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Business Taxes

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1. Value added tax a. It is an indirect national tax levied on the value added in the production of a good (or service) as it moves through the various stages of production. b. Is ad valorem tax. ... c. Is preferred in place of a personal income tax by many economists because income taxes are a disincentive to work, whereas a VAT discourages unnecessary consumption. d. All of the above. 2. Which of the following is incorrect? a. An article exempt from vat may be exempt from percentage tax b. An article subjected to excise tax may be subjected to vat c. An article subjected to vat may be subjected to percentage d. None of the above 3. Which of the following is incorrect? a. A vat-taxable article may be exempt from vat b. A vat-taxable article may be subjected to vat c. A taxpayer may have two businesses where one is subject to vat and the other is subject to percentage tax d. Manufacturers and importers of goods are subject to excise tax 4. Which of the following is not a business tax? a. Excise tax b. Value-added tax c. Other percentage tax d. Income tax 5. Statement 1: For a person to be subjected to any business tax, it is necessary that he is regularly engaged in the conduct or pursuit of an economic activity. Statement 2: A non-resident foreign person performing isolated transaction in the Philippines shall be liable to VAT. A B C D Statement 1 True True False False Statement 2 True False True False 6. Which statement is wrong? Transactions considered “in the course of trade or business”, and therefore subject to the business taxes include: a. Regular conduct or pursuit of a commercial or an economic activity by a stock private organization. b. Regular conduct or pursuit of a commercial or an economic activity by a non-stock, non-profit private organization. c. Isolated services in the Philippines by non-resident foreign persons. d. Isolated sale of goods or services [Show More]

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