TAXATION ATTY.

MACMOD, CPA
Basic Principles of Taxation
LECTURE NOTES

BASIC PRINCIPLES OF MODERN TAXATION Courts cannot inquire into the wisdom of a taxing act.
A. Define Taxation Courts can only review the legality of the tax based on
1. As a state power: Taxation refers to the inherent the constitutional as well as inherent limitations and
power of a sovereign state acting through its other applicable laws.
legislature to impose a proportionate burden upon
persons, property rights or transaction to raise
revenue to support government expenditure and H. Sources of tax laws:
as a tool for general and economic welfare. 1.
2. As a process: Taxation refers to the act of 2.
imposing a tax by a sovereign state to raise 3.
revenue for government expenses. 4.
5.
B. What are the PURPOSES of taxation?
1. Primary purposes to raise funds for the expenses I. Construction and application of tax laws
of the government: (also called Revenue 1.
Purpose)
2. Secondary purpose: as a tool for general social
and economic welfare (also called 2.
Regulatory/sumptuary/Compensatory purpose)

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.
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.

F. What is the basis of taxation?

The reciprocal obligation of protection and support K. What are the forms of avoiding a tax (tax escape)?
between the state and its citizens. In Return for the 1.
protection provided by the state, the people pay taxes. 2.
Benefit-Protection Theory. 3.
4.
G. Power of judicial REVIEW/ROLE OF COURTS IN 5.
TAX CASES (CTA & SC)

The only thing that stands between a man and what he wants from life is often merely the Will to try it and the FAITH
to believe that it is possible. R. Devos

DISTINCTIONS:
 f. Exemption of religious, charitable, educational
Eminent entities, non-profit cemeteries and churches
Taxation Domain Police from property taxation.
Power g. Exemption from taxation of non-stock, non-
1. As to Imposed Imposed upon Imposed profit educational institutions and donations for
subject upon private upon educational purposes.
persons, real persons, h. Concurrence by a majority of the members of
property, properties property, Congress for passage of a law granting tax
rights or rights or exemption.
transaction transaction i. The power of the President to veto a revenue
2. As to To raise To acquire For or tariff bill.
purpose revenue for private regulation j. Non-impairment of the jurisdiction of Supreme
government property for and Court in tax cases.
expenses public control 3. Contractual limitations – these are restrictions
use on the taxing power imposed by previously
3. As to Generally Limited to the Limited to existing contracts entered into by the
limitation unlimited fair the cost of government with another party who may be
value of the license fee another state or its own citizens.
expenses and other
of regulation property N. Give the steps/stages involved under taxation
control system.
4. As to act Taxpayers Private Enforcemen 1st : Imposition of taxes
involved pays taxes property is t of laws for 2nd : Collection of taxes
taken for public a. Assessment
public use welfare and b. Actual tax collection
common c. Enforcement of tax laws/criminal prosecution for
good wilful violation of tax laws
5. As to Protection & Person Protection & 3rd: Payment of taxes
benefits other receives a other
benefits from just benefits O. Define TAXES
received by the compensation from the Taxes are enforced proportional contributions levied by
the government government the state for the support of the government
people
6. As to Inferior Superior Superior
relationship P. What are the essential characteristics, requisites
to non– or elements of a tax?
impairment a.
clause of Q. CLASSIFICATION of taxes
the 1. What are the kinds of taxes as to subject matter?
a. Personal, poll or capitation tax – tax imposed on
constitution persons residing within a specific territory.
Example: Basic Community Tax
L. Enumerate and briefly define the b. Property tax – tax imposed on property, whether
principles/characteristics of a SOUND TAX real or personal.
SYSTEM Example: Real estate tax
1. c. Excise tax – tax imposed on the exercise of a right
2. or privilege. Also called “Privilege tax”
3. Example: Income tax, estate tax, donor’s tax, etc.,
4.
2. What are the kinds of taxes as to who bears the
M. What are the limitations on the power of burden?
taxation? a. Direct tax – tax imposed upon a person who is
1. Inherent limitations – those that restrict the power directly bound to pay it; tax which the taxpayer
of taxation even though not provided in the cannot shift to another.
constitution. Example: Income tax, estate tax, donor’s tax
a. Taxes must be for public purpose. b. Indirect tax – tax which forms part of the purchase
b. Exemption of government agencies and price; tax which the taxpayer can shift to another.
instrumentalities from taxation. Example: Excise tax on certain goods, other
c. Power to tax cannot be delegated to private percentage taxes, value added tax
persons or entities. 3. What are the kinds of taxes as to determination of
d. Tax laws do not apply to properties of foreign amount?
government. a. Specific tax – tax based on weight, number or
e. Tax laws should be applied within the territorial some other standards of weight or
jurisdiction of the state. measurement.
f. Double taxation should be avoided. Example: Excise tax on distilled spirits, wines,
2. Constitutional limitations – those that limit the cinematographic films
power of taxation as embodied in the constitution. b. Advalorem tax – tax imposed based on the value
a. Due process of law in taxation and equal of the taxable item.
protection of the laws. Example: Real estate tax
b. Rule on uniformity and equity in taxation. 4. What are the kinds of taxes as to purpose?
c. No imprisonment for non-payment of poll tax. a. General tax – tax imposed for general
d. Non-impairment of the obligation of contracts. purposes of the government.
e. No appropriation of public money for religious Example: Income tax, value added tax
purposes. b. 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
b. 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
b. Progressive tax – the tax rate increases as the
taxable amount or tax bracket increases.
Example: Individual income tax, estate tax,
donor’s tax
c. 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
a. Demand of sovereignty
b. Generally amount is unlimited
c. For the support of the government
d. May be imposed by the State only
TOLL
Demand of proprietorship
Amount is limited to the cost and
maintenance of public improvement.
For the use of another’s property
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
c. Generally amount is unlimited Limited to the necessary expenses of
regulation and control
d. Imposed on persons, property, Imposed on the exercise of a right or
rights or transaction privilege
e. Non-payment does not make the Non –payment makes the business illegal business illegal

