TAX 1/ 2nd examination

1. For purposes of additional exemption, a dependent means any of the following except:
a. Legitimate child
c. Legally adopted child
b. Illegitimate child
d. Senior citizen
2. If the dependent is the parent of the taxpayer who is 60 years old, the taxpayer can
claim additional exemption of
a. P 50,000
b. P 25,000
c. P 8,000
d. P
3. Statement I: The additional exemption for dependent shall be claimed by only one of
the spouses in the case of married individuals.
Statement II: The husband is the proper claimant of the additional exemption for
qualified dependent children unless he explicitly waives his right in favor of his wife.
a. Both statements are correct
c. Only the 1st statement is
correct
b. Both statements are incorrect
d. Only the 2nd statement
is correct
4. In the case of legally separated spouses, additional exemptions may be claimed only
by the
a. Husband
c. Spouse who has custody of the chilled or children
b. Wife
d. Agreement of both spouses
5. Which of the following individual taxpayers is taxed on income from sources within and
without the Philippines?
a.
A citizen of the Philippines residing therein.
b.
A non-resident citizen.
c.
An individual citizen of the Philippines who is working and deriving income
abroad as an overseas contract worker.
d.
An individual, whether a resident or not of the Philippines.
6. Denzell, an American management expert is hired by a Philippine corporation to assist
in its organization and operations for which he has to stay in the Philippines for 5
months. He came to the Philippines for this definite purpose but the nature of his job
may require him to extend his stay and live temporarily in the Philippines. The
American management expert intends to leave the Philippines as soon as his job is
done.
For income tax purposes, the American management expert shall be classified as:
a.
Resident alien
b.
Nonresident alien engaged in trade or business.
c.
Nonresident alien not engaged in trade or business.
d.
Resident citizen
7. Paul, an American signer, was engaged to sing for one week at the UM Alumni
Homecoming after which he returned to USA. For income tax purposes, Paul should be
classified as:
a.
Resident alien.
b.
Nonresident alien engaged in trade or business.
c.
Nonresident alien not engaged in trade or business
d.
Resident citizen
8. Which of the following individual taxpayers is taxed on income from sources within and
without the Philippines?
a.
A citizen of the Philippines residing therein.
b.
A non-resident citizen.
c.
An individual citizen of the Philippines who is working and deriving income
abroad as an overseas contract worker.
d.
An individual, whether a resident or not of the Philippines.
9.

In order to be allowed a deduction for premiums paid during the taxable year for
health/or hospitalization insurance, the family has to have a gross income of
a.
Not more than two hundred fifty thousand pesos (P250,000) for the taxable
year.
b.
Not less than two hundred fifty thousand pesos (P250,000) for the taxable
year.

c.
d.

Not more than five hundred fifty thousand pesos (P550,000) for the taxable
year.
Not more than two hundred fifty thousand pesos (P250,000) for the month
ending the taxable year.

10. Who shall claim the deduction for premiums paid during the taxable year for health/or
hospitalization insurance?
a.
The husband always
b.
The wife always
c.
The spouse claiming the additional exemption for dependents.
d.
The spouse who has the higher income
11. One of the
a.
b.
c.
d.

following is not a head of family for income tax purposes:

Windows supporting his mother-in-law, 60 years old
Unmarried taxpayer supporting his mother, 50 years old
Married taxpayer supporting a legitimate child, 6 years old
Legally separated taxpayer supporting a brother, 22 years old, physically
incapacitated.

12. How much shall be allowed an additional exemption for each dependent child not
exceeding four (4)?
a. P 25,000
b. P 20,000
c. P 10,000
d. P 8,000
13. A married resident citizen has five (5) qualified dependent children.
information pertains to his income and expenses in the year 2009:
Salary, net of P20,000 withholding tax
Rent expense, apartment house
How much is the taxable compensation income?
a.
P 400,000
b. P 336,000
c. P 250,000

The following
380,000
36,000

d. P 230,000

14. Refer to the information above, how much is the tax due? __________________
15. The proportional contribution by persons and property levied by the law-making body
of the State by virtue of its sovereignty for the support of the government and all
public needs is referred to as:
a. taxes
b. special assessment
c. license fee
d. answer not given
16. One of
a.
b.
c.
d.

the characteristics of a tax is that:

it is generally based on contract
it is generally payable in money
it is generally assignable
answer not given

17. Tax of a fixed proportion of the value of the property

assessed and requires the intervention of assessors or
of such property before the amount due from each
known as:
a. specific
b. ad valorem
c. special or regulatory
d. answer not given
18. A tax must be imposed for a public purpose. Which
purpose?
a. national defense
b. public education
c. improvement of the sugar industry
d. none of the above
19. A tax on business is:
a. direct tax

with respect to which the tax is

appraisers to estimate the value
taxpayer can be determined is

of the following is not a public

b. indirect tax
c. property tax
d. none of the above
20. In this power of the state, the person who is parting with his money/property is
presumed to receive a benefit:
a. taxation
b. police power
c. eminent domain
d. none of the above
21. All are characteristics of the power of taxation, except
a. it is an inherent power
b. it is legislative in character
c. it is civil in character
d. it is subject to inherent and constitutional limitations
22. Our tax laws are
a. political in nature
c. penal in nature
b. civil in nature
d. social in nature
23. Also known as tax administration
a. Collection of taxes
c. payment of taxes
b. Levying of taxes
d. incidence of taxation
24. In the absence of inherent and constitutional limitation, the power of tax is:
a. Comprehensive
c. Both a and b
b. Unlimited
d. regulatory
25. Below are characteristics of a sound tax system, except:
a. administrative feasibility and compliance
b. fiscal adequacy
c. theoretical justice or equality
d. uniformity of taxation
26. The only tax where non-payment of which will not result to imprisonment:
a. Excise tax
c. Personal tax
b. Donors tax
d. Property tax
27. These are arbitrary amounts allowed, in the nature of a deduction from the amount of
gross compensation income and or net business and/or professional income, as the
case may be, for personal, living or family expenses of an individual taxpayer.
a.Tax credit
b. tax refund c. personal exemptions d. ordinary deductions
28. For purposes of determining the tax provided in the Tax Code, there shall be allowed a
basic personal exemption of:
a. P 50,000
b. P 32,000
c. P 25,000
d. P 20,000
29. How much is the basic personal exemption in the case of married individuals where
only one of the spouses is deriving gross income?
a. P 100,000 b. P 64,000
c. P 50,000
d. P 40,000
30. A married individual deriving income within the Philippines whose spouse is
unemployed or is a nonresident citizen deriving income from foreign sources, shall be
entitled to a personal exemption of:
a. P 100,000 only
b. P 64,000 only c. P 50,000 only
d. P 40,000 only
Sec. 24 (A) Graduated Schedule
Not over P10,000
Over P10,000 but not over P30,000
P10,000
Over P10,000 but not over P70,000
P30,000
Over P30,000 but not over P140,000
P140,000
Over P140,000 but not over P250,000
P250,000
Over P250,000 but not over P500,000
P500,000
Over P500,000
P500,000

5%
P500

+ 10% of the excess of

P2,500

+ 15% of the excess of

P8,500

+ 20% of the excess of

P22,500

+ 25% of the excess of

P50,000

+ 30% of the excess of

P 125,000

+ 32% of the excess over

POSITIVE THINGS HAPPEN TO POSITIVE PEOPLE.