts

The movie houses of SM in Megamall are...

Subject to VAT for their ticket sales.

Are subject to Amusement Taxes because they charge for people to go in the movie house.

Not subject to VAT for their sale of snacks

Subject to Amusement Tax

Question 25 1 / 1 pts

A product subject to VAT was acquired for the total selling price (inclusive of VAT) of P313.60. How much was the VAT paid by the buyer on the transaction?

38.40

4.80

28.80

33.60

Question 26 1 / 1 pts

The transfer of a P5M condominium unit to a popular actor for endorsing the development is not subject to...

VAT

Documentary Stamp Taxes

Income Tax

Percentage Tax

Question 27 1 / 1 pts

Savings and loans cooperatives are subject to...

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Percentage Tax on Small business enterprise

Percentage Taxes on Non-bank financial intermediaries

VAT on lending activities

Exempt from Percentage and VAT as a duly registered Cooperative.

Question 28 1 / 1 pts

Which of the following statements is false?

Properties lost by fire can be the source of taxable income

Deductions are included in the Gross Taxable Income of a taxpayer

Property lost by fire cannot be deducted as long as it is insured

Not all taxes paid by a taxapayer is deductible from his taxable income

Question 29 1 / 1 pts

The gown of Catriona Gray which contains swarovski Crystals is subject to Excise Tax on Miscellaneous Items.

True

False

Question 30 1 / 1 pts

Which is not a basic principle of a sound tax system?

The tax must try to raise sufficient funds for the needs of the government.

The tax must be manageable in its imposition and collection.

The tax must be consistently applied to taxpayers in the same situation.

The tax must not be burdensome.

Question 31 1 / 1 pts

Excise tax is imposed as an exercise of police power and is not supposed to generate revenue for the government.

True

False

Question 32 1 / 1 pts

The transfer of shares in a family owned corporation is ...

subject to percentage taxes on sale or exchange of shares of stocks

subject to excise tax on miscellanous items

subject to VAT if its price exceeds P3M

not subject to business taxes.

Question 33 1 / 1 pts

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Jose, an OFW had raised enough money for his wife to be able to operate a parking business as a sole proprietorship to supplement the income of the family. Jose
normally calls her from abroad to ensure that she is running the business in an orderly fashion and offers advise when necessary. The wife was able to have an average
gross income of P200,000 a month. She also operates a small store selling food and drinks at the carpark for the drivers waiting at the carpark which grosses around
P40,000 a month. In a stroke of inspiration, Jose called to instruct the wife to install a coin operated karaoke machine for the entertainment of the drivers waiting at the
carpark which grosses another P10,000 a month. Which of the following is correct?

The wife is subject to Percentage Tax for small businesses.

The wife is subject to VAT for the business

The husband and wife is liable for VAT

The husband and wife is liable for Percentage tax

Question 34 1 / 1 pts

Music Making Co., an band, were hired as employees to perform at the BAR 360 of Resorts World for a period of 3 months. They were paid 4.5M for their performance.
Which of the following statements is false?

The band is subject to VAT for their service.

The BAR 360 is subject to Amusement Tax.

The BAR is subject to VAT.

The band is exempt from VAT.

Question 35 1 / 1 pts

A seller is not allowed to charge VAT to a VAT exempt person or entity.

True

False

Question 36 1 / 1 pts

Given the following statements:

a) A donation to the City Mayor for relief operations is not a deductible charitable contribution.

b) Estate Taxes are not allowed as a tax deduction from the income of an individual taxpayer.

The first statement is false but the second is true.

Both statements are false

The first statement is true and second is false

Both statements are true

Question 37 1 / 1 pts

VAT is...

A tax on the gross margins

A liability of the buyer to the BIR

An ad valorem excise tax

A consumption tax

Question 38 1 / 1 pts

Business taxes are imposed on all businesses regardless of whether they are earning income or not.

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True

False

Question 39 1 / 1 pts

Sale of two parcels of residential lots adjoining each other to a single buyer for a price of P1M each property is already subject to VAT.

True

False

Question 40 1 / 1 pts

Philip, a German national, who decided to retire in the Philippines, gets a monthly pension from his country in the equivalent amount of P100,000 a month. Of this
amount, he spends roughly P25,000 a month in medicines and another P50,000 a month in food. Which of the following is incorrect?

Philip is exempt from Philippine Income Taxes.

Philip is a foreigner who cannot be taxed for his pension.

Philip is not liable for Philippine Income Tax.

Philip is a resident foreigner who is subject to income tax on income within the Philippines.

Question 41 1 / 1 pts

A lambanog maker who exports his products and was paid for in Russian Rubles is....

