Take-home Quiz 1. Choose the best answer. Write the letter of your answer on a yellow paper.

1. The following are similarities of the inherent power of taxation, eminent domain, and
police power, except one:
a. Are necessary attributes or sovereignty;
b. Superior to the non-impairment clause of the constitution
c. Compensation/ benefit is received;
d. Are legislative in character.

2. Which of the following statements is not correct?

a. Taxes may be imposed to raise revenue or to provide disincentives to certain activities
within the state;
b. The state can have the power of taxation even if the Constitution does not expressly
give it the power to tax;
c. For the exercise of the power of taxation, the state can tax anything at any time;
d. The Provisions of taxation in the Philippine Constitution are grants of power enabling
the state to impose taxes.

3. License fee as distinguished from tax:

a. Non-payment does not necessarily render the business illegal;
b. A revenue raising measure;
c. Imposed in the exercise of taxing power
d. Limited to cover cost of regulation

4. Value-added tax is an example of a:

a. Graduated tax c. Regressive tax
b. Progressive tax d. Proportional tax

5. Which tax principle is described in the statement “The more income earned by the taxpayer,
the more tax he has to pay.”
a. Fiscal adequacy c. Administrative Feasibility
b. Theoretical justice/ Equitability d. Inherent in sovereignty

6. One of the characteristic of a tax is that:

a. It is generally based on contract;
b. It is generally payable in money;
c. It is generally assignable;
d. It is generally subject to compensation.

7. The following are the characteristics of our internal revenue laws except:
a. Political in nature;
b. Civil in nature;
c. Generally prospective in application
d. May operate retrospectively if Congress so provides

8. Which of the following statements is wrong? A revenue bill:

a. Must originate from the House of Representatives and on which same bill the Senate
may propose amendments;
b. May originate from the Senate and on which same bill the House of Representatives
may propose amendments;
c. May have a House version and a Senate version approved separately, and then
consolidated, with both houses approving the consolidation version.
d. May be recommended by the President to Congress.

9. Tax as distinguished from special assessment:

a. not a personal liability of a person assessed
 b. based wholly on benefits
c. exceptional as to time and place
d. based on necessity and the purpose is to raise revenues

10. Under this basic principle of a sound tax system, the Government should not incur a deficit:
a. Theoretical justice c. Fiscal adequacy
b. Administrative feasibility d. Uniformity in taxation

11. Which of the following may not raise money for the government?
a. Power of taxation c. Power of eminent domain
b. Police power d. License fess

12. No person shall be imprisoned for non-payment of this:

a. Excise tax c. Income tax
b. VAT d. Poll tax

13. This is a demand of ownership:

a. License fee c. Toll
b. Tax d. Custom duties

14. Income tax is generally regarded as

a. an excise tax
b. a tax on persons
c. a property tax
d. tax on profits

15. Which of the following is not acceptable for legally refusing to pay the tax?
a. That the right of the state to collect the tax has prescribed
b. That there is no jurisdiction to collect the tax
c. That the tax law was declared as unconstitutional
d. That there is no benefit derived from the tax

16. A law granting tax exemption requires the concurrence of

a. Majority vote of all members of Congress
b. 2/3 vote of members of Congress
c. ¾ vote of members of Congress
d. Unanimous vote of members of Congress

17. No person shall be imprisoned for debt or non-payment of poll tax. This is a (an)
a. Inherent limitation c. International limitation
b. Constitutional limitation d. Territorial limitation

18. The Department of Finance thru its officers entered into a contract with foreign investors,
granting them exemption from all forms of taxes to encourage investments in the
Philippines. The contract is
a. Void, unless the President ratifies
b. Void, because the power to grant tax exemption is vested in Congress
c. Valid, if the President has authorized the officers to enter into such contract
d. Valid, because the purpose is to promote public welfare

19. Tax as distinguished from debt

a. no imprisonment for non-payment c. based on contract
b. may be paid in kind d. based in law

20. Congress can impose tax at any amount and at any time shows that
a. Taxation is an inherent power of the state
b. Taxation is essentially a legislative power
c. Taxation is a very broad power of the state
 d. Taxation is based on taxpayers’ ability to pay

