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Beginner's Tax Quiz

business taxation (Silliman University)

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True or False

TRUE 1.​ R
​ egulatory tax is intended to achieve some social or economic end.

FALSE 2.​ ​Special assessment is levied only on land and is a personal liability of the
person assessed.

FALSE 3.​ ​Not all taxes imposed and collected by the Bureau of Internal Revenue are
internal revenue taxes.

TRUE 4.​ ​Even in the absence of any constitutional provision, taxation power falls under
Congress as part of the general power of lawmaking.

FALSE 5.​ ​Toll is a demand of proprietorship, is paid for the use of another’s property and
may be imposed only by the government.

FALSE 6.​ ​The Bureau of Internal Revenue functions under the supervision and control of
the Bureau of Treasury.

FA:SE 7.​ T
​ here two kinds of double taxation – evasion and avoidance.

TRUE 8.​ ​Penalty is designed to regulate conduct and may be imposed by the
government, private individuals or entities.

FALSE 9.​ P
​ rogressive tax is not imposed in the Philippines

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.​ I​ ncome, unless otherwise specified, means cash or its equivalent.

TRUE 12.​ T
​ he Constitution is a source of tax laws.

TRUE 13.​ ​Income tax is a tax on all yearly profits arising from property, profession, trade
or business.

FALSE 14.​ T
​ he levying of tax is essentially an administrative function.

TRUE 15.​ D
​ onor’s tax is a direct tax.

FALSE 16.​ ​Excise taxes on specific goods imposed under the National Internal Revenue
Code are always specific.

FALSE 17.​ ​Tax evasion is known as tax minimization while tax avoidance is known as tax
dodging.

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TRUE 18.​ I​ mport and export duties are provided for in the Tariff and Customs Code of
1978.

TRUE 19.​ ​In a gratuitous transfer of property, situs is the taxpayer’s residence, citizenship
or location of the property.

FALSE 20.​ I​ ndirect double taxation is unconstitutional.

TRUE 21.​ O
​ ne of the essential characteristics of a tax is that it is an enforced contribution.

TRUE 22.​ I​ ncome tax is an ad valorem tax.

TRUE 23.​ I​ ncome tax is an excise tax.

FALSE 24.​ T
​ axes imposed under special laws are not tax laws.

TRUE 25.​ C
​ ommunity tax is a poll tax.

TRUE 26.​ T
​ he power of taxation is inherent in sovereignty.

TRUE 27.​ T
​ axes on distilled spirits, fermented liquors and the like are specific taxes.

FALSE 28.​ ​In the case of intangible personal property, as a rule, situs is the domicile of
the owner even (dapat unless) if he has acquired a situs in another place.

FALSE 29.​ R
​ eal estate tax is a national tax.

FALSE 30.​ I​ n determining the situs of taxation, the nature of tax is not to be considered at
all.

TRUE 31.​ T
​ axation means by which the government raises income.

FALSE 32.​ I​ ncase of conflict, GAAP shall prevail over tax laws.

TRUE 33.​ ​Income means all wealth which flows into the taxpayer other than a mere return
of capital.

TRUE 34.​ I​ nternal revenue laws are generally prospective in nature.

FALSE 35.​ ​License and fees is the proportional contribution by persons and property
levied by the lawmaking body of the State by virtue of its sovereign for the support of
the government and all public needs.

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FALSE 36.​ I​ ncome tax is always based on gross amount

FALSE 37.​ T
​ axation is one which involves an exercise of police power

FALSE 38.​ C
​ itizenship, in determining the situs, is not a factor to consider

TRUE 39.​ C
​ ollection of tax is among the basic principles of a sound tax system.

TRUE 40.​ O
​ ne of the characteristics of a tax is that it is generally payable in money.

TRUE 41.​ ​The state can have the power of taxation even if the Constitution does not
expressly give it the power to tax.

TRUE 42.​ ​Taxation is a means by which the national government attempts to maintain
price stability.

FALSE 43.​ N
​ on-payment of license fee does not necessarily render the business illegal

TRUE 44.​ N
​ on-payment of taxes does not necessarily render the business illegal

TRUE 45.​ I​ mport duty is a national internal revenue tax.

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