TAXATION REVIEW

1. Examine the following statements:

S1: The power to enact revenue bill begins with Congress.
S2: The president has no power to fix the rates for tariffs and other custom taxes.
S3: The power to tax is the most pervasive all powers of the government.

Which is not correct

a. 1 is correct c. 3 is incorrect
b. 1 and 2 are correct d. All are correct

2. Motor vehicle registration fees are exercise of State’s

a. Police power c. Power of eminent domain
b. Taxation power d. People power

3. These are taxes not collected by the National Government, give the exception
a. Excise tax c. Amusement tax
b. Tariff and customs fee d. Professional tax

4. Which is not a national internal revenue tax?

a. Income tax c. Business tax
b. Transfer tax d. Real property tax

5. AAA and Co. condoned some receivables from stockholders. What is the applicable tax?
a. Income tax c. Exempt
b. Donor’s tax d. Business tax

6. Lotto winnings from PCSO is subject to

a. Normal income tax c. Zero income tax
b. Final income tax d. Either b or c

7. Ms. Wa sold their residential house and lot costing P2,000,000 for P1,500,000. How much is the
capital gains tax, if any?
a. 90,000 c. 30,000
b. 120,000 d. -0-

8. A decedent transferred mass of property to his heirs. Who is liable to pay the related tax?
a. Decedent c. Heirs
b. Estate d. Administrator

9. Transfer tax is a/an

a. Property tax c. Poll tax
b. Personal tax d. Excise tax

10. BaBi donated a property worth 400,000 to BaBe, the latter assumed a mortgage attached to the
property worth P200,000. How much is the taxable gift of Babi?
a. 100,000 c. 400,000
b. 200,000 d. 0

11. These are considered Business Taxes under the Code, except?
a. Gross receipt tax c. Excise tax
b. Stock transaction tax d. Sales tax

12. The agency that administers all local taxes

a. Bureau of internal revenue c. Department of finance
b. Bureau of customs d. Treasurer’s office

13. This is a preferential tax applicable to entities operating within the ECOZONES
a. 30% c. 12%
b. 32% d. 5%

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