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Taxation101
11. The sources of revenue as a whole, should be sufficient to meet the demand of public expenditures
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Revenue generation
12. The tax laws must be capable of convenient, just and effective administration
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Psychological compatibility
13. Statement 1 – The point on which a tax is originally imposed is impact of taxation
Statement 2 – Police power is superiors to the non-impairment clause of the constitution
Statement 3 – As a rule, taxes are subject to set-off or compensation
Statement 4 – As a rule, provisions on the validity of tax exemptions are resolved liberally in favor of the taxpayer
STATEMENT 1 STATEMENT 2 STATEMENT 3 STATEMENT 4
a. True False False False
21. The use of illegal or fraudulent means to avoid or defeat the payment of tax
a. Shifting
b. Exemption
c. Avoidance
d. Evasion
22. The use of legal or permissible means to minimize or avoid taxes
a. Shifting
b. Exemption
c. Avoidance
d. Evasion
23. Synonymous to tax evasion
a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax shield
24. Synonymous of tax avoidance
a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion
25. In 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 I favor of the government and strictly against the taxpayer
26. In case of doubt, tax exemptions are construed
a. Strictly against the government and 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
27. In case of conflict between the Tax Code and the Philippine Accounting Standards (PAS)
a. PAS shall prevail over the Tax Code
b. Tax Code shall prevail over PAS
c. Pas and Tax Code shall be both disregarded
d. The taxpayer may choose between the PAS or the Tax Code
28. Tax of a fixed amount imposed upon all persons residing within a specified territory without regard to their
property, income, or occupation they may be engaged in
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
29. Tax imposed on personal or real property in proportion to its value or on some other reasonable method of
apportionment
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
30. Tax imposed upon the performance of an act, the enjoyment of privilege or the engaging in an occupation
a. Personal, poll or capitation
b. Property
c. Excise
d. Progressive
31. Tax which is demanded from the persons whom the law intends or desires to pay it
a. Direct
b. Indirect
c. Excise
d. Income
32. Tax which is demanded from one person the expectation and intension that he shall indemnify himself at the
expense of another
a. Direct
b. Indirect
c. Property
d. Income
33. Tax which imposes a specific sum by the head or number or by some standard of weight or measurement and
which requires no assessment other than a listing or classification of the objects to be taxed.
a. Specific
b. Ad-valorem
c. Excise
d. Income
34. Tax of a fixed proportion of the amount or value of the property with respect to which the tax to assesed
a. Specific
b. Ad-valorem
c. Excise
d. Percentage
35. Tax based on a fixed percentage of the amount of property, income or other to be taxed
a. Proportional
b. Progressive
c. Regressive
d. Indirect
36. Tax where the rate decreases as the tax base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
37. Tax where the rate increases as the tax base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
38. Which of the following statements is not correct?
a. Tax burdens shall neither be imposed nor presumed to be imposed beyond what the statute expressly
and clearly states because tax statutes should be construed strictly against the government
b. Tax exemption, tax amnesty condonations and their equivalent provisions are not presumed and, when
granted, are strictly construed against the taxpayer because such provisions are highly disfavored by the
government
c. Exemptions from taxation are highly disfavored in law and he who claims tax exemption must be able to
justify his claim or right
d. The Bureau of Internal Revenue has the duty and the exclusive power of enacting implementing and
interpreting tax laws
39. The strongest of all inherent powers of the state because without it, the government can neither survive nor
dispense any of its other powers and function effectively
a. Police power
b. Power of Eminent Domain
c. Power of Taxation
d. Power of Greystone
40. This power is superior to the non-impairment clause is broader in application because it is the power to make
and implement the laws
a. Power of Taxation
b. Power of Recall
c. Power of Eminent Domain
d. Police Power
c. Compensation/benefit is received
d. Are legislative in character
52. Which of the following statements is not correct?
a. Taxes may be imposed to raise revenues or to provide disincentives to certain activities within the state;
b. The state can have the power of taxation even if the Constitution does not expressly give it the power to
tax;
c. For the exercise of the power taxation, the state can tax anything at any time;
d. The provisions of taxation in the Philippine Constitution are grants of power enabling the state to
impose taxes.
53. License fee as distinguished from tax:
a. Non-payment does not necessary render the business illegal;
b. A revenue raising measure;
c. Imposed in the exercise of taxing power
d. Limited to cover cost of regulation
54. Value added tax is an example of a:
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
55. Which tax principle is described in the statement “The more income earned by the taxpayer, the more tax he has
to pay.”
a. Fiscal adequacy
b. Theoretical justice/Equitability
c. Administrative feasibility
d. Inherent in sovereignty
56. One of the characteristics of a tax is that:
a. It is generally based on contact;
b. is generally payable in It money;
c. It is generally assignable;
d. It is generally subject to compensation
57. The following are the characteristics of our internal revenue laws except;
a. Political in nature;
b. Civil in nature;
c. Generally prospective in application
d. May operate retrospectively if Congress so provide
58. Which of the following statements is wrong? A revenue bill:
a. Must originate from the House of Representative and on which same bill the senate may propose
amendments;
b. May originate from the Senate and on which same bill the House of Representative may propose
amendments;
c. May have a House version and a Senate version approved separately, and then consolidated, with
both houses approving the consolidation version
d. May be recommended by the President to Congress
59. Tax as distinguished from special assessment:
a. Not a personal liability of the person assessed
b. Based wholly on benefits
c. Exceptional as to time and place
d. Based on necessity and the purpose is to raise revenues
60. Under the basic principle of a sound tax system, the Government should not incur a deficit:
a. Theoretical justice
b. Administrative feasibility
c. Fiscal adequacy
d. Uniformity in taxation
61. Which of the following may not raise money for the government?
a. Power of taxation
b. Police power
c. Power of eminent domain
d. License fees
79. I. Due process of law in taxation under the constitution is a grant of power
II Provisions in the Philippine constitution on taxation are grants of power
III There may be double taxation in the Philippines
IV Taxation may be used to implement the police power of the state
a. One statement is true
b. Two statements are true
c. Three statements are true
d. All statements are true
80. I. License fee is a charge imposed under police power
II Special assessment is levied on land only
III. Tax is imposed regardless of public improvements.
Colegio De Sebastian
City of San Fernando, Pampanga
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