Académique Documents
Professionnel Documents
Culture Documents
Part I: Theories
1. Statement I: Nonresident citizens is A citizen of the Philippines who works and
derives income from abroad and whose employment thereat requires him to be physically
present abroad most of the time during the taxable year.
Statement II: The term 'dealer in securities' means a merchant of stocks or securities,
whether an individual, partnership or corporation, with an established place of
business.
Statement II: The term 'bank' means some banking institution, as defined in Section
2 of Republic Act No. 337, [6] as amended, otherwise known as the "General banking
Act." A bank may either be a commercial bank, a thrift bank, a development bank, a
rural bank or specialized government bank.
Statement II: The Commissioner shall have been duly notified by the taxpayer within
sixty (60) days from the date of sale or disposition through a prescribed return of
his intention to avail of the tax exemption for filing for exemptions for the CGT.
Statement II: For a trading or merchandising concern, cost of goods sold shall include
the invoice cost of the goods sold, plus import duties, freight in transporting the
goods to the place where the goods are constructively sold, including insurance while
the goods are in transit.
8. The distinction of a tax from permit or license fee is that a tax is:
A. Imposed for regulation.
B. One which involves an exercise of police power.
C. One in which there is generally no limit on the amount that maybe imposed.
D. Limited to the cost of regulation.
13. The MCIT shall not apply to the following resident foreign corporations, except
A. RFC engaged in business as intl carrier subject to 2 % of their Gross Phil
billings
B. RFC engaged in business as offensive Banking Units on their income from foreign
currency transactions with local commercial banks.
C. RFC engaged in business as regional operating headquarters
D. RFC engaged in hotel, motel and resort operations
14. Which of the following is not correct? The gross income tax
A. Is optional to qualified corporation
B. Is available if the ratio of costs of sales to gross sales or receipts from all
sources does not exceed 55%
C. Shall be irrevocable for three consecutive taxable years that the corporation is
qualified under the scheme
D. Is compared with the normal income tax and minimum corporate income tax
15. If a partner on his own transactions, is on the cash method of accounting while
the general professional partnership is on the accrual method of accounting, in the
partners determination of his taxable income for the year, he
A. Must convert his income from the partnership into cash method
B. Must convert his own income into accrual method
C. Does not report his income from the partnership because the partnership is
exempt from income tax
D. Can consolidate his share in the net income of the partnership under accrual
method with his own income under cash method