Which of the following is not correct? a. Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes. b. A VAT registered taxpayer can pass on the VAT even to non-VAT registered buyers. c. Services subject to specific percentage tax shall not be subject to VAT regardless whether their annual gross sales or gross receipts exceed P3,000,000. d. None of the above.

Which of the following is not correct? a. Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes. b. A VAT registered taxpayer can pass on the VAT even to non-VAT registered buyers. c. Services subject to specific percentage tax shall not be subject to VAT regardless whether their annual gross sales or gross receipts exceed P3,000,000. d. None of the above.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 19P

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I. 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 incorrect
Which of the following statements NOT correct? a. If a taxpayer is not in agreement with the decision of the Tax Appeals Authority, there is no further action that the taxpayer can take. b. Where a taxpayer loss an appeal, the taxpayer is required to pay interest on the unpaid tax from the payment date statement on the Decision Notice. c. Tax planning within the confines of the tax laws is not illegal. d. Effective tax management may result in significant cost savings.
Which of the following is NOT a valid use of Form 990-T? Request credit for certain excise taxes paid. Apply for reinstatement after an exempt organization has their status revoked. Claim the Small Employer Health Insurance Premium Tax Credit. Determine tax liability from UBI.
Which 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…
21. Before the passage of CREATE Law, which entity is not subject to improperly accumulated earnings tax a. Educational Institution b. Business Partnership c. Close Corporation d. Mining Corporation 22. Which of the following is not exempt from withholding tax on compensation? a. Payment or damages b. Remuneration for domestic services c. Overtime pay d. Retirement benefits received under RA 7641
Which of the following is correct? a) An item of gross income that is subject to tax in one scheme will not be taxed by the other schemes. b) An item of income that is exempt from regular income taxation may be subject to capital gains taxation. c) In final income taxation, the taxpayer remits the tax to the government. d) All capital gains from capital assets are subject to capital gains tax.
23. Which is TRUE? S1: All taxpayers engaged in trade are allowed to use either itemized or optional standard deduction. S2: Exempt corporations are required to report their income. S3: A registered barangay-micro business enterprise who is exempt from paying income tax is also exempt from filing income tax return. S4: A senior citizen who is engaged in trade or business is exempt from taxation. Group of answer choices a. S1 d. S4 b. S2 c. S3
Which of the following statements is true? Deductions are amounts allowed by the NIRC to be deducted from gross income to arrive at the income tax liability of the taxpayer. The taxes which are deductible from gross income include the taxes, interest and penalties incident to tax delinquency. O Payments which constitute bribes, kickbacks, and others of similar nature which are necessary to realize a profit are allowed as deductions from gross income. O Losses from wagering transactions shall be allowed only up to the extent of the gains from such transactions.
The following case is applicable to 4 consecutive questions: Nueva Ecija Company received a bill for 27,440 from a non-VAT service provider. The payment for the service is subject to 2% creditable withholding tax.
Which one of the following statements is NOT correct about taxation? (A) Taxes produce revenue for government operations. (B) Itemized deductions provide a larger deduction amount than the standard deduction. (C) Taxation is used to influence the behavior of individuals, businesses, nonprofit entities, and even the government. (D) Tax rates and deductions are impacted by a taxpayer’s filing status.
True/False 1. Exclusions are the amounts, which the law allows to be deducted from gross income in order to arrive at net income. 2. The deductible taxes are limited only to national taxes. 3. Domestic and resident foreign corporation taxed during the taxable year with MCIT cannot claim NOLCO. 4. Deductions from gross income refer to the flow of wealth to the taxpayers that are not treated as part of gross income. 5. All fringe benefit which are not subject to the fringe benefits tax is taxable in income of the employee. 6. Fringe benefits tax is a deductible expense of the employer.
Which of the following statements is NOT correct? i. If a registered taxpayer buys exempt items, there he can reclaim VAT. ii. If a registered taxpayer buys zero-rated supplies, he can reclaim VAT. iii. The rate of VAT for Exempt supplies and Zero-rated supplies is 0%. iv. Zero-rated goods or services are taxable for VAT at 0%.