Professional Documents
Culture Documents
1 The BOC shall exercise the following duties and functions, except:
a. Exercise of exclusive jurisdiction over forfeiture cases under the tariff and custom laws.
b. Supervision and control over the imposition of excise taxes over imported goods.
c. Supervision and control over the handling of foreign mails arriving in the Philippines for the purpose
of collecting revenues and preventing the entry of contraband.
d. Supervision and control on all import and export cargoes, landed or stored in piers, airports, terminal
facilities, including container.
2 Statement 1: Tariff duties and customs duties are synonymous. Statement 2: Tariffs of customs duties
are classified as regular tariffs or customs duties and special tariffs or customs duties
a. These duties are taxes that are imposed or assessed upon merchandise from, or exported to a
foreign country for the purpose of raising revenue.
b. They may also be imposed to serve as protective barriers which would prevent the entry of
merchandise that would compete with locally manufactured items. Thus, they are also referred to as tariff
barriers or protective tariffs.
c. High tariffs on exports may also serve to discourage the exportation of certain articles, usually
materials, in order to promote their manufacture into finished products.
I. Anti-dumping duty
II. Countervailing duty
III. Marking duty
IV. Discriminatory duty
I. The purpose of the regular customs duty is to raise revenues to meet the needs of the government
II. The imposition of customs duties also assist in economic development
III. Customs duties are sometimes imposed to protect local customers
IV. Compound customs duties are computed only on the basis of units of measures such as weight,
measurement, quantity, etc.
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b. Statements I, III, and IV are correct
c. Statements I, II, and IV are correct
d. Statements I, II, and III are correct
7 It is a special duty charged whenever, any product, commodity or article of commerce is granted
directly or indirectly by the government in the country of origin or exportation any kind or form of specific
subsidy upon the production manufacture or exportation of such product, commodity or article' and importation
of such subsidized product, commodity or article has cause or threatens to cause material injury to a domestic
industry or has materially retarded the growth or prevents the establishment of a domestic industry
a. Anti-dumping duty
b. Countervailing duty
c. Marking duty
d. Discriminatory duty
8 It is a special duty imposed in the event that a specific kind or class (any product, commodity, or article
of commerce) of foreign article is being imported into, sold or is likely to be sold in the Philippines, at an export
price less than its normal value in the ordinary course of trade for a like product, commodity or article destined
for consumption in the exporting country which is causing or threatening to cause material injury to a domestic
industry, or materially retarding the establishment of a domestic industry producing similar product.
a. Anti-dumping duty
b. Countervailing duty
c. Marking duty
d. Discriminatory duty
a. The marking of articles (or its containers) is a prerequisite for every article or container of foreign
origin which is imported into the Philippines in accordance with Section 303 of the TCCP.
b. The marking shall be done in any official language of the Philippines and in a conspicuous place as
legibly, indelibly permanently as the nature of the article (or container) may permit to indicate to an ultimate
purchaser in the Philippines the country of origin of the article.
c. In case of failure to mark an article or its container at the time of importation, unless otherwise
excepted from the government requirements of marking, there shall be levied upon such article a marking duty
of 5% ad valorem
d. All of the above
Smuggling
a. does not extend to the entry of imported or exported articles by means of any false or fraudulent
invoice, statement or practices; the entry of goods at less than the true weight or measure; or the filing of any
false or fraudulent entry for the payment of drawback or refund of duties.
b. is limited to the import of contraband or highly dutiable cargo beyond the reach of customs
authorities.
c. is committed by any person who shall fraudulently import or bring into the Philippines, or assist in so
doing, any article, contrary to law, or shall receive, conceal, buy, sell or any manner facilitate the
transportation, concealment or sale of such article after importation, knowing the same to have been imported
contrary to law.
d. None of the above
11 (Bar Exam) Under the Tariff and Customs Code, abandoned imported articles becomes the property of
the
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12 (Bar Exam) Is an article previously exported from the Philippines subject to the payment of customs
duties?
a. Yes, because all articles that are imported from any foreign country are subject to duty.
