1.1.1 Quiz 1 - Answer Key

Quiz 1: General Principles of Taxation
Name: ________________________________ Score: _______________
Part 1: True or False (25 pts.)
Options:
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.
Questions:
1. I. A person may refuse to pay a tax on the ground that he receives no personal benefit from it.
II. A taxpayer has a right to question illegal expenditures of public funds.
2. I. One of the essential characteristics of a tax is it is unlimited in amount.
II. A tax is generally unlimited because it is based on the needs of the state.
3. I. A license fee is charged imposed under the police power of the state.
II. Penalty is imposed by the state only.
4. I. Imposition of taxes is a legislative act.
II. Collection of taxes is an administrative act.
5. I. A state has the power to tax even if not granted by the Constitution.
II. A state cannot exercise police power if not granted by the Constitution.
6. I. There can only be tax if there is a law imposing the tax.
II. The power to tax is inherent.
7. I. A tax is based on law while debt is based on contract.
II. A tax is also a custom duty.
8. I. A person cannot be imprisoned for non – payment of property tax.
II. A law may be passed violating uniformity of taxation.
9. I. The RDO is known as the alter ego of the BIR Commissioner.
II. The BIR Commissioner is directly under the President’s Office.
10. I. Provisions in the Philippine Constitution on taxation are grants of power.
II. Due process of law in taxation in the Constitution is a grant of power.
11. I. An excise tax is also called a privilege tax.
II. A tax which is neither personal nor property is an excise tax.
12. I. Estate tax is a proportional tax.
II. A progressive tax is a tax, the rate of which is directly proportional to tax base.
13. I. Taxation without representation is not tyranny.
II. In the exercise of taxation, the state can tax anything at anytime and at any amount.
14. I. Taxation and power of eminent domain may be exercised simultaneously.
II. Taxation and police power may be exercised simultaneously.
15. I. All of our tax laws are statutory laws.
II. The non-impairment clause is a statutory law on taxation.
16. I. Non – payment of tax makes the business illegal.
II. The non – payment of license fee makes the business illegal.
17. I. Margin fee is a tax.
II. Custom’s duty is a tax
18. I. Territoriality is one of the constitutional limitations on the power of taxation.
II. International comity is an inherent limitation in taxation.
19. I. Taxes may be used for sectarian purposes if allowed by an ordinance.
II. The President can refuse to implement tax law if it appears to be unconstitutional.
20. I. There can be double taxation in the Philippines.
II. Double taxation is illegal if it violates the uniformity of taxation.
21. I. A progressive system of taxation means a tax structure where the tax base increases as the tax rate
increases.
II. Tax exemption is a grant of immunity to a particular taxpayer from tax where others obliged to pay.
22. I. Tax avoidance is a form of tax escape.
II. Tax evasion is not punishable.
23. I. A tax may include the power to destroy.
II. A tax may be imposed violating uniformity of taxation.
24. I. A tax may be subjected to set – off or compensation.
II. A tax ordinarily include interest.
25. I. A tax bill may embrace more than one subject.
II. Non – payment of tax cannot result to criminal liability on the part of the taxpayer, only civil liability.
Answers:
1. B
2. B
3. A
4. C
5. A
6. C
7. A
8. D
9. D
10. D
11. C
12. B
13. B
14. B
15. D
16. B
17. B
18. B
19. D
20. C
21. B
22. A
23. A
24. D
25. D
Part II. Multiple Choice (25 pts.)
1. All are characteristics of power of taxation except

a. It is an inherent power
b. It is legislative in character
c. It is civil in character.
d. It is subject to inherent and constitutional limitation.
2. Our tax laws are:

a. Political in nature c. Penal in nature
b. Civil in nature d. Social in nature
3. Also known as tax administration

a. Collection of taxes c. Payment of taxes
b. Levying of taxes d. Incidence of taxation
4. Taxation is an inherent power because:

a. It is the lifeblood 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.
5. All are essential characteristics of a tax, except

a. It is enforced contribution
b. It is generally unlimited in amount
c. It is generally payable in money
d. It is a proportionate burden.
6. A tax is invalid, 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.
7. All are secondary purpose of taxation, except:

a. Sumptuary purpose c. Compensatory purpose
b. Regulatory purpose d. Uniformity purpose
8. In the absence of inherent and constitutional limitation, the power of tax is:
a. Comprehensive c. Both a and b
b. Unlimited d. Regulatory
9. All are similarities of taxation, police power, and power of eminent domain, except
a. All are necessary attributes of the Constitution
b. All exists independently of the Constitution
c. All contemplates an equivalent benefit
d. All is superior to the non – impairment clause of the Constitution
10. Below are characteristics of sound taxation system, except:
a. Administrative feasibility and compliance
b. Fiscal adequacy
c. Theoretical Justice
d. Uniformity of Taxation
11. It refers to a fraudulent act of minimizing taxes.

a. Tax avoidance c. Tax minimization
b. Tax evasion d. Multiple taxation
12. One of the following is not an inherent limitation

a. Taxes must be for public purpose
b. Equality in taxation
c. Territoriality rule
d. Rule on double taxation
13. All the following is territoriality doctrine except one:

a. Residence of the taxpayer.
b. Sources of the income.
c. Situs of the thing or property taxed.
d. International Organizations
14. Taxation is equitable in all 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.
15. The only tax where non – payment of which will not result to imprisonment.
a. Excise tax c. Personal tax
b. Donor’s tax d. Property tax
16. One of the following is not a major tax under the Tax Code:
a. Income tax c. Excise tax
b. Donor’s tax d. Estate tax
17. One of the following can be both be as progressive tax and a proportional tax:
a. Donor’s tax c. Both a and b
b. Income tax on individuals d. Estate tax
18. A tax which is both under taxation and police power:

a. Compensatory tax c. National tax
b. Regulatory tax d. General tax
19. A demand on proprietorship

a. Tax c. Toll
b. Special assessment d. License fee
20. Levied only on lands:
a. Tax c. Toll
b. Special assessment d. License fee
21. One of the following is not a source of tax laws.

a. Administrative rulings and opinions
b. Judicial decisions
c. 1987 Constitution
d. Exert opinion on taxation
22. The government may not do all except one:

a. Tax itself
b. Delegate its power to tax to private entities
c. Imposed tax arbitrarily
d. Disregard uniformity in taxation
23. 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
24. 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. Capitulation d. Shifting
25. A waiver by the government’s right to collect tax:

a. Tax exemption c. Tax avoidance
b. Tax amnesty d. Tax evasion

1.1.1 Quiz 1 - Answer Key

Uploaded by

Copyright:

Available Formats

1.1.1 Quiz 1 - Answer Key

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1.1.1 Quiz 1 - Answer Key

Uploaded by

Copyright:

Available Formats

Quiz 1: General Principles of Taxation

Name: ________________________________ Score: _______________

Part 1: True or False (25 pts.)

A. If only the first statement is correct.

1. All are characteristics of power of taxation except

2. Our tax laws are:

3. Also known as tax administration

4. Taxation is an inherent power because:

5. All are essential characteristics of a tax, except

6. A tax is invalid, except:

7. All are secondary purpose of taxation, except:

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

12. One of the following is not an inherent limitation

13. All the following is territoriality doctrine except one:

14. Taxation is equitable in all the following, except:

18. A tax which is both under taxation and police power:

19. A demand on proprietorship

21. One of the following is not a source of tax laws.

22. The government may not do all except one:

25. A waiver by the government’s right to collect tax:

You might also like

Name: __________________ Score: _