Untitled Quiz

The government's power to tax can potentially eliminate or restrict a business or activity.

A tax intended to discourage harmful activities, like smoking or alcohol consumption.

Unpaid tax owed beyond the amount initially calculated or reported.

Taxes are generally payments made in money, not goods or services.

The act of paying a tax with goods or services instead of cash.

The government can use taxes to encourage or discourage certain behaviors or businesses

A company inability to pay its debts.

Bureau of Internal Revenue (Philippines)

A deliberate attempt to avoid paying taxes through illegal means, often involving manipulation of transactions or records.

The use of legal strategies to minimize tax liabilities.

A legal doctrine allowing a taxpayer to offset a prescribed refund claim against a tax liability.

A claim that has become invalid or unenforceable due to the passage of time.

A government program that temporarily suspends penalties for past tax violations.

A complete or partial relief from paying taxes.

A sale that is made to appear valid but does not reflect the true economic reality.

A tax imposed on the profit realized from the sale of assets such as stocks or property.

Tax penalties can be categorized into civil, criminal, or administrative penalties.

When interpreting tax laws, courts favor the taxpayer, not the government, if there's ambiguity.

Tax rulings issued by the BIR are not binding on future officials if they find the rulings incorrect.

Reversing tax rulings should not harm taxpayers retroactively, unless they are fair.

Memorandum circulars from the CIR imposing penalties don't automatically have the force of law. They must be published.

Tax circulars become effective only after proper notification, giving taxpayers a chance to be aware.

The BIR can use information from third parties to assess taxpayers.

Information from third parties may be admissible evidence against a taxpayer.

A tax treaty's provisions overrule local tax laws if they contradict, respecting international agreements.

Countries respecting each other's laws, like a courteous handshake in the global arena.

Agreements limiting a country's tax power, like a global agreement on tax rates.

A request for a refund from the government due to overpayment of taxes.

Paying more tax than required on dividends earned by non-resident stockholders.

A Philippine court specifically responsible for tax-related cases. Think of it like a 'tax judge.'

A treaty between the Philippines and the U.S. governing how taxes are applied between the two countries.

The percentage at which a tax is applied to a particular income or other activity.

A foreign corporation that does not have a permanent establishment or engage in trade or business in the Philippines.

Engaging in activities that result in a regular course of trade or business within the Philippines.

A company appointed by a foreign corporation to sell its products or services exclusively within a specific territory.

A partnership composed of individuals who exercise a common profession and derive their income solely from that practice.

A legal arrangement where property is held by a trustee for the benefit of a beneficiary.

The portion of a trust's income that is subject to taxation.

The person or entity who receives the benefits of a trust.

Income earned by a trust that is not distributed to the beneficiary immediately.

Income that is subject to taxation by the government. It includes earnings from various sources, such as salaries, business profits, and investments.

Income that has been earned and is considered completed for tax purposes. It's not just potential income but income that's been received or can be reasonably expected to be received.

The series of activities or steps involved in generating income. It includes everything from acquiring resources to producing goods or services and eventually selling them.

Income becomes taxable when the earning process is complete or virtually complete, and an exchange has taken place, meaning there's been a transfer of goods or services for money or other consideration.

A trust's net income is taxed either to the trust itself (represented by the trustee) or the beneficiary based on the distribution provisions.

Compensation awarded for mental anguish and suffering caused by a wrongful act. They are not considered taxable income.

Damages awarded to compensate for actual losses or harm suffered by a person due to wrongdoing. They are not taxable.

A tax system in which only one level of tax is applied to income, regardless of whether it's earned by a trust or an individual.