`

Taxation
Long Quiz

Name:___________________________ Score:____/45
Instructor: Kathlene Jao Date:_______

WRITE TAX IF TRUE AND WRITE FAUX IF FALSE.

1. The three fundamental powers of the state may be exercised only by the government.
2. Taxation is a process or means by which the sovereign, through its law making body, raises
income to defray the expenses of the government.
3. Eminent domain may be exercised even by public service corporations and public entities.
4. Police power regulates both liberty and property.
5. Taxes are raised to cover the cost of governance.
6. Toll is one of the taxes collected by the government.
7. License fees are imposed in the exercise of police power.
8. License fee is imposed to raise revenue.
9. Tax is generally unlimited because it is based on the needs of the State.
10. The amount imposed in the exercise of police power depends on whether the activity is useful
or not.
11. The distinction of a tax from permit or license fee is that a tax is one in which there is generally
no limit on the amount that may be imposed.
12. Debt, as distinguished from tax, may be paid in kind.
13. Under the equal protection clause of the constitution, all persons subject to legislation shall be
treated alike under dissimilar circumstances and conditions, both in the privileges conferred
and liabilities imposed
14. Tax laws are civil and penal in nature because there are penalties provided in the case of
violation.
15. Special assessment is a tax.
16. Special assessment is imposed on persons, property and property rights.
17. The Philippine government may subject the land where embassies of foreign governments are
located to real property taxes.
18. A revenue bill may originate from the Senate and on which same bill the House of
Representatives may propose amendments
19. A person may refuse to pay on the ground that he will not receive a benefit from the tax.
20. In the exercise of the power of taxation, the State can tax anything at any time.
`

Part II: Identification - write the correct answer on the blank provided. NO ERASURES.
1. In cases of deductions and exemptions, doubts shall be resolved liberally in favor of the
___________.
2. Levying of government taxes should be exercised only by the _____________ branch of the
government.
3. Taxation is __________ when their rate goes up depending on the resources of the person affected.
4. No law granting any tax exemption shall be passed without the concurrence of ____________ of all
members of Congress.
5. ______________ is the tax principle referring to income taxes paid twice on the same source of
income. It can occur when income is taxed at both the corporate level and personal level.
6. ____________ means separate graduated rates are imposed on different types of income.
7. _______________ is a method by which the manufacturer or producer upon whom the tax is
imposed pays the tax and strives to recover such expense through lower production cost without
sacrificing the quality of his product
8. In case of ambiguity, tax laws shall be interpreted liberally in favor of the_______________.
9. ______________t means that all persons subjected to such legislation shall be treated alike, under
like circumstances and conditions, both in the privileges conferred and in the liabilities imposed.
10. _________________ When the burden of the tax is transferred from the consumer or purchaser
through the factors of distribution to the factor of production.

Part III - Analysis (if the space is insufficient, use the back of the paper)

1. What is the Willful blindness doctrine 5pts

2. What is the lifeblood doctrine? 5pts

3. Explain 3 of the General Principles of Income Taxation. 5pts