INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

1
Chapter 1: General Principles and Concepts of Taxation

CHAPTER 1

GENERAL PRINCIPLES AND CONCEPTS OF TAXATION

Problem 1 1 TRUE OR FALSE 1. False Without money provided by tax power, the other inherent powers cannot function well. 2. True 3. True 4. True 5. True 6. True 7. False Taxation power is subject to inherent and Constitutional limitations. 8. False Taxation power is not absolute because it is subject to limitations. 9. True 10. False penalty is an example of imposition of amount for police power. 11. True 12. False governmental function unless stated otherwise. 13. False government agencies engaged in proprietory functions are subject tax unless stated otherwise. 14. True Problem 1 2 TRUE OR FALSE 1. False Concurrence of the majority of congress. 2. False Churches are required to pay income taxes in cases of sale of real property and business engagement. 3. False No public funds shall be appropriated for religious purpose. 4. False - All bills even if approved by the 2/3 of the congress should still be signed by the President to become law. 5. False No person shall be imprisoned for nonpayment of poll tax. 6. False Taxation power is essentially legislative function; hence not every government unit exercises this power. 7. True 8. False - Benefits from taxation may be or may not be experienced. 9. True 10. False Judicial review 11. False Ex post facto law is not applicable for tax purposes. 12. True 13. False A tax evader breaks the law while the tax avoider sidesteps it. 14. False Neither transferable/assignable 15. True Problem 1 3 TRUE OR FALSE 1. True 2. True 3. True 4. True 5. False prospective effect 6. True 7. True 8. False national taxes 9. True 10. True

INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS

2
Chapter 1: General Principles and Concepts of Taxation

11. 12. 13. 14. 15.

True False Doubts must be resolved liberally in favor of the taxpayer. True True False null and void Prob. 1 5 1. C 2. A 3. D 4. B 5. B 6. A 7. C 8. B 9. B 10. C 11. C 12. C 13. A Prob. 1 6 1. D 2. D 3. D 4. D 5. D 6. D 7. D 8. C 9. A 10. C 11. D 12. D Prob. 1 7 1. B 2. C 3. D 4. D 5. D 6. B 7. B 8. C 9. C 10. B 11. B 12. B 13. A 14. A 15. D Prob. 1 8 1. A 2. D 3. D 4. A 5. A 6. C 7. B 8. C 9. B 10. A 11. B 12. C 13. A 14. D Prob. 1 9 1. A 2. B 3. C 4. D 5. C 6. C 7. D 8. C 9. C 10. C 11. C 12. B 13. D 14. D 15. C 16. C 17. C

Prob. 1 4 1. A 2. C 3. C 4. A 5. B 6. B 7. A 8. C 9. C 10. C