Quiz - Income Taxation PDF

Preview

Summary

1 amount received in excess of the premium paid in an insurance contract an item of gross income. – TRUE 2 income is included in the gross income of the – FALSE 3. Compensation for injuries and sickness constitutes profit; hence, an inclusion in gross income. – FALSE 4. It is sufficient that the emp...

Description

1.The amount received in excess of the premium paid in an insurance contract an item of gross income. – TRUE 2.Donated income is included in the gross income of the – FALSE 3. Compensation for injuries and sickness constitutes profit; hence, an inclusion in gross income. –FALSE 4. It is sufficient that the employee rendered more than 10 years of service for his retirement benefit to be exempt. – FALSE 5. An employee can secure retirement benefit exemption only once in a lifetime. – TRUE 6. It is a must that the employer maintains a reasonable pension benefit plan for the retirement benefit to be exempt. – TRUE 7. An employee must have rendered more than 10 years of service before claiming exemption for his termination benefits. – FALSE 8. The income of the Philippine government from essential public functions is exempt from any income tax. – TRUE 9. Prizes paid to corporations are an inclusion in gross income subject to final tax. – TRUE 10. Only the mandatory portion of GSIS, SSS, and union dues can be excluded in the gross compensation income. – TRUE 11. Social security benefits, retirements gratuities, and other benefits from foreign private entities are included in gross income. – FALSE

12. The gain from redemption of shares in mutual fund is an exclusion in gross income subject to regular tax. – FALSE 13.A special employee may include Filipino citizens. – TRUE 14.A rank and file employee recommends managerial actions. – FALSE...