Taxation 101 - This is for all the students! Padayon! PDF

Preview

Summary

Taxation The principal purpose of taxation is a. To encourage the growth of home industries through the proper use of tax exemption and tax incentives b. To implement the police power of the state c. The reduce excessive inequalities of wealth d. To raise revenues for government needs The aspects of...

Description

Taxation101 1. The principal purpose of taxation is a. To encourage the growth of home industries through the proper use of tax exemption and tax incentives b. To implement the police power of the state c. The reduce excessive inequalities of wealth d. To raise revenues for government needs 2. The aspects of taxation are a. Legislative in character b. Executive in character c. Shared by the legislative and executive departments d. Judicial in character 3. Taxation as distinguished from police power and power of eminent domain a. Property is taken to promote the general welfare b. May be 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 4. Which of the inherent powers may be exercised even by public service corporation and public entities a. Power of taxation b. Police power c. Power of eminent domain d. A and C 5. Which of the following statements is correct? a. Income tax is an indirect tax b. Our National Internal Revenue Laws are criminal in nature c. The theory of taxation states that the power of taxation is supreme, plenary, unlimited, and comprehensive d. Taxation is subject to inherent and constitution limitations 6. 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 public purpose 7. 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 of tax cannot be delegated to private persons or entities 8. The power to acquire private property upon payment of just compensation for public purpose a. Power of taxation b. Police power c. Power of eminent domain d. Power of love 9. The power to regulate liberty and property to promote the general welfare a. Police power b. Power of taxation c. Power of eminent domain d. Super power rangers 10. 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. Economic consistency

11. The sources of revenue as a whole, should be sufficient to meet the demand of public expenditures a. Fiscal adequacy

b. Equality or theoretical justice

c. Administrative feasibility d. Revenue generation 12. The tax laws must be capable of convenient, just and effective administration a. Fiscal adequacy b. Equality or theoretical justice c. Administrative feasibility d. Psychological compatibility 13. Statement 1 – The point on which a tax is originally imposed is impact of taxation Statement 2 – Police power is superiors to the 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 STATEMENT 1 STATEMENT 2 STATEMENT 3 STATEMENT 4 a. True False False False b.

14.

15.

16.

17.

18.

19.

20.

True

True

False

True

c. True True False False d. False True False False 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. Tall b. Licensed fee c. Taxes d. Assessment Persons or things belongings to the same class be taxed at the same rate a. Simplicity in taxation b. Reciprocity in taxation c. Equality In taxation d. Uniformity in taxation 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 proportions in character d. It is an enforced contribution Special assessment is an enforced proportional contribution from owners of land especially benefited by the 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 It is the privilege of not being imposed a financial obligation to which others are subject a. Tax incentives b. Tax exemption c. Tax amnesty d. Tax credit As the 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 jurisdiction as to the persons, property or occupations to be taxed b. In the absence of constitutional prohibition, the House of Representatives 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, if not restricted by the constitution. d. The sole arbiter of the purpose for which taxes shall be levied is the Commissioner of Internal Revenue (CIR), provided the purpose is public. However, the courts may review the levy of the tax to determine whether or not the purpose is public. Which of the following is a nature of taxation? a. The power is exercised by legislative action b. It is essentially an administrative function

c. It is generally payable in money d. The state can exist without it 21. The use of illegal or fraudulent means to avoid or defeat the payment of tax a. Shifting b. Exemption c. Avoidance d. Evasion 22. The use of legal or permissible means to minimize or avoid taxes a. Shifting b. Exemption c. Avoidance d. Evasion 23. Synonymous to tax evasion a. Tax dodging b. Tax minimization c. Tax exemption d. Tax shield 24. Synonymous of tax avoidance a. Tax dodging b. Tax minimization c. Tax exemption d. Tax evasion 25. In case of doubt, tax statutes are construed a. Strictly against the government and the taxpayer b. Liberally in favor of the government and the taxpayer c. Strictly against the government and liberally in favor of the taxpayer d. Liberally I favor of the government and strictly against the taxpayer 26. In case of doubt, tax exemptions are construed a. Strictly against the government and taxpayer b. Liberally in favor of the government and the taxpayer c. Strictly against the government and liberally in favor of the taxpayer d. Liberally in favor of the government and strictly against the taxpayer 27. In case of conflict between the Tax Code and the Philippine Accounting Standards (PAS) a. PAS shall prevail over the Tax Code b. Tax Code shall prevail over PAS c. Pas and Tax Code shall be both disregarded d. The taxpayer may choose between the PAS or the Tax Code 28. Tax of a fixed amount imposed upon all persons residing within a specified territory without regard to their property, income, or occupation they may be engaged in a. Personal, poll or capitation b. Property c. Excise d. Regressive 29. Tax imposed on personal or real property in proportion to its value or on some other reasonable method of apportionment a. Personal, poll or capitation b. Property c. Excise d. Regressive 30. Tax imposed upon the performance of an act, the enjoyment of privilege or the engaging in an occupation a. Personal, poll or capitation b. Property c. Excise d. Progressive 31. Tax which is demanded from the persons whom the law intends or desires to pay it a. Direct b. Indirect

