PHILTAX SYSTEM

AND INCOME
TAX
Prelim Quiz1 Score:
20/20
1. The existence of a Constitution is necessary for the exercise of the inherent powers
of the Sovereign State.

Answer= False

2. In tax capitalization, the buyer absorbs the payment if tax and includes the same as
part of the cost of the acquired property.

Answer= True

3. Protection is the basic consideration that justifies tax situs

Answer= True

4.Tax exemption is transferable and assignable.

Answer= False

5. A tax evader sidesteps the law, while the tax avoider breaks it.

Answer= False

6. Taxation is the primary source of government revenue. Hence, all government

funds come from taxes.

Answer= False

7. All government entities regardless of their functions are exempted from taxes
because it would be impractical for the government to be taxing itself.

Answer= False
8. Local tax ordinances must be uniformly and equally applied throughout the
country.

Answer= False

9. In taxation, it is one's civil liability to pay taxes which gives rise to criminal
liability.

Answer= True

10. The tax doctrine of Marshall Dictum explains that tax is a power to destroy.

Answer= True

11. Taxation could be described as a power, as a process, or as a means. As a power,

taxation is a way of apportioning the cost of government among those who are
privileged to enjoy its benefits.

Answer= False

12. The benefits from taxation have to be experienced to justify the legitimacy of
collection of taxes from the people.

Answer= False

13. No person shall be imprisoned for nonpayment of income taxes.

Answer= False

14. In general, bills need not to be signed by the President to become a law.

Answer= False

15. Taxation is the government's legitimate means of interfering with private

properties of its subjects.

Answer= True

16. Taxes collected by the BIR are local taxes.

Answer= False

17. Sovereign equality dictates that a nation cannot impose taxes on the property of
another country.

Answer= True

18. The State can still exercise its taxing powers over its citizen, even if he resides
outside the taxing State's territory.
Answer= True

19. The Philippine tax laws are not political and penal in nature.

Answer= True

20. Revenues derived from taxes cannot be used for the exclusive use of private
persons.

Answer= True