ABCDEFGH – WRONG ANSWER ABCDEFGH – RIGHT ANSWER

 What is the primary purpose of taxation power? 

- To raise revenues for the expenses fo the state 
- To advocate protection of constitutional right 
- To facilitate the state's need of property for public use 
- To promote the general  

 Substituted filing of income tax returns is a manifestation of which principle of a sound tax system? 
- Administrative feasibility 
- Equality 
- Theoretical justice 
- Fiscal adequacy 

 Which of the following statements is correct? 

- An alien who has acquired residence in the Philippines retains his status as such until he abandons the
same or actually departs from the Philippines. 
- Non-resident aliens engaged in business are those aliens who stayed in the Philippines for an aggregate
period of at least 180 days 
- Non-resident aliens not engaged in business are those aliens who stayed in the Philippines for an
aggregate period of not more than 183 days, 
- Non-resident citizens are those Filipinos who worked outside the country for at least 180 days 

 Which of the following entities will least likely exercise the power of eminent domain? 
- Piston 
- NAWASA 
- Meralco 
- PLDT 

 These are issuances that provide directives or instructions, prescribe guidelines and outlines processes,
operations, activities, workflows, methods and procedures necessary in the implementation of stated
policies, goals, objectives, plans and programs of the BIR in all areas of operations, except auditing. 
- Revenue Memorandum Circulars 
- Revenue Memorandum Orders 
- Revenue Memorandum Rulings 
- Revenue Regulations 

 Which stage of taxation will the legislative department be involved with? 

- Imprisonment 
- Levy 
- Collection 
- Assessment 

 All of the following are major divisions of the BIR, except: 

- Legal Group 
- Inventory Systems Group 
- Resource Management Group 
- Operations Group 
 Under the 1987 Philippine Constitution, which has the power to create its own sources of revenues and to
levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide? 
- Each local government unit 
- Bureau of Internal Revenue 
- Department of Finance 
- Bureau of Customs 

 Which of the following is considered not an item of gross income? 

- Salaries and wages of qualified senior citizens. 
- Revenues of non-profit and stock educational institutions 
- Income of international missions and organizations with tax immunity. 
- Income of foreign governments and foreign government owned and controlled operations 

 Which of the following statements is true? 

- There is imprisonment for non-payment of taxes, but there is no imprisonment for non-payment of
debt. 
- There is no imprisonment for non-payment of taxes, but there is imprisonment for non-payment of
debt. 
- There is no imprisonment for both non-payment of taxes and debt. 
- There is imprisonment for both non-payment of taxes and debt. 

 Which stage of taxation is being carried out by the Executive Department? 

-  Imposition 
- Assessment 
- Determination 
- Levy 

 Which of the following is not a tax mechanism to minimize the impact of double taxation? 
- Tax shifting 
- Tax transformation 
- Tax levy
- Tax capitalization 

 What is the nature of tax laws? 

- They are civil in nature 
- They are penal in nature 
- They are criminal in nature 
- They are political in nature

 All of the following statements are true regarding the legislative branch of the government, except. 
- It is headed by the Senate President and the Speaker of the House 
- It is the branch of the government in charge with the collection of taxes. 
- It has the authority to determine the persons liable to pay taxes, the subjects of taxation, and the rates
of taxes to be imposed. 
- It levies taxes
 Which of the following is a characteristic of tax? 
- It is not subject to legal compensation 
- The amount to be collected is limited to the cost of regulation 
- Its efficient cause or juridical tie is contract 
- It is considered a demand of ownership or proprietorship 

 Which of the following is considered as a constitutional limitation of taxation? 

- Exemption of the government 
- Progressive system of taxation
- Concurrence of minority of all members of the Congress for passage of tax exemption 
- Non-delegation of taxing power 

 Which of the following is classified as a local tax? 

- Documentary stamp tax 
- Professional Tax 
- Income tax 
- Estate tax 

 Which of the following constitutional rights is mainly violated by a tax law enacted for whereby its proceeds
will be used to rehabilitate a private corporation under financial distress? 
- Right to just compensation 
- Right to due process 
- Right to equal protection of the law 
- Right against self-incrimination 

 Which of the following real properties is subject to real property tax? 

- Convents 
- Mosques 
- Profit cemetery 
- Charitable institutions 

 Which refers to the government's necessity for funding? 

- Basis of taxation 
- Ability to pay theory 
- Benefits received theory 
- Theory of taxation 

 The Chinese government was able to earn income in its rental of spaces to businesses in the Philippines.
The BIR is now collecting the Chinese government of its deficiency income taxes. What doctrine or principle
should the Chinese government invoke or use to avoid payment of taxes? 
- Tax holiday 
- International comity 
- Equality and uniformity principle 
- Territoriality principle 

 Which of the following is not an example of local tax? 

- Real property tax 
- Business tax 
 - Professional tax 
- Documentary stamp tax 

 Which of the following inherent limitations of the power of taxation violated by the imposition of tax on the
importation of the head of state and other diplomatic or consular representatives of other countries? 
- Territoriality 
- International comity 
- Non-delegation of power of taxation 
- Exemption of government from taxes 

 This principle means that taxes are what we pay for a civilized society. 
- Necessity theory 
- Lifeblood doctrine 
- Regalian doctrine 
- Doctrine of symbiotic relationship 

 Which of the following issuance is signed by the Secretary of Finance? 

