Multiple Choice Questions 02
(for class seatwork, recitation, homework)
Q01. The sole owner of a business manufacturing company is known as:
a. stockholder b. self-employed c. fixed earner d. no answer
Q02. One of the following is a no-resident alien doing business in the Philippines:
a. An individual whose father or mother is engaged in business in the Philippines.
b. An individual who is naturalized in accordance with law.
c. An individual whose residence is within the Philippines and who is not a citizen thereof.
d. An alien who shall come to the Philippines and stay therein for a total period of more than 180
days during taxable calendar year.
Q03. One of the following is a non-resident alien:
a. A citizen who comes to the Philippines for a definite purpose which is its nature maybe promptly
accomplished.
b. An alien who comes to the Philippines for a definite purpose which in its nature maybe promptly
accomplished.
c. An alien who has acquired residence in the Philippines.
d. An alien who lives in the Philippines with no definite intention to his stay.
Q04. One is requisite of a taxable income:
a. The gain or profit must be realized
b. The must be a gain or profit
c. The gain or profit must not be exempt by law from income taxation
d. All of the above
Q05. Which refers to a fund or a tree that generates the revenue?
a. loan b. capital c. income d. no answer
Q06. 1st statement: A tax return, statement or declaration filed with the BIR may not anymore be
modified, changed, or amended.
2nd statement: A substantial under-declaration of taxable sales, receipts or income, or a substantial
overstatement of deduction shall constitute prime facie evidence of a false/fraudulent tax return.
a. true, false b. false, true c. true, true d. false, false
Q07. A system of income taxation where all types of income whether sourced from employment, trade,
business, profession or from whatever sources are combined into a single group of income, which at the
net amount are subject to the unitary graduated tax rates of 0% to 35%:
a. Progressive Income Taxation c. Schedular Income Taxation
b. Globalized Income Taxation d. National Income Taxation
Q08. A system of Income taxation where income is classified into different classifications/categories of
income such as; income from employment and income from business, which at the net amounts, are
subject to different schedules of graduated income tax rates.
a. Progressive Income Taxation c. Schedular Income Taxation
b. Globalized Income Taxation d. Proportional Income Taxation
Q09. The profit from sale of furniture used at home is an example of:
a. Other Income b. Business Income c. Compensation Income d. no answer
Q10. Individuals who are foreigners but are employees under a special contract of employment from a
business organization established in the Philippines such as an offshore banking unit are called:
a. non-resident aliens b. resident citizens c. resident aliens d. special alien employees
Q11. Who is classified as a resident citizen?
a. A foreigner who is residing in the Philippines
b. A Filipino whose residence is in a foreign country
c. A Filipino whose residence is in the Philippines
d. None of the above
Q12. An individual got married but was legally separated after two years from her spouse. Currently she
lives in a house co-habiting with her boyfriend, living together as common law husband and wife. For
income tax purposes, her civil status is:
a. head of family b. married c. single d. no answer
Q13. A Filipino who left the Philippines to reside abroad for which a foreign visa as an immigrant was
secured an issued for him is classified as:
a. resident alien b. resident citizen c. non-resident citizen d. no answer
Q14. Which of the following is a source of a national tax?
a. Local Tax Code c. National Internal Revenue Code
b. Family Code of the Philippines d. Not Income
Q15. Winning or prizes earned from the Philippines Charity Sweepstakes is classified as:
a. Exempt from income tax c. Subject to basic income tax
b. Subject to final income tax d. Not income
Q16. When to file the individual income tax return of a fixed earner (employee)?
a. On or before April 15 of the current taxable year.
b. On or before April 15 of the following taxable year.
c. On or before May 15 of the current taxable year.
d. On or before May 15 of the following taxable year.
Q17. A resident citizen taxpayer can pay his income tax due on installment basis if the:
a. Basic income tax is P2,000 or below
b. Basic income tax is over P2,000
c. Basic income tax is over P5,000
d. Basic income tax is not over P5,000
Q18. It comprises all kinds of funds including taxes:
a. license fee b. customs duties c. income d. revenues
Q19. A fundamental law in taxation that prohibits a country from imposing taxes on the properties of a
foreign government/country.
a. International law c. International inhibition
b. Reciprocity law d. International comity
Q20. Which of the following statements regarding our present tax system is incorrect?
a. The tax treatment views indifferently the taxable base and in general treats in common all
categories of taxable income.
b. Imposes a graduated income tax rates for ordinary individual taxpayers.
c. A regressive income tax rate shall be applied on the kinds/classes of taxable income.
d. Imposes a single flat income tax rates for special individual
Q21. Non-resident aliens are subject to the same income tax rates, except one. Which is it?
a. Employed by a foreign petroleum contractor or sub-contractor in the Philippines.
b. Engaged in trade or business in the Philippines
c. Employed by offshore banking units in the Philippines
d. Employed by regional operating headquarters of multi-national corporation in Philippines.
Q22. Individual self-employed taxpayers are required to file their income tax returns:
a. On a yearly basis, once a year.
b. On a quarterly basis, non-cumulative system.
c. On a quarterly basis, cumulative system.
d. All of the above.