Which is TRUE? S1: All taxpayers engaged in trade are allowed to use either itemized or optional standard deduction. S2: Exempt corporations are required to report their income. S3: A registered barangay-micro business enterprise who is exempt from paying income tax is also exempt from filing income tax return. S4: A senior citizen who is engaged in trade or business is exempt from taxation. Group of answer choices a. S1 d. S4 b. S2 c. S3

Which is TRUE? S1: All taxpayers engaged in trade are allowed to use either itemized or optional standard deduction. S2: Exempt corporations are required to report their income. S3: A registered barangay-micro business enterprise who is exempt from paying income tax is also exempt from filing income tax return. S4: A senior citizen who is engaged in trade or business is exempt from taxation. Group of answer choices a. S1 d. S4 b. S2 c. S3

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 9DQ

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Which of the following should not be claimed as deductions from gross income? A. Interest payment on loans for the purchase of machinery and equipment used in business. B. Salaries and bonuses paid to employees. C. Discounts given to senior citizens on certain goods and services D. Advertising expense to maintain some form of goodwill for the taxpayer’s business. Which of the following is NOT income tax exempt?* A. BOI-registered enterprise enjoying tax holiday B. Forex transaction income of a Foreign Currency Depositary Unit from another Foreign Currency Depositary Unit C. Forex income in the Philippines of an Offshore Banking Unit D. Regional area headquarter of a multinational company E. None of the Above A resident corporation is one that is: A. Organized under the laws of a foreign country that engages in business in Makati City,Philippines. B. Organized under the laws of the Philippines that…
21. Before the passage of CREATE Law, which entity is not subject to improperly accumulated earnings tax a. Educational Institution b. Business Partnership c. Close Corporation d. Mining Corporation 22. Which of the following is not exempt from withholding tax on compensation? a. Payment or damages b. Remuneration for domestic services c. Overtime pay d. Retirement benefits received under RA 7641
1.) Passive incomes of resident citizen derived from abroad is a.subject to final tax b.Tax exempt c. Returnable 2.) Personal expenses of officer which are used in connection with the trade or business of the company ar considered taxable fringe benefits a. True b. False
19. S1: The salaries of the Chief Justice and associate justices of the Supreme court are tax-exempt. S2: The salary of the Commissioner of Internal Revenue is exempt from income tax. Group of answer choices d. Both are false c. Both are true a. Only S1 is true b. Only S2 is true
Question 4: Employees are either subject to both federal and state income tax withholding or to neither of these. Answer: А. O True В. False
24. Which is TRUE? S1: Representation expense of a seller of goods is subject to limitation of 5% of net sales. S2: Interest expense is subject to tax arbitrage if a taxpayer has interest income. S3: Donations to government are deductible in full. Group of answer choices e. All is false c. S3 only b. S2 only a. S2 and S3 only d. All is true
Question 6: FUTA tax is paid solely by the employer. Answer: A. True В. False
Statement 1: Government owned and controlled corporations are taxable on their income as such. Statement 2: Social Security System (SSS), a GOCC, is tax-exempt on its income as such. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
6. S1: Minimum corporate income tax (MCIT) is imposable on all domestic and resident foreign corporations regardless of whether they are subject to regular or preferential tax. S2: If a newly-registered domestic corporation commenced business operations in 2020, MCIT is imposable in 2024. Group of answer choices a. Only S1 is true b. Only S2 is true d. Both are false c. Both are true
1. Which of the following is required to file an income tax return? A. An employee covered by the substituted filing system. B. A taxpayer deriving purely passive income subject to final tax. C. A special alien with respect to his compensation income. D. A non-resident citizen who derives his entire income form sources outside the Philippines. 2. The taxable income of a mixed income earner is the : A. Net income from business less personal exemption B. Net income from business C. Taxable compensation income D. Taxable compensation income plus net income from business.
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