Quiz No.

Instructions: These are essay questions summarizing the most important concepts that were part of our virtual class discussion. Inasmuch as
we are done with Chapter 1, I want you to answer these questions in 1-3 sentences only per item and write them in your notebook in Taxation
using your own hand writing. Your individual notebooks shall be collected, graded and returned before the end of the semester. Please leave
the first page blank and write your name (surname, first name, middle initial) on the upper right hand corner of the second page. Indicate
your student number with your year and section on the second line. Finally, indicate the date that you completed answering the questions on
the third line. Please write neatly without erasures. Copy the question per number and write your answer immediately after the
question.Each number is good for 1 point. Perfect answer is for 35 points.

1. What is taxation?
2. What is the primary purpose of taxation?
3. What is the basis of taxation?
4. What are the 2 aspects of taxation?
5. Distinguish taxation from eminent domain and police power?
6. Reconcile the 2 statements. The power to tax involves the power to destroy vs. The power to tax is NOT the power to destroy while
the court sits.
7. What are the 3 basic principles of a sound tax system?
8. Enumerate the inherent limitations on the power of taxation.
9. What are the tests in determining the public purpose of a tax?
10. What are the exceptions to the non-delegability of the taxing power?
11. Enumerate the constitutional limitations on the power of taxation.
12. Explain: a. Due process clause; b. Equal protection clause; c. Uniformity clause and d. Non-impairment of obligation of contracts
clause.
13. What are the tests to apply in determining whether or not the real property is actually, directly and exclusively used for religious,
charitable or educational purposes?
14. What does DOF Order No. 137-87 provide?
15. What is tax exemption? What is tax amnesty?Shall the principle of tax exemption be applied without first applying the doctrine of
strict interpretation in the imposition of taxes. Yes or No?Explain.
16. What is situs of taxation?
17. Determine the situs on persons, property and business transactions.
18. Define tax. What are its essential characteristics?
19. Explain: Progressive tax, Regressive tax and Proportionate tax.
20. Distinguish tax from customs duties.
21. Distinguish tax from license fee.
22. Distinguish tax evasion from tax avoidance
23. Distinguish direct tax from indirect tax.
24. Are tax laws civil or penal in nature? Are BIR rulings given retroactive effects?
25. What is the net worth method?
26. What is meant by taxation at source?
27. Describe: a. Global tax system b. Schedular tax system c. Semi-global and semi-schedular system
28. What is a taxpayer’s suit.
29. What is the Doctrine of Equitable Recoupment?
30. Explain; a. Severance test theory b. Claim of right doctrine c. Economic benefit theory d. Accrual concept of accounting
31. Are taxes subje4ct to set-off or compensation? What are the exceptions?
32. Distinguish tax credit from tax deduction.
33. Is the toll fee a tax?
34. What is double taxation?
35. The Congress of the Philippines, in its desire to broaden the scope of taxation, enacted a law subjecting the AFP of the Philippines to
income taxation. Is the law passed by Congress valid and constitutional?