Select the incorrect statement regarding tax amnesty and condonation. *

Tax condonation operates on the whole balance of the assessed tax; hence, the taxpayer can ask for refund for the paid portion of the tax.

Tax amnesty operates as a general pardon and is rarely available.

When the remaining unpaid portion of the tax is condoned, the taxpayer cannot ask for refund for the balance already paid.

In tax amnesty, violators are required to pay a portion of the tax assessed.

Which statement below expresses the lifeblood theory?

The assessed taxes must be enforced by the government.

The underlying basis of taxation is government necessity, for without taxation, a government can neither exist nor endure.

Taxation is an arbitrary method of exaction by those who are in the seat of power.

The power of taxation is an inherent power of the sovereign to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues.

Which statement is WRONG? *

The power of taxation may be exercised by the government, its political subdivisions, and public utilities.

Generally, there is no limit on the amount of tax that may be imposed.

The money contributed as tax becomes part of the public funds.

The power of tax is subject to certain constitutional limitations.

Which among the followings is not issued by the Bureau of Internal Revenue?

Revenue Regulations

Revenue Memorandum Orders

Revenue Bulletins

None of the above

Income from the performance of services is treated as income from within the Philippines, if:

The payment of compensation for the service is made in the Philippines.

The contract calling for the performance of services is signed in the Philippines.

The service is actually performed in the Philippines.

The recipient of service income is a resident of the Philippines.

For income tax purposes, the situs of the service income is important for the taxpayer, who is a: *

Filipino citizen residing in Baguio City.

Non-resident Filipino citizen working residing in London, United Kingdom.

Japanese citizen who is married to a Filipino citizen and residing in their family home located at La Trinidad, Benguet.

Domestic corporation.

A resident corporation is one that is: *

Organized under the laws of the Philippines that does business in another country.

Organized under the laws of a foreign country that sets up a regional headquarter in the Philippines doing product promotion and information dissemination.

Organized under the laws of the Philippines that engages business in a special economic zone;.

Organized under the laws of a foreign country that engages in business in Manila, Philippines.

An individual, who is a real estate dealer, sold a residential lot in Quezon City at a gain of P100,000.00 (selling price of P900,000.00 and cost is P800,00.00). The sale is subject to income tax as follows:

Capital gains tax on the gain

Final tax on the gain

Creditable tax on the gain

Normal tax