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TEST BANK-INCOME TAXATIONCHAPTER 1-GENERAL PRINCIPLES AND CONCEPTS OFTAXATIONA CHOICE:1. THE PROCESS BY WHICH THE SOVEREIGN RAISES INCOME TO DEFRAYTHE EXPENSES OF THE GOVERNMENT IS CALLED- (RPCPA)A. SUBSIDYB. TARIFFC. TAXATIOND. TRIBUTE2. ONE OF THE CHARACTERISTICS OF INTERNAL REVENUE TAX IS THATTHE...

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TEST BANK-INCOME TAXATION

CHAPTER 1-GENERAL PRINCIPLES AND CONCEPTS OF TAXATION A.MULTIPLE CHOICE: 1. THE PROCESS BY WHICH THE SOVEREIGN RAISES INCOME TO DEFRAY THE EXPENSES OF THE GOVERNMENT IS CALLED- (RPCPA) A. B. C. D.

SUBSIDY TARIFF TAXATION TRIBUTE

2. ONE OF THE CHARACTERISTICS OF INTERNAL REVENUE TAX IS THAT THEY ARE-(RPCPA) A) B) C) D)

CRIMINAL IN NATURE PENAL IN NATURE POLITICAL IN NATURE GENERALLY PROSPECTIVE IN APPLICATION

3. IN CASE OF CONFLICT BETWEEN THE TAX LAWS AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)-(RPCPA) A) B) C) D)

BOTH TAX LAWS AND GAAP SHALL BE ENFORCED GAAP SHALL PREVAIL OVER TAX LAWS TAX LAWS SHALL PREVAIL OVER GAAP THE ISSUE SHALL BE RESOLVED BY THE COURT

4. WHICH OF THE FOLLOWING HAS NO POWER OF TAXATION?(RPCPA) A) B) C) D)

PROVINCES CITIES BARANGAYS BARRIOS

5. “SCHEDULAR SYSTEM OF INCOME TAXATION” MEANS(RPCPA) A) ALL TYPES OF INCOME ARE ADDED TOGETHER TO ARRIVE AT GROSS INCOME B) SEPARATE GRADUATED RATES ARE IMPOSED ON DIFFERENT TYPES OF INCOME

C) CAPITAL GAINS ARE EXCLUDED IN DETERMINING GROSS INCOME D) COMPENSATION INCOME AND BUSINESS/PROFESSIONAL INCOME ARE ADDED TOGETHER IN ARRIVING AT GROSS INCOME 6. ONE OF THE FOLLOWING IS A PRIMARY PURPOSE OF TAXATION A)PROTECTION OF LOCAL INDUSTRIES AGAINST FOREIGN COMPETITION THROUGH IMPOSITION OF HIGH CUSTOMS DUTIES ON IMPORTED GOODS B)REDUCTION OF INEQUALITIES IN WEALTH AND INCOME BY IMPOSING PROGRESSIVELY HIGHER TAX RATES C) TO SECURE REVENUE FOR THE SUPPORT OF THE GOVERNMENT D) STRENGTHENING OF ANEMIC ENTERPRISES BY GIVING TAX EXEMPTION 7.

WHICH OF THE FOLLOWING IS NOT A SECONDARY PURPOSE OF TAXATION? A) TO SERVE AS KEY INSTRUMENT OF SOCIAL CONTROL B) TO EFFECT A MORE EQUITABLE DISTRIB UTION OF WEALTH AMONG PEOPLE C) TO ACHIEVE SOCIAL AND ECONOMIC STABILITY D) TO RAISE REVENUE TO DEFRAY THE NECESSARY EXPENSE OF THE GOVERNMENT

8.

WHICH IS THE BEST ANSWER? A TAX REFORM AT ANY GIVEN TIME UNDERSCORES THE FACT THAT-(RPCPA) A) B) C) D)

9.

THE LEGISLATIVE BODY CAN IMPOSE A TAX AT ANY AMOUNT UNDERSCORES THE LEGAL DICTUM THAT TAXATION IS – (RPCPA) A) B) C) D)

10.

