| INFUSES

TRUE OR FALSE | |
False 1. The three fundamental powers of the state may be exercise only by the
government
True 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.
True 3. Eminent domain may be exercise even by public service corporations and
public entities.
True
Police power regulates both liberty and property.
oor

True Taxes are raised to cover the cost of governance.

False Toll is one of the taxes collected by the government.

True License fees are imposed in the exercise of police power.

© ON

False License fee is imposed to.raise revenue.

True
Tax is generally unlimited because it is based on the needs of the State.

True 10. The amount imposed in the exercise of police power depends on whether
_ the activity is useful or not.
True 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.
True 12. Debt, as distinguished from tax, may be paid in kind.

False 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.
False 14. Tax laws are civil and penal in nature because there are penalties
provided in the case of violation.
False 15. Special assessment is a tax.
False
16. Special assessment is imposed on persons, property and property rights.
False 17. The Philippine government may subject the land where embassies of
foreign governments are located to real property taxes.
False 18. A revenue bill may originate from the Senate and on which same bill the
House of Representatives may propose amendments.

False 19. A person may refuse to pay on the ground that he will not receive a
benefit from the tax.
True 20. In the exercise of the power of taxation, the State can tax anything at any
time.
True 21. In cases of deductions and exemptions, doubts shall be resolved liberally
in favor of the government.
True 22. Levying of local government taxes should be exercise only by the
legislative branch of the local government.

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 Vie ae

True 23. The bone power of provinces, municipalities and cities precede from
constitutional grant. - .
False 24. Taxation is regressive when their rate goes up depending on the
‘resources of the person affected. ;
False
25. No law granting any tax exemption shall be passed without the
concurrence of 2/3 of all members of Congress. —
True 26. There is no constitutional prohibition against double taxation in
the
Philippines.It is something not favored, but nevertheless permissible.
sible,
False 27. “Global system of income taxation” means separate graduated rates
are
imposed on different types of income. :
True 28. One of the schemes of shifting the incidence of tax -burde
n is by
transferring the sales tax of a manufacturer to the distributor,
then in turn
to the wholesaler, to the retailer and finally to the consumer,

True 29. Transformation is a method by which the manuf

acturer or producer upon
whom the tax is imposed pays the tax
and strives to recover such
expense through lower production cost witho
ut sacrificing the quality of
‘his product.
False 30. In case of ambiguity, tax laws shall be
interpreted liberally in favor of the
government. Lf
MULTIPLE CHOICE

Definition, Purpose, Theory and Basis

1. Which of the following statements is
incorrect?
a. Taxes are the revenues raised in the
exercise of the police power
of the State. .
b. One of the special characteristics
of tax is it is unlimited in
amou
amount.
nt.
c. The three fundamental powers of the
State are Inherent in the
State and may be exercised without the need of any
constitutional
grant. ' .
d. Allofthe above

2. The State, having sovereignty can enf

citizens even without a specific pro
orc e contributions (tax) upon its
vision in the Constitution authorizi
Which of the following will ng it.
justify the forego
a. It is so because the State has theingsupsta tement?
reme power to command
and enforc e obedience to its will from the people
within its
jurisdiction,
b. Any provision in the Constitut
ion regard
create rights for the Sovereignty to hav ing taxation does not
e the power to:tax but it
merely constitutes limitations upon the supremac
y of tax power. °
Both “a” and “b” |
a9

Neitthe
Nei herr “a” nor “b”

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 Chapter Exercises — Principles

. N
t \

3. Statement 1: The distinction of a tax from permit or license fee is that a

tax is imposed for regulation.
Statement 2: Non-payment of tax does not necessarily render a business
illegal.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect

4. The primary purpose of taxation is to raise revenue for the support of the
“government. However, taxation is often employed as a devise for
regulation by means of which, certain effects or conditions envisioned by
the government may be achieved such as:
‘a. Taxation may be used to provide incentive to greater production
through grant of tax exemptions.
b. Taxation can strengthen weak enterprises by creating conditions
conducive to their growth through grant of tax exemptions.
c. Taxes may be increased in periods of prosperity to curb spending
power and halt inflation or lowered in periods of slump to expand
business and ward off depression. —
d. All of the above

