Taxation Principles Quiz

<p>Time limits on accruing revenue (B)</p> Signup and view all the answers

<p>Convenient and just administration (B)</p> Signup and view all the answers

<p>Non-profit educational institutions (B)</p> Signup and view all the answers

<p>It involves taxpayer's compliance and remedies. (A)</p> Signup and view all the answers

<p>Equity/Theoretical Justice (D)</p> Signup and view all the answers

<p>11% (C)</p> Signup and view all the answers

<p>Real properties owned by the decedent at death (B)</p> Signup and view all the answers

<p>Half of the net share of the surviving spouse in conjugal property (A)</p> Signup and view all the answers

<p>Net share of surviving spouse (B)</p> Signup and view all the answers

<p>$1,215,000 (D)</p> Signup and view all the answers

<p>$1,000,000 (B)</p> Signup and view all the answers

<p>Forced labor for 40 days by men aged 16 to 60 (C)</p> Signup and view all the answers

<p>Mortis Causa (D)</p> Signup and view all the answers

<p>To serve as a residence tax for inhabitants (C)</p> Signup and view all the answers

<p>Legal capacity (A)</p> Signup and view all the answers

<p>Donations inter vivos of P50,000 or less (A)</p> Signup and view all the answers

<p>Tribute (D)</p> Signup and view all the answers

<p>Fifty centavos (A)</p> Signup and view all the answers

<p>The transfer is void if the donor dies before execution. (B)</p> Signup and view all the answers

<p>The issuance of a residence certificate (D)</p> Signup and view all the answers

<p>Estate Liability Income Tax (B)</p> Signup and view all the answers

<p>Donations can be both revocable and irrevocable. (C)</p> Signup and view all the answers

<p>Landowners given authority to collect tribute (B)</p> Signup and view all the answers

<p>Detention by guardia civil for being 'indocumentado' (B)</p> Signup and view all the answers

<p>World ELIT x (PGE/TGE) (A)</p> Signup and view all the answers

<p>A legal identification document as a primary form of identification (D)</p> Signup and view all the answers

<p>Transfers for public use to the Philippine Government (B)</p> Signup and view all the answers

<p>The decedent must have died within 5 years of the transfer (D)</p> Signup and view all the answers

<p>The initial basis is the lower value between the previous and present transfers, adjusted for debts only. (A)</p> Signup and view all the answers

<p>It decreases the longer the period after the transfer. (B)</p> Signup and view all the answers

<p>$350,000 (B)</p> Signup and view all the answers

<p>They must go through testamentary succession to be deductible. (D)</p> Signup and view all the answers

<p>The donation is deemed made exclusively by the husband. (B)</p> Signup and view all the answers

<p>No similar deduction was previously claimed by a prior decedent. (A)</p> Signup and view all the answers

<p>Registration and tax imposition on drug-related activities (C)</p> Signup and view all the answers

<p>Presidential Decree 1183 (A)</p> Signup and view all the answers

<p>To impose an energy tax on electric power consumption (C)</p> Signup and view all the answers

<p>Creation of a Joint Legislative-Executive Tax Commission (A)</p> Signup and view all the answers

<p>Property taxes and civic service fees (D)</p> Signup and view all the answers

<p>Republic Act No. 1093 (C)</p> Signup and view all the answers

<p>Real property based on its true value (D)</p> Signup and view all the answers

<p>Anyone departing from the Philippines regardless of citizenship (A)</p> Signup and view all the answers

Forced labor for 40 days for men aged 16-60, providing services to the community.

A fee paid to avoid the Polo y Servicio.

A tax collected from Filipinos, using the Tagalog word "mandala" (threshing floor).

Large tracts of land given to individuals as reward, with authority to manage and collect tribute.

A residence tax during Spanish times, paid in cash or kind.

A personal identity paper, replacing the tribute tax in 1884, and a form of identification.

Residence tax imposed in 1940 by the Americans, with base and additional amounts.

Legal Philippine identification document (as early as 1920s), issued after paying the community tax.

The idea that taxes are essential to the government's functioning, just like blood is vital to the human body.