TAXATION IS AN INHERENT POWER OF THE STATE TAXATION IS ESSENTIALLY A LEGISLATIVE POWER TAXATION IS A POWER THAT IS VERY BROAD THE STATE CAN AND SHOULD ADOPT PROGRESSIVE TAXATION

AN INHERENT POWER OF THE TAX A VERY BROAD POWER OF THE STATE ESSENTIALLY A LEGISLATIVE POWER FOR PUBLIC PURPOSE

ALL OF THE FOLLOWING, EXCEPT ONE, ARE BASIC

PRINCIPLES OF THE SOUND TAX SYSTEM A) B) C) D)

FISCAL ADEQUACY THEORETICAL JUSTICE ADMINISTRATIVE FEASIBILITY INHERENT IN SOVEREIGNTY

11. UNDER THIS BASIC PRINCIPLE OF SOUND TAX SYSTEM, THE GOVERNMENT SHOULD NOT INCUR A DEFICIT-(RPCPA) A) B) C) D)

THEORETICAL JUSTICE ADMINISTRATIVE FEASIBILITY FISCAL ADEQUACY NONE OF THE ABOVE

12. THE FOLLOWING, EXCEPT ONE, ARE BASIC PRINCIPLES OF A SOUND TAX SYSTEM A) IT SHOULD BE CAPABLE OF BEING EFFECTIVELY ENFORCED B) IT MUST BE PROGRESSIVE C) SOURCES OF REVENUE MUST BE SUFFICIENT TO MEET GOVERNMENT EXPENDITURES AND OTHER PUBLIC NEEDS D) IT SHOULD BE EXERCISED TO PROMOTE PUBLIC WELFARE 13. WHICH OF THE FOLLOWING IS NOT ONE OF THE CANONS OF A SOUND TAX SYSTEM? A) B) C) D)

QUANTIFIABILITY EQUALITY CERTAINTY CONVENIENCE

14. THE POWER OF TAXATION CAN ONLY BE EXERCISED BY THE LAWMAKING BODY A) B) C) D) 15.

SUBJECT TO CONSTITUTIONAL AND INHERENT LIMITATIONS EQUALITY OR THEORETICAL JUSTICE LEGISLATIVE IN CHARACTER INHERENT IN SOVEREIGNTY THE PRESIDENT OF THE PHILIPPINES AND THE PRIME MINISTER OF JAPAN ENTERED INTO AN EXECUTIVE AGREEMENTIN RESPECT OF A LOAN FACILITY TO THE PHILIPPINES FROM JAPAN WHEREBY IT WAS STIPULATED THAT INTEREST ON LOANS GRANTED BY PRIVATE

JAPANESE FINANCIAL INSTITUTIONS IN THE PHILIPPINES SHALL NOT BE SUBJECT TO PHILIPPINE INCOME TAXES. WHAT BASIC CHARACTERISTIC OF TAXATION HAS BEEN VIOLATED BY THIS AGREEMENT? A) B) C) D)

INHERENT LIMITATION THEORETICAL JUSTICE LEGISLATIVE IN CHARACTER ADMINISTRATIVE FEASIBILITY A F AY

RM

AL RE AL

RY HE

N ON OF

A) B) C) D)

FALSE, FALSE FALSE, TRUE TRUE, TRUE TRUE, FALSE

18. THOSE RESTRICTIONS ON THE EXERCISE OF THE POWER OF TAXATION THAT AREW FOUND IN THE CONSTITUTION OR IMPLIED FROM ITS PROVISIONS A) THEORETICAL JUSTICE

B) LEGISLATIVE IN CHARACTER C) INHERENT LIMITATIONS D) CONSTITUTIONAL LIMITATIONS 19. WHICH OF THE FOLLOWING STATEMENTS IS NOT CORRECT?-(RPCPA) A) TAXES MAY BE IMPOSED TO RAISE REVENUE 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 NECESSARILY GIVE IT THE POWER TO TAX C) FOR THE EXERCISE OF THE POWER OF TAXATION, THE STATE CANJ TAX ANYTHING AT ANY TIME D) THE POWER OF TAXATION IN THE PHILIPPINE CONSTITUTION ARE GRANTS OF POWER AND NOT LIMITATIONS ON TAXING POWERS 20. ONE EXE A) B) C) D)

