- 1. It is a money or grants given by the government to support a business project or industry or grant of money for financial support.
A) revenue
B) tariff
C) none of these
D) subsidy
E) custom duties
- 2. Which of the following is NOT a requirement for a foreigner to become a naturalized Filipino citizen?
A) Must be at least 21 years old
B) Must have resided in the Philippines for a certain period
C) Must be married to a Filipino citizen
D) Must have a good moral character
- 3. A government-owned and controlled corporation (GOCC) engaged in commercial activities was required to pay income tax. Which statement is correct?
A) Taxation violates territoriality
B) Government entities engaged in proprietary functions may be taxed
C) All government agencies are exempt from tax
D) None of these
E) Taxation violates international comity
- 4. tax imposed upon the performance of an act, the enjoyment of privilege.
A) none of these
B) property
C) personal
D) excise tax
E) poll
- 5. Melanie Australian left Manila fo Europe for vacation he has a re-entry permit.
A) non-resident citizen
B) non-resident alien
C) resident alien
D) resident citizen
- 6. Rest Day + Night Shift
Anna earns ₱800 daily and worked 8 hours on her rest day from 10PM-6AM. How much is her total pay?
A) ₱1,300
B) ₱1,120
C) ₱1,040
D) None of these
E) ₱1,500
- 7. What REPUBLIC ACT NO. that the “TRAIN LAW” belong?
A) R.A 11356
B) R.A 10963
C) R.A 14095
D) R.A 10093
- 8. One characteristic of a tax is that ___________________
A) None of these
B) All of these
C) It is generally based on contract
D) It is generally assignable
E) It is generally payable in money
- 9. It is taxable only income derived from sources within the Philippines, which is not?
A) Non-resident alien
B) Resident citizen
C) None of these
D) Non-resident citizen
E) All of these
- 10. Date when President Duterte signed RA 10963 (TRAIN Law).
A) September 22, 2017
B) December 19, 2017
C) January 1, 1982
D) November 15, 2018
- 11. One of the following is not among basic principles of a sound tax system. Which one is it?
A) Fiscal adequacy
B) None of these
C) Theoretical justice
D) Collection of tax
E) Administrative feasibility
- 12. Tax imposed on entertainments such as theaters and concerts.
A) community tax
B) none of these
C) amusement tax
D) real property tax
E) professional tax
- 13. A debt is assignable, while a tax cannot be generally be assigned
A) TRUE
B) FALSE
C) none of these
D) either true or false
- 14. Maria earns ₱18,000 per month as an office staff. How will TRAIN affect her income tax?
A) She is exempt from income tax
B) She will pay 10% income tax
C) She will pay 5% income tax
D) She will pay 3% percentage tax
- 15. The Philippine government exempted the official residence of the Japanese Ambassador from real property tax.
This action is based on which inherent limitation?
A) None of these
B) Pension
C) Exemption
D) Purpose
E) International comity
- 16. Tax of fixed proportion of the amount or value of the property with respect to which the tax is assessed.
A) indirect
B) direct
C) none of these
D) specific
E) Ad valorem
- 17. Which countries primarily follow the principle of Jus soli?
A) Japan
B) All of these
C) China
D) Canada
E) Philippines
- 18. T.R.A.I.N is acronym for ___________
A) None of these
B) Taxes Reform for Acceleration to inclusion
C) Tax Reform for Acceleration and Inclusion
D) Taxes Reformed for Accelerated to inclusion
E) Taxes Reformed for Accelerated and Inlusion
- 19. Mr. Noel Garcia bribed a tax officer and falsified records to escape paying taxes.
This act is:
A) Tax Evasion
B) Set-off of Taxes
C) Tax Planning
D) Tax Avoidance
E) None of these
- 20. Maria, a Filipino citizen, lives and works in Japan for 3 years. She only visits the Philippines for 2 weeks each year.
What is her classification?
A) Income taxation
B) Resident citizen
C) Resident alien
D) None of these
E) Non-Resident Citizen
- 21. Which of the following statements about Jus Sanguinis are TRUE?
A) A person's birthplace determines their citizenship
B) A child inherits the foreign nationality of both parents
C) All of these
D) It is mainly practiced in North and South America
E) It is commonly used in European and Asian countries
- 22. The tax should be proportionate to the taxpayers ability to pay.
A) equality
B) none of these
C) fiscal adequacy
D) administrative feasibility
- 23. The following are national revenue taxes. Which one is not?
A) None of these
B) Documentary stamp tax
C) Value added tax
D) Excise tax
E) Import duties
- 24. Our Supreme court has defined income tax purposes as ____
A) All of these
B) The amount of money coming to charity with a specified time
C) None of these
D) The amount of money coming from National Internal Revenue within a specified time
E) The amount of money coming to a person or corporation within a specified time
- 25. The Philippine government attempted to impose real property tax on land owned by Mr. David Smith located in Canada.
Which inherent limitation is violated?
A) All of these
B) International comity
C) Territoriality
D) Purpose
E) None of these
- 26. Although the power of taxation is basically legislative in character, it is not the function of Congress to ______.
A) Determine who should be subject to the tax
B) None of these
C) Idetify who should collect the tax
D) Fix with certainty the amount of taxes
E) Collect the tax levied under the law
- 27. It is a power of a state or those whom the power has been delegated to take private property for public use upon paying to the owner a just compensation.
A) Police power
B) Power of eminent domain
C) None of these
D) All of these
E) Taxation
- 28. Ms. Smith, an American tourist, stayed in the Philippines for 2 months only.
What is her classification?
A) Resident citizen
B) Resident Alien
C) NRA-NETB
D) NRA-ETB
E) None of these
- 29. Congress enacted a tax law, while the Bureau of Internal Revenue (BIR) was authorized only to implement and collect the tax.