21. A charge imposed on land for special benefits derived resulting from public improvements
a. Tax c. License
b. Toll d. Special assessment

22. Which of the following are National Internal Revenue Taxes?

I. Income Tax IV. VAT VII. DST
II. Estate tax V. OPT
III. Donor’s tax VI. Excise tax

a. I, II, III, IV
b. I, II, III, IV, V
c. I, II, III, IV, V, VI
d. I, II, III, IV, V, VI, VII

23. The three fundamental powers of the state are

I. Inherent in the state and may be exercised by the state without need of any
constitutional grant.
II. Not only necessary but indispensable.
III. Methods by which the state interferes with private rights.
IV. Exercised primarily by the legislature.
a. All true c. Half true, half false
b. All false d. None of the above

24. I. Police power regulates both liberty and property while the power of eminent domain
and the power of taxation affect only property rights.
II. Police power and the power of taxation may be exercised only by the government
while the power of eminent domain may be exercised by some private entities.
III. The property taken in police power is destroyed while the property taken under the
power of eminent domain and power of taxation is not destroyed.
IV. In the power of taxation, the compensation received is the protection of the state
afforded to its citizens; in police power, a higher standard of living is enjoyed by the
citizens; and in the power of eminent domain, a citizen receives just compensation for
the property taken from him.
a. All true c. Half true, half false
b. All false d. None of the above

25. I. The point on which tax is originally imposed is impact of taxation.

II. The point on which a tax burden finally rests or settles down is incidence of taxation
III. Police power is superior to the non-impairment clause of the constitution.
IV. Power of taxation is not superior to the non-impairment clause of the constitution
a. All true c. Half true, half false
b. All false d. None of the above

26. I. No person shall be imprisoned for debt or non-payment of tax.

II. Tax laws are civil and penal in nature because there are criminal penalties when they
are violated.
III. Taxes may be collected in an unlimited amount.
IV. License fees may be collected in an unlimited amount.
a. One statement is true b. Two statements are true
c. Three statements are true d. All statements are true

27. I. No person shall be imprisoned for debt or non-payment of tax.

II. Tax laws are civil and penal in nature because there are criminal penalties when they
are violated.
III. Taxes may be collected in an unlimited amount.
 IV. License fees may be collected in an unlimited amount.
a. One statement is true b. Two statements are true
c. Three statements are true d. All statements are true

28. I. There can only be a tax if there is a law imposing the tax.
II. The power to tax may include the power to destroy
a. True, True c. False, true
b. True, false d. False, false

29. I. Due process of law in taxation under the constitution is a grant of power.
II. Provisions in the Philippine constitution on taxation are grants of power.
III. There may be double taxation in the Philippines.
IV. Taxation may be used to implement the police power of the state.
a. One statement is true b. Two statements are true
c. Three statements are true d. All statements are true

30. I. License fee is a charge imposed under police power.

II. Special assessment is levied on lands only.
III. Tax is imposed regardless of public improvements.
IV. Special assessment is imposed regardless of public improvements.
a. One statement is true b. Two statements are true
c. Three statements are true d. All statements are true

31. 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.
a. True, True c. False, true
b. True, false d. False, false

32. A system of taxation where the amount of revenue from indirect taxes are more than the
direct taxes is
a. Progressive c. Proportional
b. Regressive d. Schedular
33. Congress passed a law which granted tax amnesty to those who have not paid their income
taxes in 2010 but did not provide for the refund to those who paid. Is the law valid?
a. No, this will encourage taxpayers not to pay their taxes
b. Yes, Congress has the sole discretion for determining whom of tax
c. No, the grant of amnesty is the sole prerogative of the President
d. Yes, Congress provided for a valid classification.

34. Money collected from taxation shall not be paid to any religious dignitary EXCEPT when
a. The religious dignitary is assigned to the Philippine Army.
b. It is paid by a local government unit.
c. The payment is passed in audit by the COA.
d. It is part of a lawmaker’s pork barrel.

