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- Employer gave a certain car to its employee in consideration of the latter's services rendered to the company. The transfer of the ownership of the car to the employee is subject to transfer tax, in this case donor's tax. Yes NoAc. Which of the following statements regarding the home office deduction is true? In order to qualify for the deduction, a portion of the taxpayer's home must be used regularly and exclusively to meet with clients or customers. A home office deduction is not allowed for using the home office for administrative or management activities only. The home office deduction is limited to the taxable income of the business before the deduction. A depreciation deduction is not allowed for a home office.1. A misrepresented himself to be a board of director of a Corporation TYY. Due to this misrepresentation, A incurred debts to B. B thought that A was buying the supplies for Corporation TYY. What is the liability of A a. A bound the Corporation TYY to be liable against B b. A has no liability to B c. A has a personal liability to B d. A has a liability similar to a general partner2. Z agreed that he will only contribute P500,000.00 to the partnership. He secured all his properties by making sure that all the partners are aware that he will only provide the money in the partnership. Now, the other partners are planning to commence a different business. Z disagreed. Can Z disagree with the other partners? a. Yes. Being a partner, his consent is necessary in all the activities of the partnership. b. No. Being a partner, he must respect the majority. c. Yes. Being a partner, he is a co-owner. d. No. Being a partner, he has no involvement in the management.
- Mr. Chan set up a company called Good Home Limited. The company holds several properties in Hong Kong and lease out to earn rental income. Mr. Chan wonders whether the company should pay property tax or profits tax. He also concerns if double taxation of the same income derived from a property under property tax and profits tax will charge to GoodHome Limited and how it can avoid this if so. Question: Advise Mr. Chan.Her bank advisor has told Ursula, a sole trader, that to obtain a loan for her busness she will need to give a written personal gustarice for the business's debts, and to give the bank a charge over the business's assets. Ursula has no personal assets or income separate from her business. Ursula is unsure about whether to go ahead, and she has made a comment in relation to each requirement(1) I already own all the business's assets and labilities so a written guarantee is not necessary if the bank wishes to ensure that I am personally committed to repaying the loan (2) I can give the bank a Bloating charge, so that if I breach the terms of the loan the bank can take action to sell my inventoryidentify whether Ursula's comments are accurate or not accurateA. (1) Accurate; (2) Not accurateB. (1) Not accurate; (2) AccurateC. (1) Accurate; (2) Accurate;D. (1) Not accurate; (2) Not accurate;a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
- Mr Rahman is a professional accountant who works in a big corporation. While filling his income tax, he deliberately hid the information that he received some income from his part-time consultancy service to a scall company. This action of Mr Rahman can be termed as _______ a. Tax planning b. Tax avoidance c. Tax hiding d. Tax evasionA former longstanding client of an accounting practice is being investigated by the tax authorities. The former client requests the assistance of the practice in representing them. The client promises that, if the outcome is favourable, he will pay a substantial fee and re-appoint the practice as his accountants in the future. (Any tax payable will be deducted from the fee.) Which THREE threats to the fundamental principles are involved? OSelf-review OSelf interest O Intimidation OFamiliarity Advocacy:Mr. Rico refuses to pay the taxes because according to him, while some people are receiving full protection, he has not been receiving any protection to his life, liberty, and property from the government. Is the contention of Mr. Rico tenable?
- All the profits of a sole proprietorship are taxed as current income of the owner even if they are not withdrawn from the business. * O True O False O O1.) Passive incomes of resident citizen derived from abroad is a.subject to final tax b.Tax exempt c. Returnable 2.) Personal expenses of officer which are used in connection with the trade or business of the company ar considered taxable fringe benefits a. True b. FalseLeebei placed his savings from his salary in time deposit with VileBank. VileBank regularly deducts final withholding tax on the interest gains of Leebei's time deposit. Sick of deductions on his money, Leebei contested the propriety of the final withholding tax because his salaries had already been subjected to withholding tax before he even received them. Unfazed by Leebei's protestation of the continuing injustice, VileBank continues to deduct final withholding tax on Leebei's time deposit to the latter's torment. Who is correct? Explain
