This quiz works best with JavaScript enabled. Home > Accounting > Taxation > Taxation – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the income is below 1, 00, 000, or 1, 00, 000 the tax rate is ..... A) 30%. B) NIL. C) 20%. D) 10%. Show Answer Correct Answer: B) NIL. 2. The tax payer liability is determined with reference to his or her. A) Financial status. B) Residential status. C) All of the above. D) None of the above. Show Answer Correct Answer: B) Residential status. 3. Which is true? A) The less you make, the more you get taxed. B) The more you make, the higher percentage tax is taken out. C) The more you make the lower you get taxed. D) If you are cool, you don't get taxed at all. Show Answer Correct Answer: B) The more you make, the higher percentage tax is taken out. 4. Profits & Gains of any business or profession carried on by the assessee is taxable u/h PGBP. A) For the whole year. B) At any time during the year. C) In the last year. D) Consistently. Show Answer Correct Answer: B) At any time during the year. 5. When correctly levied this tax is the same regardless if it is new, old, small or large. A) Income tax. B) Retirement tax. C) Property tax. D) Mortgage tax. Show Answer Correct Answer: C) Property tax. 6. What is the formula for calculating Taxable Income? A) Gross Income-Tax Payable. B) Deductions + Tax Payable. C) Gross Income + Deductions. D) Gross Income-Deductions. Show Answer Correct Answer: D) Gross Income-Deductions. 7. What is NOT true about taxes A) The government collects them. B) You pay them every hour. C) You can store them in the bank. D) None of above. Show Answer Correct Answer: B) You pay them every hour. 8. In 2015, Mr.Canes, a Filipino and permanent resident of Oslo, Norway, purchased a two-bedroom condominium unit at Rockwell, Makati City for the use of his family members. The purchase price came from his earnings in Norway. In 2017, he decided to sell the unit to Mr. Hockey, a permanent resident of London. The contract was entered into in Oslo, and was paid for in Euros. Mr. Hicks intended to use the proceeds to purchase a coffee shop in Boracay. For purposes of Philippine Taxation, the sale of the condominium unit shall: A) Not be subject to tax because the transaction was between parties who are not Philippine residents. B) Be taxable because the condominium is a real property located within Philippine territory. C) Not subject to tax because the transaction was consummated outside the Philippine territory and paid in foreign currency. D) None of above. Show Answer Correct Answer: B) Be taxable because the condominium is a real property located within Philippine territory. 9. What is tax evasion? A) Is not declared to the tax authorities. B) False declaration to tax authorities. C) Both A and are wrong. D) Both A and are correct. Show Answer Correct Answer: D) Both A and are correct. 10. Who is taxpayer for VAT? A) Government. B) Seller. C) Buyer. D) Distributor. Show Answer Correct Answer: C) Buyer. 11. This tax is levied on both goods and services. A) Excise tax. B) Import tax. C) Customs suty tax. D) Traiff tax. Show Answer Correct Answer: A) Excise tax. 12. Which statement describes a progressive tax? A) A tax that has a higher percentage rate as income rises. B) A tax that increases government income over time. C) A tax that places an increasing burden on the poor. D) A tax that rises in line with the rate of inflation. Show Answer Correct Answer: A) A tax that has a higher percentage rate as income rises. 13. What below would be included in the description of "Goods" under article 2(52) of the CGST Act, 2017?I) MoneyII) Actionable claimIII) SecurityIV) Growing cropsChoose the correct choice from the list below. A) IV only. B) II & III. C) II & IV. D) I & II. Show Answer Correct Answer: C) II & IV. 14. The amount of money in your paycheck after taxes are taken out. A) Net pay. B) Gross pay. C) Regular pay. D) Disability income. Show Answer Correct Answer: A) Net pay. 15. Which of the following are chargeable incomes?I. School feesII. EmploymentIII. DividendsIV. Royalties A) I and II. B) III and IV. C) I, II and III. D) II, III and IV. Show Answer Correct Answer: D) II, III and IV. 16. The basic retirement program run by federal government A) Social Security. B) Medicare. C) Department of Defense. D) US Retirement Services Inc. Show Answer Correct Answer: A) Social Security. 17. Classification of taxes as to subject matter or object includes all, EXCEPT: A) Personal, poll or capitation tax. B) Property tax. C) Excise tax. D) Direct tax. Show Answer Correct Answer: D) Direct tax. 18. GST stands for Goods and Services Tax, and it is a tax system that covers a wide range of A) Goods. B) Services. C) Goods, companies and imports. D) Products, systems, and exports. Show Answer Correct Answer: C) Goods, companies and imports. 19. VAT stands for A) Very Autocratic Triangle. B) Virtual Appliance technology. C) Very Artistic Teacher. D) Value Added Tax. Show Answer Correct Answer: D) Value Added Tax. 20. Income-tax in India is charged at the rate(s) prescribed by ..... A) The Finance Act. B) The Income-tax Act. C) The Central Board of Direct Taxes. D) The Ministry of Finance. Show Answer Correct Answer: A) The Finance Act. ← PreviousNext →Related QuizzesAccounting QuizzesTaxation Quiz 1Taxation Quiz 3Taxation Quiz 4Taxation Quiz 5Taxation Quiz 6Taxation Quiz 7Taxation Quiz 8Taxation Quiz 9Taxation Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books