CHAPTER EXERCISES

TRUE OR FALSE
of the state may be exercise only by
1.The three fundamental powers
the government. through its
which the sovereign,
2. Taxation is a process or means by of the
the expenses
law raises income to defray
making body
government.

by public service corporations

Eminent domain may be exercise
even
3.
and public entities.
4. Police power regulates both liberty and property.

5. Taxes are raised to cover the cost of governance.

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

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

8. License fee is imposed to raise revenue.

unlimited because it is based on the needs of the

9. Tax is generally
State
10. The amount imposed in the exercise of police power depends on

whether the activity is useful or not.

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.
12. Debt, as distinguished from tax, may be paid in kind.
13. Under the equal protection clause of the constitution, all persons
subject to legisiation shall be treated alike under dissimilar
circumstances and conditions, both in the privileges conferred and
liabilities imposed.
14. Tax laws are civil and penal in nature because there are penalties
provided in the case of violation.

15. Special assessment is a tax.

16. Special assessment is imposed on persons, property and property
rights.
17. The Philippine government may subject the land where embassies of
foreign governments are located to real property taxes.
18. A revenue bill may originate from the Senate and on which same bill
the House of Representatives may propose
amendments.

42
 Chapler Grercises Principles
may refus fuse to pay on the ground that he will not receive a
person
19. A from the tax.
benefit
e x e r c i s e of the power of taxation, the
t State tax
the can anything at
any time.

nCaSes of deductions and exemptions, doubts shallI be resolved

in favor of the government.
iberally
22. Levying of local government taxes should be exercise only by the
legislative branch the local government.
of
23 The taxing power of provinces, municipalities and cities precede from
a constitutional grant.
aA Taxation is regressive when their rate goes up depending on the
resources of the person affected.

26. No law granting any tax exemption shall be passed without the
concurrence of 2/3 of all members of Congress.
26. There is no constitutional prohibition against double taxation in the
Philippines. It is something not favored, but nevertheless permissible.

27. "Global system of income taxation" means separate graduated rates

are imposed on different types of income.
28. One of the schemes of shifting the incidence of tax burden is by
transferring the sales tax of a manufacturer to the distributor, then
turn to the wholesaler, to the retailer and finally to the consumer

29. Transformation is a method by which the manufacturer or producer

tax and strives to recover
upon whom the tax is imposed pays the
such expense through lower production cost without sacrificing the
quality of his product.
30. In case of ambiguity, tax laws shall be interpreted liberally in favor of
the government.

MULTIPLE CHOICE
Definition, Purpose, Theory and Basis
1. Which of the following statements is incorrect?
a. laxes are the revenues raised in the exercise of the police
power of the State.
b. One of the special characteristic of tax
is it is unlimited
amount.
State are Inherent in the
C. The three fundamental powers of the
the need of any
State and may be exercised without
constitutional grant.
d. All of the above

43
 Chapter Fercises-Principles
2. The State, having sovereignty can enforce contributions (tax) upon its
citizens even without a specific provision in the Constitution
authorizing it. Which of the following will justify the foregoing
statement?
a. It is so because the State has the supreme power to command
and enforce obedience to its will from the people within its
jurisdiction.
b. Any provision in the Constitution regarding taxation does not
create rights for the sovereignty to have the power to tax but it
merely constitutes limitations upon the supremacy of tax
power.
C. Both "a" and "b"
d. Neither "a" nor "b"

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, may be used to make up for the benefit received.
it
b.
b.axes may be imposed for the equitable distribution of wealth
and income in society.
C. Both "a" and "b"
d. Neither "a" nor "b"
 Chapter trercises - Principles

theory in
in taxation states that without taxes, a government
theory
6.
Which thealyzed
Which for lack of power to activate and operate it,
would b e p a r a l y z e d

its d e s t r u c t i o n ?
resulting in
Power to destroy theory
a.
b. Lifeblood theory
c. Sumptuary theory
d. Symbiotic doctrine

theoretical basis of taxation, which of the following statements is

7 On
true?
to expand its
People pay taxes which their government
territorial domination.
uses

powers and
. People demand from their government certain responsibilities and
with the means to carry them out.
then provide this government
taxation
. State needs taxation to exist, while people must support
because they need the presence of the state.
d. "b" and "c"

8. Ihcidence of taxation
means

a. Shifting of tax
C. Payment of tax
b. Refunds of tax d. Imposition of tax

to effect the exaction of

9. The actual effort exerted by the government
what is due from the taxpayer is known as
a. Assessment.
b. Levy.
C. Payment.
d. Collection.

