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Business & Transfer Taxation by Rex B. Banggawan
  • Mark Anthony Germono

  • 問題数 49 • 11/6/2023

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  • 1

    Form of consumption tax

    Business Tax

  • 2

    Acquisition or Utilization of goods

    Consumption

  • 3

    Levied without regard to the purpose of the purchaser.

    Consumption

  • 4

    Rationale of Consumption Tax

    Savings Formation, Rationalization of the Benefit Received Theory, Wealth redistribution to society

  • 5

    Normally destined toward consumption

    Income

  • 6

    Capital that is useful in funding projects

    Savings

  • 7

    Characteristics of Income Tax

    Tax upon receipt of income, A tax to the capable, Ability to pay theory

  • 8

    Characteristics of Consumption Tax

    Tax upon usage of Income or capital, A tax to all, Benefit Received Theory

  • 9

    Types of Consumption Tax

    Percentage Tax, Value Added Tax, Excise Tax

  • 10

    Types of Consumption

    Domestic Consumption, Foreign Consumption

  • 11

    Types of Domestic Consumption as to Taxability

    Exempt Consumption, Consumption specifically subject to percentage tax, Vatable Consumption

  • 12

    Directly computed on the landed cost

    VAT on importation

  • 13

    Theoretically imposed on the value added

    VAT on sales in Business Tax

  • 14

    Only goods and services destined for consumption in the Philippines

    Destination Principle

  • 15

    Goods that cross the border destined for foreign country.

    Cross-Border Doctrine

  • 16

    Types of Domestic Consumption as to source

    Domestic Sales, Importation

  • 17

    Consumption Tax on Domestic Sales

    Business Tax

  • 18

    Consumption Tax on Importation

    VAT on importation

  • 19

    Directly levied upon the buyer - IMPORTER

    VAT

  • 20

    Additional imposition to VAT or percentage tax

    Excise Tax

  • 21

    Purchase of goods or services by Philippine residents from non-residents seller.

    Importation

  • 22

    Types of Consumption Tax on Importation

    VAT on Importation, Final Withholding VAT

  • 23

    VAT on Importation Object Consumption: Imposed upon: Statutory Taxpayers: Nature: Tax Basis: Collecting Agency: Timing of Payment:

    Goods, Importer/Buyer, Direct Consumption Tax, Landed Cost, Bureau of Custom, Before withdrawal of goods

  • 24

    Final Withholding VAT Object Consumption: Impose upon: Statutory Taxpayers: Nature: Tax basis: Collecting Agency: Timing of Payment:

    Services, Foreign Service Providers, Resident purchaser of the service, Indirect Business Tax, Contract Price, Bureau of Internal Revenue, After the month of payment

  • 25

    Import of Goods

    Exempt Importation, Vatable Importation

  • 26

    4 Exempt Importation

    Importation of exempt goods, Importation by VAT-exempt persons, Quasi-Importation, Importation which are exempt under special laws and international agreement

  • 27

    Example of exempt agricultural or marine food products in original state

    Grapes, apples, oranges, and other fruits, Vegetables, tea, ginseng, Rice, corn, coffee beans, and other edible farm products, Marine foods such as fish and crustaceans, Poultry and Livestock, Milks, eggs, and meat for human consumption

  • 28

    Meaning of Simple Processing

    Acts of preparation for the market, Acts of preservation, Acts of packaging

  • 29

    Examples of Simple Acts of Preparation

    Boiling, Broiling, Husking, Roasting, Stripping, Grinding

  • 30

    Example of simple acts of preservation

    Freezing, Drying, Smoking, Salting

  • 31

    Not processing as it does not alter the nature of the products

    Packaging

  • 32

    Packaging using advanced technology

    Shrink wrapping in plastics, Vacuum packing, Tetra-packing, Other similar packaging methods

  • 33

    Nature of Business Tax

    Relative Consumption Tax, Indirect Tax, Privilege Tax, National Tax

  • 34

    Types of Business Tax

    Value Added Tax, Percentage Tax, Excise Tax

  • 35

    Procedures of Business Taxation (EIDCDD)

    Evaluate if the sales activity qualifies as a business, Identify the taxable person, Determine the activity type, Classify the sales or receipts, Determine taxpayer registration type, Determine if the goods or services offered is excisable

  • 36

    Elements of Business

    Habitual Engagement, Commercial Activity

  • 37

    A habitual engagement in a commercial activity

    Business

  • 38

    Most Commonly known as tiangge or stalls and outlets not permanently fixed to the ground.

    Privilege Stores

  • 39

    Regularity in transactions to construe the presence of a business.

    Habitual Engagement

  • 40

    Engagement in the sales of goods or services for a profit.

    Commercial Activity

  • 41

    The following are not business (GNEDB)

    Government agencies and instrumentalities, Non-profit organizations or associations, Employment, Directorship in a corporation, Business for mere subsistence

  • 42

    Not deriving compensation income under an employer-employee relationship.

    Marginal Income Earners

  • 43

    Example of Marginal Income Earners (SSSDO)

    Subsistential farmers or fishermen, Small sari-sari stores, Small carinderia or "turo-turos", Drivers or operators of a single unit tricycle, Other similarly situated

  • 44

    Taxable person in business taxation

    Business Taxpayers

  • 45

    Persons which are exempt taxpayers from income tax are subject to business tax

    General professional partnership, Joint venture engaged in construction or oil exploration, Local water districts, Barangay Micro-business enterprise

  • 46

    Types of Business Taxpayers

    VAT Taxpayers, Non-VAT Taxpayers

  • 47

    Types of Business Activities

    Sale or exchange of goods or properties, Sale or exchange of services or lease of properties

  • 48

    Total amount of money or its equivalent

    Gross Selling Price

  • 49

    Total amount of money or its equivalent representing the contract price.

    Gross Receipts