b. No, because there is no basis for imposing duties on articles previously exported from the
Philippines.
c. Yes, because exemptions are strictly construed against the importer who is the taxpayer.
d. No, if it is covered by a certificate of identification and has not been improved in value.
a. pay the customs duties and taxes and to comply with the rules on customs procedures.
b. pay the customs duties and taxes or to comply with the rules on customs procedures.
c. pay the customs duties and taxes
d. comply with the rules on customs procedures
14 (BAR Exam) Amaretto, Inc., Imported 100 cases of Merula wine from South Africa. The shipment was
assessed duties and value-added taxes of P300,000 which Amaretto, Inc. immediately paid. The Bureau of
Customs did not, however, issue the release papers of the shipment yet since the Food and Drug
Administration (FDA) needed to test the suitability of the wine for human consumption. Is the Bureau of
Customs at fault for refusing to release the shipment just as yet?
a. Yes, because the importation was already terminated as a result of the payment of the taxes due.
b. Yes, the Bureau of Customs is estopped from holding the release of the shipment after receiving the
payment.
c. No, if the amount paid as duties and value-added taxes due on the importation was insufficient.
d. No, because the Bureau of Customs has not yet issued the leg, permit for withdrawal pending the
FDA's findings.
a. When the customs duties are paid, even if the goods remain within the customs premises;
b. When the goods are released or withdrawn from the customs house upon payment of the customs
duties or with legal permit to withdraw;
c. When the goods enter Philippines territory and remain within the customs house within thirty (30)
days from date of entry;
d. When there is part payment of duties on the
16 The Bureau of Customs shall exercise the following duties and functions, except
a. Assessment and collection of customs revenues from imported goods and other dues, fees, charges,
fines and penalties under the tariff and customs code.
b. Simplification and harmonization of customs procedures to facilitate movement of goods in
international trade
c. border control to prevent entry of smuggled goods
d. Prosecute persons illegally importing goods.
a. New registered firms under the Board of Investments enjoys income tax holiday for 6 years from
commercial operations for pioneer firms and 4 years from non-pioneer firms
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b. The income tax holiday may be further extended not to exceed 8 years (maximum ITH) upon
meeting certain conditions.
c. For PEZA-registered enterprises, the income tax holiday is same with BOI-registered companies in
general
d. All of the above
a. BOI registered companies are subject to 5% gross income tax in lieu of national and local taxes.
b. After Income Tax Holiday period, BOI registered companies are treated as ordinary corporations.
c. BOI registered companies are subject to zero rated (0%) vat
d. None of the above.
20 Statement 1: EO 226 otherwise known as the Omnibus Investment Code of 1987, is a relatively
focused and systematic grant of incentives based on an Investment Priorities Plan. Statement 2: The IPP is an
annual listing of activities/ undertakings considered critical to the attainment of the country's overall economic
growth and development.
21 Income Tax Holiday (ITH) for BOI registered enterprises that it shall be exempt from the payment of
income taxes reckoned from the scheduled start of commercial operations until the period given by the BOI
has lapsed. Which of the following is ITH period is correct?
a. I and II only
b. II and III only
c. I and III only
d. I, II, and II
22 Statement 1: New registered firms may avail of bonus year. Statement 2: In no case shall the registered
pioneer firm avail of the ITH for a period exceeding eight (8) years.
23 Statement 1: To attract a foreign and domestic investors into the country, the government usually offers
various tax incentives, principally through the Board of Investments (BOI) pursuant to EO 226, as amended,
otherwise known as the Omnibus Investments Code of 1987. Statement 2: The overall declaration of
government policy on investment initiatives under EO 226 includes investments made by foreign and local
investors, providing for incentives, fiscal and non fiscal, to preferred areas of investments, pioneer or non-
pioneer, export production as well as rehabilitation or expansion of existing operation. Statement 3: Non-fiscal
incentives, include, among others, employment of foreign nations, simplification of customs procedure,
unrestricted use of cosigned equipment and multiple entry visa.
