TAXATION

Basic Principles of Taxation

LECTURE NOTES
ATTY. MACMOD, CPA
BASIC PRINCIPLES OF MODERN TAXATION
A. Define Taxation]

1. As a state power: Taxation refers to the inherent power of a sovereign state

acting through its legislature to impose a proportionate burden upon persons,
property rights or transaction to raise revenue to support government
expenditure and as a tool for general and economic welfare.
2. As a process: Taxation refers to the act of imposing a tax by a sovereign state
to raise revenue for government expenses.
C. Give the NATURE or CHARACTERISTICS of the taxing power

1. It is inherent power of a sovereign state – being inherent in sovereignty, the state

has the power to tax even if not expressly granted by the constitution.

2. It is legislative in character – taxation in generally exercised by the lawmaking body

of a state.

3. It is subject to inherent and constitutional limitations.

D. What is SCOPE of the power of taxation?

In the absence of inherent and constitutional limitations, the power to tax is

comprehensive & unlimited. As a rule, the state thru the congress can tax any
thing at any time and at any amount.

1. Subject matter of the tax.

2. Situs of taxation.
3. Purpose of the tax.
4. Amount or rate of tax
5. Method of collection / Importance of Taxation
 E. Where does the power of taxation proceed from?
It proceeds from the necessity of the existence of the government, and since it
exists for the People, it can compel them to pay taxes.

F. What is the basis of taxation?

The reciprocal obligation of protection and support between the state and its
citizens. In Return for the protection provided by the state, the people pay
taxes. Benefit-Protection Theory

G. Power of judicial REVIEW/ROLE OF COURTS IN TAX CASES (CTA & SC)

Courts cannot inquire into the wisdom of a taxing act. Courts can only review the
legality of the tax based on the constitutional as well as inherent limitations and
other applicable laws.
 H. Sources of tax laws:
1.
2.
3.
4.
5.
I. Construction and application of tax laws
1.

2.
J. What are the three inherent powers of the state?
1.
2.
3.
J-1. Give the similarities and distinctions of Taxation, Police Power and
Power of Eminent Domain.
Three inherent powers of a state:
1. Power of Taxation – refer to letter A
2. Power of Eminent Domain – it refers to the inherent power of a sovereign
state to take private property for public use upon payment of a just
compensation.
3. Police Power – it refers to the inherent power of a sovereign state to enact
laws to promote public health, public safety, public morals and the common
good.
SIMILARITIES:
1. They are indispensable to government existence.
2. They can exist independent of the constitution.
3. They are the means by which the state interferes with private rights and
properties.
4. They are generally exercised by the legislature.
5. They contemplate an equivalent compensation or benefit.
A. What are the forms of avoiding a tax (tax escape)?
1.
2.
3.
4.
5.
 DISTINCTIONS:
Taxation Eminent Domain Police Power
1. As to subject Imposed upon persons, Imposed upon private Imposed upon persons,
property, rights or real properties property, rights or
transaction transaction
2. As to purpose To raise revenue for To acquire private For regulation and
government expenses property for public control
use
3. As to limitation Generally unlimited Limited to the fair Limited to the cost of
value of the expenses license fee and other
of regulation property control
4. As to act involved Taxpayers pays taxes Private property is Enforcement of laws for
taken for public use public welfare and
common good
5. As to benefits Protection & other Person receives a just compensation Protection & other
received by the benefits from the benefits from the
people government government
6. As to relationship Inferior Superior Superior
to non–impairment
clause of the
constitution
L. Enumerate and briefly define the principles/characteristics of a SOUND
TAX SYSTEM
1.
2.
3.
4.
M. What are the limitations on the power of taxation?
1. Inherent limitations – those that restrict the power of taxation even though not provided in the
constitution.
a. Taxes must be for public purpose.
b. Exemption of government agencies and instrumentalities from taxation.
c. Power to tax cannot be delegated to private persons or entities.
d. Tax laws do not apply to properties of foreign government.
e. Tax laws should be applied within the territorial jurisdiction of the state.
f. Double taxation should be avoided.
2. Constitutional limitations – those that limit the power of taxation as embodied in the
constitution.
a. Due process of law in taxation and equal protection of the laws.
b. Rule on uniformity and equity in taxation.
c. No imprisonment for non-payment of poll tax.
Non-impairment of the obligation of contracts.
a. Tax laws should be applied within the territorial jurisdiction of the state.
b. Double taxation should be avoided.
3. Constitutional limitations – those that limit the power of taxation as embodied in the constitution.
a. Due process of law in taxation and equal protection of the laws.
b. Rule on uniformity and equity in taxation.
c. No imprisonment for non-payment of poll tax.
d. Non-impairment of the obligation of contracts.
e. No appropriation of public money for religious purposes.
f. Exemption of religious, charitable, educational entities, non-profit cemeteries and churches from
property taxation.
g. Exemption from taxation of non-stock, non-profit educational institutions and donations for educational
purposes.
h. Concurrence by a majority of the members of Congress for passage of a law granting tax exemption.
i. The power of the President to veto a revenue or tariff bill.
j. Non-impairment of the jurisdiction of Supreme Court in tax cases.
4. Contractual limitations – these are restrictions on the taxing power imposed by previously existing contracts
entered into by the government with another party who may be another state or its own citizens.
N. Give the steps/stages involved under taxation system.
1st : Imposition of taxes
2nd : Collection of taxes
a. Assessment
b. Actual tax collection
c. Enforcement of tax laws/criminal prosecution for wilful violation of tax laws
3rd: Payment of taxes