5. Which of the following statements is correct?

a. The purpose of taxation may also be “compensatory”, meaning, it
may be used to make up for the benefit received.
b. Taxes may be imposed for thé equitable distribution of wealth
and income in society.
c. Both “a” and “b”
d. Neither “a” nor “b"

6. Which theory in taxation states that without taxes, a government would be

paralyzed for lack of power to activate and operate it, resulting in its
destruction?
a. Power to destroy theory
b. Lifeblood theory
c. Sumptuary theory
d. Symbiotic-doctrine

7. On theoretical basis of taxation, which of the following statements is true?

a. People pay taxes which their government uses to expand its powers
and territorial domination.
b. People demand from their government certain responsibilities and
then provide this government with the means to carry them out.
c. State needs taxation to exist, while people must support taxation
because they need the presence of the state.

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 Chapter Exercises — Principty, 4

d. ' “bh” and ‘”

8.
8, Incid taxation
nce of taxati
Incideence means
on means
Shifting of tax
a. Shifting c. Payment of tax
Refunds of tax
b. Refunds d. Imposition of tax

9. The actual effort exerted by the government to effect the exaction of What
is due from the taxpayer is known as
a. Assessment C. Payment
b. Levy d. Collection

10. Statement 1: Symbiotic relation is the reason why the government would
woul
impose taxes on the income of resident citizens derived from SOurces
outside the Philippines. , aed
Statement 2: Jurisdiction is the reason why citizens must provide Support
to the state so the latter could continue
to give protection.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct’
d. Both statements are incorrect

11. A law was passed by Congress which granted tax amnesty to those
who.
have not paid income taxes for a certain year and at the same time
providingg for the refund of taxes to those who have already paid them.
providin
The law is: my See
a. Valid because there is a valid classifi
classificcation.
ation.
b.. Not valid because those who did not pay their taxes are favored
over those who have paid their taxes.
c. Valid because it was Congress that passed the law and it did not
_ improperrly
imprope ly delegat
delegatee the power to tax.
d. Not valid because only the PresidePresidenntt with. the approval of
Congress may grant amnesty
amnesty..
12. Congress passed a new law imposing taxes on income earned out of
particular activity that was not previou
previously
sly taxed. The law, however, taxed
income
Incomes already earned within the fiscal year when the law took effect. Is
the law valid?
a. No, because the laws are intende
intendedd to be prospec
prospective, :
tive, not retroact
retroactive.
ive.
b. No, ely law is arbitrar
arbitraryy in that it taxes income that has already been
spent,
spent.
: Yes, since the tax laws are the lifeblood of the government.
- Yes, tax laws are an excepti on; they can be given retroactive effect.
exception;

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 Chapter Eaeriives
Excetctoes — Principles

13. Due to an uncertainty whether or not a new tax law is applicable to

printing companies, ABC Printers submitted a legal query to the BIR on
that issue. The BIR issued a ruling: that printing companies are not
covered by the new law. Relying on this ruling, ABC Printers did not pay
the said tax. Subsequently however, the BIR reversed. the ruling and
issued a new one stating that the tax covers printing companies. Could
the BIR assess ABC Printers for. back taxes corresponding to the years
before the new ruling?
Yes, because taxation is the rule and exemption is the exception
aoorM
290m

Yes, because taxes are the lifeblood of the government

No, the BIR is not allowed to reverse its ruling _
No, reversal of a ruling shall not be given a retroactive application
if it will be prejudicial to the taxpayer

Use the following data for the next two questions:

The Constitution requires that all revenue bills shall originate “exclusively”.
from the House of Representatives. Assume that in 2014, Congressman Uro
proposed an expansion of the coverage of the value added tax to be known
as e-vat law. The proposed ‘bill was approved by the House of
Representatives later that year. However, the EVAT version of the Senate
became the EVAT law.

