1. Taxation power is the strongest among the inherent powers of the government being its lifeblood.

Which of
the following statements is not correct?
a. It could be exercised by the government without a need for legislation.
b. It is still restricted by Constitutional provisions
c. The main goal of its exercise if for revenue
d. It is exercised for the welfare of the majority of the population

2. Taxation power is exclusively legislative in nature. This means that

a. All aspects of taxation should be exercised and administered only by the legislative branch of the
government.
b. This refers to the levying aspect only.
c. This refers to both the imposition and assessment aspect.
d. This refers to the assessment aspect only

3. Which of the following aspects of taxation is/are demonstrating the fiscal policy of the government?
a. Imposition
b. Assessment
c. Collection
d. b and c

4. Although the power 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.

5. This scope of taxation means that the state can tax on anything, anytime, anywhere, and at any amount.
A. Comprehensive
B. Plenary
C. Supreme
D. With highest degree of authority

6. Which of the following is not true regarding the power of taxation?

A. does not emanate from a grant
B. necessarily inherent upon the existence of the state
C. exclusively delegated to congress
D. subject to limitations

7. Tax money collected could be used immediately by the collecting unit to pay its legitimate obligations.
a. Yes, because it has legal basis
b. No, unless it has the approval of its department head
c. Yes, as long as the amount collected is sufficient
d. No, because its spending must be legislated through an appropriation act.

8. Progressive system of taxation is best demonstration of application of this basic principle of sound taxation,
a. Administrative feasibility
b. Fiscal adequacy
c. Theoretical justice
d. Uniform application

9. Sound taxation principle which states that tax should generate enough revenue to pay for the public goods
and services provided by the government levying the tax
a. Administrative feasibility
b. Fiscal adequacy
c. Theoretical justice
d. Uniform application

10. Refers to the executive’s power to refuse to sign into law a bill that has been passed by a legislature
a. veto b. sanction c. censure d. condone

11. Which of the following is not characteristic of a tax?

A. A tax is compulsory.
B. A tax is intended to punish unacceptable behavior.
C. A tax is levied by a government.
D. All of the above are characteristics of a tax.

12. In our tax system, we have direct taxes and indirect taxes.
Which of the following statements in not correct?
a. Direct taxes are the burden of the same person who is liable to it
b. Indirect taxes could be legally shifted to next taxpayer
c. Direct taxes are the focus of regressive tax system
d. Indirect taxes are the focus of regressive tax system

13. Which of the following is illegal?

a. Indirect double taxation
b. Tax pyramiding
c. Tax avoidance
d. Tax shifting

14. Which of the following sources of tax law carries the least authority?
A. National Internal Revenue Code
B. BIR ruling
C. revenue regulation
D. Court Resolution

15. A proportional tax rate structure is

a. where the tax rate remains at the same rate regardless of the tax base
b. where the tax rate is progressing in the same direction with the tax base
c. where the tax rate is constant at minimum bracket and progressing after exceeding the minimum bracket of
tax base
d. where the amount of tax is behaving opposite direction of the tax base

16. Type of tax where the tax rate decreases as the tax base gets larger
a. proportionate tax
b. regressive tax
c. progressive tax
d. final tax

17. The distinction of a tax from a permit or a license fee is that a tax is
A. Imposed for regulation
B. One which involve an exercise of police power
C. One in which there is generally no limit on the amount that may be imposed
D. The amount is restricted for recovery of cost of regulation

18. Taxation distinguished from police power

A. Is for the general welfare
B. The amount collected shall not exceed cost of regulation
C. Property taken is generally in money
D. Superior to non-impairment clause of the Constitution

19. Similarities of police power and taxation, except

A. Both interfere with ownership and use of private property
B. Both regulate liberty and property
C. Both are Necessary for the existence of he state
D. Both Are legislated

20. Which of the following distinguished license fee fro tax?

A. No limit as to the amount
B. None payment will not make the business illegal
C. Amount imposed is for revenue
D. Paid before commencement of the business

21. The following are the similarities among the inherent powers of the government, except
a. All are inherent to the existence of the government
b. All are applied to the community as whole
c. All requires legislation
d. All are for public purposes

22. All of the following are similarities among inherent powers of the government, except
a. all are superior than the “non-impairment” clause of the Constitution.
b. all are inherent to the existence of the government
c. all are for public purposes
d. all requires legislation of rules and regulations

23. Which of the following is not one of the similarities among the three inherent powers of the state ?

a. They are inherent powers of the state;

b. They constitute the three ways by which the state interferes with the private rights and property;
c. They are restricted by the “just compensation clause” of the Constitution. equivalent compensation;
d. They all underlie and exist independently of the Constitution

24. Statement 1, License fee is for regulatory purpose only, while tax is for general public purpose.

Statement 2, Exemption from taxes also include exemption from license fees.
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are not correct

25. Under our Income Tax Law, resident citizens are taxable on their income whether earned in the Philippines or
outside the Philippines. If foreign income tax is collected on the same income which such resident citizen earned
outside, is there double taxation?
a. Yes, it is a direct double taxation
b. No, because only one type of tax is collected, income tax
c. Yes, but an indirect double taxation only
d. No, if both Philippine tax and foreign tax collected are for the same period

26. Double taxation in its general sense means taxing the same subject twice during the same taxing period. In
this sense, double taxation
A. violates substantive due process.
B. does not violate substantive due process.
C. violates the right to equal protection.
D. does not violate the right to equal protection.

