TAXATION

The proceeds received under a life insurance endowment contract is

not considered part of the gross income.
Where payment is paid as a result of the death of the
insured

The term “Dealings in property” refers to the disposal through sale or

exchange of
I. ORDINARY ASSETS
II. CAPITAL ASSETS
I and II

Which is not included in the requisites of travel expenses.

Personal travels sponsored by the employer subject to
fringe benefit tax

A proprietary educational institutions and hospital which shall pay a

tax wquivalent to what percent under CREATE LAW.
1%

Which of the following is NOT an indirect tax?

Income taxes

Corporation recovery and tax incentives for enterprises act or also

known as CREATE LAW us under Republic Act?
R.A. No. 11534

What is not included under the term “corporation”?

Co-ownership
Depreciation is an allowable deduction. The following may depreciate,
except:
Goodwill

Which of the following is subject to income tax?

None of the above

Under certain passive income the following condition must concur.

Income is still subject to ordinary or regular income

The following are the classification of income, which is not included.

None of the above

Under global tax system, income are grouped together without any
distinction as to the type or nature of income
True
The following are the characteristics of Philippine income tax.
All of the above

Maria had the following income in 2020: (1) compensation income of

P450,000, net of P77,000 SSS, Philhealth, Pag-ibig, and Union dues
(2) supplemental compensation income of P30,000 and (3) 13th
month pay and other benefits P60,000. What is the taxable
compensation income.
P 1,074,000

The following are rules in determining the “situs” of income.

All of the above

Gross income taxation minimizes source of graft and corruption due to

minimization of margin of discretion exercised by revenue district
officers
 False

The following are factors affecting situs of income, except

None of the above

The following are the requisites for income to be taxable

The gain must be in money

Gross income may be derived entirely from sources within and without
the Philippines weather legal or illegal
True

Net income taxation is otherwise known as just fair and reasonable

and equitable relief to the taxpayers
True

Under the rule, ordinary assets which use in stock in the trade of the
taxpayer or other property of a kind
True

The following are classified as ordinary assets, which is not included

House and Lot

Applicable tax for sale of shares of domestic corporations directly to a

buyer is subject to:
15% CGT on capital gain

Sales real properties classified as capital assets in the Philippines to

the government its agencies of GOCC’s by individual taxpayers
6% capital gains tax or basic tax at the option of tax the
taxpayers
Under gross income taxation, no deductions or exempted are allowed.
However under net income taxation deductions and exemptions are
allowed.
True

Which of the following is true about the corporate recovery and tax
incentives for enterprises act of 2021?
a. Improperly accumulated incomes of corporations
b. The CREATE LAW reduced corporate income taxes
from 30% to 25%
c. Both A and B are true

Schedular tax system imposes different tax treatment, while global

imposes uniform tax rates.
True

Dealings in property refer to the disposal of both ordinary and capital

assets.
True

A policyholder who outlived the policy and received a cash surrender

value in excess of premiums paid is exempt only in.
The amount representing a return of premium

Which constitute taxable item in gross income?

Gain from sale of government bonds