14. Which of the following statements will justify the enacted EVAT law?

|. The Constitution simply means that the initiative for filing revenue, tariff
or tax bills must come from the House of Representatives on the
theory that, elected as they.are from the districts, the Members of the
House can be expected to be more sensitive to the local needs and
problems.
Il.It is not the law but the revenue bill which is required by the Constitution
to “originate exclusively” in the House of Representatives because a
bill originating in the House may undergo such extensive changes in
the Senate that the result may be a rewriting of the whole, and a
distinct bill may be produced.
a. | only ~ ¢. Both | and II
b. Ilonly — d. Neither | nor II

15. Assuming Senator Bobadilla filed in the Senate a substitute e-vat bill “in
anticipation” of its receipt of the bill from the House. The proposal is
totally different from the version of the lower house. Which of the
following statements will justify the filing of a substitute bill by Honorable
Senator Bobadilla? .
.To insist that a revenue statute not only the bill which initiated the
_ legislative process culminating in the enactment of the law - must
substantially be
~ substantially same as
the same
be the House bill
the House
as the would be
bill would the
deny the
be toto deny -

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 Senate’s power not only to “concur with amendments” but also to
“propose amendment.”

Il.It would be to violate the coequality of legislative power of the two houses
of Congress and in fact make the House superior to the Senaty
Given the power of the Senate to propose amendments, it cay,
propose its own version even with respect to bills which are requireg
by the Constitution to originate in the House.

Ill.Filing in the Senate of a substitute bill in anticipation of its receipt of the

IIl.Filing
bill from the House is not prohibited under the Constitution, so long ag -
the action by the Senate as a body is withheld
withheld pending receipt of the
House bill.

a. l only c. |, Il-and III

b. ll only d. None of the above

16. Being legislative in nature, the power to tax may not be delegated, except:
a. To local governments or political subdivisions
b. When allowed by the Constitution se aed
c. When delegation relates merely to administrative implementation that
may call for some degree of discretionary powers under a set of
sufficient standards expressed by law or implied from the policy and
purpose of the-Act. :
d. All of the choices ae

Scope and Aspect of Taxation

17. Statement 1: The aspects of taxation are shared by the legislative and
executive branches of the government.
Statement 2: Taxes should be prospective and should not be given
retroactive effect because they are burdens.
a. Only statement 1 is correct .
b. Only statement 2is correct
c. Both statements are correct
d. Both statements are incorrect '

18. The power of taxation is basically legislative in character. Which of the

following is a legislativ
legislativee function? aas
ps 3:
wifes Ag Bre Oe RD
* Fix with certainty the amount Yes No Yes Yes
of tax ;
' ieentity who should collectthe Yes Yes No _ Yes
ax
Determine who should be Yes Yes Yes No
Subject to tax

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 Chapter Exercises — Principles

49. As to scope of legislative power to tax, which of the following is correct?

a. The power to tax is supreme, plenary, comprehensive and
without any limit because the existence of the gevernimefit' isa
necessity.
b. The discretion of Congress in imposing taxes extends to the
mode, method and kind of tax, even if the constitution provides
otherwise.
c. Congress has the right to levy a tax of any kind at any amount as
it sees fit, even in the absence of any constitutional provision.-
d. . The sole arbiter of the.purpose for which taxes shall be levied is
Congress, provided the purpose is public and the courts may not
review the levy of the tax to determine whether or not the purpose
is public.

20. The following are the aspects of taxation

| — Levy or imposition of the tax on persons, property or excises
Il — Collection of taxes already levied
lll- Sey of governments sources to'satisfy its expenditure
1, land Il ~ ¢. Land Ill only
b. | and II only d. Il and Ill only:

21. Which of the following is incorrect?

. Legislative , | Administrative
a. Selecting the kind of tax Yess. No .
b. Fixing amount of tax Yes No
c. Prescribing rules of Yes No
taxation vita
d. Assessment of tax liability Yes No

22. Which of the following is correct?

Legislative Administrative
a. Fixing of tax rates Yes Yes
b. Valuation of object of tax Yes No °*
c. Collection of tax Yes No
d. Assessment of tax liability No Yes

Inherent Powers of the State

23. Statement 1: Inherent powers of the State exist independent of the
constitution.
Statement 2: The taxing power of the local government units precede
from a constitutional grant.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

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 se

| 24. The following are the characteristics of the State’s power to tax, EXcept
| a. The strongest of all inherent powers of the State
b. Involves power to destroy iN
c. Both “a” and “b”
d. Neither “a” nor “b”

25. Levying of local government taxes may be exercised by:

a. The local executive only
b. The legislative branch of the local government only
c. The local executive and the legislative branch: of the local
government unit ‘gti
d. Neither the local executive nor the legislative branch of the locay
government can exercise the power.

