Professional Documents
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REVIEWER
REVIEWER
a. Taxation
b. Eminent Domain
c. Police Power
d. People Power
2. The process or means by which the sovereign, through its law-making body raises income to
defray the necessary expenses of the government:
a. Toll
b. License Fee
c. Taxation
d. Assessment
3. Which of the following inherent powers of the government is inferior to the non-impairment
clause of the constitution?
a. Taxation
b. Police Power
c. Eminent Domain
d. A and C
4. The religious congregation was organized as a corporation sole. It owns a 5,000 sq. m. Lot,
registered in the name of the rector and rented out for use as a school site of an educational
institution organized for profit. The sect used the rentals for the support and unkeep of its priests.
Choose the most appropriate ruling about real property tax (RPT) exemption of the 5,000 sq. m. Lot.
a. Exempt from the payment of RBT because it is actually, directly and exclusively used for religious
purposes.
b. Not exempt from the payment of RPT because it is the proceeds, and not the property, that is
actually, directly and exclusively used for religious purposes.
c. Not exempt from the payment of RPT because the user is organized for profit.
d. Exempt from the payment of RPT because it is actually, directly and exclusively used for
educational purposes.
5. The power to acquire private property upon payment of just
compensation for public purpose:
a. Taxation
b. Police Power
c. Eminent Domain
d. Power of recall
a. Power of Taxation
b. Police Power
c. Power of Eminent Domain
d. Privatization of government’s capital assets
a. Taxation
b. Police Power
c. Eminent Domain
d. Power of recall
8. The power to demand proportionate contributions from persons and property to defray the
necessary expenses of the government:
a. Taxation
b. Police Power
c. Eminent Domain
d. Power of recall
9. Which statement is wrong?
10. The power to tax is the power to destroy. Is this always so?
a. Yes. The tax collectors should enforce a tax law even if it results to the destruction of the
property rights of a taxpayer.
b. Yes. The tax laws should always be enforced because, without taxes, they very existence
of the State is endangered.
c. No. The Supreme Court may nullify a tax law. Hence, property rights are not affected.
d. No. The Executive Branch may decide not to enforce a tax law which it believes to be
confiscatory.
12. The following are common to the inherent power of taxation, power of eminent domain and police
power, except for which of the following?
a. It is inherent in sovereignty.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is subject to constitutional and inherent limitations.
16. Statement 1: The power of taxation is inherent in sovereignty being essential to the existence of
every government. Hence, even if not mentioned in the Constitution, the State can still exercise the
power.
Statement 2: Taxation is essentially a legislative function. Even in the absence of any constitutional
provision, taxation power falls to Congress as part of the general power of lawmaking.
18. That taxation is based on the principle of reciprocal duties of protection and support between
the State and its inhabitants.
19. It is an enforced contribution levied by the State by virtue of the sovereignty on persons and
property within its jurisdiction for the support of the government and all public needs.
a. Tax
b. Toll
c. Special Assessment
d. License
a. It is generally based on
contract
b. It is generally assignable
c. It is generally payable in
money
d. Answer not given
a. Fiscal Adequacy
b. Theoretical Justice
c. Administrative Feasibility
d. Inherent in Sovereignty
23. Under this basic principle of a sound tax system, the government
should not incur a deficit:
a. Theoretical justice
b. Fiscal Adequacy
c. Administrative Feasibility
d. None of the above
24. The basic principle of a sound tax system, where, “Taxes must be based on the
taxpayer’s ability to pay” is called:
a. Equality in Taxation
b. Theoretical Justice
c. Ability to pay Theory
d. Equity in Taxation
25. These are part and parcel of the power of taxation and originate from the
very nature of taxation.
a. Inherent Limitations
b. Constitutional Limitations
c. Canons of Taxation
d. None of the choices
27. A tax must be imposed for a public purpose. Which of the following is
not a public purpose?
a. National Defense
b. Public Education
c. Improvement of Sugar Industry
d. None of the choices
28. A fundamental rule in taxation is that “the property of one country may not be taxed by another
country”. This is known as:
a. International Law
b. Reciprocity
c. International Comity
d. International Inhibition
29. Being legislative in nature, the power to tax may not be delegated, except:
30. “Government agencies performing governmental functions are exempt from tax unless expressly
taxed while those performing propriety functions are subject to tax unless expressly exempted” refers
to:
31. This stems from the principle that we pay taxes for the protection and services provided by the
taxing authority which could not be provided outside the territorial boundaries of the taxing state.
a. Inherent Limitations
b. Basic principles of sound tax system
c. Constitutional Limitations
d. None of the choices
33. No law granting any tax exemption
shall be passed without the concurrence
of
a. Majority of all member of the Congress
b. 3⁄4 vote of all members of the
Congress
c. 2/3 vote of all members of the
Congress
d. Unanimous vote of all members of the
Congress
34. Compliance with procedural requirements must be followed strictly to avoid collision course
between the state’s power to tax and the individual’s recognized rights.
a. Due process of law
b. Non-infringement of religious freedom
c. Equality in Taxation
d. Non-impairment of obligations and contracts
a. Property Tax
b. Poll Tax
c. Excise Tax
d. Income Tax
a. Must originate from the House of Representatives and on the 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.
d. May be recommended by the President to Congress.