O. Define TAXES
Taxes are enforced proportional contributions levied by the state for the support of the
government
P. What are the essential characteristics, requisites or elements of a tax?
a.
A. CLASSIFICATION of taxes
1. What are the kinds of taxes as to subject matter?
a. Personal, poll or capitation tax – tax imposed on persons residing within a specific territory.
Example: Basic Community Tax
a. Property tax – tax imposed on property, whether real or personal.
Example: Real estate tax
a. Excise tax – tax imposed on the exercise of a right or privilege. Also called “Privilege tax”
Example: Income tax, estate tax, donor’s tax, etc.,

2. What are the kinds of taxes as to who bears the burden?

a. Direct tax – tax imposed upon a person who is directly bound to pay it; tax which the taxpayer cannot
shift to another.
Example: Income tax, estate tax, donor’s tax
a. Indirect tax – tax which forms part of the purchase price; tax which the taxpayer can shift to another.
Example: Excise tax on certain goods, other percentage taxes, value added tax
3. What are the kinds of taxes as to determination of amount?
a.Specific tax – tax based on weight, number or some other standards of weight or
measurement.
Example: Excise tax on distilled spirits, wines, cinematographic films
a.Advalorem tax – tax imposed based on the value of the taxable item.
Example: Real estate tax
4. What are the kinds of taxes as to purpose?
a.General tax – tax imposed for general purposes of the government.
Example: Income tax, value added tax
a.Specific tax – tax imposed for a special purpose or purposes.
Example: Protective tariff and customs duties,
Special Educational Fund (SEF) Tax,
Special Assessments
5. What are the kinds of taxes as to jurisdiction/scope or authority imposing tax?
a.National tax –tax imposed on a national and for the national government.
Example: National Internal Revenue taxes
a.Local tax – tax imposed on a local level for the support of local governments.
6. What are the kinds of taxes as to graduation or rate?
a.Proportional tax – the tax rate of which is fixed or constant.
Example: Corporate Income Tax, value added tax
a.Progressive tax – the tax rate increases as the taxable amount or tax bracket
increases.
Example: Individual income tax, estate tax, donor’s tax
a.Regressive tax – the tax rate decreases as the taxable amount or tax bracket
increases.
We have no regressive tax in the Philippines.
R. Tax distinguished from OTHER CHARGES and FEES