c. Excise d. Income

32. Tax which is demanded from one person the expectation and intension that he shall indemnify himself at the expense of another a. Direct b. Indirect c. Property d. Income 33. Tax which imposes a specific sum by the head or number or by some standard of weight or measurement and which requires no assessment other than a listing or classification of the objects to be taxed. a. Specific b. Ad-valorem c. Excise d. Income 34. Tax of a fixed proportion of the amount or value of the property with respect to which the tax to assesed a. Specific b. Ad-valorem c. Excise d. Percentage 35. Tax based on a fixed percentage of the amount of property, income or other to be taxed a. Proportional b. Progressive c. Regressive d. Indirect 36. Tax where the rate decreases as the tax base increases a. Proportional b. Progressive c. Regressive d. Indirect 37. Tax where the rate increases as the tax base increases a. Proportional b. Progressive c. Regressive d. Indirect 38. Which of the following statements is not correct? a. Tax burdens shall neither be imposed nor presumed to be imposed beyond what the statute expressly and clearly states because tax statutes should be construed strictly against the government b. Tax exemption, tax amnesty condonations and their equivalent provisions are not presumed and, when granted, are strictly construed against the taxpayer because such provisions are highly disfavored by the government c. Exemptions from taxation are highly disfavored in law and he who claims tax exemption must be able to justify his claim or right d. The Bureau of Internal Revenue has the duty and the exclusive power of enacting implementing and interpreting tax laws 39. The strongest of all inherent powers of the state because without it, the government can neither survive nor dispense any of its other powers and function effectively a. Police power b. Power of Eminent Domain c. Power of Taxation d. Power of Greystone 40. This power is superior to the non-impairment clause is broader in application because it is the power to make and implement the laws a. Power of Taxation b. Power of Recall c. Power of Eminent Domain

d. Police Power 41. 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. Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our country c. Taxes may be imposed retroactively by law, but unless so expressed by such law, these taxes must only be imposed prospectively d. Tax laws are either political or penal in nature 42. Which of the following is not a constitutional limitation on the Power of Taxation? a. No person shall be deprived of life, liberty or property without due process of law b. No person shall be denied the equal protection of the law c. No person shall be imprisoned for debt or non-payment of tax d. No law granting any tax exemption shall be passed without the concurrence of a majority of all the members of Congress 43. The distinction of a tax from permit or license fee is that a tax is a. Imposed for regulation b. One which involves an exercise of police power c. One in which there is generally no limit on the amount that may be imposed d. Limited to the cost of regulation 44. Police power as distinguished from the power of eminent domain a. Just compensation is received by the owner of the property b. May be exercised by private individuals c. May regulate both liberty and property d. Property is taken by the government for public purpose 45. A tax wherein both the impact of or the liability for the payment of the tax as well as the burden of the tax fall on the same person a. Direct tax b. VAT c. Indirect tax d. Percentage tax 46. Which one of the following is not a characteristic or element of a tax? a. It is an enforced contribution b. It is legislative in character c. It is based on the ability to pay d. It is payable in money or in kind 47. Tax as distinguished from license fees a. Limited to cover cost of regulation b. A regulatory measure c. Non-payment does not necessarily render the business illegal d. Imposed in the exercise of police power 48. The power to impose taxes is exercised by the a. President b. Supreme Court c. BIR d. Congress 49. One of the characteristics of internal revenue laws is that they are: a. Criminal in nature b. Penal in nature c. Political in nature d. Generally, prospective in application 50. Which of the following in not an example of exercise tax: a. Transfer tax; b. Sales tax c. Real property tax d. Income tax 51. The following are similarities of the inherent power of taxation, eminent domain, and police power, except one: a. Are necessary attributes of sovereignty b. Superior to the non- impairment clause of the constitution

52.

53.

54.

55.

56.

57.

58.

59.

60.

61.

c. Compensation/benefit is received d. Are legislative in character Which of the following statements is not correct? a. Taxes may be imposed to raise revenues or to provide disincentives to 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 to tax; c. For the exercise of the power taxation, the state can tax anything at any time; d. The provisions of taxation in the Philippine Constitution are grants of power enabling the state to impose taxes. License fee as distinguished from tax: a. Non-payment does not necessary render the business illegal; b. A revenue raising measure; c. Imposed in the exercise of taxing power d. Limited to cover cost of regulation Value added tax is an example of a: a. Graduated tax b. Progressive tax c. Regressive tax d. Proportional tax Which tax principle is described in the statement “The more income earned by the taxpayer, the more tax he has to pay.” a. Fiscal adequacy b. Theoretical justice/Equitability c. Administrative feasibility d. Inherent in sovereignty One of the characteristics of a tax is that: a. It is generally based on contact; b. is generally payable in It money; c. It is generally assignable; d. It is generally subject to compensation The following are the characteristics of our internal revenue laws except; a. Political in nature; b. Civil in nature; c. Generally prospective in application d. May operate retrospectively if Congress so provide Which of the following statements is wrong? A revenue bill: a. Must originate from the House of Representative and on which same bill the senate may propose amendments; b. May originate from the Senate and on which same bill the House of Representative may propose amendments; c. May have a House version and a Senate version approved separately, and then consolidated, with both houses approving the consolidation version d. May be recommended by the President to Congress Tax as distinguished from special assessment: a. Not a personal liability of the person assessed b. Based wholly on benefits c. Exceptional as to time and place d. Based on necessity and the purpose is to raise revenues Under the basic principle of a sound tax system, the Government should not incur a deficit: a. Theoretical justice b. Administrative feasibility c. Fiscal adequacy d. Uniformity in taxation Which of the following may not raise money for the government? a. Power of taxation b. Police power c. Power of eminent domain d. License fees...