24 Which of the following is/are a non-fiscal incentive(s) granted to BOI registered enterprises?
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a. I only
b. I and II only
c. II and III only
d. I, II and III
I. Tax Exemption
II. Tax Credits
III. Additional deductions from taxable income
a. I only
b. I and II only
c. II and III only
d. I, II and III
26 Which of the following tax incentives is/are granted to BOI registered enterprises?
a. I and II only
b. III and IV only
c. I, II and III only
d. I, II, III and IV
27 Which of the following incentives, in addition to tax expenses, is/are granted to BOI registered
enterprises?
I. Tax credit on tax and duty portion of domestic breeding stocks and genetic materials
II. Tax credit on raw materials and supplies
III. Additional deductions for labor and enterprise
a. I only
b. I and II only
c. II and III only
d. I, II, and III
28 Statement 1: WA registered enterprises are subject to 5% gross income tax in lieu of national and local
taxes, except real property tax. Statement 2: PEZA registered enterprises are subject to 5% gross income tax
in lieu of national and local taxes, except real property tax
29 Which of the following statements pertaining to Pioneer enterprises under E0 226 is correct?
a. Pioneer enterprises are registered enterprises engaged in the manufacture, processing or production
of commodities or raw materials that are not yet being produced in the Philippines on a commercial scale.
b. Pioneer enterprises also involves the use of a design, formula, method, process or system of
production or transformation of any element, substance or raw material into another raw material or finished
goods which is new and untried in the Philippines.
c. Pioneer enterprises are also engaged in the pursuit of agricultural, forestry and mining activities
and/or services and energy sectors.
d. All of the above
30 _______ refers to the most recent list of the thirty poorest provinces of the Philippines at the time of
application, as determined by the National Economic Development Authority (NEDA)
a. Pioneer enterprises
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b. Special Economic Zones (ecozones)
a. Pioneer enterprises
b. Special Economic Zones (ecozones)
c. Investment Priorities Plan (IPP)
d. Less Developed Areas (LDA)
a. Foreign merchandise, raw materials, equipment, spare parts, etc. brought into the zone shall not be
subject to customs and Internal revenue laws and regulations nor to local tax ordinances.
b. BOI-registered enterprise incentives.
c. Exemption from local taxes and licenses except real estate taxes.
d. All of the above
33 Statement 1: The PEZA law specifically provides that the ecozone shall be managed and operated by
PEZA (not by any other government entity) as a separate custom territory. Statement 2: In keeping with the
status of ecozone as separate custom territory, the PEZA is conferred the power and function to operate,
administer, manage, and develop the ecozone, and to register, regulate and supervise the enterprises in
ecozones.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
34 _______ are enterprises registered enterprises engaged in the manufacture, processing or production
of commodities or raw materials that are not yet being produced in the Philippines on a commercial scale.
a. Pioneer enterprises
b. Non-pioneer enterprises
c. Multi-national companies
d. Export-oriented enterprises
35 To encourage investments in desirable areas of activity, EO 226 provides incentives to the following:
A B C D
36 Statement 1: RA 7916 or the Special Economic Zone Act of 1995 (February 24, 1995) provides the
framework for the transformation, formation and monitoring of certain designated areas in the country called
special economic zones (ecozones) where companies and industries establishing their operations therein are
given incentives and privileges. Statement 2: Enterprises locating or operating within the ecozones shall
register with the Philippine Export Zone Authority (PEZA) and are entitled to similar incentives granted as
provided for under PD 66 or those under EO226
37 Statement 1: For PEZA purposes, the 5% gross income tax in lieu of all taxes, including local taxes.
Statement 2: PEZA registered enterprises paying the 5% tax on gross income are not liable for local business
taxes and other charges normally due to the local government unit.
38 Statement 1: PEZA income tax holiday incentives imply exemption from income tax. Statement 2:
PEZA income tax holiday would mean that an entity entitled to it enjoys exemption from income tax only,
unless expressly exempted from other taxes.