Subject to Percentage Tax

Subject to zero-rating in VAT

Exempt from VAT

Subject to Excise Tax

Question 42 1 / 1 pts

Specific Taxes are ...

Excise taxes on specific goods based on some other unit of measure other than value.

Excise tax imposed on certain goods based on weight or volume or any other physical unit of measurement.

VAT on specific items as provided for by law.

based on a percentage of the value of the goods to be taxed.

Question 43 1 / 1 pts

Personal calls made by a Filipino in UK to his family in the Philippines is exempt from Overseas Communication Taxes.

True

False

Question 44 1 / 1 pts

The tax on miscellaneous articles is imposed on the manufacturers of the items and not the sale of the same.

True

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False

Question 45 1 / 1 pts

Sale of cleaning services to an airline company is....

Vatable

Vat exempt

zero-rated

Subject to Percentage Tax

Question 46 1 / 1 pts

Percentage taxes, being a percentage of the value or selling price of the item being produced or sold is an ad valorem tax.

True

False

Question 47 1 / 1 pts

Energy tax is a tax on the consumption of energy in the Philippines.

True

False

Question 48 1 / 1 pts

Which of the following is not subject to percentage taxes on petroleum products?

sale of kerosene to fishermen for their lanterns

Sale of bunker fuels to factories or power plants.

sale of alcohol to petroleum companies for mixing with their gasoline.

extraction of oil from the oil wells.

Question 49 1 / 1 pts

Jose and Jojo opened an commercial partnership after they graduated. They were so successful in this business that last year the firm had been able to gain a Net
Income of P600,000, which Jose and Jojo shared in equal amounts. How much would they each get from the partnership as their share in the profits?

P600,000

P300,000

P450,000

P225,000

Question 50 1 / 1 pts

Sale of handicraft plaques of "footprints in the sand" made from lahar in Pampanga are not...

subject to VAT if the sale exceeds P3M a year.

subject to business taxes even if it is for charitable purposes.

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subject to Percentage Tax if the sale does not exceed P3M a year.

subject to Excise Tax on Mineral Products

Question 51 1 / 1 pts

Percentage Taxpayers can still be subject to VAT.

True

False

Question 52 1 / 1 pts

Given the following statements:

a) Business income is taxable only if there is a gain.

b) Charitable Institutions may generate income from activities and still be exempt from income taxes.

The first statement is false but the second is true.

Both statements are true

The first statement is true and second is false

Both statements are false

Incorrect Question 53 0 / 1 pts

Which of the following can be taxed by the Philippine government?

Salaries of Filipino employees in the US Embassy.

Salaries of the US Marines guarding the US Embassy.

Income of an OFW for sales of personal effects in Singapore

Income of the commissary of the US Embassy.

Question 54 1 / 1 pts

Input VAT is the VAT that a taxpayer purchaser pays for the purchase of goods.

True

False

Question 55 1 / 1 pts

Given the following statements:

1) A Corporation is liable only for MCIT or Regular Income Tax but not both.

2) An individual who has a Gross Taxable Business Income of P3,000,000 cannot opt to use the Optional Computation of Income Tax to calculate its tax.

The first statement is false and and second is true

The first statement is true and second is false

Both statements are true

Both statements are false

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Question 56 1 / 1 pts

Given the following statements:

a) Taxes intended to raise revenue to pay for government services cannot have any other purpose.

b) Direct taxes are simple taxes that does not have any other purpose except to generate funds for costs of government.

The first statement is false but the second is true.

Both statements are false

Both statements are true

The first statement is true and second is false

Question 57 1 / 1 pts

All public documents require the payment of documentary stamp taxes.

True

False

Question 58 1 / 1 pts

Sale of Shabu cannot be subject to tax on narcotic drugs because they are illegal.

True

False

Question 59 1 / 1 pts

Reimbursements of overhead expenses spent by a service provider in providing the service is subject to VAT.

True

False

Question 60 1 / 1 pts

Maria was a domestic helper for several years for a Singaporean Family who worked in the Philippines, paying her a salary of P30,000 a month. Last year however, due
to the pandemic, the family she worked for had to return to Singapore due to the pandemic in the Philippines but asked if she would accompany them to work in
Singapore for a salary equivalent to P60,000 a month. She readily agreed to this and left with the Family at the end of April 2020. Unfortunately, Singapore had also
been hit by the Pandemic and as such Maria had to be let go only after 3 months and she returned back to the Philippines.

How much is Maria's Gross Taxable Income in the Philippines?

None. Maria is an OFW.

P120,000

P300,000

P360,000

Quiz Score: 59 out of 60

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