INT DOU NON TER

21. THE OCC THE CHA DIS AFF A B C

D

22. TRE MA

S NOT AN INHERENT LIMITATION ON THE F TAXATION-

LEGISLATIVE POWER TO TAX

SSED AN ORDINANCE IMPOSING AN IRCONDITIONING TECHNICIAN. CONDE IS SUCH OCCUPATION IN THE CITY. HE DITY OF THE ORDINANCE AS BEING HE IS THE ONLY ONE ADVERSELY

CONDE IS TENABLE UNCONSTITUTIONAL BECAUSE CONDE IS TO EQUAL PROTECTION OF LAW CONDE IS NOT JUSTIFIED BECAUSE THE Y IS NOT VIOLATED CONSIDERING THAT RDINANCE WOULD ALSO IMPOSE ON ALL CHNICIAN WHO MAY COME WITHIN THE CITY ITY OR INVALIDITY OF THE ORDINANCE E RE SIMILARLY SITUATED IN THE SAME

A) UNIFORMITY OF TAXATION B) EQUALITY OF TAXATION

C) DUE PROCESS OF LAW D) NON-DELEGATION OF LEGISLATIVE POWER 23. WHICH OF THE FOLLOWING IS VIOLATIVE OF THE UNIFORMITY RULE IN TAXATION? A) DIFFERENT TAX RATES ON BOARDING STABLES FOR RACEHORSES AND BOARDING HORSES THAT ARE NOT FOR RACING B) WHOLESALE DEALERS IN OIL ARE SUBJECT TO OCCUPATION TAX WHILE WHOLESALE DEALERS IN OTHER ARTICLES SCU AS SUGAR, BACON, COAL, IRON AND OTHER THINGS ARE NOT SO SUBJECT C) A ROAD USERS’ TAX IMPOSED ON ALL MOTOR VEHICLES REGISTERED AND OPERATING IN THE CITY OF MANILA BUT DOES NOT SUBJECT VEHICLES NOT REGISTERED THEREIN BUT ALSO OPERATING TEMPORARILY IN SAID CITY D) A TAX OF P2 PER SQM OR FRACTION THEREOF IS IMPSED ON EVERY BILLBOARD OR SIGN ANYWHERE IN THE COUNTRY

WHICH PORTION IS SUBJECT TO REAL PROPERTY TAX? A) B) C) D)

I ONLY I AND II III AND IV I, III AND IV

USE IN ITS COMPUTER COURSES. WHICH OF THE FOLLOWING QUESTIONS IS ANSWERABLE BY “YES.”?

A) IS SBC SUBJECT TO REAL ESTATE TAX ON THE ½ PORTION TO BE REN B) WIL MAR C) WIL TAX OPE D) WIL IMP 28. THE EDUCATI SECONDA ACCREDI WHICH O TAX? A) THE CUS B) THE PRO C) A P FAS D) THE 29. IN RE A NO OF T A) B) C) D)

30. THE MUNICIPALITY OF SAN FRANCISCO HAS A 10HECTARE CEMETERY OF 4 DIFFRRENT CEMETERIES WHICH ARE OWNED BY DIFFERENT ENTITIES. WHICH OF THE FOLLOWING IS SUBJECT TO REAL ESTATE TAX? A) CEMENTERIO MUNICIPAL DEL SAN FRANCISCO-A GOV’T CEMETERY OWNED BY THE MUNICIPALITY WHICH WAS

ESTABLISHED FOR THE PURPOSE OF USING IT AS BURIAL GROUND OF THE PAUPERS OF SAN FRANCISCO B) SAN FRANCISCO CATHOLIC CEMETERY-OWNED BY THE CATHOLIC CHURCH; PAYMENTS ARE REMITTED TO THE CATHOLIC CHURCH AND FOR THE IMPROVEMENT OF THE CEMETERY