1. Differentiate tax from toll

TAX TOLL
a. Demand of sovereignty Demand of proprietorship
b. Generally amount is unlimited Amount is limited to the cost and
maintenance of public improvement.
c. For the support of the government For the use of another’s property
d. May be imposed by the State only May be imposed by private individuals or
entities
2. Differentiate tax from special assessment
TAX SPECIAL ASSESSMENT
a.Imposed on persons, property rights Levied only on lands
or transactions
b. For the support of the government Contribution to the cost of public
improvement
c. Regular exaction Exceptional as to time and place
3. Differentiate tax from license fee
TAX LICENSE FEE
a.Imposed to raise revenue For regulation and control
b.Collected under the power Collected under the police power
of government
a.Generally amount is unlimited Limited to the necessary expenses of
regulation and control
a.Imposed on persons, property, Imposed on the exercise of a right or
rights or transaction privilege
a.Non-payment does not make the Non –payment makes the business illegal
business illegal
1. Differentiate tax from penalty
TAX PENALTY
a.Imposed to raise revenue Imposed to regulate conduct
b.May be imposed by the May be imposed by the private entity
State only
 5. Differentiate tax from custom’s duty
TAX CUSTOM’S DUTY
a. Imposed upon persons, property, Imposed on imported or
rights or transactions exported goods
b. It comprehends more than the It is also a tax
term custom’s duty
6. Differentiate tax from debt
TAX DEBT
a. Based on law Based on Contract
b. Not assignable Assignable
c. Payable in money Payable in kind or in money
d. Not subject to set-off Subject to set-off
e. Non-payment may result to No imprisonment (except when
imprisonment debt arises from crime)
f. Bears interest only if Interest depend upon the
delinquent stipulation of the parties.
 7. Differentiate tax from tithe
TAX TITHE
a. Based on law Based on religious obligation
b. Rates vary fixed at 10% of one’s earning
S. Tax Administration
It is a system involving assessment, collection and enforcement of taxes, including the execution
of judgment in all tax cases decided in favor of the BIR by the courts.
T. Powers and duties of the BIR
1. Assessment and collection of all national internal revenue taxes, fees and chargers
2. Enforcement of all forfeitures, penalties and fines connected therewith
3. Execution of judgement in all cases decided in its favor by CTA and ordinary courts
4. Give effect to and administer the supervisory and police power conferred to it by the NIRC
or other laws.

U. Official of the BIR

The BIR shall have a chief to be known as Commissioner of internal revenue and four assistant
chiefs to be known as Deputy Commissioners.
I. GENERAL PRINCIPLES / EXERCISES
A.Identification

_________1. The overall administrative and judicial machinery in the determination and collection
of taxes.
_________2. The laws which enumerate the national taxes and its collection or enforcement.
_________3. A system where the tax increases as the income of the taxpayer increases.
_________4. Any income derived by the government whether from tax or other sources.
_________5. Limitations on the power of taxation not found in the constitution.
_________6. Under this specific limitation, properties of foreign government are exempted
from taxation.
_________7. The theory that justifies the necessity of taxation.
_________8. The theory that emphasizes the relationship between state and its inhabitants.
_________9. The theory under the canons of taxation which emphasizes on the economic
aspect of taxation.
_________10. It also means characteristics of a sound taxation system.
_________11. It means taxes should be based on the taxpayer’s ability to pay and benefits
received.
_________12. It means taxable items of the same class should be taxed at the same rate.
_________13. Refers to the taxes imposed by the legislature other than duties on imports and
exports.
_________14. It refers to the National Internal Revenue Code.
_________15. A taxation system wherein a taxpayer is not entitled to claim any deduction.
_________16. A principle which prohibits the delegation of a taxing power which has already been
delegated.
_________ 17. A form of tax escape by transferring the burden of taxation to another.
_________ 18. A form of tax escape through illegal means.
_________ 19. A form of tax escape through permissible or legal means.
_________ 20. A taxation system wherein all income of a taxpayer are added together less related
deductions and subject to only one or single rate.
 True or False: In each of the following, write:
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.