35. Which theory in taxation states that without taxes, a government would be paralyzed for
lack of power to activate and operate it, resulting in its destruction?
a. Power to destroy theory c. Sumptuary theory
b. Lifeblood theory d. No money, no honey theory

36. The actual effort exerted by the government to effect the exaction of what is due from the
taxpayer is known as
a. Assessment c. Payment
b. Levy d. Collection

37. The actual effort of taxation is basically legislative in character, it is NOT the function of
Congress to
 a. Fix with certainty the amount of taxes
b. Collect the tax levied under the law
c. Identify who should collect the tax
d. Determine who should be subject to the tax

38. An example of a tax where the concept of progressivity finds application is the
a. Income tax on individuals
b. Excise tax on petroleum products
c. Value-added tax on certain articles
d. Amusement tax on boxing exhibitions

39. The power to tax is the power to destroy. Is this always so?
a. No. the Executive Branch may decide not to enforce a tax law which it believes to be
confiscatory.
b. Yes. The tax collectors should enforce a tax law even if it results to the destruction of
the property rights of the taxpayer.
c. Yes. The tax laws should always be enforced because without taxes the very existence
of the State is endangered.
d. No. Supreme Court may nullify a tax law, hence, property rights are not affected.

40. This is not inherent limitations on the power of taxation:

a. Double taxation, though not prohibited, is disfavored.
b. Equality and uniformity in taxation
c. Public purpose of taxation
d. Territoriality

41. Revenue regulations (RRs) are:

a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that
specify, prescribe or define rules and regulations for the effective enforcement of the
provisions of the National Internal revenue Code (NIRC) and related statutes.
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of
laws, rules, and regulations and precedents issued by the BIR and other agencies/
offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline
processes, operations, activities, workflows, methods and procedures necessary in the
implementation of stated policies, goals, objectives, plans and programs of the Bureau
in all areas of operations, except auditing.
d. None of the above.

42. Revenue Memorandum Circulars (RMCs) are:

a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that
specify, prescribe or define rules and regulations for the effective enforcement of the
provisions of the National Internal revenue Code (NIRC) and related statutes.
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of
laws, rules, and regulations and precedents issued by the BIR and other agencies/
offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline
processes, operations, activities, workflows, methods and procedures necessary in the
implementation of stated policies, goals, objectives, plans and programs of the Bureau
in all areas of operations, except auditing.
d. None of the above.

43. Revenue Memorandum Orders (RMOs) are:

a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that
specify, prescribe or define rules and regulations for the effective enforcement of the
provisions of the National Internal revenue Code (NIRC) and related statutes.
 b. Issuances that publish pertinent and applicable portions, as well as amplifications, of
laws, rules, and regulations and precedents issued by the BIR and other agencies/
offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline
processes, operations, activities, workflows, methods and procedures necessary in the
implementation of stated policies, goals, objectives, plans and programs of the Bureau
in all areas of operations, except auditing.
d. None of the above.

44. The following are the powers if the CIR except:

a. After the return has been filed or when is filled, the CIR may authorize the examination
of any taxpayer, and the assessment of the correct amount of tax.
b. The CIR has the power to issue Summons or Subpoena Duces Tecum to a taxpayer, an
officer or employee of a taxpayer, or to any person having possession of records
relating to the business of a taxpayer.
c. The CIR has the power to take the testimony of a person, under oath, that may be
relevant or material to the inquiry.
d. The CIR has the power to inquire into a taxpayer’s bank deposits in all instances.

45. What is tax mapping?

a. It is equivalent to tax assessment within the applicable reglementary periods depending
on whether the taxpayer is guilty of fraud or not.
b. It is a mere verification made by the BIR of a taxpayer’s compliance with registration
and other requirements prior to, during, and after its business operations such as the
following: (a) registration of the head office and branches; (b) payment of annual
registration fee and posting of the same in the place of business; (c) authority to print
receipts and invoices; (d) the issuance of receipts and invoices on every sale; (e) the
contents of such receipts and invoices; (f) registration of cash register machines, point-
of-sale machines, and computerized accounting systems; and (g) registration of books
of accounts.
c. This is the directory of the Revenue District Offices of the BIR with a listing of all
officers and revenue agents.
d. None of the above.