Statement 1: The Power to tax is legislative in nature TRUE

Statement 2: Local taxes are collected by the Bureau of Internal Revenue

FALSE
Statement 1: Tax evasion is the use of legal channels to reduce or avoid making payments on tax FALSE
liabilities. This involves means sanctioned by law.
Statement 2: Tax avoidance is committed when there is “bad faith’’ in paying taxes. FALSE
Statement 1: The exemption contained in tax laws must be strictly construed against the one claiming the TRUE
tax exemption.
Statement 2: Tax cannot be imposed without clear and express words for the purpose. TRUE
Statement 1: The inherent powers can be seen in the Constitution and other tax laws. FALSE
Statement 2: If the DPWH gives you a notice that they will acquire your property, valued at fair market
value, to construct a new public highway, the power used by the government is Eminent Domain. TRUE
Statement 1: Shifting will result in the increase in prices. TRUE
Statement 2: Tax evasion is also known as tax dodging.
TRUE
Statement 1: Government agencies with proprietary functions are only subject to tax in the absence of a TRUE
provision of law exempting the same from taxes.
Statement 2: International comity or reciprocity can be seen in tax treaties between the Philippines and TRUE
other countries.
Statement 1: Double taxation is unconstitutional. TRUE
Statement 2: Indirect double taxation is allowed.
TRUE
Statement 1: Shifting is allowed for income tax. FALSE
Statement 2: Tax exemptions are strictly construes against the taxpayer.
TRUE
Statement 1: There are three inherent powers of the State- Taxation, Police Power and Sovereignty FALSE
Statement 2: The Lifeblood theory falls under Police Power.
FALSE
Statement 1: The difference between a penalty and a toll is that the former is imposed for punishment and FALSE
the latter is imposed to raise revenue.
Statement 2: The difference between revenue and license fee is that the former is imposed for regulation FALSE
and the latter is income derived by the government.
Statement 1: The power to create theory states that ‘The power of taxation is essential because the FALSE
government can neither exist nor endure without taxation.
Statement 2: The purpose of taxes are solely for raising revenue. FALSE
Statement 1: A sound tax system must be fiscally adequate, theoretically justified and administratively TRUE
feasible.
Statement 2: Theoretical justice is premised upon a taxpayers’ ability to pay. TRUE
Statement 1: Where doubts exists in determining the intent of legislature, the doubt must be resolved FALSE
strictly against the tax payer and liberally in favor of the taxing authority.
Statement 2: Tax cannot be imposed without clear and express words for that purpose. TRUE
Statement 1: PEZA- registered entities are given income tax holidays in order to boost economic growth TRUE
in the Philippines.
Statement 2: Excise tax for sin products ( tobacco or alcoholic) are imposed only to generate revenue for FALSE
the government.
Statement 1: Government agencies with proprietary functions are always subject to tax. FALSE
Statement 2: Government agencies with governmental functions are tax exempt, unless expressly taxed.
TRUE
Statement 1: Taxes cannot be enjoined by injunction. TRUE
Statement 2: Taxes can be the subject of compensation or set off.
TRUE
Statement 1: There are three branches of government: Legislative, Executive and Congress FALSE
Statement 2: Collection of taxes is the primary function of the Legislative, pursuant to the tax laws they
enacted. FALSE
Statement 1: There can be no estoppel against the tax payer. FALSE
Statement 2: Taxes are strictly construed against the taxpayer.
FALSE
Statement 1: An individual tax is an example of a regressive tax rate. FALSE
Statement 2: Value Added Tax (VAT) is an example of an ad valorem tax
TRUE
Statement 1: The revocation of a revenue regulation cannot be made retroactive even if the reason for its TRUE
revocation is that is erroneous or contrary to law.
Statement 2: In case a conflict between a revenue regulation and the provision of the National Internal TRUE
Code, the latter shall prevail.