QUIZ Module 1 Fundamental Principle of Taxation PDF

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Module 1Fundamental Principle of TaxationNAME: Fajardo, Ma. Trishia Anne P. Date: 02-08- Professor: Victor Tuco Section: BJAC02 Score:QUIZ 1: True of False1. The three fundamental powers of the state may be exercise only by the government. 2 is a process or means by which the sovereign, through its ...

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Module 1 Fundamental Principle of Taxation NAME:Fa j ar do,Ma .Tr i s hi aAnneP. Pr of es s or : Vi c t orTuc o

Sec t i on: BJ AC02

Da t e:02 08 21 Sc or e:

QUI Z1: Tr ueofFa l s e 1. The three fundamental powers of the state may be exercise only by the government. 2. Taxation is a process or means by which the sovereign, through its lawmaking body raises income to defray the expenses of the government. 3. Eminent domain may be exercise even by public service corporations and public entities. 4. Police power regulates both liberty and property. 5. In the exercise of the power of taxation, the State can tax anything at any time 6. Taxes are raised to cover the cost of governance. 7. Toll is one of the taxes collected by the government. 8. License fees are imposed in the exercise of police power

9. Tax is generally unlimited because it is based on the needs of the State. 10. Special assessment is a tax. 11. Special assessment is imposed on persons, property and property rights.

12.No law granting any tax exemption shall be passed without the concurrence of 2/3 of all members of Congress.13.In case of ambiguity, tax laws ·shall be interpreted liberally in favor of the government. 14.There is no constitutional prohibition against double taxation in the Philippines. It is something not favored, but nevertheless permissible 15.The taxing power of provinces, municipalities and cities precede from a constitutional grant.

1. False 2. True 3. True 4. True

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5. True 6. True 7. False 8. True 9. True 10.False 11.False 12.False 13.False 14.True 15.True

16.

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QUI Z2: Mul t i pl eChoi c e

1. Which of the following statements is incorrect? a. Taxes are the revenues raised in the exercise of the police power of the State. b. One of the special charact ristic of tax .is it is unlimited in amount. . c. The three fundamental powers of the State are Inherent in the State and may be exercised without the need of ny constitutional grant. d. All of the above

2. The State, having sovereignty can enforce contributions (tax) upon its citizens even without a specific provision in the Constitution authorizing it. Which of the following will justify the foregoing statement? a. It is so because the State has the supreme power to command ande nf or c e .obe di e nc et oi t swi l lf r om t hepe opl ewi t hi ni t s j ur i s di c t i on. b. 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. c. Both "a" and "b" d. Neither "a" nor "b" 3. Statement 1: The distinction of a tax from permit or license fee is· that a tax is imposed for regulation. St a t e me nt2 : Nonpa yme ntoft ax doe snotne c e s s a r i l yr e nde ra bus i nes si l l e gal . . a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect

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4. The primary purpose of taxation is to raise revenue for the support of the government. However, taxation is often employed as a devise for regulation by means of which, certain effects or condition envisioned by the government may be achieved such as: a. Taxation may be used to provide incentive to greater production through grant of tax exemptions. b. Taxation can strengthen weak enterprises by creating conditions conducive to their growth through grant of tax exemptions. c. Taxes may be increased in periods of prosperity to curb spending power and halt inflation or lowered in periods of slump to expand business and • ward off depression. d. All of the above · 5. Which of the following statements is correct? a. The purpose of· taxation may also be "compensatory", meaning, it may- be used to make up for the benefit received. b. Taxes may be imposed for the equitable distribution of wealth and · , income in society. C. B ot h" a "and" b" d.Ne i t he r" a "nor" b" 6. Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? a. Power to destroy theory b. Lifeblood theory c. Sumptuary theory d. Symbiotic doctrine

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7. On theoretical basis of taxation, which of the following statements is true? a. People pay taxes which their government uses to expand its powers and territorial domination. b. People demand from their government certain responsibilities and then provide this government with the means to carry them out. c. State needs taxation to exist, while people must support taxation because they need the presence of the state. d. "b" and "c" 8.

Statement 1: The aspects of taxation are shared by the legislative and executive branches of the government. St a t e me nt2: Tax e ss houl dbepr os pe c t i veands houl dnotbegi ve nr e t r oa c t i ve e ffe c tbe c aus et he ya r ebur de ns . a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect

9. Statement 1 : Inherent powers of the State exist independent of the constitution. · St a t e me nt2 :Thet axi ngpowe roft hel oc algove r nme ntuni t spr e c e def r om a c ons t i t ut i onalgr ant . a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 and 2 are true 10. Statement 1: Symbiotic relation is the reason why the government would impose taxes . on the income of resident citizens derived from sources outside the Philippines. St a t e me nt2:J ur i s di c t i oni st her e as onwhyc i t i z e nsmus tpr ovi des uppor tt ot hes t a t es ot he l a t t erc oul dc ont i nuet ogi vepr ot e c t i on.

a. b. c. d.

1. a 2. c

Only statement 1 is correct Only statement 2 is correct Both statements are correct Both statements are incorrect

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3. b 4. d 5. c 6. b 7. c 8. a 9. d 10.d...