Thursday, October 13, 2011

Taxation MCQ (11-20)

11. The Commissioner or his authorized representative is empowered to suspend the business operations and temporarily close the business establishment of any person for:

a. Failure to issue receipts or invoices of a VAT-registered entity.
b. Failure to file a VAT-return for VAT-registered person as required by the Tax Code
c. Understatement of taxable sales or receipts by thirty percent (30%) or more of his correct taxable sales or receipts for the taxable quarter
d. All of the above

ANSWER: D


12. The VAT on goods 

a. Is a selling expense of the trader
b. Is imposed on goods for domestic consumption
c. It is not based on net sales
d. Maybe due even if there is no actual sale of the goods

ANSWER: D


13. A tax on the right or privilege to enter places of amusement

a. VAT
b. Franchise tax
c. Amusement tax
d. Income tax

ANSWER: C


14. One of the following is not subject to amusement tax on gross receipts

a. Disco houses
b. Cockpits
c. Professional basketball
d. Bowling alleys

ANSWER: D


15. Cash dividend received by a non-resident corporation from a domestic corporation is

a. Exempt from income tax
b. Subject to final tax
c. Part of taxable income
d. Partly exempt, partly taxable

ANSWER: B


16. One of the following does not form part of gross income

a. Interest
b. Royalties
c. Annuities
d. Gift, bequest and devices

ANSWER: D


17. Which of the following taxes may be deducted from gross income

a. Special assessment
b. Transfer tax
c. Documentary stamp tax
d. Income tax

ANSWER: C


18. Shares, obligations, bonds issued by a foreign corporation shall be considered as intangible personal property situated in the Philippines if, how many percent of its business is located in the Philippines?

a. 33%
b. 50%
c. 75%
d. 85%

ANSWER: D


19. The following are examples of non-taxable compensation for injuries, except

a. Actual damages for injuries suffered
b. Compensatory damages for unrealized profits
c. Moral damages for grief, anxiety and physical sufferings
d. Exemplary damages

ANSWER: B


20. Which of the following fringe benefits is taxable?

a. Those benefits which are given to rank and file employees
b. Contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans
c. Benefits given to supervisory employees under a collective bargaining agreement
d. De minimis benefits

ANSWER: C
c. 

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