C) SENATE D) SUPREME COURT 32 WHICH STATEMENT IS WRONG? TAX LAWS-(RPCPA) A) MUST ORIGINATE FROM THE HOUSE OF REPRESENTATIVES AND ON WHICH SAME BILL THE SENATE MAY PROPOSE AMENDMENTS B) MAY ORIGINATE FROM THE SENATE AND ON WHICH SAME BILL THE HOUSE OF REPRESENTATIVES MAY PROPOSE AMENDMENTS C) MAY HAVE A HOUSE VERSION AND SENATE VERSION APPROVED SEPARATELY D) MAY BE RECOMMENDED BY THE PRESIDENT TO CONGFRESS 33.CONGRESSMAN ERIN TANADA OF QUEZON AND SENATOR JUAN PONCE ENRILE SPONSORED A BILL IN THE HOUSE OF REPRESENTATIVES AND THE SENATE, RESPECTIVELY, INCREASING THE PERSONAL EXEMPTIONS OF INDIVIDUAL TAXPAYERS AS WELL AS GRANTING TAX EXEMPTION TO MINIMUM WAGE EARNERS. WHICH OF THE FOLLOWING IS CORRECT? A) THE SENATE BILL SHOULD BE DISCUSSED AHEAD OF THE HOUSE BILL B) THE SENATE AND HOUSE BILLS MAY BE DISCUSSED AT THE SAME TIME IN BOTH HOUSES

C) THE HOUSE BILL SHOULD BE DISCUSSED AHEAD NOF THE SENATE BILL D) NO PRIORITY; EACH BILL CAN BE DISCUSSED AHEAD OF THE OTHER 34.NO LAW GRANTING ANY TAX EXEMPTION SHALL BE PASSED WITHOUT THE CONCURRENCE OF-(RPCPA) A) B) C) D)

MAJORITY OF ALL MEMBERS OF THE CONGRESS 2/3 VOTE OF ALL MEMBERS OF THE CONGRESS ¾ VOTE OF ALL MEMBERS OF THE CONGRESS UNANIMOUS VOTE OF ALL MEMBERS OF THE CONGRESS

35.WHICH OF THE FOLLOWING STATEMENTS IS INCORRECT? A) NO PERSON SHALL BE IMPRISONED FOR NON-PAYMENT OF DEBT OR NON-PAYMENT OF TAXES B) THE PASSAGE OF LAWS GRANTING TAX EXEMPTIONS REQUIRES THE CONCURRENCE BY A MAJORITY OF ALL THE MEMBERS OF CONGRESS C) THE SUPREME COURT’S JURISDICTION OVER TAX CASES CAN NOT BE IMPAIRED D) THE REVENUES AND ASSETS OF NON-STOCK, NON-PROFIT EDUCATIONAL INSTITUTIONS AND DONATIONS FFOR EDUCATIONAL PURPOSES ARE EXEMPTED FROM TAXES AND DUTIES 36.THEY RESTRICT THE EXERCISE OF THE POWER OF TAXATION ALTHOUGH THEY ARE NOT EMBODIED IN THE CONSTITUTION A) B) C) D)

THEORETICAL JUSTICE LEGISLATIVE IN CHARACTER INHERENT LIMITATIONS CONSTUTIONAL LIMITATIONS

37. A TAX MUST BE IMPOSED FOR PUBLIC PURPOSE. WHICH OF THE FOLLOWING IS NOT A PUBLIC PURPOSE?-(RPCPA) A) B) C) D)

NATIONAL DEFENSE PUBLIC EDUCATION IMPROVEMENT OF SUGAR INDUSTRY NONE OF THE ABOVE

38. A FUNDAMENTAL RULE IN TAXATION IS THAT “THE PROPERTY OF ONE COUNTRY MAY NOT BE TAXED BY ANOTHER COUNTRY”. THIS IS KNOWN AS-(RPCPA) A) B) C) D)

INTERNATIONAL LAW INTERNATIONAL COMITY RECIPROCITY INTERNATIONAL INHIBITION

39.QUESTION 1: CAN THE STATE TAX THE ARMED FORCES OF THE PHILIPPINES? QUESTION 2: ARE GOVERNMENT-OWNED CORPORATIONS SUBJECT TO TAX?