26. Where does taxing power of the provinces, municipalities and cities
precede from? f
a. Constitutional grant 7
b. Legislative enactment.
c. Presidential decree or Executive act
d. Local legislation .

- 27. Statement 1: Eminent domain may raise money for the government.
Statement 2: Barrios, barangays, municipalities/cities and provinces may
collect taxes from its inhabitants.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true.
d. Statements 1 and 2 are true -

Nature, Characteristics and Construction of Tax Laws

28. The following are the nature of taxation, except

a. Inherent and sovereignty
b. Essentially a legislative function
c. Subject to inherent and constitutional limitation
d. Subject to the approval of the people

29. “The power to tax involves power to destroy’ means: |

a. The power to tax is viewed as the power to destroy in the sens
that a lawful tax cannot be defeated just because its axe
would be destructive or would bring about insolvency to
taxpayer. xes
b. The principle implies that an imposition of lawful regulatory a
would be destructive to the taxpayers and ae of
establishments because the government can compel payme

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 tax and forfeiture of property through
through the exercise “of police
power.
’ ¢. Both “a” and.“b” ;
d. Neither “a” nor “b”

30. There can be no tax unless there is a law imposing the tax is consistent
with the doctrine of
a. Uniformity in taxation
b. Due process of law
c. _Non-delegation of the power of tax
d. All of the above

31. “The tax should be based on taxpayer’s ability to pay”. In relation to this,
- which of the following is not correct?
a. No person shall be imprisoned for non- -payment of tax
b. A graduated tax table is in consonance with this statement
c. Asa theory of taxation, this is called “ability to pay theory”
d. Asa basic principle of taxation, this is called “theoretical justice”

32. Rule of “No estoppel against the government’ means:

a. Rule of law that in the performance of its governmental functions,
the state cannot be estopped by the neglect
neglect of its agents and
officers.
‘b. The government is not estopped by the mistakes or errors of its
agents; erroneous application and enforcement of law by public
officers do not block the subsequent correct application of
statutes.
c. Bothaandb
d. Neitheraorb

33. Progressivity of taxation is also mandated in the Constitution. .

Statement 1: Our income tax system is one good example of such
progressivity because it is built on the principle of the taxpayer's ability to
pay.
Statement 2: Taxation is progressive when their rate goes up depending
on the resources of the person affected.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
true.

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 e
ses = Principp,
Chapter Exerci

of our
ics of rnal reve
our internal laws
nue laws
revenue is that they are
34.
34. One of the
One of characte
the char ristics
acterist
a. Political in nature
. Penal in nature tax statute ma
° operation although the bck
Generally prospective in it is clearly the
nevertheless operate retrospectively provided
legislative intent ,
|
d. Criminal in nature
ishes tax from license fee
35. Which of the following distingu
der the business illegal
a. Non-payment does not necessarily ren
b. Aregulatory measure
ce power
c. Imposed in the exercise of poli
on
d. Limited to cover cost of regulati
| lehy,
36. The least source of tax laws:
a. Statutes ‘ . c. Revenue regulations
b. Presidential decrees d. Tax treaties or conventions

contrary to the provision

37. Statement 1: A revenue regulation must not be contrary
of the law that itimplemen ts. ) a,
Statement 2: A revenue regulation cannot expand the provision of the
law that it implements by imposing a penalty when the law that authorizes
the revenue regulation does not impose a penalty. ©
a. Statements1 and2are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true .
d. Statements 1 and.2 are true ,

38. In every case of doubt, tax statutes are construed

a. . Strictly against the government and the taxpayer
b. Liberally in favor of the government and the taxpayer
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the tax payer

39. In every case of doubt, tax exemptions are construed

a. Strictly against the government and the taxpayer >
b. Liberally in favor of the government and the taxpayer
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer

