MCQ
MCQ
MCQ
TAXATION LAW
1. Which of the following is NOT a scheme of shifting the incidence of taxation? A. Changing the terms of the sale like freight on board (FOB) shipping point in the Philippines to FOB destination abroad, so that the title passes abroad instead of the Philippines. B. The purchaser asks for a discount or refuses to buy at regular prices unless it is reduced by the amount equal to the tax he will pay. C. The manufacturer transfers the sales tax to the distributor, then in turn to the wholesaler, in turn to the retailer and finally to the consumer. D. The manufacturer transfers the tax to the consumer by adding the tax to the selling price of the goods sold. E. None of the above 2. The following are indirect taxes EXCEPT: A. B. C. D. E. excise estate tax percentage tax value added tax documentary stamp tax
3. After 10 years of romantic relationship, Mariel decided to end her relationship with Robin, the drunkard. When Robin learned this, with anger in his eyes he boxed, kicked and berated Mariel. While trying to escape Robins demonic acts, Mariel slipped, lost control and fell to the ground requiring hospitalization. To buy peace, Robin decided to shoulder the medical expenses and the expenses for the other injuries suffered by Mariel. The expenses are__________________. A. Deductible expense of Robin B. Taxable income to Mariel C. Subject to final tax D. Exempt from final tax
4. Which of the following deductions from the gross estate will not actually reduce the amount of distributable estate? A. Hospitalization expense for the last illness of the decedent. B. Claims against the estate C. Vanishing deduction D. Funeral expenses E. Judicial expenses
5. The net operating loss, which had not been previously offset as deduction from gross income shall be carried over as deduction from gross income for the next___________.
A. 5 consecutive taxable years immediately following such loss B. 4 consecutive taxable years immediately following such loss C. 3 consecutive taxable years immediately following such loss D. 2 consecutive taxable years immediately following such loss E. Taxable year immediately following such loss
6. Which of the following statements is correct? A. Proceeds of property insurance receivable when the decedent was still alive are part of the gross estate. B. Proceeds of accident insurance, paid by the insurance company directly to a revocably designated beneficiary is part of the gross estate of the decedent.
C. Proceeds of group insurance secured by the employer, when the revocable beneficiary is the wife, are part of the gross estate. D. Proceeds of life insurance taken out by the deceased on his own life when already married, is conjugal property in the gross estate, regardless of whether the premiums were paid out of the exclusive or conjugal property. E. All of the above.
7. The state has the right to compel contributions as the existence of the government is necessity refers to ______________________. A. B. C. D. E. Situs of taxation Basis of taxation Aspects of taxation Theory of taxation Scope of taxation
8. Which of the following gifts is NOT exempt from donors tax? A. Gifts made by the adopter on the account of marriage of their adopted son/daughter. B. Gifts made by the parent on the account of marriage of their son/daughter. C. Gifts not exceeding P 100, 000 for every year. D. Gifts made to or for the use of PAGCOR. E. All of the above
9. Which of the following is taxable income? A. Interest earned on Philippine Charity Sweepstakes winning. B. Compensation for injuries and damages.
10.
A. The gross estate of a non-resident citizen of the Philippines would include only the properties in the Philippines. B. The gross estate of a resident, not citizen of the Philippines would include all properties regardless of location. C. The gross estate of a non-resident, not citizen of the Philippines would include intangible properties in the Philippines. D. The gross estate of a non-resident citizen would include all properties regardless of location. E. The gross estate of a citizen of the Philippines would include all properties regardless of location.