Fundamental Principles of Taxation (From Quizlet) PDF

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Fundamental Principles of Taxation Fundamental Principles of Taxation Flashcards | Quizlet 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.

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.

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.

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.

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.

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.

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

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.

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 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.

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

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

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 - 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.

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 - 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 - 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

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 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

D - Basic Principles of a sound tax system, except 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

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

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

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

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 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 - 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 - 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

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

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

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 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

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

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

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 - 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 - 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

Chapter 1: Introduction to Taxation Chapter 1: Introduction to Taxation Flashcards | Quizlet Taxation - is the process by which the sovereign through its law making body imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government police power - it is the power of the state for promoting public welfare by restraining and regulating the use of liberty and property power of taxation - is the power by which the state raises revenue to defray the necesary expenses o the government power of eminent domain - i is the power of the state to acquire private property for public purpose upon payment of just compensation lifeblood theory - the power of taxation proceeds upon the theory that the existence of government is a necessity

court o tax appeals - shall have the authority to grant an injunction to restrain the colection of any national internal revenue tax, fee or charge imposed by the tax code Taxes - are lifeblood o the government. reciprocity theory - the state collects taxes from the subjects of taxtion in order that it may be able to perform the functions of the government. citizens on the other hand, pay taxes in order that they may be secured in the enjoyment o the benefits organized society comprehensive - as tax covers person, businesses, activities, professions, rights, and priveleges unlimited - tax's force is so searching to the extent that the court scarcely vanture to declare that it is subject to any restrictions. plenary - as tax is complete supreme - in so far as the selection of the subject of taxation levying - imposition of the tax which is a legislative act or function assessment - or determination of the correct amount applicable tax collection - is essentially administrative in character. the national agency charged with the function of collecting internal revenue taxes is the BIR National tax - imposed by national government Local tax - imposed by LGU's such as municipal corporations Personal tax - fixed amount imposed upon individual, whether citizens or not, residing within specific territory without regard in their property or the occupaton in whih he may be engaged property tax - tax imposed on property, whether real or personal, inproportion either to its value, or in accordance wih some other reasonable method of apportionment excise tax - tax which does not fall within the clasification of personal or property tax. it is the tax on the exercise of certain rigts and privileges. direct tax - tax which is demanded from the person who shoulders the burden of tax or tax which taxpayer cannot shift to another indiect tax - tax which is demanded from one person in the expectation and intention that he shall indemnify himself at the expense of another. these are taxes whein the incidence of or the liability for the payment of the tax falls on one person but the burden therof can be shifted to another person

specific tax - tax of fixed amount imposed by the head or number, or by some standard of weight or measurement ad valorem tax - tax of fixed proportion of the value o the property with respect to which the tax is assessed primary tax - imposed solely for the general purpose of the government secondary tax - tax imposed for specific purpose proportional tax - based on a fixed percentage of amount of the property, reciepts, or other basis to be taxed progressive tax - the rate of which increases as the tax base or bracket increases regressive tax - tax rate of which decreases as tax rate increases situs of taxation - is the political unit which has jurisdiction to impose a particular tax toll - is a sum of money for the use of something, generally applied to the consideration, whih is paid if the use of a road, bridge or the likes penalty - is a sanction as a punishment for violation of law or acts deem injurious special assessment - is an enforced proportional contribution from owners of lands for special benefits resulting feom public improvements revenue - refers to all the funds or income derived by the government, whether from tax or any other source subsidy - is a pecuniary aid directly granted by the government to individual or private commercial enterprise deemed beneficial to the public permit - is a charge imlosed under the police power of purposes of regulation customs duties - are taxes imposed on goods expirted from or imported into a country direct double taxation - violates the concept of equal protection, uniformity and equitableness of taxation in the constitution shifting - is the transfer of the burden of a tax by the original payer to someone else

transformation - an escape from taxation where the producer or manufacturer pays the tax and endeavor to recoup himself by improving his proces of production thereby turning out his units of products at a lower cost evasion - is the use by the taxpayer of illegal or fraudulent means to defeat or lessen the payment of tax. also known as tax dodging tax avoidance - is the exploitation by the taxpayer of legally permissible alternative tax rates or mathods of assessing taxable property or income in order to avoid or reduce tax liability exemption - is the grant of immunity to particular persons or corporations of a particular class from a tax which persons and corporations generally within the same state or taxing district are obliged to pay conatitutional exemption - immunities from taxation originated from the constitution statutory exemption - immunities from taxation whih emanates from legislation express exemption - expressly granted by statute implied exemption - when particular persons, property, or rights are deemed exempt as they fall outside the scope of the taxing provision itself total exemption - connotes absolute immunity partial exemption - where a collection of a part of the tax is dispensed with amnesty - is the general or intentional overlooking by the state of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law capitalization - the reduction in the sellig price of income producing property by an amount eqal to the capitalized value of future taxes that may be paid by the purchaser taxpayer's suit - it is one brought or filed by the taxpayer arguing the validity of a tax statute and its enactment or the consitutionality of its alleged purpose

Fundamental Principles of Taxation - CH1 Fundamental Principles of Taxation - CH1 Flashcards | Quizlet C. Both statements are correct - The State, having sovereignty can enforce contributions (tax) upon its citizens even without a specific provision in the Constitution authorizing it. Statement 1: It is so because the State has the supreme power to command and enforce obedience to its will from the people within its jurisdiction.

Statement 2: Any provision in the Constitution regarding taxation does not create rights for the sovereignty to have the power to tax but it merely constitutes limitations upon the supremacy of tax power. A. Only statement 1 is correct B. Only statement 2 is correct C. Both statements are correct D. Both statements are incorrect B. The State can exercise the power of taxation only if it is expressly mentioned in the Constitution - The following statements correctly described the power of the State to tax, except A. It is a power inherent in every sovereign state to imposed a charge or burden upon persons, properties, or rights to raise revenues for the use and support of the government and to enable it to discharge its functions. B. The state can exercise the power of taxation only if it is expressly mentioned in the Constitution. C. It passes a legislative undertaking through the enactment of laws by the Congress which will be implemented by the Executive Branch of the government through its Bureau of Internal Revenue to raise revenue for the inhabitants in order to pay the necessary expenses of the government. D. It is a way of collecting and apportioning the cost of government among those who are privileged to enjoy its benefits. A. The power of taxation may be exercised by the government, its political subdivisions, and public utilities - Which statement is wrong? A. The power of taxation may be exercised by the government, its political subdivisions, and public utilities. B. Generally, there is no limit on the amount of tax that may be imposed. C. The money contributed as tax becomes part of the public funds. D. The power of tax is subject to inherent and constitutional limitations D. Power of recall - They exist independent of the constitution being fundamental power of the state, except A. Power of taxation B. Police Power C. Power of eminent domain D. Power of recall B. Only statement 2 is correct - Statement 1: The constitution is the source of the State's taxing power. Statement 2: The police power of the government may be exercised through taxation A. Only statement 1 is correct B. Only statement 2 is correct

C. Both statements are correct D. Both statements are incorrect C. Both statements are correct - Statement 1: The Constitution cannot take away the inherent powers of the State but may only prescribe its limitations Statement 2: No laws are necessary to confer the inherent powers of the State upon any government exercising sovereignty A. Only statement 1 is correct B. Only statement 2 is correct C. Both statements are correct D. Both statements are incorrect A. Power of taxation - The power to demand proportionate contribution from persons and property to defray the necessary expenses of the government A. Power of taxation B. Police Power C. Power of eminent domain D. Power of recall B. Police Power - The power to regulate liberty and property to promote the general welfare A. Power of taxation B. Police Power C. ...