Principles of Taxation - Quiz 1 PDF

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Power of Taxation is use by the government to acquire private property for publicpurpose. FALSE Taxation includes the power to destroy always. FALSE One of the following is not a valid constitutional limitation on the power of taxation: II. Non impairment of jurisdiction of court of tax appeals in t...

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1. Power of Taxation is use by the government to acquire private property for public purpose. FALSE 2. Taxation includes the power to destroy always. FALSE 3. One of the following is not a valid constitutional limitation on the power of taxation: I. II. III. IV.

Non appropriation for religious purposes Non impairment of jurisdiction of court of tax appeals in tax cases Non imprisonment for nonpayment of poll tax Due process of law and equal protection of law

4. Of the three inherent powers, absence of police power impairs the other powers of the state. FALSE 5. As to subject matter, community tax is; a. Direct tax b. Local tax c. Personal tax d. Advalorem tax 6. Which of the following statements is not correct? a. Taxes maybe imposed to raise revenues or to regulate certain activities within the state; b. The state can have the power of taxation even if the constitution does not expressly give it the power of tax c. For the exercise of the power of taxation, the state can tax anything at any time; d. The provision of taxation in the Philippines constitution are grants of power and not limitations on taxing power. 7. In the exercise of taxation, the state can tax anything at any time and at any amount. TRUE

8. Territoriality is one of the constitutional limitations on the power of taxation. FALSE 9. Taxation and power of Eminent Domain may be exercised simultaneously. FALSE 10. Our tax laws are both d. Personal and regulatory c. Penal and regulatory a. Progressive and prospective b. Civil and prospective 11. Taxes may be used for sectarian purposes also if allowed by an ordinance. FALSE 12. Police Power is to promote private welfare by restraining the use of liberty and property. TRUE 13. Which is not a characteristic of the power of taxation? d. It is subject to limitations found in the 1987 constitution. c. It is subject to inherent limitations a. Power co-exists with the power of the state b. It is absolutely legislative in character 14. One is not among the canons of taxation: a. Fiscal adequacy b. Progressive taxation system c. Administrative feasibility d. Equality in taxation

15. S-1 To be exempt from taxation under the constitution land and building must be exclusively and actually used for religious, educational or charitable purpose, even if not directly. S-2 Exemptions of non-profit schools are only limited to revenue and assets derived from strictly school operations. a. True, true c. False, true b. False, false d. True, false 16. Tax exemptions are strictly construed against the government. FALSE 17. The non-impairment clause is a statutory law on taxation. FALSE 18. All are source of public revenue except; a. Grants and foreign aids c. Commercial revenues d. Taxes and tithes b. Administrative revenues 18. There can be double taxation in the Philippines. TRUE 19. When the tax law is not clear and there is doubt whether taxable or not, the doubt shall be settled against the taxpayer. FALSE 20. Taxation and Police Power may be exercised simultaneously. TRUE 21. S1- Courts can review or inquire in to the wisdom or advisability of a tax under power of judicial review in taxation. S-2 Our constitution does not contain any provision granting tax exemption to the government. c. S1-false, s2-true

a. S1-true, s2-true d. S1-true, s2-false b. S1-false, s2-false 22. Inherent limitations prevail over constitutional ones. TRUE 23. Non-payment of tax makes the business illegal. FALSE 24. One of the following violates the inherent limitation on the power of taxation: a. Supplier of tax supplies for Department of education shifted the VAT making the government an indirect taxpayer of VAT b. A revenue regulation was issued by Department of Finance to amend mistake in a tax law c. Income of US government in the Philippines is not subject to income taxation d. Non-resident citizen abroad are taxable from within only. 25. Which is not a characteristic of state’s power of tax? a. It is based on the taxpayer’s ability to pay and benefits received. b. It is legislative in character c. It is an inherent power d. It is limited by constitutional and inherent limitations 26. Which is incorrect? d. A tax imposed outside the situs of taxation is valid c. No person can be in prisoned for non-payment of capitation tax a. Collection of taxes is an administrative act.

b. There can be no tax if there is no law providing for the said tax 27. Which of the following statement is correct? a. Tax law is still valid when its theory purposes and basis are disregarded d. The power to tax generally includes the power to destroy b. There can be tax exemption solely on the ground of equity c. Levying or imposition of taxes is known as tax administration 28. In case of conflict between the tax code and generally accepted accounting principles (GAAP): a. Both tax codes and GAAP shall be enforced; b. GAAP shall prevail over tax code; c. Tax code shall prevail over GAAP; d. The issue shall be solved by the courts. 29. One of them is not an essential characteristic of tax: a. Generally payable in money b. Mandatory in character c. Proportionate burden d. Imposed on persons or properties 30. The present Philippine Budget deficit is a violation of what principle? a. Administrative feasibility and compliance b. Theoretical justice or equality d. Consistency with economic goods

c. Fiscal adequacy...