AND

CONTROLLED

A)YES, NO B)YES, YES C)NO, YES D)NO, NO 40 DIPLOMATIC OFFICIALS SUCH AS HEADS OF STATES AND AMBASSADORS ARE EXEMPT FROM TAXES AND DUTIES BECAUSE OF A) B) C) D)

INTERNATIONAL COMITY RECIPROCITY PROVISIONS PRINCIPLE OF TERRITORIALITY EXEMPTION IN THE TAX CODE

41. DEALS WITH THE PROVISION OF THE LAW WHICH DETERMINES THE PERSON OR PROPERTY TO BE TAXED, THE SUM OR SUMS TO BE RAISED, THE RATE THEREOF, AND THE TIME AND MANNER OF LEVYINGM RECEIVING AND COLLECTING OF TAXES A) B) C) D)

COLLECTION PAYMENT ENFORCED CONTRIBUTION LEVY

42. CONSTITUTED OF THE PROVISIONS OF LAW WHICH PRESCRIBE THE MANNER OF ENFORCING THE OBLIGATION ON THE PART OF THOSE TAXED TO PAY THE DEMAND THUS CREATED COLLECTION A) B) C) D)

PROPORTIONATE IN CHARACTER ENFORCED CONTRIBUTION LEVY 43.THE AMOUNT REQUIRED IS DICTATED BY THE NEEDS OF THE GOVERNMENT-(RPCPA) A) B) C) D)

LICENSE FEE TAX TOLL TARIFF

44. ONE OF THE CHARACTERISTICS OF A TAX IS A) A TAX IS A PECUNIARY BURDEN AND THE LAW MAY NOT ALLOW PAYMENT IN KIND B) IT IS DEPENDENT UPON THE WILL OR CONTRACTUAL ASSENT, EXPRESS OR IMPLIED, OF THE PERSON TAXED C) IT IS LEVIED BY THE STATE BY VIRTUE OF ITS SOVEREIGNTY D) IT IS COLLECTED FOR PUBLIC AND PRIV ATE PURPOSE 45. ONE OF THE CHARACTERISTICS OF A TAX IS THAT-(RPCPA) A) B) C) D)

IT IS GENERALLY BASED ON CONTRACT IT IS GENERALLY PAYABLE IN MONEY IT IS GENERALLY ASSIGNABLE OPTIONAL

46. WHICH IS NOT AN ESSENTIAL CHARACTERISTIC OF TAX?-(RPCPA) A) B) C) D)

UNLIMITED AS TO AMOUNT PAYABLE IN MONEY PROPORTIONATE IN CHARACTER REGULAR IN PAYMENT

47. NO PERSON SHALL BE IMPRISONED FOR NON-PAYMENT OF-(RPCPA) A) B) C) D)

PROPERTY TAX EXCISE TAX POLL TAX INCOME TAX

48. AN EXAMPLE OF A PROPERTY TAX IS A) ADDITIONAL COMMUNITY TAX ON INCOME OF REAL PROPERTIES

B) REAL ESTATE TAX ON REAL PROPERTIES C) ESTATE TAX ON INHERITED PERSONAL AS WELL AS REAL PROPERTIES D) DONOR’S TAX ON DONATION OF PROPERTY 49. WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF EXCISE TAX? A) B) C) D)

TRANSFER TAX SALES TAX REAL PROPERTY TAX INCOME TAX

50. SHARON, A CPA HAS JUST OBTAINED HER CPA LICENSE. BEFORE SHE CAN LAWFULLY PURSUE HER OCCUPATION, SHE SHOULD PAY(RPCPA) A) B) C) D)

