TAX QUIZZES

4 and 5 only

In which of the following cases may the taxable income be computed not based on the calendar year?

1. The Taxpayer has no accounting period

2. The Taxpayer does not keep books of accounts

3. The Taxpayer is an individual taxpayer

4. The Taxpayer is a corporation

5. The Taxpayer is a general partnership

Both statements are correct

Statement I: The books of account and other records shall be subject to examination and inspection only once in a taxable year by the BIR officers.

Statement Il: The examination and inspection of books of account and other accounting records shall be done in the Taxpayer's office or place of business or office of the BIR.

There should be a distinction between revenue and capital expenditures.

Which of the following is essential for an acceptable accounting method?

None of the choices

The following statements pertain to the registration requirements of every person required to register for

tax purposes. Choose the INCORRECT information.

Every person subject to any internal revenue tax shall register once with the appropriate revenue district officer.

A person maintaining a head office, branch or facility shall register with the revenue district office having jurisdiction over the head office, branch, or facility.

Suppose a registered person decides to transfer his place of business or his head office or branches. In that case, it shall be his duty to update his registration status by applying registration information update in a prescribed form.

The registration of any person who ceases to be liable to a tax type shall be canceled upon filing with the Revenue District Office where he is registered by applying registration information update in a prescribed form.

All of the choices

Which of the following instances may give rise to a short accounting period?

Choices:

When the corporation is newly organized using a calendar year

When a corporation is dissolved

When a corporation changes its accounting period

Both statements are correct

Statement I: If the Taxpayer, other than an individual, with the approval of the Commissioner, changes the basis of computing net income from fiscal year to calendar year, a separate final or adjustment return shall be made for the period between the close of the last fiscal year for which return was made and the following December 31.

Statement Il: If the change is from calendar year to fiscal year, a separate final or adjustment return shall be made for the period between the close of the last calendar year for which the return was made and the date designated as the close of the fiscal year.

Only Statement 1 is correct

Statement I: The method of accounting regularly employed by the Taxpayer in keeping his books, if such approach reflects his income, is to be followed concerning the time as of which items of gross income and deductions are to be accounted for.

Statement Il: The computation shall be made following such method of accounting as the commissioner's opinion reflects the income if there is a method of accounting employed by the Taxpayer, and such accounting reflects the income.

Pedro, Juan, and Luna, all certified public accountants, agreed to contribute their money, property, and industry to a common fund with the sole intention of jointly exercising their common profession. They have registered with the SEC.

Which of the following is NOT a taxable corporation?

All of the choices

Which of the following is NOT treated as a corporation?

General professional Partnership

A joint venture or consortium is formed to undertake construction projects.

A joint or consortium for engaging in petroleum, coal, geothermal, and other energy operations was under an operating consortium agreement under a service contract with the government.

Both statements are incorrect

Statement I: No matter how organized, Partnerships are taxable as corporations for income tax purposes.

Statement II: For income tax purposes, associations and mutual fund companies are excluded from the definition of corporations.

All of the choices

Dividend income received by a domestic corporation from a non-resident foreign corporation may be exempt from income tax, provided:

Both statements are correct

Statement I: Corporations exempt from income tax are not subject to income tax or incomes received which are incidental or necessarily connected with the purposes for which they were organized and operating.

Statement II: Corporations exempt from income tax are subject to income tax on income of whatever kind and character from any of their properties (real or personal) or any other activity conducted for profit, regardless of the disposition of such income.

Some individual and corporate taxpayers are taxed on their worldwide income, while others are taxable only from sources within the Philippines.

It is essential to know the sources of income for tax purposes (i.e., from within or outside the Philippines) because:

600,000

During 2021, a domestic corporation derived the following items of revenues:

Gross receipts from a trading business, P500,000

Interests from money placements in the banks, P30,000

Dividends from its stock investments in domestic corporations, P20,000

Gains from stock transactions through the Philippine Stock Exchange, P50,000

Proceeds under an insurance policy on the loss of goods, P100,000 How much should the corporation report as taxable income?

Statement II is correct

Statement I: All partnerships are taxed similarly to a corporation.

Statement II: The income of a general commercial partnership is also subject to MCIT or RCIT, whichever is applicable:

Non-resident Foreign Corporations

Which among the following corporations shall pay a tax equal to 25% of gross from all sources within the Philippines?

Statement I is correct

Statement I: Passive incomes are subject to separate and final tax rates.

Statement II: Passive incomes are included in taxable net income from a corporation's business operations.

Subject to RCIT

The share of a co-venturer corporation in the net income after tax-exempt joint venture or consortium is:

Minimum Corporate Income Tax

Passive Income

Capital Gains

Aside from the regular corporate income tax (RCIT), what other tax(es) may be imposed on corporations under the Philippine income tax laws?

Dividend income from another domestic corporation

The following passive income received by a domestic corporation shall be subject to 20% final withholding tax, EXCEPT: