Quiz No. 1 16.

TRUE or FALSE: Stipulations between taxpayer

Taxation Law 1 and government official defeat the right of the
Atty. Vela. State to collect the correct taxes due on an
individual or juridical person.
Instructions: For TRUE or FALSE questions, write true 17. TRUE or FALSE: The State cannot be stooped by
only if the statement/s is/are ABSOLUTELY TRUE, the neglect of its agents and officers.
otherwise, write FALSE and the word/s that make/s the 18. Explain in not more than 3 sentences the
statement FALSE. For other items, explain your answer Necessity Theory of Taxation
in not more than 1 paragraph. 19. Explain in not more than 3 sentences the
Benefits Protection Theory.
1. True or False: Taxation is the power by which 20. TRUE or FALSE: legislature has limited scope as
the sovereign raises revenue to defray the to the persons, property, or occupation to be
necessary expenses of the government. taxed, where there are no constitutional
2. True or False: Taxes are enforced proportional restrictions, provided, the property is within the
contributions from person and property only. territorial jurisdiction of the taxing state.
3. In the case of Algue, did the CIR correctly 21. TRUE or FALSE: Levy / Imposition refers to the
enactment of tax laws or statutes.
disallowed the 75,000 deduction claimed by
22. TRUE or FALSE: Payment signifies an act of
Algue as legitimate expense in its income
compliance by the taxpayer.
returns?
23. TRUE or FALSE: The sole arbiter of the purposes
4. TRUE or FALSE: In the case of Roxas vs CTA, the
for which taxes shall be levied is the Supreme
sale of the Nasugbu farm lands is an ordinary
Court.
gain subject to 100% tax following the lifeblood
24. TRUE or FALSE: Amount gathered in the exercise
doctrine in taxation. of taxation contemplates of no limits
5. TRUE or FALSE: The primary and only purpose 25. TRUE or FALSE: Building permit is a tax.
of taxation is revenue generation.
6. TRUE or FALSE: The power of taxation may be PART II. ESSAY. Answer the following questions and
used as an implement of the police power of explain your answers. A mere yes or no will merit zero
the State through the imposition of taxes with points.
the end in view of regulating a particular
activity. A. What is the nature of a vehicle registration
7. TRUE or FALSE: The power of taxation may be fees? Are they taxes or regulatory fees?
used as an implement of the power of
imminent domain B. Is the power to tax power to destroy?
8. TRUE or FALSE: Our present tax system has
adopted the progressive system of taxation.
9. TRUE or FALSE: Taxation does not encourage
the growth of local industries because of the
imposition of taxes.
10. TRUE or FALSE: Tarif and Customs Code allows
the imposition of certain taxes upon imported
goods or articles to protect our local industries.
11. TRUE or FALSE: Fiscal Adequacy means Tax laws
must be capable of effective and efficient
enforcement.
12. TRUE or FALSE: Administrative Feasibility
means A sound tax system must take into
consideration the taxpayers’ ability to pay.
13. TRUE or FALSE: Theoretical Justice means
Sources of revenues must be adequate to meet
government expenditures.
14. TRUE or FALSE: A tax law will remain valid even if
it is not in consonance with the principles of fiscal
adequacy, and administrative feasibility.
15. TRUE or FALSE: A tax law will remain valid even if
it is not in consonance with the principles of fiscal
adequacy, and theoretical justice.