- Revenue Memorandum Circulars 
- Revenue Memorandum Orders 
- Revenue Regulations 
- BIR Rulings 

 A BIR Ruling may be classified as an ______ of tax laws. 

- Judicial interpretation 
- Administrative interpretation 
- Legislative interpretation 
- Constitutional interpretation 

 Who heads the Bureau of Internal Revenue? 

- The commissioner of internal revenue 
- The Deputy Commissioner of Internal Revenue 
- Revenue Director 
- Revenue Officer 

 Taxes must be proportionate. This means that. 

- The tax to be imposed must be based on the income of the taxpayer. 
- The tax to be imposed must be based on the ability of the taxpayer to pay. 
- The tax to be imposed must be based on the needs of the government 
- The tax to be imposed must be based on the willingness of the taxpayer to pay 

 The Bureau of Internal Revenue is under the supervision of: 

- Bangko Sentral ng Pilipinas. 
- Department of Trade and Industry. 
- The President. 
- Department of Finance 

 Which of the following is the effect of the principle of international comity in taxation? 
- Foreign governments can collect taxes from Filipino citizens 
- Foreign governments cannot collect taxes from Filipino citizens 
 - Foreign governments can collect taxes from the Philippine government 
- Foreign governments cannot collect taxes from the Philippine government 

 Which of the following statement is incorrect? 

- Police power is considered inferior to the non-impairment clause of the Constitution. 
- Taxation power is considered inferior to the non-impairment clause of the Constitution. 
- Taxation power is the power of the State to enforce proportional contribution from its subjects to
sustain itself. 
- The lifeblood theory underscores that taxation is the most important power of the Constitution. 

 When the House and Senate version of a tax bill has difference, who will reconcile the differences? 
- All the members of the House of Representatives and Senate, jointly 
- The Speaker of the House and the Senate President, jointly 
- The President 
- Through a Bicameral Conference Committee 

 Which government agency has the power to declare a tax law unconstitutional? 
- Bureau of Internal Revenue 
- Supreme Court 
- Commission on Audit 
- President 

 Which of the following is incorrect on the classification of citizens under the Philippine Constitution? 
- Those who are naturalized in accordance with the law. 
- Those whose fathers or mothers are citizens of the Philippines. 
- Those who are citizens of the Philippines at the time of adoption of the constitution on February 2,
1987. 
- Those born after January 17, 1973 of Filipino mothers who elected Filipino citizenship upon reaching
age of majority. 

 Which of the following is not considered as an inherent limitation of taxation? 

- International comity 
- Public purpose 
- Territoriality 
- Uniformity rule 

 Which of the following inherent powers of the State is inferior to the constitutional right of non-impairment
of obligation of contracts? 
- Police Power 
- Taxation Power 
- Eminent Domain 
- Executive Power 

 Which of the following statements is not correct? 

- The President shall have the power to veto any particular item or items in a revenue or tariff bill, but the
veto shall not affect the item or items to which he does not object. 
- The rule of taxation shall be uniform and equitable 
- The Congress shall evolve a progressive system of taxation. 
- The Senate can neither propose nor concur with amendments on revenue or tariff bills 
 Which of the following statements is not incorrect? 
- In case of conflict between a tax law and a revenue regulation, the latter shall prevail over the former. 
- Non-payment of additional community tax is a ground of imprisonment 
- Revenue bills must originate from the Senate. 
- A revenue regulation can expand the provision of the law by imposing penalty, even if the law that
it implements does not impose a penalty. 

 In this type of tax, non-payment is constitutionally exempted from imprisonment 

- Poll tax 
- Value added tax 
- Documentary stamp tax 
- Income tax 

 Which of the following taxes is properly classified as indirect tax? 

- Income tax 
- Value added tax 
- Real property tax 
- Other percentage tax 

 Also known as tax exemption, it is an escape from taxation when the law itself provides for non-payment of
taxes 
- Tax evasion 
- Tax avoidance 
- Tax holiday 
- Tax minimization 

 The President of the Philippines and the Prime Minister of Canada entered into an executive agreement in
respect to credit facility to the Philippines from Canada. The agreement stipulated that interest on loans
granted by private Canadian financial institutions in the Philippines shall not be subject to Philippine
income taxes. Based on the facts given, what basic characteristic of taxation has been violated? 
- Legislative in character 
- Administrative feasibility 
- Inherent limitation 
- Theoretical justice 

 Who heads the Executive Department of the Government? 

- The Speaker of the House 
- The Chief Justice 
- The Senate President 
- The President

 The House of Representatives is composed of 300 district and party-list representatives. 200 attended the
session dated June 5, 2020. On that particular session, House Bill No. 1234, which grants tax exemption for
workers with the age of 21 to 30 years old, was voted upon. Assuming that the said bill is in line with the
provisions of the Constitution, how many votes are required to pass the said bill in the House of
Representatives? 
- 101 votes 
- 200 votes 
- 151 votes 
- 134 votes