39 A PEZA registered enterprise has a registered and an unregistered activity. The MCIT shall apply to:
a. Registered activity
b. Unregistered activity
c. Bothe activities
d. Neither registered nor unregistered activity
PWDs/Senior Citizen
40 Private entities that employ disabled persons who meet the required skills or qualifications, either as
regular employee, apprentice or learner, shall be entitled to an additional deduction from gross income
equivalent to:
41 Which of the following statements is not a requirement in order for private establishments employing
senior citizens to be entitled to additional deduction from their gross income equivalent to 15% of the total
amount paid as salaries and wages to senior citizens?
a. The employment shall have to continue for a period of at least one (1) year
b. The annual taxable income of the senior citizen does not exceed the poverty level as determined by
NEDA
c. Both statements "a" and "b"
d. Neither statements "a" nor "b"
a. In case the seller provides promotional discounts, the PWD will have the option to choose either the
promotional discount or the PWD discount
b. Only the PWD discount is exempted from VAT
c. In cases where the PWD is also a senior citizen, the PWD shall also be entitled to SC discount in
order to maximize the discounts granted under Magna Carta for PWDs and SCs.
d. None of the Above
Mabuhay Services Corporation provides 20% discount to senior citizens. It recorded the following during the
year:
Customers
Regular Senior Citizen Total
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Receipts P 8 000 000 P 1 000 000 P 9 000 000
Cost of Services 5 000 000
Other deductible expenses 2 000 000
a. P1,000,000 c. P9,000,000
b. P1,250,000 d. P9,250,000
44 The regular and special itemized deductions deductible from gross income of MSC is:
a. P2,000,000 c. P5,250,000
b. P2,250,000 d. P7,000,000
a. P750,000 c. P1,750,000
b. P1,000,000 d. P2,000,000
Customers
Regular Senior Citizen Total
Gross Sales P 8 000 000 P 2 000 000 P 10 000 000
Cost of Sales 5 000 000 1 000 000 6 000 000
Other deductible expenses 2 000 000
50 Bobads Corporation employs both regular and senior citizen employees and paid the following
compensation:
51 Using the above information, except that 20% of the regular employees are persons with disability
receiving a total compensation of P 160 000, the deductible compensation expense of the corporation is
52 Statement 1: If a taxpayer, classified as PWD, is unable to make his own return, the return may be
made by his duty authorized agent or representative or by the guardian or other person charged with the care
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of his person or property. Statement 2: The principal (PWD) and his representative or guardian shall assume
the responsibility of making the return and incurring penalties provided for erroneous, false, fraudulent returns.
Statement 3: The privilege in statement 1 and transfer of responsibility in statement 2 is likewise available to a
senior citizen taxpayer.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Only statement 3 is incorrect
d. None of the statements are correct
53 Statement 1: While 20% senior citizen discount and vat exemption shall not apply to "children's meals"
as these are primarily prepared and intentionally marketed for children, if the PWD is a child, the 20% PWD
discount will be applicable as long as it is for his personal consumption. Statement 2: The 20% discount on
purchase of food and drinks, beverages, dessert and other consumable items served by establishments
includes value meals and other similar food counters, fast food, cooked food and short orders including take
out.
a. Statements 1 & 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
54 Statement 1: Any donation, bequest, subsidy or financial aid which may be made to government
agencies engaged in the rehabilitation. Statement 2: The 20% discount on purchase of food and drinks,
beverages, dessert and other consumable items served by establishments includes value meals and other
similar food counters, fast food, cooked food and short orders including take outs
55 Taxing power of local government units shall NOT extend to the following taxes, except one:
56 Real property taxes should not disregard increases in the value of real property occurring over a long
period of time. To do otherwise would violate the canon of a sound tax system referred to as
a. theoretical justice.
b. fiscal adequacy.
c. administrative feasibility.
d. symbiotic relationship.