4. 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

z
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 c. Theoretical Justice or equality
structure where the tax base decreases as the tax rate d. Uniformity of taxation
increases.
b. Tax exemption is a grant of immunity to a particular 56. It refers to a fraudulent act of minimizing taxes.
taxpayer from tax where others are obliged to pay. a. Tax avoidance c. Tax minimization
42. a. Tax avoidance is a form of tax escape that is b. Tax evasion d. Multiple taxation
illegal.
b. Tax evasion is not punishable. 57. One of the following is NOT an inherent limitation:
43. a. Taxation includes the power to destroy always. a. Taxes must be for public purposes
b. Taxation can modify an existing contract. b. Equality in Taxation
44. a. A tax may be subjected to set-off or compensation. c. Territoriality rule
b. A tax ordinarily includes interest. d. Rule on double taxation
45. a. A tax bill normally embraces more than one
subject. 58. All of the following are exceptions to the territoriality
b. Tax bills may come from either Senate or Lower doctrine which is not?
House if certified by the President. a. In case of taxation of resident or citizens of the
Philippines.
C. Multiple Choice: In each of the following, choose b. If provided under a treaty obligation.
the best answer. c. In case of International Comity.
46. All are characteristics of the power of taxation, d. In case of International organizations.
EXCEPT:
a. It is an inherent power. 59. Taxation is equitable in all of the following, EXCEPT:
b. It is a legislative in character. a. Its burden falls on those better to pay.
c. It is civil in character. b. It is based on ability to pay.
d. It is subject to inherent and constitutional c. It is based on benefits received.
limitations. d. It is based on uniformity rule.
47. Our tax laws are:
a. Political in nature c. Penal in nature. 60. The only tax where non-payment of which will not
b. Civil in nature d. Social in nature. result to imprisonment:
a. Excise tax c. Personal tax
48. Also known as tax administration b. Donor’s tax d. Property tax
a. Collection of taxes c. Payment of taxes
b. Levying of taxes. d. Incidence of taxation 61. All are privilage tax under the Tax Codeexcept:
a. Income tax
49. Taxation is an inherent power because:
b. Donor’s tax
a. It is the life blood of the government.
c. Excise tax on certain goods
b. Protection and benefit theory.
d. Estate tax
c. It co-exists with the existence of the state.
d. It is exercised for the general welfare of the
62. One of the following can be BOTH a progressive tax
people.
and a proportional tax:
50. All are essential characteristics of a tax, EXCEPT: a. Donor’s tax
a. It is an enforced contribution. b. Basic Income tax on individuals
b. It is generally unlimited in amount. c. Both a and b
c. It is generally payable in money. d. Estate tax
d. It is a proportionate burden.
63. A tax which is BOTH under taxation and Police Power:
51. A tax is invalid in the following cases, EXCEPT: a. Compensatory Tax c. National Tax
a. Theory of taxation and its purpose are disregarded. b. Regulatory Tax d. General Tax
b. Basis of taxation is not recognized.
c. Inherent and constitutional limitations are not 64. A demand of Proprietorship:
observed. a. Tax c. Toll
d. It results to double taxation. b. Special Assessment d. License Fee