21. a. A person may refuse to pay a tax on the ground that he receives no personal benefit from it.
b.Any citizen has a legal right to question illegal expenditures of public funds.
22. a. One of the essential characteristics of a tax is it is unlimited in amount..
b. A tax is generally unlimited because it is based on the needs of the state.
23. a. A License Fee is a charge imposed under the power of the taxation.
b. Special assessment is regular exaction.
24. a. Imposition of taxes is the first step in stages of taxation.
b. Collection of taxes is a legislative act.
25. a. A state has the power to tax even if not granted by the Constitution.
b. A state cannot exercise police power if not granted by the Constitution.
26. a. There can only be a tax if there is a law imposing the tax.
b. Non delegation rule is absolute.
27. a. A tax is based on law while debt is based on contract.
b. A tax is also a custom’s duty.
28. a. A person cannot be imprisoned for non-payment of a tax.
b. A tax may be passed violating uniformity of taxation.
29. a. The RDO is known as the alter ego of the BIR Commissioner.
b. The BIR Commissioner is directly under the President’s Office.
30. a. Provisions in the Philippine Constitution on Taxation are grants of power.
b. Due process of law in taxation in the Constitution is a grant of power.
31. a. An excise tax is also called privilege tax.
b. A tax which is neither personal or property is an excise tax.
32. a. The power or jurisdiction of court of tax appeals over tax cases cannot be
impaired.
b. Equal protection clause is a direct limitation on the power of taxation.
33. a. Taxation without representation is tyranny.
b. In the exercise of taxation, the state can tax anything at anytime and at
any amount.
34. a. Taxation and power of Eminent Domain may be exercised simultaneously.
b. Taxation and Police Power may be exercised simultaneously.
35. a. All of our tax laws are statutory laws.
b. The non-impairment clause is a statutory law on taxation.
36. a. Non-payment of tax makes the business illegal.
b. The non-payment of license fee makes the business illegal.
37. a. Margin fee is a tax.
b. Custom’s duty is a tax.
38. a. Territoriality is one of the constitutional limitations on the power of taxation.
b. International comity is an inherent limitation in taxation.
39. a. Taxes may be used for sectarian purposes also if allowed by an ordinance.
b. The President can refuse to implement a tax law if it appears to be unconstitutional.
40. a. There can be double taxation in the Philippines.
b. Inherent limitations prevail over constitutional ones.
41. a. A progressive system of taxation means a tax structure where the tax base decreases as
the tax rate increases.
b. Tax exemption is a grant of immunity to a particular taxpayer from tax where others are
obliged to pay.

42. a. Tax avoidance is a form of tax escape that is illegal.

b. Tax evasion is not punishable.

43. a. Taxation includes the power to destroy always.

b. Taxation can modify an existing contract.

44. a. A tax may be subjected to set-off or compensation.

b. A tax ordinarily includes interest.

45. a. A tax bill normally embraces more than one subject.

b. Tax bills may come from either Senate or Lower House if certified by the President.
C. Multiple Choice: In each of the following, choose the best answer.

46.All are characteristics of the power of taxation, EXCEPT:

a.It is an inherent power.
b.It is a legislative in character.
c.It is civil in character.
d.It is subject to inherent and constitutional limitations.

47.Our tax laws are:

a.Political in nature c. Penal in nature.
b.Civil in nature d. Social in nature.

48.Also known as tax administration

a.Collection of taxes c. Payment of taxes
b.Levying of taxes. d. Incidence of taxation
49. Taxation is an inherent power because:
a.It is the life blood of the government.
b. Protection and benefit theory.
c. It co-exists with the existence of the state.
d. It is exercised for the general welfare of the people.

50. All are essential characteristics of a tax, EXCEPT:

a. It is an enforced contribution.
b. It is generally unlimited in amount.
c. It is generally payable in money.
d. It is a proportionate burden.
51. A tax is invalid in the following cases, EXCEPT:
a.Theory of taxation and its purpose are disregarded.
b.Basis of taxation is not recognized.
c.Inherent and constitutional limitations are not observed.
d.It results to double taxation.

52. All are secondary purposes of taxation, EXCEPT:

a. Sumptuary purpose c. Compensatory purpose
b. Regulatory purpose d. Revenue purpose

53. In the absence of inherent and constitutional limitation, the power of tax is:
a. Comprehensive, unlimited and plenary
b. Unlimited and plenary
c. Broad and penal
d.Unlimited and political
54. All are similarities of taxation, police power, and power of eminent domain, EXCEPT:
a.All are necessary attributes of the Constitution
b.All exist independently of the Constitution
c.All contemplate and equivalent benefit
d.All are superior to the non-impairment clause of the Constitution

55. Below are characteristics of a sound taxation system, EXCEPT:

a.Administrative feasibility and compliance
b.Fiscal Adequacy
c.Theoretical Justice or equality
d.Uniformity of taxation

56. It refers to a fraudulent act of minimizing taxes.

a.Tax avoidance c. Tax minimization
b.Tax evasion d. Multiple taxation
57. One of the following is NOT an inherent limitation:
a.Taxes must be for public purposes
b.Equality in Taxation
c.Territoriality rule
d.Rule on double taxation

58. All of the following are exceptions to the territoriality doctrine which is not?
a.In case of taxation of resident or citizens of the Philippines.
b.If provided under a treaty obligation.
c.In case of International Comity.
d.In case of International organizations.