PRIVILEGE TAX(PTR) PERCENTAGE TAX CPA’S INCOME TAX VALUE-ADDED TAX

51. A TAX THAT IS IMPOSED UPON A PERSON WHO IS DIRECTLY BOUND TO PAY ITA) B) C) D)

DIRECT TAX INDIRECT TAX EXCISE TAX POLL TAX

52. ONE IS NOT A DIRECT TAX-(RPCPA) A) B) C) D)

IMMIGRATION TAX TRANSFER TAX INCOME TAX CONTRACTOR’S TAX

53.THE BASIC COMMUNITY TAX OF P5.00 OF AN INDIVIDUAL IS A(AN)\ A) PROPERTY TAX B) DIRECT TAX C) NATIONAL TAX D) AD VALOREM TAX 54. STATEMENT 1: THE VALUE-ADDED TAX IS A PROPERTRY TAX A) B) C) D)

STATEMENT 2: THE ESTATE TAX IS A DIRECT TAX-(RPCPA) THE 2 STATEMENTS ARE CORRECT THE 2 STATEMENTS ARE WRONG STATEMENT 1 IS CORRECT; STATEMENT 2 IS WRONG STATEMENT 1 IS WRONG; STATEMENT 2 IS CORRECT 55.FORMS PART OF THE PURCHASE PRICE OF THE COMMODITY OR SERVICE AND PASSED ON TO CUSTOMERS A) B) C) D)

DIRECT TAX INDIRECT TAX PROPERTY TAX NONE OF THE ABOVE

56. A TAX ON BUSINESS IS-(RPCPA) A) B) C) D)

DIRECT TAX INDIRECT TAX PROPERTY TAX NONE OF THE ABOVE

57. FELIX IS A MINING OPERATOR. HIS MINERAL LANDS ARE NOT COVERED BY ANY LEASE CONTRACT. THE TAX FELIX HAS TO PAY BASED ON THE ACTUAL VALUE OF THE GROSS OUTPUT OR MINERAL PRODUCTS EXTRACTED IS-(RPCPA) A) B) C) D)

MINING TAX ROYALTIES RENTAL AD VALOREM TAX

58.TAX THAT IS IMPOSED SOLELY TO RAISE REVENUE FOR GOV’T EXPENDITURES A) B) C) D)

REVENUE TAX REGULATORY TAX SPECIFIC TAX AD VALOREM TAX

59.TAX LEVIED FOR PARTICULAR OR SPECIFIC PURPOSE IRRESPECTIVE OF WHETHER REVENUE IS ACTUALLY RAISED OR NOT A) REVENUE TAX B) REGULATORY TAX

C) SPECIFIC TAX D) AD VALOREM TAX 60..TAX IMPOSED BY THE NATIONAL GOVERNMENT AND IS EFFECTIVE WITHIN THE ENTIRE JURISDICTION THEREOF A) B) C) D)

NATIONAL TAX LOCAL TAX PROPORTIONAL TAX GENERAL TAX

61. TAXES IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE AND IS EFFECTIVE ONLY WITHIN THE TERRITORIAL BOUNDARIES THEREOF A) B) C) D)

NATIONAL TAX LOCAL TAX PROGRESSIVE TAX REGRESSIVE TAX

62.THE FOLLOWING ARE KINDS OF TAXES AS TO GRDUATION. WHICH ONE IS NOT?-(RPCPA) A) B) C) D)

DIGRESSIVE UNIFORM REGRESSIVE PROGRESSIVE

63.THE POWER OF THE STATE OR THOSE TO WHOM THE POWER HAS BEEN DELEGATED TO TAKE PRIVATE PROPERTY FOR PUBLIC USE UPON PAYING TO THE OWNER A JUST COMPENSATION A) B) C) D)

POWER OF EMINENT DOMAIN POLICE POWER POWER OF TAXATION PEOPLE POWER

64.THERE CAN BE CLASSIFICATION OF THE SUBJECT MATTER BEING REQUIRED TO SHOULDER THE BURDEN. WHICH IS THE EXCEPTION?(RPCPA) A) TAX B) LICENSE FEE C) TOLL A) B) C) D)