37. This requires that all subjects or objects of taxation, similarly situated are to be treated alike or put
on equal footing both in privileges and liabilities.
a. Due process
b. Uniformity
c. Progressive Taxation
d. None of the Choices
38. The basis or test of exemption of real properties owned by religious, or charitable entities
from real property taxes is:
40. A taxpayer gives the following reasons for 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 process of law.
b. That there is lack of territorial jurisdiction
c. That the prescriptive period for the tax has elapsed
d. That he will derive no benefit from the tax
a. Provinces
b. Cities
c. Barangays
d. Barrios
42. One of the characteristics of our internal revenue laws is that they are:
a. Political in nature
b. Penal in nature
c. Generally prospective in operation although the tax statute may nevertheless operate
retrospectively, provided it is clearly the legislative intent.
d. Criminal in nature
a. Transfer Tax
b. Real Property Tax
c. Sales Tax
d. Income Tax
46. One is not a Direct Tax
a. Immigration Tax
b. Income Tax
c. Transfer Tax
d. Value-added Tax
47. A tax in
business is:
a. Direct Tax
b. Property Tax
c. Indirect Tax
d. None of the
choices
48. Guiller is a mining operator. His mineral lands are not covered by any lease contract. The tax
Guiller has to pay based on the actual value of the gross output or mineral products extracted is
a. Mining Tax
b. Royalties
c. Rental
d. Ad Valorem Tax
49. Tax levied for particular or specific purpose irrespective of whether revenue
is actually raised or not
a. Revenue Tax
b. Regulatory Tax
c. Specific Tax
d. Ad Valorem Tax
50. Taxes imposed by a political subdivision of the state and is effective only within the
territorial boundaries thereof
a. National Tax
b. Local tax
c. Progressive Tax
d. Regressive Tax
51. Under the TRAIN LAW, which of the following taxes is
not proportional?
a. Value-added Tax
b. Income Tax
c. Estate tax
d. Donor’s Tax
54. Which of the following terms describes this statement: “that the state has complete discretion on
the amount to be imposed after distinguishing between a useful and non-useful activity?
a. Tax
b. License fee
c. Toll
d. Customs Duty
55. Which of the following is not a distinction or similarity of
license fee from tax?
a. License Fee
b. Tax
c. Toll
d. Franchise
a. Demand of sovereignty
b. Imposed by government only
c. Amount is based on the cost of construction of public
improvement used
d. Paid for the support of the government
a. A tax is a demand of
sovereignty
b. A toll is a demand of
ownership
c. A special assessment is
a tax
d. Customs duty is a tax
59. Which of the following is not a
characteristic of Debt?
a. Based on law
b. May be paid in kind
c. Does not draw interest except when
delinquent
d. Generally not subject to set-off or
compensation
a. Tax
b. Toll
c. Penalty
d. Special Assessment
a. Set-off Doctrine
b. Doctrine of Reciprocity
c. Tax sparring Doctrine
d. Equitable Recoupment
a. Shifting
b. Capitalization
c. Transformation
d. Tax Exemption
65. Which of the following is not a scheme of shifting the incidence of tax burden?
a. The manufacturer transfers the tax to the consumer by adding the tax to the selling price of the
goods sold.
b. The purchaser asks for a discount or refuses to buy at regular price unless it is reduced by an
amount equal to the tax he will pay.
c. Changing the terms of the sale like FOB shipping point in the Philippines to FOB Destination
abroad, so that the title passes abroad instead of in the Philippines.
d. The manufacturer transfers the sales tax to the distributor, then in turn to the wholesaler, to the
retailer and finally to the consumer.
66. The method by which the manufacturer or producer upon whom the tax is imposed pays the tax
and strives to recover such expense through lower production cost without sacrificing the quality of
his product.
a. Shifting
b. Capitalization
c. Transformation
d. Tax exemption
67. The reduction in the selling price of income producing property by an amount equal to the
capitalized value of future taxes that may be paid by the purchaser
a. Shifting
b. Capitalization
c. Transformation
d. Tax exemption
a. Exemption
b. Shifting
c. Avoidance
d. Evasion