TAX 111 – INCOME TAXATION

1. Under this basic principle of a sound tax system, the government should not incur a deficit.
a. Theoretical Justice b. Administrative Feasibility c. Fiscal Adequacy d. Fiscal Feasibility

2. The power of taxation can only be exercised by Congress

a. Subject to constitutional and inherent c. Legislative in character

limitation d. Inherent in sovereignty
b. Equality or theoretical justice

3. One of the following is not an inherent limitation on the exercise of the power of taxation

a. International comity c. Non-delegation of the legislative power to tax

b. Double taxation d. Territoriality

4. They restrict the exercise of the power of taxation although they are not embodied in the
Constitution

a. Contractual limitations c. Inherent limitations

b. Constitutional limitations d. Legislative in character

5. No person shall be imprisoned for non-payment of

a. Property tax b. excise tax c. poll tax d. income tax

6. A tax that is imposed upon a person who is directly bound to pay it

a. direct tax b. indirect tax c. excise tax d. poll tax

7. The following are similarities of the inherent power of taxation, eminent domain and police power,
except one.
a. Are necessary attributes of sovereignty
b. Interferes with private rights and property
c. Affect all persons or the public
d. Are legislative in their implementation

8. Which of the following individual taxpayers is taxable on income within and without the Philippines?
a. Nonresident citizen b. Nonresident Alien c. Resident citizen d. Resident Alien

9. For a Filipino citizen to be considered as a nonresident citizen, he must have been outside the
Philippines for
a. More than 183 days during the taxable year
b. Not less than 183 days during the taxable year
c. More than 180 days during the taxable year
d. Not less than 180 days during the taxable year

10. For a nonresident alien to be considered as to be engaged in trade or business in the Philippines, he
must have stayed therein for
a. More than 183 days during the calendar year
b. 183 days or less during the calendar year
c. More than 180 days during the calendar year
d. 180 days or less during the calendar year