Quiz Number 2- Taxation Law 1 imposts within the framework of the national development

program of the Government.

READ carefully and FOLLOW the instructions! No ERASURES on 20. the power of taxation is a power that is purely legislative
your answer sheet. Any erasure shall be considered a form of and which the central legislative body cannot delegate either
cheating and will merit a failing grade and the student will be to the executive or judicial department of the government
subjected to disciplinary action of the school administration. without infringing upon the theory of separation of powers.

True or False: Write TRUE and the whole statement/s, only if Multiple Choice: Choose the best answer. Write the letter of
the statement/s is/are absolutely true. If the statement is False your answer together with its content/s.
write FASLE and the word/s that make/s the statement False.
1. Situs of Taxation for Community tax is:
1. Taxation is levied for the purpose of raising money and to a. residence of the taxpayer d. a and b
promote public welfare through regulation. b. source of income e. b and c
2. Taxation does not recognize obligations imposed by c. location of the property f. a, b and c
contracts.
3. Tax is an amount charged for the cost of proprietorship, 2. Situs of taxation for Real Property of non-resident taxpayer
amount charged for the cost and maintenance of the a. residence of the taxpayer d. a and c
properties used. b. location of the taxpayer e. a and b
4. The sanggunian concerned may prescribe the terms and c. location of the property f. all of the choices
conditions and fix the rates for the imposition of toll fees or
charges for the use of any public road, pier, or wharf, 3. Situs of taxation for Donor’s Tax of a Filipino Citizen
waterway, bridge, ferry or telecommunication system funded a. Properties in his residence d. a and b
and constructed by the local government unit concerned. b. Properties in the Philippines e. b and c
5.The province of Cavite may impose a special levy on the lands c. Properties in USA f. a only
comprised within Cavite City specially benefitted by public
works projects or improvements by the provincial 4. Situs of taxation for Estate Tax of a resident US citizen with
government. residence in Cebu
6. Tollway operators are among the franchise grantees subject a. Properties in USA d. a and b
to franchise tax and their services are among the VAT-exempt b. Properties in Cebu e. a and c
transactions. c. Properties in the Philippines f. b and c
7. The Special levy or assessment for the Philippine Sugar
Institute is an exercise of the power of taxation and is not an 5. Situs of taxation for Estate Tax of Davaoeno Filipino who
exercise of the police power of the sovereign. died in UAE
8. Customs duties which are assessed at the prescribed tariff a. Properties in UAE d. a and b
rates are not taxes. b. Properties in the Philippines e. a, b and c
9. When the government owes a taxpayer an amount of c. Properties in Davao f. neither a nor b nor c
money, the tax assessed to such taxpayer can be subject of set
off so that it would not be burdensome for the person. 6. Situs of taxation for Value Added Tax
10. in Francia, the court allowed legal compensation since a. place where transaction is made
Francia Property in Pasay was expropriated was not paid by the b. place where goods where the delivered
government while in the meantime he was real property tax c. place where the check was deposited
delinquency. d. place where the taxpayer resides
10. The Supreme Court ruled that subjecting interest income e. all of the above
to a 20% Final withholding Tax and including it to the f. none of the above
computation of the 5% Gross Receipt is clearly double taxation.
11. The City of Manila may simultaneously assess and collect 7. Situs of taxation of Non-resident Filipinos residing in the USA
taxes from Nursery Care Corporation pursuant to Sec. 17 and whose sole business operates in Mexico.
21 of the Revenue Code of Manila. a. Sources of income from the Philippines
12. For taxpayer suit to prosper, there must be public funds b. Sources of income from the USA
that are disbursed by a political subdivision or instrumentality c. Sources of Income from Mexico
and in so doing, a law is violated or some irregularity is d. All of the above
committed, and the petitioner is directly affected by the e. b and c
alleged act. f. None of the above
13. Capitation Tax are fixed amounts imposed upon residents
or persons of a certain class with regard to their property or 8. Situs of taxation for domestic corporation based in Albay
business. with operations in China
14. Excise taxes are assessed on property or things of a certain a. sources of income from China
class, whether real or personal, in proportion to their value or b. Sources of Income from Albay
other reasonable method of apportionment, such as the real c. Sources of Income from the Philippines
estate tax. d. a, b and c
15. License taxes are imposed upon the performance of an act, e. b and c
the enjoyment of a privilege, or the engaging in an occupation, f. a only
profession or business.
16. Local governments have no power to tax the national 9. 1. Situs of Taxation for Poll tax is:
government, its agencies and instrumentalities. a. residence of the taxpayer d. a and b
17. A reading of Section 11 of RR17-2012 and Annex"D-1" on b. source of income e. b and c
Cigarettes Packed by Machine of RMC 90-2012 reveals that c. location of the property f. a, b and c
they are simply regulations to implement RA10351.
18. An imposition is invalid if there is an incidental promotion 10. Situs of Taxation for capitation tax is:
of a private enterprises in the pursuit of public advantage or a. residence of the taxpayer d. a and b
benefit. b. source of income e. b and c
19. The Congress may, by law, authorize the President to fix c. location of the property f. a, b and c
within specified limits, and subject to such limitations and
restrictions as it may impose, tariff rates, import and export
quotas, tonnage and wharfage dues, and other duties or