22BAMM6202 Philippine Tax System and Income Taxation Short Quiz 006 PDF

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Short Quiz 006 Week 7 10/Submitted by: Mr. Alfie G. Rellon (FB and Messenger) (AMA OED Student) (agrsaudi: username in the site) Statement I Fringe benefits received by an employee may either be subject to final tax or basic tax Statement II Fringe benefits received by supervisor or manager are nont...

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Short Quiz 006 Week 7 10/10 Submitted by: Mr. Alfie G. Rellon (FB and Messenger) (AMA OED Student) (agrsaudi: username in the site) 1. Statement I Fringe benefits received by an employee may either be subject to final tax or basic tax Statement II Fringe benefits received by supervisor or manager are nontaxable because of the complexities of functions attached to the position Select one: a. Only Statement II is correct b. Both statements are correct c. Only Statement I is correct d. Neither statement is correct 2. The following statements are true, except: Select one: a. Fringe benefits given to employees regardless of what positions they are holding are subject to fringe benefits tax. b. Second hand motor vehicle provided to a rank and file employee is not subject to fringe benefits tax. c. Fringe benefits given to employees holding managerial positions are subject to final tax. d. The grossed-up monetary value is computed by dividing the monetary value by the grossed-up monetary rate 3. The following items are included in rent income, except: Select one: a. Advance rent payment with restriction b. Income from leasehold improvement c. Current lease payment d. Payment of the lessee to third parties like interest in behalf of the lessor. 4. The grossed-up monetary value of fringe benefits shall be computed as: Select one: a. The monetary value of employees in special economic zone shall be divided by 68%. b. The monetary value shall be divided by 75% for non-resident citizens. c. For non-resident aliens engaged in business or trade in the Philippines, the monetary value shall be divided by 85%. d. The monetary value of the fringe benefit shall be divided by 75% for non-resident alien not engaged in business or trade in the Philippines. 5. The following situation may warrant that separation pay shall not be included in the gross taxable income, except Select one: a. Reorganization of the company b. Bankruptcy of the company c. Disability d. Employment 6. An ordinary asset may include the following, except: Select one: a. Stock in trade of the taxpayer included as inventory at the end of the taxable year b. Depreciable properties used in the business c. Real property of the taxpayer used in his/her trade or business d. Personal property of the taxpayer used in his/her trade or business 7. Statement I Fringe benefits received by rank and file employees are not subject to fringe benefits tax, but included in the gross taxable income Statement II Fringe benefits granted to managerial employees are subject to fringe benefits tax and the employer withholds the amount of tax Select one: a. Only Statement II is correct b. Only Statement I is correct c. Both statements are correct d. Neither statement is correct

8. The following are the requirements so that the retirement pay received by an employee from his/her employer is nontaxable, except: Select one: a. The retirement pay should have been availed of for the first time. b. The retiree should have been at least 40 years old at the time of retirement. c. The retiree should have been employed for 10 years in the said company. d. The retirement program of the employer to its employees are approved by the BIR Commissioner 9. Statement I Under outright method of recognizing income on leasehold improvement, the tax base is the cost or fair market value of the leasehold improvement whichever is higher. Statement II The fair market value of the leasehold improvement in the outright method means the value of the improvement at the time the contract becomes effective. Select one: a. Both statements are correct b. Only Statement I is correct c. Only Statement II is correct d. Neither statement is correct 10. Statement I Separation pay may be taxable or tax-exempt Statement II Separation pay is not taxable if the separation is involuntary on the part of employee. Select one: a. Only Statement I is correct b. Only Statement II is correct c. Neither statement is correct d. Both statements are correct...