1.

The only tax where non-payment of which will not result to imprisonment:
a. Excise tax c. Personal tax
b. Donor’s tax d. Property tax
2. One of the following can be BOTH a progressive tax and a proportional tax:
a. Donor’s tax
b. Basic Income tax on individuals
c. Both a and b
d. Estate tax
3. Levied only on lands:
a. Tax c. Toll
b. Special Assessment d. License Fee
4. One of the following is NOT a source of our tax laws:
a. Administrative rulings and opinions
b. Judicial decisions
c. 1987 Constitution
d. Expert Opinion on Taxation

5. The government may not do all except one:

a. Tax itself
b. Delegate its power to tax to private agencies
c. Impose tax arbitrarily
d. Disregard uniformity in taxation

6. A form of tax escape through which one is given tax immunity wherein others are subjected
to tax:
a. Shifting c. Tax exemption
b. Tax immunity d. Tax avoidance
17. A form of tax escape by a manufacturer or producer who improves his proceeds of
production thereby minimizing his unit production cost:
a. Tax avoidance c. Transformation
b. Capitalization d. Shifting
18. A waiver by the government’s right to collect tax:
a. Tax exemption c. Tax avoidance
b. Tax amnesty d. Tax evasion
19. A tax imposed based on the number:
a. Income Tax c. Advalorem Tax
b. Specific Tax d. Custom’s Duties
20. The theory which most justifies the necessity of taxation:
a. Protection and benefits theory
b. Revenue purposes theory
c. Lifeblood theory
d. Ability to pay theory