57 A municipality may levy an annual ad valorem other tax on real property such as land, building,
machinery, and improvement only if
61 The appraisal, assessment, levy and collection of real property tax shall be guided by the following
principles, Which statement does NOT belong here?
a. Real property shall be appraised at its current and fair market value
b. Real property shall be classified for assessment purposes on the basis of its actual use
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c. Real property shall be assessed on the basis of a uniform classification within each local political
subdivision
d. The appraisal and assessment of real property shall be based on audited financial statements of the
owner
62 (Bar Exam) After the province has constructed a barangay road, the Sangguniang Panglalawigan may
impose a special levy upon the lands specifically benefited by the road up to an amount not to exceed
a. 60% of the actual cost of the road without giving any portion to the barangay.
b. 100% of the actual project cost without giving any portion to the barangay.
c. 100% of the actual project cost, keeping 60% for the province and giving 40% to the barangay.
d. 60% of the actual cost, dividing the same between the province and the barangay.
63 What is the tax base for the imposition by the province of professional taxes?
64 Lualhati Educational Foundation, Inc., a stock educational Institution organized for profit, decided to
lease for commercial use a 1,500 sq. m. portion of its school. The school actually, directly, and exclusively
used the rents for the maintenance of its school buildings, including payment of janitorial services. Is the
leased portion subject to real property tax?
65 The head priest of the religious sect Tres Personas Solo Dios, as the corporation sole, rented out a
5,000 sq. m. lot registered in its name for use as school site of a school organized for profit. The sect used the
rentals for the support and upkeep of its priests. The rented lot is
a. not exempt from real property taxes because the user is organized for profit.
b. exempt from real property taxes since it is actually, directly, and exclusively used for religious
purposes.
c. not exempt from real property taxes since it is the rents, not the land, that is used for religious
purposes.
d. exempt from real property taxes since it Is actually, directly, and exclusively used for educational
purposes.
66 Apparently the law does not provide for the refund of real property taxes that have been collected as a
result of an erroneous or illegal assessment by the provincial or city assessor. What should be done in such
instance to avoid an injustice?
a. Question the legality of the no-refund rule before the Supreme Court.
b. Enact a new ordinance amending the erroneous or illegal assessment to correct the error.
c. Subsequent adjustment in tax computation and the application of the excess payment to future real
property tax liabilities.
d. Pass new ordinance providing for the refund of real property taxes that have been erroneously or
illegally collected.
67 (Bar Exam) Prior to the enactment of the Local Government Code, consumer's cooperatives registered
under the Cooperative Development Act enjoyed exemption from all taxes imposed by a local government.
With the Local Government Code's withdrawal of exemptions, could these cooperatives continue to enjoy such
exemption?
a. Yes, because the Local Government Code, a general law, could not amend a special law such as the
Cooperative Development Act.
b. No, Congress has not by the majority vote of all its members granted exemption to consumers'
cooperatives.
c. No, the exemption has been withdrawn to level the playing field for all taxpayers and preserve the
LGUs. financial position.
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d. Yes, their exemption is specifically mentioned among those not withdrawn by the Local Government
Code.
68 The following Resident Foreign Corporations are subject to preferential tax rates, except:
69 Which of the following entities may be subject to Minimum Corporate Income Tax?
a. Philippine Carriers
b. International Carriers
c. Regional Operating Headquarters
d. Regional or area headquarters
a. Ecozones
b. RHQs/ROHQs of MNCs
c. PEZA registered entities
d. Barangay Micro Business Enterprises (BMBEs)
71 Statement 1: “Services” offered by BMBEs shall exclude those rendered by any one, who is duly
licensed by the government after having passed a government licensure examination. Statement 2: An
enterprise can only qualify for registration as BMBE if it is not a branch, subsidiary, division or office of a large
scale enterprise.
72 Which of the following are the incentives that may be granted to BMBEs?
a. Income tax exemption from income arising from the operations of the enterprise
b. Exemption from the coverage of the Minim Wage Law
c. Technology transfer production and management training and marketing assistance programs for
BMBE beneficiaries
d. All of the above
73 Statement 1: Any person, cooperative, or association owning an enterprise that fits the description of a
BMBE may register for the first time or renew its registration with the Office of the Treasurer of the city or
municipality where the business is located. Statement 2: For BMBEs, registration as a business entity or
enterprise from the appropriate government agency such as SEC, CDA, DTI as well as securing business
permit from city/municipality is still required. Statement 3: Local government units (LGUs) are encouraged to
either reduce the amount of local taxes, fees, and charges imposed or exempt BMBEs from local taxes, fees,
and charges.