52. All are secondary purposes of taxation, EXCEPT: 65. Levied only on lands:
a. Sumptuary purpose c. Compensatory purpose a. Tax c. Toll
b. Regulatory purpose d. Revenue purpose b. Special Assessment d. License Fee
53. In the absence of inherent and constitutional
limitation, the power of tax is: 66. A proportional tax:
a. Comprehensive, unlimited and plenary a. Individual income tax c. Donor’s tax
b. Unlimited and plenary b. Corporate income tax d. Estate tax
c. Broad and penal
d. Unlimited and political 67. Imposed to regulate conduct as a sanction:
a. Tax c. Penalty
54. All are similarities of taxation, police power, and power b. Toll d. License fee
of eminent domain, EXCEPT:
a. All are necessary attributes of the Constitution 68. All are excise taxes as to subject matter except:
b. All exist independently of the Constitution a. Real estate tax
c. All contemplate and equivalent benefit b. Income tax
d. All are superior to the non-impairment clause of c. Excise tax on wine
the Constitution d. Excise tax on cinematographic films
69. One of the following is NOT a source of our tax laws:
55. Below are characteristics of a sound taxation system, a. Administrative rulings and opinions
EXCEPT: b. Judicial decisions
a. Administrative feasibility and compliance c. 1987 Constitution
b. Fiscal Adequacy d. Expert Opinion on Taxation
70. The government may not do all except one: 81. In case of conflict between the tax code and generally
a. Tax itself accepted accounting principles (GAAP):
b. Delegate its power to tax to private agencies a. Both tax codes and GAAP shall be enforced;
c. Impose tax arbitrarily b. GAAP shall prevail over tax code;
d. Disregard uniformity in taxation c. Tax code shall prevail over GAAP;
d. The issue shall be resolved by the courts.
71. A form of tax escape through which one is given tax
immunity wherein others are subjected to tax: 82. Which of the following statements is not correct?
a. Shifting c. Tax exemption a. Taxes may be imposed to raise revenues or to
b. Tax immunity d. Tax avoidance regulate certain activities within the state;
b. The state can have the power of taxation even if
72. A form of tax escape by a manufacturer or producer the Constitution does not expressly give it the
who improves his proceeds of production thereby power to tax;
minimizing his unit production cost: c. For the exercise of the power of taxation, the state
a. Tax avoidance c. Transformation can tax anything at any time;
b. Capitalization d. Shifting d. The provisions of taxation in the Philippines
Constitution are grants of power and not
73. A waiver by the government’s right to collect tax: limitations on taxing powers.
a. Tax exemption c. Tax avoidance
b. Tax amnesty d. Tax evasion 83. Tax as distinguished from license fee:
a. Non-payment does not necessary render the
74. A tax imposed based on the number: business illegal;
a. Income Tax c. Advalorem Tax b. A regulatory measure;
b. Specific Tax d. Custom’s Duties c. Imposed in the exercise of police power;
d. Limited to cover cost of regulation.
75. The theory which most justifies the necessity of
taxation: 84. Value-added tax is an example of:
a. Protection and benefits theory a. Graduated tax;
b. Revenue purposes theory b. Progressive tax;
c. Lifeblood theory c. Regressive tax;
d. Ability to pay theory d. Proportional tax.