D) EMINENT DOMAIN 65.THE POWER OF THE STATE TO ENACT SUCH LAWS IN RELATION TO PERSONS AND PROPERTY AS MAY PROMOTE PUBLIC HEALTH, PUBLIC MORALS, PUBLIC SAFETY, AND THE GENERAL WELFARE OF THE PEOPLE\ POWER OF EMINENT DOMAIN POLICE POWER POWER OF TAXATION PEOPLE POWER 66. THE FOLLOWING ARE SIMILARITIES OF THE INHERENT POWER OF TAXATION, EMINENT DOMAIN AND POLICE POWER EXCEPT ONE-(RPCPA) A) B) C) D)

ARE NECESSARY ATTRIBUTES OF SOVEREIGNTY INTERFERES WITH PRIVATE RIGHTS AND PROPERTY AFFECTS ALL PERSONS OR THE PUBLIC ARE LEGISLATIVE IN THEIR IMPLEMENTATION

67. WHICH STATEMENT REFERS TO POLICE POWER AS DISTINGUISHED FROM TAXATION?-(RPCPA) A) IT CAN ONLY BE IMPOSED ON SPECIFIC PROPERTY OR PROPERTIES B) THE AMOUNT IMPOSED DEPENDS ON WHETHER THE ACTIVITY IS USEFUL OR NOT C) IT INVOLVES THE TAKING OF PROPERTY BY THE GOVERNMENT D) THE AMOUNT IMPOSED HAS NO LIMIT 68.POLICE POWER AS DISTINGUISHED FROM TAXATION A) B) C) D)

JUST COMPENSATION IS RECEIVED BY THE OWNER OF THE PROPERTY MAYBE EXERCISED BY PRIVATE INDIVIDUALS SUPERIOR TO THE NON-IMPAIRMENT CLAUSE OF THE CONSTITUTION PROPERTY IS TAKEN BY THE GOV’T FOR PUBLIC PURPOSE

69 AFTER HAVING BEEN INFORMED THAT SOME MASSAGE PARLORS ARE BEING USED AS FRONTS FOR PROSTITUTION, THE SANGGUNIANG PANLUNGSOD OF MANILA PASSED A TAX ORDINANCE SUBJECTING MASSAGE PARLORS WITHIN ITS JURISDICTION TO SUCH ONEROUS TAXES THAT LEAVE THEM NO OTHER ALTERNATIVE BUT TO STOP OPERATING. THE PASSAGE OF THE ORDINANCE IS A VALID EXERCISE OFA) TAXATION B) EMINENT DOMAIN C) POLICE POWER

D) POLICE POWER AND POWER OF TAXATION 70. STATEMENT 1: THE CONGRESS CAN ENACT TAX LAWS EVEN IN THE ABSENCE OF A CONSTITUTIONAL PROVISION GRANTING SAID BODY THE POWER TO TAX. STATEMENT 2: A TAX MAY BE VALIDLY IMPOSED IN THE EXERCISE OF POLICE POWER AND NOT THE POWER TO TAX.

A) B) C) D)

A) B) C) D)

FALSE, FALSE FALSE, TRUE TRUE, TRUE TRUE, FALSE

71. WHICH OF THE FOLLOWING MAY NOT RAISE MONEY FOR THE GOVERNMENT-(RPCPA) A) B) C) D)

POWER OF TAXATION POLICE POWER POWER OF EMINENT DOMAIN PRIVATIZATION OF GOVERNMENT’S CAPITAL ASSETS

72. IN THIS POWER OF THE STATE, THE PERSON WHO IS PARTING WITH HIS MONEY OR PROPERTY IS PRESUMED TO RECEIVE A BENEFIT-(RPCPA) A) B) C) D)

TAXATION POLICE POWER EMINENT DOMAIN FORFEITURE POWER

73. WHICH OF THE INHERENT POWERS OF THE GOVERNMENT IS INFERIOR TO THE NON-IMPAIRMENT CLAUSE OF THE CONSTITUTION? A) B) C) D)

