Bar questions · 2011
Taxation Law
96 questions from the 2011 bar examination.
- 21.Philippines Section 22 (H), NIRC. Aplets Corporation is registered under the laws of the Virgin Islands. It has extensive operations in Southeast Asia. In the Philippines, Its products are imported and sold at a mark-up Not answered yetMultiple choice
- 22.Section 26, NIRC. [Note: The question is unfair because it gives an initial impression that the examiner is asking the statement which best characterizes a GPP but the real question is found after the enumeration of the Not answered yetMultiple choice
- 23.In Santos v. People of the Philippines and BIR, the Court of Tax Appeals (CTA) acquitted Santos from the criminal case of tax evasion and ruled that failure to supply correct and accurate information must be fully establNot answered yetMultiple choice
- 24.There is no taxable income until such income is recognized. Taxable income is recognized when the: (2011 Bar Question)Not answered yetMultiple choice
- 25.In 2010, Juliet Ulbod earned P500,000.00 as income from her beauty parlor and received P250,000.00 as Christmas gift from her spinster aunt. She had no other receipts for the year. She spent P150,000.00 for the operationNot answered yetMultiple choice
- 26.First, the company president is not a rank-and-file employee. Thus, the housing benefit is subject to fringe benefits tax pursuant to Section 33 of the NIRC and Section 2.33 (A) of the RR No. 03- 98. Although the housingNot answered yetMultiple choice
- 27.Section 24, NIRC. In March 2009, Tonette, who is fond of jewelries, bought a diamond ring for P750,000.00, a bracelet for P250,000.00, a necklace for P500,000.00, and a brooch for P500,000.00. Tonette derives income fromNot answered yetMultiple choice
- 28.Federico, a Filipino citizen, migrated to the United States some six years ago and got a permanent resident status or green card. He should pay his Philippine income taxes on: (2011 Bar Question)Not answered yetMultiple choice
- 29.The proceeds received under a life insurance endowment contract is NOT considered part of gross income: (2011 Bar Question)Not answered yetMultiple choice
- 30.FALSE. The OSD should not exceed 40% of its gross income. Dondon and Helena were legally separated. They had six minor children, all qualified to be claimed as additional exemptions for income tax purposes. The court awaNot answered yetMultiple choice
- 31.The excess of allowable deductions over gross income of the business in a taxable year is known as: (2011 Bar Question)Not answered yetMultiple choice
- 32.In 2009, Spratz, Inc.’s net profit before tax was P35 million while its operating expenses was P31 million. In 2010, its net profit before tax was P40 million and its operating expenses was P38 million. It did not declarNot answered yetMultiple choice
- 33.The payor of passive income subject to final tax is required to withhold the tax from the payment due the recipient. The withholding of the tax has the effect of: (2011 Bar Question)Not answered yetMultiple choice
- 34.Prior to the enactment of the Local Government Code, consumer's cooperatives registered under the Cooperative Development Act enjoyed exemption from all taxes imposed by a local government. With the Local Government CodeNot answered yetMultiple choice
- 35.Section 186, RA 7160. What is the tax base for the imposition by the province of professional taxes? (2011 Bar Question)Not answered yetMultiple choice
- 36.Section 200, RA 7160. [Note: The answer above is premised on the belief that Bacoor is a municipality and the LGC does not vest municipalities with the power to impose real property taxes, except for municipalities withiNot answered yetMultiple choice
- 37.Jeopardy assessment is a valid ground to compromise a tax liability (2011 Bar Question)Not answered yetMultiple choice
- 38.What should the BIR do when the prescriptive period for the assessment of a tax deficiency is about to prescribe but the taxpayer has not yet complied with the BIR requirements for the production of books of accounts andNot answered yetMultiple choice
- 39.In January 2011, the BIR issued a ruling that Clemen's vodka imports were not subject to increased excise tax based on his claim that his net retail price was only P200 per 750 milliliter bottle. This ruling was applied Not answered yetMultiple choice
- 40.KaTato owns a parcel of land in San Jose, Batangas declared for real property taxation, as agricultural. In 1990, he used the land for a poultry feed processing plant but continued to declare the property as agriculturalNot answered yetMultiple choice