Fundamental Principles of Taxation

D

An escape from taxation where there is a reduction in the price of the taxed object equal to the capitalized value of future taxes which the taxpayer expects to be called upon to pay. A. Shifting C. Transformation B. Exemption D. Capitalization

D

Taxation as distinguished from police power and power of eminent domain. A. Property is taken to promote the general welfare. B. Maybe exercised only by the government. C. Operates upon the whole citizenry. D. There is generally no limit as to the amount that may be imposed.

C

The process or means by which the sovereign, through its law-making body raises income to defray the expenses of the government. A. Toll C. Taxation B. License fee D. Assessment

A

An escape from taxation where the tax burden is transferred by the one on whom the tax is imposed or assessed to another. A. Shifting C. Transformation B. Exemption D. Capitalization

D

A tax must be imposed for public purpose. Which of the following is not a public purpose? A. National defense B. Public education C. Improvement of the sugar and coconut industries. D. Improvement of a subdivision road.

C

A tax system where the greater bulk of the tax revenues is derived by direct taxes. A. Schedular C. Progressive B. Proportional D. Regressive

D

A tax system where the revenues are supplied mostly by indirect taxes. A. Schedular C. Progressive B. Proportional D. Regressive

C

An escape from taxation where the producer or manufacturer pays the tax and endeavors to recoup himself by improving his process of production thereby turning out his units of products at a lower cost. A. Shifting C. Transformation B. Exemption D. Capitalization

D

As to scope of the legislative power to tax, which is not correct? A. Where there are no constitutional restrictions, and provided the subjects are within the territorial jurisdiction of the state, Congress has unlimited discretion as to the persons, property or occupations to be taxed. B. In the absence of any constitutional prohibition, Congress has the right to levy a tax of any amount it sees fit. C. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax, unless restricted by the constitution. D. The sole arbiter of the purpose or which taxes shall be levied is Congress, provided the purpose is public and the courts may not review the levy of the tax to determine whether or not the purpose is public.

D

Basic Principles of a sound tax system, except A. Fiscal adequacy B. Equality or theoretical justice C. Administrative feasibility D. Intellectual sensitivity

C

Enforced proportional contributions from persons and property levied by the state by virtue of its sovereignty for the support of the government and for all public needs. A. Toll C. Taxes B. License fee D. Assessment

B

It is the privilege of not being imposed a financial obligation to which others are subject. A. Tax incentive B. Tax exemption C. Tax amnesty D. Tax credit

B

It literally means "place of taxation"; the country that has the power and jurisdiction to levy and collect the tax. A. Basis of taxation B. Situs of taxation C. Scope of taxation D. Theory of taxation

D

Our National Internal Revenue Laws are A. Political in nature B. Penal in nature C. Criminal in nature D. Civil in nature

D

Persons or things belonging to the same class shall be taxed at the same rate. A Simplicity in taxation B. Reciprocity in taxation C. Equality in taxation D. Uniformity in taxation

B

Special assessment is an enforced proportional contribution from owners of land especially benefited by public improvement. Which one of the following is not considered as one of its characteristics? A. It is levied on land. B. It is based on the government's need of money to support its legitimate objectives. C. It is not a personal liability of the persons assessed. D. It is based solely on the benefit derived by the owners of the land.

C

Statement 1 - The point on which tax is originally imposed is impact of taxation. Statement 2 - Eminent domain is inferior to non-impairment clause of the constitution. Statement 3 - As a rule, taxes are subject to set-off or compensation. Statement 4 - As a rule, provisions on the validity of tax exemptions are resolved liberally in favor of the taxpayer. A. True, false, false, true B. False, true, true, false C. True, true, false, false D. False, false, true, true

C

Subject to inherent and constitutional limitations, the power of taxation is regarded as supreme, plenary, unlimited and comprehensive. limits to contribute A. Basis of taxation B. Situs of taxation C. Scope of taxation D. Theory of taxation

D

The existence of the government is a necessity and that the state has the right to compel all individuals and property within its limits to contribute A. Basis of taxation B. Situs of taxation C. Scope of taxation D. Theory of taxation

D

The following are constitutional limitations, except A. No imprisonment for non-payment of poll tax. B. Non-impairment of the obligation of contracts. C. Rule of uniformity and equity in taxation. D. Exemption from income tax of charitable institutions, cemeteries, churches, personage, or convents appurtenant thereto, as well as all lands, buildings, and improvements actually, directly and exclusively used for religious, charitable, and educational purposes.