TAXATION POLICE POWER EMINENT DOMAIN NONE

74. TAX IS DISTINGUISHED FROM LICENSE FEE-(RPCPA) A) NON-PAYMENT DOES NOT NECESSARILY RENDER THE BUSINESS ILLEGAL B) A REGULATORY MEASURE C) IMPOSED IN THE EXERCISE OF POLICE POWER D) LIMITED TO COVER COST OF OBLIGATION 75. THE DISTINCTION OF A TAX FROM PERMIT OR LICENSE FEE IS THAT A TAX IS-(RPCPA) A) IMPOSED FOR REGULATION B) ONE WHICH INVOLVES EXERCISE OF POLICE POWER C) ONE IN WHICH THERE IS GENERALLY NO LIMIT ON THE AMOUNT THAT MAY BE IMPOSED D) ANSWER IS NOT GIVEN

76. WHICH OF THE FOLLOWING TERMS DESCRIBES THIS STATEMENT “THAT THE STATE HAS COMPLETE DISCRETION ON THE AMOUNT TO BE IMPOSED AFTER DISTINGUISHING BETWEEN A USEFUL AND NON-USEFUL ACTIVITY?”-(RPCPA) A) B) C) D)

TAX LICENSE FEE TOLL CUSTOMS DUTY

77. WHICH OF THE FOLLOWING IS NOT A DISTINCTION OR SIMILARITY OF LICENSE FEE FROM TAX?-(RPCPA) A) B) C) D)

IMPOSED NFOR REGULATION INVOLVES EXERCISE OF POLICE POWER NON-PAYMENT MAKES THE BUSINESS ILLEGAL LEGAL COMPENSATION OR REWARD OF AN OFFICER FOR SERVICES

78. ALL OF THE FOLLOWING, EXCEPT ONE, ARE CHARACTERISTICS OF A TOLL A) B) C) D)

DEMAND OF PROPRIETORSHIP COMPENSATION FOR THE USE OF ANOTHER’S PROPERTY MAY BE IMPOSED BY PRIVATE INDIVIDUALS LEVIED FOR THE SUPPORT OF THE GOVERNMENT

79. THIS IS A DEMAND OF OWNERSHIP-(RPCPA) A) B) C) D)

LICENSE FEE TAX TOLL FRANCHISE

80. ONE OF THE FOLLOWING IS NOT A CHARACTERISTIC OF A SPECIAL ASSESSMENT A) IT HAS SPECIAL APPLICATION ONLY TO A PARTICULAR TIME AND PLACE B) IT IS LEVIED ONLY ON LAND C) MAY BE LEVIED ON BUSINESS D) BASED WHOLLY ON BENEFITS 81. WHICH STATEMENT IS WRONG?-(RPCPA) A) A TAX IS A DEMAND OF SOVEREIGNTY

B) A TOLL IS A DEMAND OF OWNERSHIP C) A SPECIAL ASSESSMENT IS A TAX D) CUSTOMS DUTY IS A TAX 82.WHICH OF THE FOLLOWING IS NOT A CHARACTERISTIC OF DEBT? A) B) C) D)

GENERALLY ARISES FROM CONTRACT PAYABLE ONLY IN MONEY ASSIGNABLE IMPRISONMENT IS NOT A SANCTION FOR NON-PAYMENT

83. ALL FUNDS OR INCOME DERIVED BY THE GOVERNMENT FROM ANY OTHER SOURC E A) B) C) D)

TAX CUSTOMS DUTY REVENUE ORDINARY INCOME

84. IT COMPRISES ALL KINDS OF FUNDS INCLUDING TAXES-(RPCPA) A) B) C) D)

LICENSE FEE INCOME CUSTOMS DUTY REVENUE

85.WHICH OF THE FOLLOWING CONSTITUTE OBJECTIONABLE DOUBLE TAXATION?-(RPCPA) A) A LICENSE FEE AND A TAX IMPOSED ON THE SAME BUSINESS ...