INCOME TAXATION 5th Edition (BY: VALENCIA & ROXAS) 1

SUGGESTED ANSWERS
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) 2
SUGGESTED ANSWERS
Chapter 1: General Principles
and Concepts of Taxation

11. True
12. False Doubts must be resolved liberally in favor of the taxpayer.
13. True
14. True
15. False null and void

Prob. 1 4 Prob. 1 5 Prob. 1 6 Prob. 1 7 Prob. 1 8 Prob. 1 9

1. A 1. C 1. D 1. B 1. A 1. A
2. C 2. A 2. D 2. C 2. D 2. B
3. C 3. D 3. D 3. D 3. D 3. C
4. A 4. B 4. D 4. D 4. A 4. D
5. B 5. B 5. D 5. D 5. A 5. C
6. B 6. A 6. D 6. B 6. C 6. C
7. A 7. C 7. D 7. B 7. B 7. D
8. C 8. B 8. C 8. C 8. C 8. C
9. C 9. B 9. A 9. C 9. B 9. C
10. C 10. C 10. C 10. B 10. A 10. C
11. C 11. D 11. B 11. B 11. C
12. C 12. D 12. B 12. C 12. B
13. A 13. A 13. A 13. D
14. A 14. D 14. D
15. D 15. C
16. C
17. C