D

The following are the nature of taxation, except A. Inherent in sovereignty B. Essentially legislative in character C. Subject to inherent and constitutional limitation D. Subject to approval by the people.

B

The levying or imposition of tax and the collection of the tax are processes which constitute the taxation system. A. Basis of taxation B. Aspects of taxation C. Nature of taxation D. Theory of taxation

C

The power to acquire private property upon payment of just compensation for public purposeA. Power of taxation B. Police power C.Power of imminent domain D. Power of recall

A

The power to demand proportionate contributions from persons and property to defray the expenses of the government. A. Power of taxation B. Police power C. Power of imminent domain D. Power of recall

B

The power to regulate liberty and property to promote the general welfare. A. Power of taxation C. Power of imminent domain B. Police power D. Power of recall

A

The reciprocal duties of support and protection between the people and the government. limits to contribute A. Basis of taxation B. Situs of taxation C. Scope of taxation D. Theory of taxation

A

The sources of revenue as a whole, should be sufficient to meet the demands of public expenditures. A. Fiscal adequacy B. Equality or theoretical justice C. Administrative feasibility D. Intellectual sensitivity

B

The tax imposed should be proportionate to the taxpayer's ability to pay. A. Fiscal adequacy B. Equality or theoretical justice C. Administrative feasibility D. Intellectual sensitivity

C

The tax laws must be capable of convenient, just and effective administration. A. Fiscal adequacy B. Equality or theoretical justice C. Administrative feasibility D. Intellectual sensitivity

C

The tax should be proportional to the relative value of the property to be taxed. A Simplicity in taxation B. Reciprocity in taxation C. Equality in taxation D. Uniformity in taxation

D

The use of illegal or fraudulent means to avoid or defeat the payment of tax. A. Exemption C. Avoidance B. Shifting D. Evasion

C

The use of legal or permissible means to minimize or avoid taxes. A. Exemption C. Avoidance B. Shifting D. Evasion

D

They exist independent of the constitution being fundamental powers of the state, except A. Power of taxation C. Power of imminent domain B. Police power D. Power of recall

C

This is a constitutional limitation on the power of taxation. A. Tax laws must be applied within the territorial jurisdiction of the state. B. Exemption of government agencies and instrumentalities from taxation. C. No appropriation of public money for religious purposes. D. Power to tax cannot be delegated to private persons or entities

D

This is an inherent limitation on the power of taxation. A. Rule on uniformity and equity in taxation. B. Due process of law and equal protection of the laws. C. Non-impairment of the jurisdiction of the Supreme Court in tax cases. D. Tax must be for the public purpose.

A

Which is not an essential characteristic of a tax? A. It is unlimited as to amount. B. It is payable in money. C. It is proportionate in character. D. It is an enforced contribution.

A

Which of the following is a nature of taxation? A. The power is granted by legislative action. B. It is essentially an administrative function. C. It is generally payable in money. D. Without it the state can continue to exist

D

Which of the following is not a determinant of the place of taxation? A. Source of the income B. Citizenship of the taxpayer C. Residence of the taxpayer D. Amount of tax to be imposed

C

Which of the following statements is correct? A. The President is authorized to increase or decrease national internal revenue tax rates. B. One of the nature of taxation is the reciprocal duties of protection and support between the state and subjects thereof. C. Every sovereign government has the inherent power to tax. D. Income tax in an indirect tax.

C

Which of the following statements is not correct? A. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation. B. The property of an educational institution operated by a religious order is exempt from property tax, but its income is subject to income tax. C. The prohibition of delegation by the state of the power of taxation will still allow the BIR to modify the rules in time for filing of returns and payment of taxes. D. The power of taxation is shared by the legislative and executive departments of the government.