59. Taxation is equitable in all of the following, EXCEPT:

a.Its burden falls on those better to pay.
b.It is based on ability to pay.
c.It is based on benefits received.
d.It is based on uniformity rule.
57. One of the following is NOT an inherent limitation:
a.Taxes must be for public purposes
b.Equality in Taxation
c.Territoriality rule
d.Rule on double taxation

58. All of the following are exceptions to the territoriality doctrine which is not?
a.In case of taxation of resident or citizens of the Philippines.
b.If provided under a treaty obligation.
c.In case of International Comity.
d.In case of International organizations.

59. Taxation is equitable in all of the following, EXCEPT:

a.Its burden falls on those better to pay.
b.It is based on ability to pay.
c.It is based on benefits received.
d.It is based on uniformity rule.
63. A tax which is BOTH under taxation and Police Power:
a. Compensatory Tax c. National Tax
b. Regulatory Tax d. General Tax

64. A demand of Proprietorship:

a.Tax c. Toll
b.Special Assessment d. License Fee

65. Levied only on lands:

a. Tax c. Toll
b. Special Assessment d. License Fee

66. A proportional tax:

a. Individual income tax c. Donor’s tax
b. Corporate income tax d. Estate tax
67. Imposed to regulate conduct as a sanction:
a. Tax c. Penalty
b. Toll d. License fee

68. All are excise taxes as to subject matter except:

a. Real estate tax
b. Income tax
c. Excise tax on wine
d. Excise tax on cinematographic films
69. One of the following is NOT a source of our tax laws:
a. Administrative rulings and opinions
b. Judicial decisions
c. 1987 Constitution
d. Expert Opinion on Taxation
70. The government may not do all except one:
a. Tax itself
b. Delegate its power to tax to private agencies
c. Impose tax arbitrarily
d. Disregard uniformity in taxation

71. A form of tax escape through which one is given tax immunity wherein others are
subjected to tax:
a. Shifting c. Tax exemption
b. Tax immunity d. Tax avoidance

72. A form of tax escape by a manufacturer or producer who improves his proceeds of
production thereby minimizing his unit production cost:
a. Tax avoidance c. Transformation
b. Capitalization d. Shifting
73. A waiver by the government’s right to collect tax:
a. Tax exemption c. Tax avoidance
b. Tax amnesty d. Tax evasion
74. A tax imposed based on the number:
a. Income Tax c. Advalorem Tax
b. Specific Tax d. Custom’s Duties

75. The theory which most justifies the necessity of taxation:

a. Protection and benefits theory
b. Revenue purposes theory
c. Lifeblood theory
d. Ability to pay theory
78. 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

77. Which of the following is not example of excise tax:

a. Transfer tax c. Real property tax
b. Sales tax d. Income tax

78. The following are similarities of the inherent power of taxation, eminent domain, and police
power, except one:
a. Are necessary attributes of sovereignty
b. Interfere with private rights and property
c. Superior to the non-impairment clause
d. Are legislative in character.
79. The power of taxation is inherent in sovereignty being essential to the existence of every
government. Hence, even if not mentioned in the Constitution the state can sill exercise the power.
It is essentially a legislative function. Even in the absence of any constitutional provision, taxation
power fails to Congress as part of the general power of law-making.
a. False; False c. True; True
b. False; True d. True; False

80. Which of the following is not a scheme of shifting the incidence of taxation?
a. The manufacturer transfer the tax to the consumer by adding the tax to the selling price of the
goods sold;
b. The tax forms part of the purchase price;
c. Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination
abroad, so that the title passes abroad instead of in the Philippines.
d. The manufacturer transfer the sales tax to the distributor, then in turn to the wholesaler, in turn to
the retailer and finally to the consumer.
81. 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 resolved by the courts.

