B-BACD002 [SUMMATIVE 1 – PART 1]

1. International comity connotes courtesy between nations. TRUE

2. The benefit received theory presupposes that some taxpayers within the territorial jurisdiction of the Philippines will
be exempted from paying tax so long as they do not receive benefits from the government. FALSE
3. Taxation is an enforced contribution on the following subjects, except: BEHAVIOR
4. Taxation is separable with the State, hence, it is considered inherent. FALSE
5. Taxation is a rule; exemption is the exception. TRUE
6. The scope of taxation is regarded as comprehensive, plenary, unlimited and supreme. TRUE
7. The three fundamental powers of the state may be exercise only by the government. FALSE
8. Taxation is a process or means by which the sovereign, through its law making body raises income to defray the
expenses of the government. TRUE
9. Forward tax shifting basically has the effect of price reduction in relation to tax. FALSE
10. The agreement among nations to lessen tax burden of their respective subjects is called territoriality. FALSE
11. Taxation is important because it is based on: THE NECESSITY OF THE STATE TO EXIST
12. Ad valorem tax includes income tax. FALSE
13. The president is vested with the authority to sign a bill that has been passed by the legislative body. TRUE
14. Tax avoidance as a means of escaping taxation results in a loss of revenue to the government. TRUE
15. Taxation has retroactive application. FALSE
16. In selection of the objects of taxation, the courts have no power to inquire into wisdom, objectivity, motive,
expediency, or necessity of a tax law. TRUE
17. The lifeblood doctrine requires the government to override its obligations and contracts when necessary. FALSE
18. One characteristic of tax is that; taxes can be subject to assignment. FALSE
19. Taxation is subject to inherent and constitutional limitations. TRUE
20. All inherent powers presuppose an equivalent form of compensation. TRUE
21. The doctrine of escape from taxation where prices of goods are reduced so that the amount of taxes paid is added as
part of the selling price without distorting the original price is called: TAX CAPITALIZATION
22. Taxes collected are based on the willingness of the taxpayer to pay. FALSE
23. The power of the state to promote the general welfare of individuals through proper regulations of rights is called:
POLICE POWER
24. Tax laws are civil and penal in nature because there are penalties provided in the case of violation. FALSE
25. A person may refuse to pay on the ground that he will not receive a benefit from tax. FALSE
26. The government should tax itself. FALSE
27. FMV is the value as declared in the Real Property Tax Declaration Form while zonal value is determined by the
Commissioner pursuant to his authority to prescribe real property values. TRUE
28. The situs or place of taxation is influenced by the following factors, excepts: AMOUNT OF INCOME EARNED
BY THE TAXPAYER
29. Tax assessment is a process of taxation that involves the passage of tax laws. FALSE
30. Collection of taxes in the absence of a law is violation of the constitutional requirement for due process. TRUE
31. The agreement among nations to lessen tax burden of their respective subjects is called international comity. TRUE
32. Every government unit must exercise the power of taxation, since taxation is very important for the existence of the
State. FALSE
33. Thirteenth month pay and other benefits received by officials and employees of public and private entities are exempt
provided, however, that the total exclusions shall not exceed P82,000. TRUE
34. Taxpayers under the same circumstances should be taxed differently. FALSE
35. The power of taxation is considered inseparable from the existence of a State; hence, taxation is absolute and
complete. FALSE
36. The following are the aspects of taxation except: FILLING OF CHARGES IN THE APPROPRIATE COURT
37. Estate tax is an example of ad valorem taxes. TRUE
38. The statement “the government and the taxpayers are not creditors and debtors of each other” support the principle the
principle that tax is not subject to compensation or set-off. FALSE
39. No one shall be imprisoned for non-payment of tax. FALSE
40. The concept that payment of taxes shall be more or less the same underlined by the principle of uniformity and equity
in taxation. FALSE
41. The constitutional exemption of religious or charitable institutions refers only to real property tax. TRUE
42. Which of the following concepts of taxation embraces the idea that tax affects the area as a community rather than as
an individual? PUBLIC PURPOSE
43. The basic principle of a sound taxation system that advocates that revenues collected are sufficient to absorb the
expenses of the government is called: FISCAL ADEQUANCY
44. Taxation is the strongest among the three inherent powers of the State TRUE
45. Under the equal protection clause of the constitution, all persons subject to legislation shall be treated alike under
circumstances and conditions, both in the privileges conferred and liabilities imposed. FALSE
46. The taxes collected by the government are given back to taxpayers in the form of services. TRUE
47. Taxation power can be used to destroy as an implement of police power. TRUE
48. CHED regulations is one source that becomes part of tax laws. FALSE
49. The two kinds of double taxation are tax shifting and tax capitalization. FALSE
50. Taxation is inherent in sovereignty. TRUE