Midterm Exam

Type of taxes according to graduation or rate, except:

_____ is the gradual diminution of the value of tangible asset with respect to its useful life due to its wear and tear or obsolescence.

Taxes are generally not subject to set-off because the government and the taxpayer are not mutual creditors/debtors of each other.

Non Resident Foreign Corporation may be taxed by the Philippines with the following income earned in the Philippines, except:

Income received for success in a game of chance

____ ____ means all persons subject to legislation be treated alike under same circumstances and conditions

The ______ states that the State will not survive without the funding provided by taxation.

_____ _____ are earned without the active participation of the taxpayer/income earner.

Examples of exempted corporations (generally), except:

A non-stock, non-profit organization is...

The non-impairment clause of the Constitution can be defeated by a law promulgated by the government in exercising its

Double taxation is prohibited

An element of a valid classification under the Equal Protection Clause of the Constitution.

Taxes cannot be subject to set-off because

Since the power of taxation is inherent in Government, all its units also exercise the same inherent power to tax

The current BIR Commissioner, has the power to interpret tax laws and decide on disputed tax assessments.

Christmas bonus, 13th month pay, and other benefits received by employees are excluded from gross income if the total amount is less than ninety thousand pesos (Php90,000).

Examples of exempted income, except:

Classification of Taxes according to Subject Matter, except

Tips and gratuities are considered taxable income-thus, subjected to withholding tax.

Prizes and winnings are subject to 20% final tax, except if the amount is PhP10,000 or less.

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt

Considered related parties, except:

____ is a tax imposed at 10% of the improperly accumulated taxable income of corporations that permit its earnings to accumulate instead of being divided or distributed to shareholders.

____ of taxation means the place of taxation

Any gain derived and realized from capital, labor, or both. In general, it is any flow of wealth or advantage as a return ___ capital.

Minimum Corporate Income Tax or MCIT is Imposed on the fourth year immediately following the year of commencement of operations at two percent (2%) of gross income, when it is greater than normal income tax. Each year that MCIT is imposed, an MCIT balance is created and can be carried over for the next three (3) years. This balance can be used to offset the amount of normal income tax (should it be greater than MCIT).

Exemption religious, charitable, and educational institutions from taxation covers only property taxes

_____ _____ are other benefits given by the employer to the employee, usually of value and related to the better performance or holistic growth of the employee.

The most important requisite for deductibility of bad debt is to ensure that the subject debt is ____ _____ form the books of the taxpayer