Which of the following transactions is exempt from the value-added tax?
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Which of the following transactions is exempt from the value-added tax?
O Sale of salted egg by a grocery store.
O Sale of roasted chicken by a restaurant.
O Importation of lumber.
O Prize received by a professional boxer.
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- Which of the following is false regarding consumption and business tax? a. Importations of goods are subject to value-added tax whether the imported goods are to be used in business or not. b. All business taxes are consumption taxes but not all consumption taxes are business taxes. c. Business taxpayers with annual receipts higher than the VAT threshold who registered as VAT taxpayers may switch to a non-VAT registration provided such actual receipts during the year proved to be lower than the threshold. d. A business taxpayer subject to other percentage taxes shall register as a VAT taxpayer if its total sales or receipts exceeds the VAT threshold. e. All of the other choices is correct.RIGHT OR WRONG For taxation purposes, the house and lot as family home of taxpayer is his ordinary asset. When inventory of goods are sold at price lower than cost, the seller has capital loss. When production machine of the business is sold at a mark up on cost, the seller has ordinary business income. When personal valuable necklace of the taxpayer is stolen, the taxpayer has capital loss. Capital gain tax is an income tax. The mark up on the sale of an equipment used in business activities is reportable in 1701 tax return of the sole owner of such business. 7. The sole proprietor sold for P500,000 its inventory with carrying cost of P400,000. The sale will result to BUSINESS INCOME OF 100k CAPITAL GAIN OF 100k BUSINESS INCOME OF 500k CAPITAL GAIN OF 500k 8. The investment in bond was sold by the resident citizen at mark up of P200,000 on carrying cost. If the bond has maturity of 5 years, the mark up on cost is EXEMPT FROM INCOME TAX TAXABLE INCOME BUSINESS INCOME…The Municipality of Buhi enacted an ordinance which imposes occupation tax upon owners of fishponds. The validity of the ordinance is being challenged on the ground that it constitutes double taxation because the fishpond owners are also subject to income tax. Is the ordinance valid?
- Juan is the owner of a "kalesa". He charges fees to customers who would want to ride on his "kalesa" and take a tour around the area. What is the tax implication of this to Juan? A. Operating the "kalesa" is subject to percentage tax on business. B. Operating the "Kalesa" is subject to VAT if the gross annual receipts exceed P3M. C. The transaction is exempt from business tax.Please ignore value added tax (VAT) for the purpose of this question. Lebohang Tsheng is 42 years old and a resident of South Africa. He owns asmall soap business and sells branded soaps to guesthouses and hotels.The Commissioner considers the process of manufacturing soap to besimilar to that of manufacturing for taxation purposes.To maintain high quality standard of his products Lebohang created aStandard Operating Procedure (SOP) document for his business. As part ofhis SOP he assess the efficiency of all his assets formally once every threeyears, and informally whenever the need arises.After concluding his assessments on several assets during the 2020 year ofassessment Lebohang disposed and acquired assets as follows: 1. A machine used to manufacture guest soap was sold for R180 000 on30 October 2019. The second hand machine was originally acquiredon 01 November 2016 for R350 000 and was brought into use in hisprocess of manufacture on the same date. The machine was replacedwith a…An example of a tax where the concept of progressivity finds application is the: tax on certain articles. amusement tax on boxing exhibitions. excise tax on petroleum products. income tax on individuals.
- What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer? Options: i. The transaction shall be subject to VAT, the amount of which forming part to the cost of the purchase. ii. The transaction shall be subject to VAT, the amount of which can be used as an input tax credit. iii. The transaction shall be subject to zero-rated VAT since the buyer is not subject to VAT. iv. The transaction shall not be subject to value-added tax since he is not VAT registered.Which of the following will be considered as tax evasion? Reducing tax by paying gift aid donations Reducing tax by buying an electric car so that first year allowance is claimed By not declaring a source of income and the actual income intentionally By utilizing a loophole in the tax system without violating the tax lawWhich of the following best reflects the ability-to-pay philosophy of taxation? a tax on residential property a progressive income tax an excise tax on gasoline an excise tax on coffee
- -Which of the following should not be claimed as deductions from gross income? * interest payment on loans for the purchase of machinery and equipment used inbusiness. salaries and bonuses paid to employees. discounts given to senior citizens on certain goods and services. advertising expense to maintain some form of goodwill for the taxpayer’s business.Assume that the United States Congress passes a tax law that provides for a "rebate" to taxpayers. One of the goals of the rebate is A. Increase consumer disposable income and expand the economy. B. Increase consumer disposable income and contract the economy. C. Decrease consumer disposable income and expand the economy D. Decrease consumer disposable income and contract the economy.A domestic transportation contractor by land is engaged in the transport of passengers, goods and cargoes. If the transportation contractor is vat-registered , what business taxes is he liable? Group of answer choices 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers. 12% value-added tax; 12% VAT on gross receipts· from transport of goods and cargoes and 3% common carrier's tax on gross receipt from transport of passengers. 3% common carrier's tax;