the statement is correct, OF * ess, oF as ¥ 1. Taxation could be eitbed as a power, 8 nae Maer gr aan. Asa , taxation is a way of appo! i nefits. government among those who are privileged to enjoy its be tizens in the form authorizing it. f 2. The State can enforce contributions upon its ci / of taxes even without a constitutional provision ered valid if intended for the particular [ 3. Appropriation of taxes is consid common good of the people without identifying @ person to be benefited from it J 4, Taxation is inseparable in the existence of a nation 5. Taxation is considered as the lifeblood of the government and must exercise this power, in nature eee fire gers ner] ually only tor enoce eg em Ne | 6 The amount of taxes may be increased to curve spending power ¢ and minimize inflation f 7., The Constitution js-the source of the State's taxing. power J 8 Taxation is the government's legitimate means of interfering with z the private properties of its subjects. 9. The benefits from taxation heve-te-be-experienced-te-justify the ® legitimacy of collection of taxes from the people £ 1 may Jiray rot be er perenced py th tekpuyer 10. Taxation is the primary source of government revenue. Hence, eH ¥ government funds come from taxes, A@* all funcli Come 1 11. Sovereign equality dictates that a nation cannot impose taxes on the property of another country Bane State can sull exercise its taxing powers over its citizen, even é if he resides outside the taxing State’s territory, ment entities 1egardless of their function from taxes because it would be impractical eb EK nt to be taxing itself. gou't agen en guged w> bay functcat Cle tutyect fo fur UNLe Cheated from taxes cannot be used for the exclusivet. ¥ : asseasny . the President — Beta nt aren Fred to ¥ Bee ae eer could be delesecretion. 7044 oS Paka ‘administral “. covers both-legislative an : a can- effectively be perfor Paledne tbe + pxonen Mare avenue nt, oan the power to tax ig delegated to the ial government, only - ee Liane “branch of the local governme: power. es 4, Eminent domain and police te ~ even without taxation. 7h sour professor. ‘ear Se page to ot ation. 6.— All inherent powers presuppose equivalent compensatio ne-imposition of amount in police power. 0s aig a I I amie ea 8. Police power and eminent domain may defeat the Constitutional rights of person. ~ FE 9. Tex exemption applies-only to government entities that iy ¥ proprietary functions. «Ay ced ' Cut here and submit this xercise stated ue, predates is a process of taxation which involves the oe apes ordinances through legislature en thar ae peas by the Constitutional “compensation. oniy ty, Not be t, Ss Ir emient lemon ‘aken without justProblem 1-3 True or False ee Write True if the statement is correct or False if the Re ? ly Taxes may be exercised to encourage economic growth granting tax exemptions. 2., Taxes may be used as a tool and weapon in international : relations and to protect trade relations. 3./ Protection is the basic consideration that justifies tax situs. 4. _The tax situs for occupation is the place where occupation is pursued even if the criterion for nationality is given. 5.¥ There is-direct.double taxation by taxing corporate income and corporate stockholders’ dividends from the same corporation. 4 Rae Ke KEpWiCHe «A diChncd pErCON fm 6.\.A nonresident Mien is liable to pay transfer taxes for properties within and-outside- the Philippines. ony pepether win the ‘phil pied 7) A tax may be levied for the support of religious-activities as long asallehurches-benefitfrom it. «> public fund for religrous Purpote 8.¥ In general, bills need not to be signed by the President to become aia, It fad fo be crgned 9. y No law granting any tax exemption shall be passed without the foneurrence of two-thirds of the members of the Congress. mayo Only 10. The Constitution grant utonomous regions certain legislative * powers which shall include legislative power over taxation, 11. Taxes collected by the BIR are iocettaxes. Vee ns | tenes ¥ 12. Real estate tax and income tax collected on the same bars F real estate Property is not a form of double taxation, ras assets of non-stock, nonprofit educational — or indirectly for educational pu e and duties, oefor the oe j because rade by oH by the courte cgurdes iH ct net it me conchrsive. ease retroactive effect Decay Rees tive jarposes. MC, Tax laws are given ea ‘ " fers ay taxes which gives Tise 4._ In taxation, it is one’s civil liability to Pé © to criminal liability. % t of incorme-tax. 5.,-No person shall be imprisoned for nonPaYMent ©” py tay ' : ment, ane the government, 4 strictly against a 6. ax ws must be conrad ay aginst the (axpayer ally 7., As a rule, doubts as to imposition ee Pcie ly ix y oF the payeromant emda aur oN 8. The Philippine tax laws are not political and penal in nature 9,-The doctrine of equitable recoupment is applicable to cases % where the taxes involved are totally unrelated. (W' “p> 0? 