Guanlao, Ma. Elena I.

BSA-4A
Income Taxation

POST TEST 1: True or False

False 1. The three fundamental powers of the state maybe exercise only by the
government.

False 2. Toll is one of the taxes collected by the government.

True 3. License fees are imposed in the exercise of police power.

True 4. The amount imposed in the exercise of police power depends on whether the
activity is useful or not.

True 5. Tax is generally unlimited because it is based on the needs of the State.

True 6. The taxing power of provinces, municipalities and cities precede from a
constitutional grant.

True 7. Levying of local government taxes should be exercised only by the legislative
branch of the local government.

False 8. In case of ambiguity, tax laws shall be interpreted liberally in favor of the
government.

True 9. In the exercise of the power of taxation, the State can tax anything at anytime.

False 10. A person may refuse to pay tax on the ground that he will not receive benefit
from.

POST TEST 2: True or False

False 1. No law granting any tax exemption shall be passed without the concurrence of
2/3 of all members of Congress.

False 2. The Philippine government may subject the land where embassies of foreign
governments are located to real property taxes.
True 3. The Constitution is a source of tax laws.

True 4. There is no constitutional prohibition against double taxation in the Philippines.

It is something not favored, but nevertheless permissible.

False 5. In case of ambiguity, tax laws shall be interpreted liberally in favor of the
government.

False 6. Tax evasion is known as tax minimization while tax avoidance is known as tax
dodging.

True 7. Import and export duties are provided for in the Tariff and Customs Code.

False 8. In determining the situs of taxation, the nature of tax is not to be considered at
all.

False 9. A revenue bill may originate from the Senate and on which same bill the House
of Representative may propose amendments.

True 10.Subject to review by the Secretary of Finance, the BIR Commissioner has the
exclusive power to interpret provisions of the NIRC and other tax laws.

True 11. Even in the absence of any constitutional provision, taxation power falls under
Congress as part of the general power of lawmaking.

True 12.The taxing powers of provinces, municipalities and cities precede from a
constitutional grant.

False 13.There are two kinds of double taxation – evasion and avoidance.

False 14.An attempt to minimize one’s tax constitute fraud, taxpayer may diminish his
liability by any means, which the law permits.

True 15. It is not the law but the revenue bill which is required by the Constitution to
originate exclusively” in the House of Representatives because bill originating in the
House may undergo such extensive changes in the Senate that the result may be a
rewriting of the whole, and a distinct bill may be produced.