MULTIPLE CHOICE

$1.$ Which is not generally subject to regular income tax?

a$.$ Compensation income

c$.$ Professional income

b$.$ Business income

d$.$ Passive income

$2.$ The general rule in income taxation is

a$.$ final income taxation.

c$.$ regular income taxation.

b$.$ capital gains taxation.

d$.$ fringe benefit taxation.

$3.$ Active income is subject to

a$.$ regular tax.

c$.$ final tax.

b$.$ capital gains tax.

d$.$ any of these

$4.$ Question $3$ and $4$ are based on the following:

A$.$ Regular tax

B$.$ Final tax

C$.$ Capital gains tax

Which of the foregoing are passive incomes subject to$?$

a$.$ A only

c$.$ Both $A$ and $B$

b$.$ B only

d$.$ Either A or B

$5.$ Which of the foregoing are capital gains subject to$?$

a$.$ A only

c$.$ Either A or C

b$.$ C only

d$.$ Both $A$ and $C$

$6.$ The net amount of regular income subject to regular tax is called

a$.$ taxable income.

c$.$ net income.

b$.$ compensation income.

d$.$ gross income.

$7.$ What are allowable deductions against gross income?

a$.$ Business expenses

c$.$ Personal expenses by the taxpayer

b$.$ Family support

d$.$ Expenses of employment

$8.$ Deductions are allowed to

a$.$ employed taxpayers.

c$.$ corporate taxpayers only.

b$.$ individual taxpayers only.

d$.$ taxpayers engaged in business.

$9.$ Personal expenses are

a$.$ Non$-$deductible by employed taxpayers.

b$.$ Non$-$deductible by any taxpayer.

c$.$ Deductible by employed taxpayers.

d$.$ Deductible by any individual taxpayers.

$10.$ Which is not a feature of the regular income tax?

a$.$ Net income tax

c$.$ Annual tax

b$.$ Final withholding tax

d$.$ Creditable withholding tax