27. Which of the following is not a natural attributes of taxation?

a. Inherent power of sovereignty
b. Essentially a legislative function
c. The strongest among the inherent powers of the government
d. Not subject to Constitutional and inherent limitations

28. Which of the following is not correct?

a. Any provision in the Constitution regarding taxation creates rights for the sovereignty to have the power to
tax.
b. The law-making body of the government and its political subdivisions exercise the power of taxation.
c. The power of taxation flows forth from the legitimate objective of supporting the services of the
government.
d. Taxes are utilized for public purpose if the welfare of the nation or the greater portion of its population has
benefited with its use.

29. Which of the following is not correct?

a. Although our Constitution assumes the existence of taxation, it provides some provisions to limit its exercise.
b. When a tax law under question fails to abide by the commands of the Constitution, such law shall be
declared null.
c. Taxation power is supreme, and its exercise is absolute.
d. The power to tax can only be exercised within the territorial jurisdiction of a taxing authority , except when
there exists a privity of relationship between the taxing State and the object of tax.
30. Which of the following is not considered as tax legislative function ?
a. Prescribing general rules of taxation
b. Selection of the object or subject to be taxed,
c. assessment of tax liability
d. fixing of tax rates to be imposed

31. The following are the inherent limitations on the power of taxation, except:
a. Taxes may be levied only for public purposes;
b. Observance of Rule of uniformity and equity;
c. Being inherently legislative, taxation may not be delegated;
d. Taxation is subject to international comity;

32. The following as the characteristics of Tax Law, except

a. A special law
b. Penal in Nature
c. Prospective in application
d. A Legislative act

33. The determinant factor of situs of taxation which considers where the property is situated.
a. Mobilia sequuntur personam
b. Lex rei sitae
c. Citizenship
d. Residency

34. Which is not an element of double taxation (two or more taxes collected)?
a. On the same taxpayer
b. For the same purpose
c. For the same amount
d. For the same period

35. The following are nature of taxation power, except

a. necessary attribute of the state
b. Plenary, complete in every respect
c. essentially legislative
d. for public purposes

36. This common understanding among nations, that each has equal
sovereignty, and as such, one nation could not exercise sovereign
dominion over another is also observed in the exercise of
taxation.
A. Territorial jurisdiction
B. International comity
C. Due process of law
D. Uniform application of law

37. A Provision in the Constitution that non-payment of which is not a ground for imprisonment, except.
A. Capitation tax
B. Real property tax
C. Poll tax
D. Community tax

38. Poll tax is all of the following, except

A. A personal tax
B. A direct tax
C. An excise tax
D. A local tax

39. Which of the following is/are true regarding the rules on the enactment of tax laws?
Statement 1, Senate can amend or concur the House Bill originating from lower house

Statement 2, A tax bill has to be signed by the President to become a law

a. True; true b. true; false c. false; true d. false; false
40. In passing the tax bill, the Veto power of the President is overcome by
a. 2/3 votes of all members of Congress
b. 2/3 votes of the lower house
c. 2/3 votes of the upper house
d. 2/3 votes of the joint conference committee of both houses

41. Which if the following is/are true regarding tax exemption?

Statement 1, Tax exemptions are to be construed strictly against the taxpayer .

Statement 2, The burden of proof as to exemptions/deductions must be on the taxpayer.

a. True; true b. true; false c. false; true d. false; false

42. Statement 1, if the taxpayer refused to pay his tax, he could be prosecuted for criminal liability.

Statement 2, non payment of community tax will not be ground for imprisonment.
a. True; true b. true; false c. false; true d. false; false

43. Statement 1, In determining the tax liability of the taxpayer, the tax law shall prevail over the accounting
standards.

Statement 2, Any doubt as to the imposition of the tax should be resolved liberally in favor of
the taxpayer, and strictly against the imposing authority.
A. True; true b. true; false c. false; true d. false; false

44. Statement 1, When there are more taxes like personal tax are being imposed, the tax system is described as
regressive.

Statement 2, If more Value added tax and similar taxes are preferred to be imposed that the
like of income tax, the system is described as progressive
a. True; true b. true; false c. false; true d. false; false

45. The point in which tax is levied is called?

a. Impact of taxation
b. Incidence of taxation
c. Situs of taxation
d. Assessment