Bar questions · 2013
Taxation Law
24 questions from the 2013 bar examination.
- 1.The answer must be qualified. Section 99(C) of the NIRC explicitly provides that any contribution in cash or in kind to any candidate, political party or coalition of parties for campaign purposes shall be governed by thNot answered yetMultiple choice
- 2.Section 85, NIRC. Mr. Mayuga donated his residential house and lot to his son and duly paid the donor's tax. In the Deed of Donation, Mr. Mayuga expressly reserved for himself the usufruct over the property for as long aNot answered yetMultiple choice
- 3.2010 – 2015 TAXATION BAR EXAM QUESTIONS ON GENERAL PRINCIPLES OF TAXATION Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was thought to be sufficient to drive many cigarette cNot answered yetMultiple choice
- 4.In McCulloch v. Maryland,1Chief Justice Marshall declared that the power to tax involves the power to destroy. This maxim only means that the power to tax includes the power to regulate even to the extent of prohibition Not answered yetMultiple choice
- 5.Mr. Alas sells shoes in Makati through a retail store. He pays the VAT on his gross sales to the BIR and the municipal license tax based on the same gross sales to the City of Makati. He comes to you for advice because hNot answered yetMultiple choice
- 6.The BIR, through the Commissioner, instituted a system requiring taxpayers to submit to the BIR a summary list of their sales and purchases during the year, indicating the name of the seller or the buyer and the amount. Not answered yetMultiple choice
- 7.No. Pursuant to the case of Commissioner of Internal Revenue v. Baier-Nickel (G.R. No. 153793, August 29, 2006), the factor which determines the source of income for personal services is the place where the services wereNot answered yetMultiple choice
- 8.Aleta sued Boboy for breach of promise to marry. Boboy lost the case and duly paid the court's award that included, among others, Pl00,000 as moral damages for the mental anguish Aleta suffered. Did Aleta earn a taxable Not answered yetMultiple choice
- 9.No. Since Hopeful Corporation exercised its right to redeem the property, Generous Bank is not liable to pay capital gains tax on the foreclosure sale. As stated in the analogous case of Supreme Transliner, Inc., v. BPI Not answered yetMultiple choice
- 10.In 2010, Mr. Platon sent his sister Helen $1 ,000 via a telegraphic transfer through the Bank of PI. The bank's remittance clerk made a mistake and credited Helen with $1,000,000 which she promptly withdrew. The bank demNot answered yetMultiple choice
- 11.No. Section 50 of Rev. Regs. No. 2, otherwise known as Income Tax Regulations, provides that if a debtor performs services for a creditor who cancels the debt in consideration for such services, the debtor realizes incomNot answered yetMultiple choice
- 12.ABC Corp. was dissolved and liquidating dividends were declared and paid to the stockholders. What tax consequence follows? (2013 Bar Question)Not answered yetMultiple choice
- 13.Liquidating dividends are not income and are thus not subject to income tax. In Wise & Co., Inc. v. Meer (G.R. No. 48231, June 30, 1947), the Supreme Court defined liquidating dividends as the dissolving corporation’s paNot answered yetMultiple choice
- 14.Pheleco is a power generation and distribution company operating mainly from the City of Taguig. It owns electric poles which it also rents out to other companies that use poles such as telephone and cable companies. TagNot answered yetMultiple choice
- 15.Section 4, NIRC. Mr. Alvarez is in the retail business. He received a deficiency tax assessment from the BIR containing only the computation of the deficiency tax and the penalties, without any explanation of the factualNot answered yetMultiple choice
- 16.Internal Revenue Section 223, NIRC; BPI v. Commissioner, G.R. No. 139736, October 17, 2005. Taxpayer A was required by the BIR to sign and submit a waiver of the statute of limitations on the assessment period, to give tNot answered yetMultiple choice
- 17.Decide on the validity of the FAN. (2013 Bar Question)Not answered yetMultiple choice
- 18.Congress passed a sin tax law that increased the tax rates on cigarettes by 1,000%. The law was thought to be sufficient to drive many cigarette companies out of business, and was questioned in court by a cigarette compaNot answered yetMultiple choice
- 19.XYZ Corporation manufactures glass panels and is almost at the point of insolvency. It has no more cash and all it has are unsold glass panels. It received an assessment from the BIR for deficiency income taxes. It wantsNot answered yetEssay
- 20.(i) Prohibition against imprisonment for non-payment of poll tax (ii) Uniformity and equality of taxation 12 | P a g e 2010-2015 Taxation Law Bar Examinations VII. The municipality of San Isidro passed an ordinance imposNot answered yetMultiple choice