- 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) custom duties
B) subsidy
C) revenue
D) none of these
E) tariff
- 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 a good moral character
C) Must be married to a Filipino citizen
D) Must have resided in the Philippines for a certain period
- 3. A government-owned and controlled corporation (GOCC) engaged in commercial activities was required to pay income tax. Which statement is correct?
A) None of these
B) Government entities engaged in proprietary functions may be taxed
C) Taxation violates international comity
D) All government agencies are exempt from tax
E) Taxation violates territoriality
- 4. tax imposed upon the performance of an act, the enjoyment of privilege.
A) personal
B) none of these
C) excise tax
D) poll
E) property
- 5. Melanie Australian left Manila fo Europe for vacation he has a re-entry permit.
A) resident alien
B) resident citizen
C) non-resident alien
D) non-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) ₱1,500
B) None of these
C) ₱1,300
D) ₱1,040
E) ₱1,120
- 7. What REPUBLIC ACT NO. that the “TRAIN LAW” belong?
A) R.A 11356
B) R.A 10963
C) R.A 10093
D) R.A 14095
- 8. One characteristic of a tax is that ___________________
A) It is generally based on contract
B) None of these
C) It is generally payable in money
D) All of these
E) It is generally assignable
- 9. It is taxable only income derived from sources within the Philippines, which is not?
A) Resident citizen
B) All of these
C) Non-resident alien
D) Non-resident citizen
E) None of these
- 10. Date when President Duterte signed RA 10963 (TRAIN Law).
A) January 1, 1982
B) November 15, 2018
C) September 22, 2017
D) December 19, 2017
- 11. One of the following is not among basic principles of a sound tax system. Which one is it?
A) Administrative feasibility
B) Collection of tax
C) None of these
D) Theoretical justice
E) Fiscal adequacy
- 12. Tax imposed on entertainments such as theaters and concerts.
A) professional tax
B) amusement tax
C) none of these
D) community tax
E) real property tax
- 13. A debt is assignable, while a tax cannot be generally be assigned
A) FALSE
B) TRUE
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) International comity
B) Pension
C) Exemption
D) Purpose
E) None of these
- 16. Tax of fixed proportion of the amount or value of the property with respect to which the tax is assessed.
A) specific
B) indirect
C) direct
D) none of these
E) Ad valorem
- 17. Which countries primarily follow the principle of Jus soli?
A) Canada
B) All of these
C) Japan
D) Philippines
E) China
- 18. T.R.A.I.N is acronym for ___________
A) Taxes Reformed for Accelerated to inclusion
B) None of these
C) Tax Reform for Acceleration and Inclusion
D) Taxes Reform for Acceleration 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) None of these
B) Set-off of Taxes
C) Tax Planning
D) Tax Evasion
E) Tax Avoidance
- 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) Non-Resident Citizen
D) None of these
E) Resident alien
- 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) none of these
B) equality
C) fiscal adequacy
D) administrative feasibility
- 23. The following are national revenue taxes. Which one is not?
A) Import duties
B) Documentary stamp tax
C) None of these
D) Excise tax
E) Value added tax
- 24. Our Supreme court has defined income tax purposes as ____
A) None of these
B) The amount of money coming to a person or corporation within a specified time
C) All of these
D) The amount of money coming to charity with a specified time
E) The amount of money coming from National Internal Revenue 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) International comity
B) Territoriality
C) None of these
D) All of these
E) Purpose
- 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) Collect the tax levied under the law
C) Idetify who should collect the tax
D) None of these
E) Fix with certainty the amount of taxes
- 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) Taxation
B) All of these
C) Power of eminent domain
D) Police power
E) None of these
- 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) Purpose
B) All of these
C) Territoriality
D) Non-Delegation
E) None of these
- 30. All of the following except one are inherent limitations of taxation. Which one is it?
A) the property of another state may not be taxed by other states.
B) the state of tax persons and properties under it's jurisdiction.
