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- 27. Which of the following is a type of regular income tax a. Individual Income tax b. Corporate Income Tax c. Mixed Earner Income Tax O d. Both A and B 28. A taxpayer using GAAP cash - basis on a calendar year shall compute the taxable income using * a. Tax cash basis on a calendar year b. Tax cash basis on a fiscal year c. Tax accrual basis on a calendar year d. Tax accrual basis on a fiscal yearFinal Income taxation is characterized by: Full taxes are withheld by the income payor at source. Recipient receives the income net of tax Payor is the one required by law to remit the tax to government Recipient need not file an income tax return Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Anna receives the income of P6,400 net of tax.Taxable income represents the amount of tax required to be paid to the BIR. True or False You are employed. Your salary is your only source of income. You are subject to which of the following taxes? A. Income Tax B. Business Tax C. A and B D. None of these
- Under this income taxation scheme, the full amount of tax is withheld by the payor before such income is received by the payee taxpayer. a. Final income tax scheme b. Capital gains tax scheme c. Regular income tax scheme d. Any one of the aboveWhich of the following items of interest expense may be deducted from gross income? Interest deducted in advance by the bank on a loan where no amortization payment has yet been made and the taxpayer reports income on cash basis. O Interest on the corporation's preferred stocks. O Interest for delinquency in the payment of taxes. O Interest paid out of a personal loan by the taxpayer.Nicanor computed his tax and voluntarily paid the same thru the bank. The BIR concluded thatNicanor underpaid. The underpayment was determined thru:a. Taxationb. Levyc. Assessmentd. Collection
- Is this statement correct based on the form 1040 above? a. The calculation for the balance due can be found on a 1040 worksheet and not on the form 1040 itself. b. The child tax credit increases the taxpayer's refund by $500 Edit - this is the only imformation the test provides for this qiestionI. A withholding tax system is one in which the payment of income tax is paid upon the receipt of income by the taxpayer.II. The withholding tax system was introduced to expedite collection process and not delay the expenditures needed by the public.III. Under the withholding tax system, the payor of income withholds a certain percentage of income and remits the same to the BIR while the payee would receive only the net amount, and will no longer have to pay income tax. Only statement 1 is correct Only statements 1 and 2 are correct Only statements 1 and 3 are correct All statement are incorrectAnswer whether each statement is True or False 1.Amounts withdrawn from deposit accounts of a decedent subjected to the 6% final withholding tax shall be included in the gross estate for estate tax purposes. 2. Transfer taxes provide income to the government. 3. It is possible that a transfer may be inter vivos in form but mortis causa in substance. 4. A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent. 5. A special power of appointment authorizes the donee of the power to appoint only from among a designated class or group of persons other than himself. 6. The donee-decedent of a special power of appointment only holds the property in trust; hence, the property shall form part of the donee-decedent's gross estate. 7. The designation of beneficiary in a life insurance is irrevocable unless expressly stated as revocable. 8. An insolvent person is one whose liabilities exceed his assets. 9. Only the property…
- a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on the concept of constructive receipt. a. Define the term constructive receipt. Explain its importance. C O A. Under the concept of constructive receipt, income is taxed once earned but not received by the cash-basis taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. OB. Under the concept of constructive receipt, income is taxed when it becomes available to the taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. O C. Under the concept of constructive receipt, income is taxed once earned and received by the cash-basis taxpayer. The taxpayer can defer the tax by refusing to accept payment. O D. Under the concept of constructive receipt, income is taxed when it is received by the taxpayer. The taxpayer can transfer the income to another person to avoid paying taxes.Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. Name Filing Status Taxable Income Tax Liability Rua head of household $195,200Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business. Which of the following is NOT income tax exempt?* A. BOI-registered enterprise enjoying tax holiday B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit C. Forex income in the Philippines of an Offshore Banking Unit D. Regional area headquarter of a multinational company E. None of the Above A resident corporation is one that is: A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines. B. Organized under the laws of the Philippines that…