74 Statement 2: LGUs shall issue the Certificate of Authority promptly and free of charge. However, to
defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not
exceeding One Thousand Pesos (P1,000.00).
75 The BMBE purposes, the concerned officer shall cancel the registration of a BMBE for the following
cause, except:
76 The _______of each city or municipality shall register BMBEs and issue Certificate of Authority to
enable BMBE to avail of incentives under the BMBE Act
77 One can register as a BMBE if it is a business entity or enterprise, whether operated as a sole
proprietorship or a corporation, partnership, cooperative or association
a. Production of products/commodities
b. Agro-processing
c. Trading and services
d. Professional services
78 For BMBE purposes, the Certificate of Authority shall be affective for a period of _______and
renewable for the same period.
a. 1 year c. 3 years
b. 2 years d. 4 years
79 Dr. Albert Rebosa, a VAT registered ob-gyne specialists, owns a maternity-lying-In clinic. During the
Month his clinic received payment totaling P750,000, broken down as follows: P350,000 as Dr.Rebosa's
professional fee; and P400,000 as payment for the use of his maternity lying-In-clinic facilities. All amounts
given are exclusive of the VAT. His output VAT for the month is
a. P90,000 c. P42,000
b. P48,000 d. P80,357
a. "Adopt a School Program" or "Program" shall refer to a program which allows private entities to
assist a public school in a particular aspect of its educational program within an agreed period.
b. "Public school" shall refer to a government school, whether elementary, secondary, post-secondary
or tertiary, which enters into an Agreement with an adopting private entity concerning assistance to public
schools.
c. "Private entity" shall refer to an individual engaged in trade or business or engaged in the practice of
his profession or other business organizations, like a partnership, corporation or cooperative, either resident or
non-resident, who/which teams up with the Department of Education (DepEd), or with the Commission on
Higher Education (CHED), or with the Technical Education and Skills Development Authority (TESDA),
towards providing much needed assistance and service to public schools.
d. All of the above
81 A pre-qualified adopting private entity, which enters into an Agreement with a public school, shall be
entitled to the following tax incentives:
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a. Deduction from the gross income of the amount of contribution/donation that were actually, directly
and exclusively incurred for the Program in the preceding paragraph, subject to limitations, conditions and
rules set forth in Section 34(H) of the Tax Code, plus an additional amount equivalent to fifty (50%) P of such
contribution/donation.
b. Exemption of the Assistance made by the donor from payment of donor's tax.
c. Both "a" and "b"
d. Neither "a" nor "b"
82 Statement 1: A duly registered and accredited Microfinance NGO under RA 10693 shall pay a two
percent (2%) tax based on its gross receipts from microfinance operations in lieu of all national taxes.
Statement 2: The preferential rate of two percent (2%) tax should only refer to lending activities and insurance
commission which are bundled and forming integral part of the qualified lending activities if the Microfinance
NGO. Statement 3: All microfinance activities other than lending and insurance commission which are bundled
and forming integral part of the qualified lending activities of the Microfinance NGO shall be subject to all
applicable to taxes.
83 Statement 1: Microfinance NGOs are NGOs with the primary purpose of implementing a
microenterprise development strategy and providing microfinance programs, products and services for the
poor. Statement 2: Microfinance NGOs are prohibited from directly engaging in the insurance business
84 As provided by the Tax Code, the chief officials of the BIR shall be composed of:
85 The following are agents and deputies for collection of National Internal Revenue taxes, except:
a. The commissioner of Customs and his subordinates with respect to the collection of national Internal
Revenue Taxes on imported goods.
b. The head of the appropriate government office and his subordinates with respect to the collection of
energy tax.
c. Banks duly accredited by the commissioner with respect to receipts of payments of internal revenue
taxes authorized to be made thru banks.
d. City treasurer with regard to collection of real estate tax.
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