This principle states that individuals should pay taxes in proportion to the benefits they receive from the government.

The government's roles include: defense, law enforcement, infrastructure, public works, social programs, and running its own operations.

The power to tax is an inherent right of a sovereign state, meaning it doesn't need to be granted by anyone else.

Only the legislative branch of government has the authority to create and enact tax laws.

The power to tax is limited by the constitution, protecting individual rights and ensuring fairness in taxation.

A principle of sound taxation that states the government should collect enough tax revenue to meet its expenses and provide necessary public services.

A principle of sound taxation suggesting that tax burdens should be distributed fairly based on each taxpayer's ability to pay.

The total value of all property owned by a decedent at the time of their death, including both real and personal property, inside and outside the Philippines, if they were a resident or citizen.

Immovable properties like land, buildings, resorts, and other fixed structures. These contribute to the gross estate for estate tax purposes.

A tax levied on the transfer of property from a deceased person (decedent) to their heirs or beneficiaries.

The remaining value of a decedent's estate after deducting allowable expenses like debts and funeral costs, and the surviving spouse's share in community property.

The portion of the net estate that is subject to estate tax. This is calculated by subtracting the Php 200,000 exemption from the net estate.

A Philippine law regulating the production, import, sale, and distribution of opium, marijuana, and synthetic drugs.

A tax levied on individuals leaving the Philippines, regardless of citizenship or ticket purchase location.

Philippine law regulating motor vehicles, licensing, and related matters.

Philippine law imposing an energy tax on electric power consumption, encouraging alternative energy sources.

Philippine laws that punish tax evasion and refusal to pay taxes by foreign nationals, with possible deportation.

Philippine law granting local governments the power to levy taxes, fees, and charges.

A tax levied by local governments on real estate based on its assessed value.

Taxes, fees, and charges levied by provinces, cities, municipalities, and barangays in the Philippines.

A transfer of property to the Philippine Government for public use, deductible from the estate tax if through testamentary succession.

A tax deduction allowing a portion of the estate tax paid on previously inherited property to be deducted when the inheritor dies within 5 years.

The vanishing deduction applies if the present decedent died within 5 years from the receipt of property through gratuitous transfer.

The property must be within the Philippines, tax must have been paid, it must have been inherited from a prior decedent, and no similar deduction was allowed for the prior decedent.

1. Determine the lower value between previous and current transfer. 2. Calculate the initial basis by subtracting mortgage paid. 3. Calculate proportionate deduction from initial basis using ELIT and TPU (estate, legacies, inheritances, and transfers for public use). 4. Calculate the deduction basis by subtracting the proportionate deduction from the initial basis. 5. Apply the percentage of deduction level based on the time elapsed since the prior inheritance.

The rate ranges from 20% to 100% depending on the time elapsed since the prior inheritance.

To lessen the tax burden due to frequent property transfers caused by early deaths.

The value to be taken for the deduction is the lower of either the value at the time of the previous transfer or the value at the time of the present decedent's death.

A fixed amount of deduction allowed for estate tax purposes, regardless of actual expenses. It is set at Php 1,000,000 for all citizens and residents.

For non-resident aliens, deductions are limited to their worldwide estate (ELIT) multiplied by the ratio of their Philippine Gross Estate (PGE) to their Total Gross Estate (TGE).

A gratuitous transfer of property or rights from one person (the donor) to another (the donee), motivated by the donor's generosity.

Donations can be categorized as either 'inter vivos' (made during the donor's lifetime) or 'mortis causa' (made in the nature of a will, effective upon the donor's death).

Only 'inter vivos' donations, those made during the donor's lifetime are subject to the donor's tax. Donations made by will ('mortis causa') are subject to estate tax.

'Inter vivos' donations of P50,000 or less and those specifically exempted by law or the tax code are not subject to donor's tax.

For a donation to be valid, the donor must have the legal capacity to enter into a contract. This means they must be of sound mind and not legally restricted.

A valid donation requires the capacity of the donor (legal ability to give), the acceptance of the donee (willingness to receive), and a clear intention of the donor to transfer the property or right.