C) none of these
D) taxes may be levied only for public purposes
E) governmental agencies are exempt from taxation
- 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 citizen
B) Non-Resident Citizen
C) Resident Alien
D) None of these
E) NRA-ETB
- 32. What does TRAIN aim for ______
A) Fairer
B) More efficient
C) All of these
D) Simplier
E) None of these
- 33. Mr. Daniel Uy declared all his income truthfully but chose a legal business structure with lower tax rates.
A) Tax Avoidance
B) None of these
C) Tax evasion
D) Illegal tax practice
E) Tax Fraud
- 34. It is generally regarded as an excise (privilege) tax
A) income tax
B) community tax
C) value added tax
D) none of these
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) FOREIGN CORPORATION
B) none of these
C) DOMESTIC CORPORATION
D) ALIEN INDIVIDUAL
E) CITIZEN
- 36. A government-owned and controlled corporation (GOCC) engaged in commercial activities was required to pay income tax. Which statement is correct?
A) All government agencies are exempt from tax
B) None of these
C) Taxation violates territoriality
D) Taxation violates international comity
E) Government entities engaged in proprietary functions may be taxed
- 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) special assessment
B) none of these
C) all of these
D) license fees
E) taxes
- 38. A child born in Canada to Filipino parents automatically becomes a Canadian citizen. Which principle applies?
A) Dual Citizenship
B) Naturalization
C) Jus Soli
D) Jus Sanguinis
- 39. Regular Holiday + Overtime
Rico earns ₱960 per day. He worked 10 hours on a regular holiday. How much is his total pay?
A) none of these
B) ₱2,496
C) ₱2,304
D) ₱2,880
E) ₱2,640
- 40. Cindy a Filipino singer, visited Canada for 3 days to sing for her cousin wedding.
A) non-resident citizen
B) resident citizen
C) non-resident alien
D) resident alien
- 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) symbiotic doctrine
B) power to destroy theory
C) none of these
D) lifeblood theory
E) sumptuary theory
- 42. person coming to settle diabetes, etc. medicines condominium & HOAs socialized housing self-employed individuals (SEPs)
A) TAX exempted
B) none of these
C) VAT exempted
D) FULL exempted
- 43. ______means all wealth which flows into the taxpayer other than as a mere return on capital.
A) income
B) none of these
C) receipt
D) revenue
E) capital
- 44. A fund or property existing at one distinct point in time.
A) capital
B) revenue
C) receipt
D) income tax
E) none of these
- 45. Funds or income derived by the government from tax or any other sources.
A) none of these
B) all of these
C) income
D) revenue
E) capital
- 46. All gains, profit, and income subject to final tax and exempt income exclusions, derived during a taxable year from whatever sources.
A) Gross Income
B) None of these
C) Gross Profit
D) Income tax
- 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) None of these
B) Moral damages
C) Exemplary damages
D) Actual damages
- 48. What was the excise tax rate on diesel in 2019?
A) ₱9.00
B) ₱4.50
C) ₱2.50
D) ₱6.00
- 49. According to the note of Petroleum Excise tax, which law increases the excise tax on fuel that hasn't adjusted since 1997?
A) TRAIN
B) TAX Reform
C) Environmental law
D) Fuel Act
E) None of these
- 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) SUVs and trucks
D) Luxury cars and motorcycles
- 51. In which years is the ₱37.50 tobacco tax scheduled?
A) 2018-2019
B) 2020-2021
C) 2024 onwards
D) 2022-2023
- 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) none of these
B) 6%
C) 10%
D) 4%
E) 8%
- 55. What was the excise tax on coal in 2019?
A) ₱100
B) ₱200
C) ₱150
D) ₱50
- 56. What is the single tax rate applied to net donations above ₱250,000 yearly?
A) 6%
B) 8%
C) 10%
D) 4%
- 57. Under TRAIN, what is the excise tax rate for cooper and other metallic minerals?
A) none of these
B) 6%
C) 2%
D) 8%
E) 4%
- 58. How many public school classrooms can the tax reform fund in the next 5 years?
A) 1 million
B) 2 million
C) 500,000
D) 629,120
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