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 "bi \ Chapter
Chapter Exercises
Exercises —— Principles
Principles
40. Which of the follow
following statements
ing statem correct?
ents is correc t?
Il. Atax cannot be imposed without clear and express words for that
purpose. . -
ll. The provisions of a taxing act are not to be extended
by
implication,
lll.
ll. If the law is repealed, taxes assessed before
; may no longer be collected.
repeal ofof the
the law
law
IV. Tax law is ex post facto in application.
a. | and Il only c. All of the above
b. Ill and IV only d. None of the above
41. Which of the following factors are determinants to
the “Situs” of taxation?
|. Nature, kind, or classification of the tax being
imposed.
Il. Subject matter of the tax (person, property, rights or
Ill. Citizenship of the taxpayer activity)
IV. Residenc
“
e of the taxpayer
V. Place of the excise, privilege, business or occupation
Vl. -.
VI. Source of the incom
incoeme subject to-tax
to tax ~—
a. | and
and Il only © c. Ill, IV and VI only
‘b. Ill, IV, V and VI only d. 1, Il, Ill, IV
V,and VI
42. Tax of a fix amount imposed among all persons residing within a specified
territory without regards to their property or occupation they may be
engage ;: : Sate
Sate: . ;
a. Personal,
Personal, poll or capitation
capitation tax c. Excise tax
b. Property d. Regressive
Regressive

43. Tax of fixed proportion of the amount or value of the property with respect
to which the tax assessed
a. Ad-valorem — c. Excise
b. Specific - d. Revenue

44. Tax base on a fix percentage of the amount of property, income or other
basis to be taxed
a. Progressive _ret¢. Regressive
b. Proportional , | d. Indirect

45. Which of the following is a characteristic of taxation which distinguishes it

from police power and eminent domain?
a. For public purposes
b. Legislative in nature
c. Generally payable in money Ce
d. Inferior to non-impairment clause in the Constitution

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ICS,
 Sound Tax System

46. The following are basic principles of sound tax system

|. It should be capable of being effectively enforced
II. It must be progressive
lll. Sources of revenue must be sufficient to meet government
expenditures, and other public needs
IV. It should be exercised to promote public welfare
a. | and II only — c. I, Hand III only
b. Ill and IV only — . d. All of the above

47. The sources of revenue should be sufficient to meet the demands of

public expenditures. This refers to
Equality or theoretical justice
Fiscal adequacy
2900

Administrative feasibility
Rule of apportionment

48..The tax should be imposed proportionate to the taxpayer ability to pay

Equality or theoretical justice
Fiscal adequacy
2979
aor

Administrative feasibility
Rule of apportionment
Ve

49. The tax law must be capable of convenient just and effective
administration
a. Equality or theoretical justice
b. Fiscal adequacy
c. Administrative feasibility
d. Rule of apportionment

Inherent and Constitutional Limitations

50. Statement 1: Inherent limitations are the natural restrictions to safeguard

and ‘ensure that the power of taxation shall be exercised by the
government only for the betterment: of the people whose interest should
be served, enhanced and protected.
|
Statement 2: Constitutional limitations are provisions of the fundamental
law. of the land that: restrict the supreme, plenary, unlimited and
comprehensive exercised by the State of its inherent power to tax.
a. Statements 1 and 2 are false
os
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

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 Chapter Exercises — Principles

51. “Equality in taxation” means:

|. | Progressive
Progressive system of taxation shall be applied. ,.
ll.II. | The tax laws and their application must be fair, just, reasonable
reasonable
my . and proportionate to one’s ability to pay.
lil. The tax laws ‘shall give emphasis on direct rather than indirect
taxes or on the ability-to-pay principle of taxation.
a. | only c. Ill only
b. Il only d. |, land Ill

52. Which of the following statements correctly described “Equal protection”

clause of the Constitution regarding the government’s power to tax?
|. All persons subject to legislation shall be treated alike under
dissimilar circumstances and conditions, both in the privileges
conferred and liabilities imposed.
ll. The purpose is to protect persons belonging to the same class
against intentional and arbitrary discrimination. .
lll. There is denial. of equal protection of laws if there is
discrimination in the implementation of tax laws.
‘ a. Land Il only c. Il and Ill only
b. lLandtillonly d. |, Il and Ill

53. Which of the following restrictions on the power of taxation recognizes

that the country’s tax laws shall not be applied to the property of foreign
government? ;
a. Taxation is inherently a legislative function
b. Exercise of taxation is subject to international comity
c. Due process of law
d. Equal protection of law

54. This is an inherent limitation on the power of taxation.

a. The rule on taxation shall be uniform and equitable
b. No law impairing the obligations of contracts shall be enacted
c. Charitable institutions, churches, personages or convents
appurtenants thereto, mosque and non-profits cemeteries and all
kinds of lands, buildings and improvements actually, directly and
exclusively used for religious or charitable purposes shall be
exempt from taxation
d. The tax laws cannot apply to the property of foreign governments