82. Which of the following statements is not correct?

a. Taxes may be 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 to tax;
c. For the exercise of the power of taxation, the state can tax anything at any time;
d. The provisions of taxation in the Philippines Constitution are grants of power and not
limitations on taxing powers.
Tax as distinguished from license fee:
a. Non-payment does not necessary render the business illegal;
b. A regulatory measure;
c. Imposed in the exercise of police power;
d. Limited to cover cost of regulation.

84. Value-added tax is an example of:

a. Graduated tax;
b. Progressive tax;
c. Regressive tax;
d. Proportional tax.
85. Which statement refers to police power as distinguished from taxation?
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.
86. 1st Statement – Tax exemptions are strictly construed against the government.
2nd Statement – When the tax law is not clear and there is doubt whether he is taxable or
not, the doubt shall be settled against the government.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
87. 1st Statement – The income from bank deposit of a Tax-exempt Catholic Church is
taxable.
2nd Statement – Donations for educational purposes are tax exempt under the NIRC.
a. True; False c. True; True
b. False; True d. False; False

88. 1st Statement – Tax imposed outside the situs of Taxation is voidable.
2nd Statement – International Comity is an exception to the territoriality doctrine.
a. True; False c. True; True
b. False; True d. False; False

89. Imposed based on the control & superiority of one country over another:
a. TITHE
b. TAX
c. TRIBUTE
d. TOLL
90. Imposed based on religious obligation:
a. TITHE c. TRIBUTE
b. TAX d. TOLL

91. Taxes are:

a. Retroactive
b. Prospective
c. Generally proportional
d. Personal to the taxpayer

92. 1st Statement Government owned and controlled corporation are exempt from tax.
2nd Statement Tax liabilities of a corporation will also extend to the stockholders as a rule.
a. True, True c. False, True
b. False, False d. True, False
93. All are objectives of taxation except:
a. Revenue purpose
b. Regulation
c. Increase of social inequity
d. Encourage economic growth

94. 1st Statement Courts can review or inquire into the wisdom or advisability of a tax law
under the Power of Judicial Review in Taxation
2nd Statement Our constitution does not contain any provision granting tax exemption to the
provision granting tax exemption to the government.
a. True, True c. False, True
b. False, False d. True, False
95. 1st Statement To be exempt from taxation under the Constitution land & buildings
must be exclusively and actually used for religious, educational or charitable purpose, even if
not directly.
2nd Statement 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

96. 1st Statement A taxpayer’s tax exempt status justifies the non-keeping of books of
accounts & other accounting records.
2nd Statement Fiscal tax and regulatory tax are the same.
a. True, True c. False, True
b. False, False d. True, False
97. 1st Statement Our Civil Code prevails over the Tax Code2nd Statement
Tax regulations promulgated by the Secretary of Finance need not be published in a
newspaper of general circulation.
a. True, True c. False, True
b. False, False d. True, False

98. Our tax laws are both:

a. Progressive and prospective
b. Civil and prospective
c. Penal and regulatory
d. Personal and regulatory
99. All are indirect constitutional limitations except:
a. Non imprisonment for non-payment of poll tax
b. Due process clause
c. Equal protection clause
d. Religions freedom

100. All are sources of Public Revenues except:

a. Grants and Foreign aids
b. Administrative revenues
c. Commercial revenues
d. Taxes and tithes
101. 1st statement- Taxation as a rule is unlimited, plenary, comprehensive but not
supreme.
2nd statement- Taxation has a dual nature, legislative in character & subject to
limitations.
a. True, True c. False, True
b. False, False d. True, False

102. 1st statement- As a rule, the non-observance of the canons of taxation will
make the tax imposition invalid.
2nd statement- According to US Supreme Court Justice Malcolm, Police Power is the
strongest of all the powers of the government.
a. True, True c. False, True
b. False, False d. True, False
103. 1st statement- A revenue regulation without approval of Congress does
not have the force and effect of law.
2nd statement- Tax avoidance & Tax shifting are two of the most common
methods of tax escape.
a. True, True c. False, True
b. False, False d. True, False

“ If you think you can find the passion and ready to take a chance.
If you really believe you can make it….
Then the Power is in your hands.”

Moment of Truth
By: Survivor