76. One of the characteristics of internal revenue laws is 85.Which statement refers to police power as distinguished
that they are: from taxation?
a. Criminal in nature a. It can only be imposed on specific property or
b. Penal in nature properties;
c. Political in nature b. The amount imposed depends on whether the
d. Generally prospective in application activity is useful or not;
c. It involves the taking of property by the
77. Which of the following is not example of excise tax: government;
a. Transfer tax c. Real property tax d. The amount imposed has no limit.
b. Sales tax d. Income tax
86. 1st Statement – Tax exemptions are strictly construed
78. The following are similarities of the inherent power of against the government.
taxation, eminent domain, and police power, except 2nd Statement – When the tax law is not clear and
one: there is doubt whether he is taxable or not, the doubt
a. Are necessary attributes of sovereignty shall be settled against the government.
b. Interfere with private rights and property a. Only the first statement is correct.
c. Superior to the non-impairment clause b. Only the second statement is correct.
d. Are legislative in character. c. Both statements are correct.
d. Both statements are incorrect.
79. The power of taxation is inherent in sovereignty being
essential to the existence of every government. Hence, 87. 1st Statement – The income from bank deposit of a
even if not mentioned in the Constitution the state can Tax-exempt Catholic Church is taxable.
sill exercise the power. It is essentially a legislative 2nd Statement – Donations for educational purposes
function. Even in the absence of any constitutional are tax exempt under the NIRC.
provision, taxation power fails to Congress as part of a. True; False c. True; True
the general power of law-making. b. False; True d. False; False
a. False; False c. True; True
b. False; True d. True; False 88. 1st Statement – Tax imposed outside the situs of
Taxation is voidable.
80. Which of the following is not a scheme of shifting the 2nd Statement – International Comity is an exception
incidence of taxation? to the territoriality doctrine.
a. The manufacturer transfer the tax to the consumer a. True; False c. True; True
by adding the tax to the selling price of the goods b. False; True d. False; False
sold;
b. The tax forms part of the purchase price; 89. Imposed based on the control & superiority of one
c. Changing the terms of the sale like FOB shipping country over another:
point in the Philippines to FOB destination abroad, a. TITHE
so that the title passes abroad instead of in the b. TAX
Philippines. c. TRIBUTE
d. The manufacturer transfer the sales tax to the d. TOLL
distributor, then in turn to the wholesaler, in turn
to the retailer and finally to the consumer. 90. Imposed based on religious obligation:
a. TITHE c. TRIBUTE
b. TAX d. TOLL
 2nd Statement Tax regulations promulgated by the
91. Taxes are: Secretary of Finance need not be published in a
a. Retroactive newspaper of general circulation.
b. Prospective a. True, True c. False, True
c. Generally proportional b. False, False d. True, False
d. Personal to the taxpayer
98. Our tax laws are both:
92. 1st Statement Government owned and controlled a. Progressive and prospective
corporation are exempt from tax. b. Civil and prospective
2nd Statement Tax liabilities of a corporation will also c. Penal and regulatory
extend to the stockholders as a rule. d. Personal and regulatory
a. True, True c. False, True
b. False, False d. True, False 99. All are indirect constitutional limitations except:
a. Non imprisonment for non-payment of poll tax
93. All are objectives of taxation except: b. Due process clause
a. Revenue purpose c. Equal protection clause
b. Regulation d. Religions freedom
c. Increase of social inequity
d. Encourage economic growth 100. All are sources of Public Revenues except:
a. Grants and Foreign aids
94. 1st Statement Courts can review or inquire into the b. Administrative revenues
wisdom or advisability of a tax law under the Power of c. Commercial revenues
Judicial Review in Taxation d. Taxes and tithes
2nd Statement Our constitution does not contain any
provision granting tax exemption to the provision 101. 1st statement- Taxation as a rule is unlimited,
granting tax exemption to the government. plenary, comprehensive but not supreme.
a. True, True c. False, True 2nd statement- Taxation has a dual nature, legislative
b. False, False d. True, False in character & subject to limitations.
a. True, True c. False, True
95. 1st Statement To be exempt from taxation under the b. False, False d. True, False
Constitution land & buildings must be exclusively and
actually used for religious, educational or charitable 102. 1st statement- As a rule, the non-observance of the
purpose, even if not directly. canons of taxation will make the tax imposition
2nd Statement Exemptions of non-profit schools are invalid.
only limited to revenue and assets derived from strictly 2nd statement- According to US Supreme Court
school operations. Justice Malcolm, Police Power is the strongest of all
a. True, True c. False, True the powers of the government.
b. False, False d. True, False 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 103. 1st statement- A revenue regulation without approval
accounting records. of Congress does not have the force and effect of
2nd Statement Fiscal tax and regulatory tax are the law.
same. 2nd statement- Tax avoidance & Tax shifting are two
a. True, True c. False, True of the most common methods of tax escape.
b. False, False d. True, False a. True, True c. False, True
b. False, False d. True, False
97. 1st Statement Our Civil Code prevails over the Tax
Code.

“ 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