A) Territoriality
B) Non-Delegation
C) All of these
D) None of these
E) Purpose
- 30. All of the following except one are inherent limitations of taxation. Which one is it?
A) none of these
B) taxes may be levied only for public purposes
C) governmental agencies are exempt from taxation
D) the state of tax persons and properties under it's jurisdiction.
E) the property of another state may not be taxed by other states.
- 31. Carlos, a Filipino engineer, worked in Qatar from January to October (10 months). He returned permanently to the Philippines in November. He earned income abroad from January to October.
What is his classification for that taxable year?
A) Resident Alien
B) NRA-ETB
C) None of these
D) Resident citizen
E) Non-Resident Citizen
- 32. What does TRAIN aim for ______
A) Simplier
B) All of these
C) None of these
D) Fairer
E) More efficient
- 33. Mr. Daniel Uy declared all his income truthfully but chose a legal business structure with lower tax rates.
A) Tax Avoidance
B) Illegal tax practice
C) None of these
D) Tax Fraud
E) Tax evasion
- 34. It is generally regarded as an excise (privilege) tax
A) none of these
B) value added tax
C) community tax
D) income tax
E) real state tax
- 35. Whether a resident or not of the Philippines, it is taxable only on income derived from sources within the Philippines.
A) ALIEN INDIVIDUAL
B) CITIZEN
C) FOREIGN CORPORATION
D) DOMESTIC CORPORATION
E) none of these
- 36. A government-owned and controlled corporation (GOCC) engaged in commercial activities was required to pay income tax. Which statement is correct?
A) Taxation violates international comity
B) Government entities engaged in proprietary functions may be taxed
C) Taxation violates territoriality
D) All government agencies are exempt from tax
E) None of these
- 37. It is the proportional contribution by persons and property levied by the lawmaking body of the state by virtue of it's sovereignty for the support of the government and all public needs.
A) none of these
B) license fees
C) taxes
D) special assessment
E) all of these
- 38. A child born in Canada to Filipino parents automatically becomes a Canadian citizen. Which principle applies?
A) Naturalization
B) Dual Citizenship
C) Jus Sanguinis
D) Jus Soli
- 39. Regular Holiday + Overtime
Rico earns ₱960 per day. He worked 10 hours on a regular holiday. How much is his total pay?
A) ₱2,640
B) none of these
C) ₱2,304
D) ₱2,880
E) ₱2,496
- 40. Cindy a Filipino singer, visited Canada for 3 days to sing for her cousin wedding.
A) resident alien
B) non-resident alien
C) non-resident citizen
D) resident citizen
- 41. Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction?
A) none of these
B) lifeblood theory
C) power to destroy theory
D) sumptuary theory
E) symbiotic doctrine
- 42. person coming to settle diabetes, etc. medicines condominium & HOAs socialized housing self-employed individuals (SEPs)
A) TAX exempted
B) VAT exempted
C) none of these
D) FULL exempted
- 43. ______means all wealth which flows into the taxpayer other than as a mere return on capital.
A) income
B) capital
C) revenue
D) receipt
E) none of these
- 44. A fund or property existing at one distinct point in time.
A) revenue
B) none of these
C) capital
D) income tax
E) receipt
- 45. Funds or income derived by the government from tax or any other sources.
A) income
B) none of these
C) capital
D) revenue
E) all of these
- 46. All gains, profit, and income subject to final tax and exempt income exclusions, derived during a taxable year from whatever sources.
A) Income tax
B) None of these
C) Gross Profit
D) Gross Income
- 47. A business loses ₱200,000 worth of inventory due to a breach of contract by a supplier. The court orders the supplier to pay the business ₱200,000 to compensate for the lost inventory. This payment is an example of:
A) Exemplary damages
B) Actual damages
C) None of these
D) Moral damages
- 48. What was the excise tax rate on diesel in 2019?
A) ₱6.00
B) ₱9.00
C) ₱2.50
D) ₱4.50
- 49. According to the note of Petroleum Excise tax, which law increases the excise tax on fuel that hasn't adjusted since 1997?
A) None of these
B) TRAIN
C) Fuel Act
D) TAX Reform
E) Environmental law
- 50. According to Automobile Excise Tax, which two vehicle types are exempt from excise taxes?
A) Pick-up trucks and electric vehicles
B) Hybrids and diesel cars
C) Luxury cars and motorcycles
D) SUVs and trucks
- 51. In which years is the ₱37.50 tobacco tax scheduled?
A) 2018-2019
B) 2024 onwards
C) 2022-2023
D) 2020-2021
- 52. What percentage increase in tobacco tax is applied annually starting in 2024?
A) 4%
B) none of these
C) 10%
D) 2%
E) 5%
- 53. What percentage tax will be imposed on cosmetic surgery for purely aesthetic purposes?
A) 10%
B) 5%
C) 3%
D) 15%
- 54. What is the single tax rate on the net value of an estate after a ₱5 million standard deduction?
A) 10%
B) 8%
C) 6%
D) none of these
E) 4%
- 55. What was the excise tax on coal in 2019?
A) ₱100
B) ₱150
C) ₱50
D) ₱200
- 56. What is the single tax rate applied to net donations above ₱250,000 yearly?
A) 6%
B) 10%
C) 4%
D) 8%
- 57. Under TRAIN, what is the excise tax rate for cooper and other metallic minerals?
A) 2%
B) 6%
C) 4%
D) none of these
E) 8%
- 58. How many public school classrooms can the tax reform fund in the next 5 years?
A) 500,000
B) 2 million
C) 629,120
D) 1 million
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