10. When there is ambiguity of tax laws, the rules of statutory 7 construction may be used to search for the legislative intent. However, when the meaning of the law is clear, the statute must be enforced as written. J. Tax exemption istfansferable and*@ssignable with law have the and reasonable, i page to your Profesor — Cut here and submit tht | | | \ 1 \ | \ \bmi this z oz # E g and iii only. iand ii only ‘4. ionly Which of the following is/are natural qualities of Taxation Power? i, An inherent power ee ae Essentially an executive function An absolute power iv. Territorial in operation |, .ateant 2+ legi¢fatwe Choices: gate a. i andivonly ey abe, eh b. ii and iii only tech ote exemt ci and ii only 4° +” ptranqea € d. TIonly Nubieet Atal penton Taxation co-exist with the four clements of the state which includes all, except r Government Property 2 Sovereignty 3+ cove rerg My Territory. 4, qemrony wer nent Which of the following statements is not correct? The government automatically po ses the power to collect taxes from its inhabitants. The government can enforce contribution upon its citizen only wher the-Constitution grants it. Taxation power exists inseparably with the State, asthe State has the supreme power to command and enforce tion from people within its jurisdiction. its is not correct? 4 ent exercises the inherent power 2a ee aaxaTion : \ . its \ = overnite un jocal x 1 b es paar BE CS a es, \ " "power eae ee go ate : is &._tnverpretaton e, the government. - oa i Y : ee rea sae pat ney: ~" 4 of the people is 6 Which of the ce we? bi on “—_ © gern enn no popuon . Construction of private Lege fran of great? porti 4 4. Allocation of taxes for the eee é fi considered for public purposes: xcept One: 7. Allof the following statements are correct ee ; a. Taxation power is Wie strongest of al inherent powers of the b. Taxation power is the stron} a ees ea | restrictions. ~ ¢. Tax laws must not violate Constit putional rationa iy d. Exercise of Taxation power is subject to restr) _ tite this page t© YoUr 8. One of the following is not among the basic justification for taxation. a. Taxation is based on necessity. # s b. Taxation is the lifeblood of the government. v ¢, Taxation is the bread and butter of the government d. Taxation is a ani tribution for the benefits received. nad vecanrOAy DP 9. Which of the following could be an object of taxation? i. Person ii, Tangible property iii, Intangible property iv. Rights Choices: a. iandii b. i, iiand c. iand iv. da. pere and submit Cut These refer to the rules or or : ‘ders havi executive branch of th: Wing force ee 1 government to ensure fate a: e ‘ z problem 1-6 — Multiple Choice Encircle the letter that contains the best answer. This refers to the process of taxation to based on existing tax | a, Levying*~ceiwu oh ors b, Impositior’) 6 6m) a c. Assessment d. Collection os i = ain ES Ee All of the following are legislative aspect of taxation exce a, selection of the object or subject of tax. b, fixing of tax rates..~ z. ¢. valuation of property for taxation - adinin «webue feo d. prescribing the general rules of taxation. ~~ Which of the following is/are elements of impact of taxation? i, Levy ee ii. Assessment “ iii, Collection » Choices: a. i, ii and iii b. i and ii only. ¢. iiand iii only d. iii only. 4. Allof the following are a. selection of ot b. valuation of property for tax ©. equalization of assessme d. collection of taxes ive functions of taxation except The statement that “he who received more should give more” is based on this basic tax principle @. Fiscal adequacy (batexces buoge+ b. Theoretical justice (qua ty c. Administrative feasibility ( juc+) _ Due process of law he burden of taxation, the corresponding estimated tax is every payroll period so that at the end t of tax withheld will be equal or cation ofe 9 in gene! Which of te following eh ot vision, taxe a : hes ees ae lection is applicable to . ai oe for assessment and co! b. Prescriptive : i etumable A769, 7 on being & remedie! ease s Peet ieraly inorder sopratect tne “7 iptive peri : Petia ting date and the actual date of filing, i statements is carrect? i ; oe . Retires: aoible taxation is legal as long as there is no vole of equal protection and uniformity clauses of the Constitution. Indigect double taxation violates the Constitutional provision of uniformity and equal protection. There is diregt double taxation corporation andagain subject the portion declared as dividend to final tax. |. Direct double taxation is by the Constitutio: Ga. Di Prohibited by onstitution Which of the following remedies ag: in taxing the income of the of that income treaty i afould: be the shorter between the — io ainst double taxation requires tax wage to your ns here and submit this péStatement 2: Government owned or con exercising proprietary functions are taxable unless a. Only statement 1 is correct. b. Only statement 2 is correct. c. Both statements are correct. d. Both statements are not correct. 3, Which of the following is an incorrect description of taxation? a. Legislative and inherent for the existence of the government“ b. Necessary and for public purposes ~ c. Supreme and an absolute power of the State f d. Restricted by Constitutional and inherent limitations 7 4. Which of the following is not true? Police Eminent Domain | a. Inherent to the Y Yes b. N No ©. Superior to the non impairment clause Yes ve Yes No d. Restricted by just compensation No No Yes to exercise Consututional Inherent‘fol ions are inherent on the exercise of E , 'b. for public purposes. | €. territorial jurisdiction. | v _ d. international comity. J Which of the following statements is not correct? The national and local government units exercise Power to tax. cerer *™ Local government units could exercise though legislated delegation.