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 Exemption versus Amnesty

55. Exemption from tax'isa privilege, which is being looked upon by lay
law
\ with disfavor because everyone should be sharing the burden
taxation. On account of this view, exemption from tax is construed
- strictly against the taxpayer, except in certain situation like:
a. Exemption is granted to the impoverished sector in certain
situation
b. Exemption relates to a public official
c. Exemption refers to a public property |
d. All of the above.
56. Tax exemption is made different from tax amnesty:
a. It is a privilege or freedom from tax burden;
b. It allows immunity from all: criminal, civil and administrative
liabilities arising from non-payment of taxes; Oho
Amount foregone by the government is substantial:
an

It applies to all past, present and future tax obligations.

57. Statement 1: Tax exemption applies only to

government entities that
exercise proprietary functions. ; .
Statement 2: All government entities regardless of their
functions are
exempted from taxes because it would, be imprac
tical for the
government to be taxing itself .
_a. Statements 1 and 2 are false :
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

98. Which of the following statements correctly descr

ibed the tax exemption
* of the government? .
|. The State cannot be taxed without.its consent, otherwise, such
is
derogation to its sovereignty.
ll. Tax exemption applies only to government entities throu
gh which
the gove
the govemmen
mmentt immediately. and directly exerc ises __ its
exercises its
governmental functions like the Department of Justice,
Depa
Seemrmen
mentt of Foreign Affairs, Philippine National Police, and the
ike,
Ill. Government agencies performing governmental functions are
exempt
exem pt from
from tax unless expressly taxed, while those performing
Proprietary functions are, subject to tax unless expressly
exempted.
a. | only
c. Ill only
b. Ilonly
d. |, ll and Ill

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 Chapter Exercises — Principles

Tax Avoidance/ Double Taxation

59. Which of the following is to be regarded as tax minimization through legal

means? ;
a. Not declaring all taxable income
b. Padding of expenses for deduction from income ,
c. Opting to transfer the property through sale rather than through
donation where tax liability would be higher
d. All of the above

60. Which of the following is corratt?

a. Tax avoidance, or tax minimization, through egal means, is not
punishable by law. .
b. Deliberate reduction of taxable income that has been received is
an example of tax avoidance.
c. Evasion of the tax takes place only when there are no proceeds
on the part of the government:
d. All of the above

61. Statement 1: An attempt to minimize one’s tax constitute fraud, taxpayer

61.
may diminish his liability by any means, which the law permits.
Statement 2: To avoid is legal but to evade is illegal. The legal rights of a
taxpayer to decrease the amount of what otherwise would be his taxes,
altogether avoid them, by means which the law permits, cannot be
doubted.
a. Statements 1 and 2 are false
b. Statement 1 1 is true but statement 2 2 is false
. c. Statement 1 is false but statement 2 is true
d. Statements1 and 1and2aretrue
2aretrue —

62. Which of the following is an element of double taxation?

l. .Same kind of tax
ll. | Same subject matter
Ill. | Same taxable period
IV. | Same taxing authority
| and II only c. All of the above
b. I, Il and III only d. None of the above

63. Double taxation in its general sense means taxing the same subject twice
during the same taxing period. In this sense, double taxation
a. Violates substantive due process.
b. Does not violate substantive due process.
c. Violates the right to equal protection.
d. Does not violate the right to equal protection.

57

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64. Statement 1: There can be double taxation where the state merely
imposes tax on every separate and distinct business in which a Person is
engaged. mes

Statement 2: There is no objectionable double taxation if the tenements in

the city are subjects to real estate tax while the business of leasing said
property are also subjecto
t real dealer’s tax:
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

65. Ligaya Educational Foundation, Inc., a stock educational institution

organized for profit, decided to lease for commercial use a 1,500 Sq. m.
portion of its school. The school actually, directly, and exclusively used
the rents for the maintenance of its school buildings, including payment
of
janitorial services. Is the leased portion subject to real property tax?
a. Yes, since Ligaya is a stock and for-profit educational institution.
b. No, since the school actually, directly, and exclusively used the rents
for educational purposes. ae alae
c. No, but it may be subject to income taxation on the rents it receives.
d. Yes, since the leased portion is not actually, directly, and exclusively
used for educational purposes.

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