10. Statement 1: Symbiotic relation is the reason why the government

from
Would taxes on the income of resident citizens derived
impose
sources outside the Philippines.
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

tax amnesty to those

A law was passed by Congress whicha granted
certain year and at the same
for
Wno have not paid income taxestaxes to those who have already paid
ume providing for the refund of
them. The law is:
valid classification.
d, Valid because there is a

45
 Chapler percises Principles
b. Not valid because those who did not pay their taxes are
favored over those who have paid their taxes.
the law and it did
C.
Valid because it was Congress that passed
not improperly delegate the power to tax.
d. Not valid because only the President with the approval of
Congress may grant amnesty.
12. Congress passed a new law imposing taxes on income earned out of
particular activity that was not previously taxed. The law, however,
taxed incomes already earned within the fiscal year when the law took
effect. Is the law valid?
a. No, because the laws are intended to be prospective, not
retroactive.
b. No, the law is arbitrary in that it taxes income that has already
been spent.
C. Yes, since the tax laws are the lifeblood of the government.
Yes, tax laws are an exception; they can be given retroactive
effect.

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?
a. Yes, because taxation is the rule and
exemption is the
exceptioon
b. Yes, because taxes are the lifeblood of the
government
C. No, the BIR is not allowed to reverse its ruling
d. 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
from the House of
Representatives.
Assume that in 2014,
"exclusively"
Uro proposed expansion
an of the Congressman
of the value added tax to be
known as e-vat law. The coverage
proposed bill was
Representatives later that year. However, approved by the House of
the EVAT version of the
Senate became the EVAT law.
14. Which of the
following statements will justify the enacted EVAT law?
I. The Constitution
simply means that the initiative for filing revenue,
tariff or tax bills must come
from the House of onRepresentatives

46
 Chapter Eercises Princisles
theory that, elected as they are from the districts, the Members
De expected to be more sensitive to the local
can be
af
of the
Hous
the House can
rieeds and problems.
nat the
the lawtobut"originate
Constitution the revenue bill which inis the
exclusively" required by
by the
House of
not
L.t is Constitution

Representatives because a bll originating in the House may

undergo such extensive changes in the Senate that the result may
be a rewriting of the wnole, and a distinct bill may be produced.
a. lonly c. Both I and II
b. Il only d. Neither I nor ll

filed in the
Senate a substitute e-vat bill
AsSuming Senator Bobadilla
anticipation" of its receipt of the bill from the House. The proposal
from the version of the lower house. Which of the
is totally different
following statements will justify the filing of a substitute bill by
Honorable Senator Bobadilla?
statute not only the bill which initiated the
L.To insist that a revenue
legislative process culminating in the enactment of the
law must
substantially be the same as the House bill would be to deny the
Senate's power not only to "concur with amendments" but also to
"propose amendment."
I1.t would be to violate the coequality of legislative power of the two
houses of Congress and in fact make the House superior to th
Senate.
Given the power of the Senate to propose amendments, it can
propose its own version even with respect to bills which are
required by the Constitution to originatein the House.
IIL.Filing in the Senate of a substitute bill in anticipation of its receipt of
the bill from the House is not prohibited under the Constitution, so
long as the action by the Senate as a body is withheld pending
receipt of the House bill.
a. I only C. 1, Il and IlI
b. Il only d. None of the above

16. Being legislative in nature, the power to tax may not be delegated,

except:
a.6. To local
governments or political subdivisions
When allowed by the Constitution
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

47
 hupler lurrises rinciples
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 2 is 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 legislative function?
A B C D
Fix with certainty the amount Yes No Yes Yes
of tax
ldentify who should collect Yes Yes No Yes
the tax
Determine who should be Yes Yes Yes No
subject to tax

19. 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 government is a
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 rightto 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
the purpose is determine whether or not
public.
20. The
following are the aspects of taxation
1-Levy or imposition of the tax on
Il- Collection of taxes persons, property or excises
II1- already levied
Sufficiency of
a. 1, Il and III governments sources to satisfy its
b. Iand Il C. I and Ill
only
expenditure
only d. Il and lll
only

48
 Chapter Erercises - Principles

the following is
incorrect?
Which of
21.
Legislative Administrative
a.
Selecting the kind of tax Yes No
Fixing amount of tax Yes No
b Prescribing rules of Yes No
C
taxation
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 & 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

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
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
D.
The legislative branch of the local government only
C.The local executive and the legislative branch of the local
government unit
d. Neither the local executive nor the legislative branch of the
local government can exercise the power.