“ National legislation is exercised by Ci ingress. Interpretation of Tax Laws is done by the jud. government. ‘ax affects the area or nation as a community dduals. This is a specific explanation of International comity.~ Reciprocity. d. International inhibition. Which of the following statements is not correct? a. Collections from taxes are public money. b. Appropriation of taxes for the common good of the people is valid. ¢. Construction of private road from taxes is a valid appropriation. d. Allocation of taxes for the benefit of greater portion of population: is considered for public purposes. A taxpayer gives the following reasons in refusing to pay a tax. Which of his reasons is not acceptable for legally refusing to pay the tax? a. That he has been deprived of due proc of law. b. That there is lack of territorial jurisdiction ¢. That he derives no bencfit from the tax. d. That the prescriptive period for the tax has elapsed The following are the constitutional limitations on the power of taxation, except a, « taxes are not subject to set-off or compensation b. only Congress can exercise the power of taxation ¢. non-impairment of the obligation of contracts. d. the rule of taxation must be uniform. Which of the following is/are taxable only for income earned within the Philippines? a ae n th i, Nonresident citizen ~ Nonresident alien “Resident citizen (tru. Por income ovdcede[itarn POPS alien —es except ‘a value-added tax. 'b. other percentage tax. -c. excise tax. _d. custom duties. ~ Gr vmpyrt! ee e “ o all of the following are National taxes as to collecting authority icome tax. real property tax. ~All of the following are not taxes except @, surcharge. % eae Aare b. special assessment.x © custom duties. ” d. license fee. ¥ Which of the following could be an obje i Person ii, Tangible property~ iii, Intangible property ” iv. Rights “ ct of taxation? Choices: a. iand ii b. i, ii and iii c. iand iv d, i, ii, iii and iv. Which of the following correctly describes the primary purpose of taxation? ie ~ ae Fiscal Regulatory purpose —_ purpose a, To raise revenue Yes Yes b. To check inflation Yes No ¢. To discourage consumption of harmful products No No d. To limit influx of foreign products Yes.esident Yes a. Taxable income of MOREE : Yes “ a eatate of resident aut 2 e Taxable castor ‘of resident citizeD a c ree gident d. Taxable sale sans that it can impo 7. statement 1: The city of Baguio iS TT Code (in addi ~ Staterienpanks under the Local GOVCPEN Ey + percentage tax on banks imPOSe ET double taxation Se ttement 2: Such imposition is a Gu°2 a. Both statements are correct. b. Only statement 1 is correct. c. Only statement 2 is correct. d. Both statements are incorrect. ofessor nit this page t0 Your PM & One of the following is incorrect regarding tax exemption. Express Exempt a: 13% month pay of P30,000 and below Yes Inter-corporate dividend Yes No Yes b. ¢ Nontaxability of government units ed. Separation pay due to sickness Cut here and subi 9. Which of the following statements is not correct? a A tax bill must only be a per ae plicable and operative after becoming a The effectivity of the tax law comr cette at fommences upon its approval. ~ stone. bean” Covers the present and future Tax law i Aw #8 €X post facto in application, x i Up bn « are sepa greet? pee Bs non, taxes in generalctive in operation although the tax stat “operate retrospectively provided it is cl “Statement 1: When the primary consideration is the legislative "intent, but doubts exist in determi ing such intent, the dot bts must be resolved strictly against the taxing authority. ~ Statement 2: Tax exemptions are strictly construed against the a ‘Only statement 1 is true Only statement Both statements are true. Both statements are tals strictly ag: strictly ag and generally A of tax returns, a. GAAP shall prevail o ¥ b. Tax laws shall prevail over GAAP. shall resolve the i:er viola _ d. Tax Code could vi ss by court resolution cerning barangay taXe-* hanged by. BIR Rulings are i Ge gtitutional provisions * rare ill: witcher ee peodes" as Representative and on . Must originate from the dmments. * Jame bill the Senate may propose Te chich niane bill ie b. May originate from the Senate and Dr acients PCaER y se amen' s of Representatives may propose @ ate! version al id ©. May have a House version an F : separately and then consolidated, with both houses appré the consolidation version. d. May be recommended by the President to Congress Which of the following statements is cor ecy? Revenue regulations have the force and effect memorandum order of the Commissioner of Intern approved by the Secretary of Finance, has the effect as revenue regulation b. The revenue regulations in conflict with law are null and void, ¢. The interpretations of the former Secretary of Fi t necessarily bind their successors, wy nance San d. All of the above. 7 Statement 1: The law on prescri : should be interpreted liberally. senption being @ remedial _ Statement 2: Doubts as to wi imposed should be tesolved in ae ty a correct, :