True of False

• False - The power of taxation is essential because the government can neither exist nor endure without
• True - Personal, poll or capitation is a tax of a fixed amount imposed upon individual, whether citizens or
• True - Taxes cannot be subject to set-off or compensation since claim for taxes is not a debt or contract.
• True - Aspects of taxation are levying. Collection, assessment and allocation
• False - The primary purpose of taxation on the part of the government is to provide funds or property
• False - The three inherent powers of the state are police power, power of eminent domain and EDSA
• True - Rule of “No estoppel against the Government” it means that in the performance of its governmental functions the state cannot be estopped by the neglect of its agencies/officers.
• False - It is an enforced contribution. Payment of tax is voluntarily payment or donation, but an enforced
• True - Certain aspects of the taxing process that are not really legislative in nature are vested in
• True - Direct tax is a tax which is demanded from the person who also shoulders the burden of tax or
• True - benefits subjected to FTB are no longer included in the employee's taxable income
• True - Joint venture is a commercial undertaking by two or more persons, differing a partnership in that it relates to the disposition of a single lot of goods or the completion of a single project.
• True - Joint stock companies are constituted when a group of individuals, acting jointly, establish and operate business enterprise under an artificial name, with an invested capital divided, into transferrable shares, an elected board of director’s and other corporate characteristics, but operating without formal government authority.
• True - The applicable income tax of a corporation depends on the type of the corporation and the income subject to tax.
• False - For purposes of RCIT, the taxable year in which the business operations commenced shall be the year in which the corporation registered with BIR.
• True - Any excess of the minimum corporate income tax over the normal corporate income tax shall be carried forward and credited against the regular income tax for the three succeeding taxable years.
• True - Substantial losses from a prolonged labor dispute means losses arising from a strike staged by the employees that lasted for more than six months within a taxable period and the strike resulted to temporary shutdown of business operations.
• False - The following corporations shall not be subjected to MCIIT are domestic corporation, resident foreign corporations and the charitable institutions.
• True - Any profit remitted by a branch office of a multinational corporation to its head office is subject to 15% final tax based on the total profits applied or earmarked for remittance without deduction for the tax component.
• False - International carriers are subject to income tax rate of 3.5% on its Gross Philippine Billings.