Solution Manual

Income Taxation
(2009 Edition)

Chapter 1

True or False 1-1

1. True
2. False. Taxation covers person, properties, rights and
transactions.
3. False. Person in taxation includes the concept of
partnership, corporation, estate and trust.
4. True
5. False. Taxation as a legislative process is under the
power of the legislative body, the Congress.
6. False. Taxation is the primary source of government
revenue. Usually, the government resorts to borrowing
if taxes collected are not sufficient to defray its
budgetary requirements.
7. True
8. True
9. False. Basically, taxes imposed are based on the ability
of the taxpayer to pay.
10. False. It is the primary obligation of the state to
protect all the constituents regardless of whether they
pay or not their tax liabilities.

True or False 1-2

1. True
2. True
3. True