6. Where does taxing power of the provinces, municipalities and cities

precede from?
a. Constitutional grant
b. Legislative enactment

49
 Chapter Eercises Principles
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& 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
sense that a lawful tax cannot be defeated just because its
exercise would be destructive or would bring about insolvency
to a taxpayer.
b. The principle implies that an imposition of lawful regulatory
taxes would be destructive to the taxpayers and business
establishments because the government can compel payment
of tax and forfeiture of property through the exercise of police
power.
C. 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. As a theory of taxation, this is called "ability to pay theory"

50
 Chapter Eercises Pritcisles
As a basic principle of taxation, this is called "theoretical
justice"

of "No estoppel against the government" means

32. Rule
32. Ruleo
a. Rule of law that in the performance of its
functions, the state cannot be estopped by the neglect of its
governmental
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. Both a and b
d. Neither a or b

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 upp
depending on the resources of the person affected.
a. Statements 1 & 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

34. One of the characteristics of our internal revenue laws is that

a. Political in nature
they are

b. Penal in nature
C. Generally prospective in operation although the tax statute
may nevertheless operate retrospectively provided it is clearly
the legislative intent
d. Criminal in nature

35. Which of the following distinguishes tax from license fee

a.
Non-payment does not necessarily render the businessillegal
b. A regulatory measure
C.Imposed in the exercise of police power
d. Limited to cover cost of
regulation
36. The least source of tax
a. Statutes
laws
C. Revenue regulations
b. Presidential decrees d. Tax treaties or conventions

51
 Chapter Grercises - Principles

not be contrary to the

A r e v e n u e regulation must
37. Statement 1: .

provision of the law that it implementcannot expand the provision of the

Statement 2: A revenue regulation
law that it implements by imposing
a penalty when the law that
not impose a penalty.
authorizes the revenue regulation does
a. Statements 1 & 2 are false
Statement 1 is true but statement
2 is false
b.
Statement 1 is false but statement
2 is true
C.
d. Statements 1 and 2 are true

tax statutes are construed

38. In every case of doubt,
the taxpayer
a. Strictly against the government and
and the taxpayer
b. Liberally in favor of the government of the
C. Strictly against the government
and liberally in favor
taxpayer
d. Liberally in favor of the government and strictly against the tax
payer

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

a. Strictly against the government and the taxpayer
b. Liberally in tavor of the government and the taxpayer
the government and liberally in favobr of the
C. Strictly against
taxpayer
d. Liberally in favor of the government and strictly against the
taxpayer
40. Which of the following statements is correct?
I. A tax cannot be imposed without clear and express words for
that purpose.
II. The provisions of a taxing act are not to be extended by
implication.
If the law is repealed, taxes assessed before repeal of the laww
may no longer be collected.
IV. Tax law is ex post facto in application.
a. Iand 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
Subject matter of the tax (person,
imposed.
property, rights
or activity)
Citizenship of the taxpayer
IV. Residence of the taxpayer
V. Place of the excise,
privilege, business or occupation

52
 Chapter Erercises - 1Principles

Source of the income subject to tax

VI.
a. Iand Il only C. ll, IV and VI
only
b. Il, IV, V
and VI only d. 1, 11, II, IV, V and VI

Tax of a fix amount imposed among al persons residing within a

42.
SDecified territory withOut regards to their property or occupation they
may be engage

a. Personal, poll or capitation tax C. Excise tax

b. Property d. 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 C. 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
d. Inferior to non-impairment clause in the Constitution

Sound Tax System

46. The following are basic principles of sound tax system
I. should be capable of being effectively enforced
II. It must be progressive
III. Sources of revenue must be sufficient to meet government
expenditures and other public needs
. I t should be exercised to promote public welfare
a. land II only C. 1, Il and lIl 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
a. Equality or theoretical justice
b. Fiscal adequacy
C. Administrative feasibility
d. Rule of
apportionment

53
 Chapter bercises- Princisles
48. The tax should be imposed proportionate to the taxpayer ability to pay
a. Equality or theoretical justice
b. Fiscal adequacy
C. Administrative feasibility
d. Rule of apportionment

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

Inherentand Constitutional
50. Statement 1:
Limitations
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 & 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

51. "Equality in taxation" means:

. Progressive system of taxation shall be applied.
II. The tax laws and their application must be fair, just,
reasonable and proportionate to one's ability to pay.
The tax laws shall give emphasis on direct rather than indirect
taxes or on the ability-to-pay principle of taxation.
a. Ionly C. Ill only
b. Il only d. 1, Il and IlI

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.
The purpose is to protect persons belonging to the same class
against intentional and arbitrary discrimination.

54
 Chapler ercises - Principles

There is denial of equal protection of laws if there is

IIl.
discrimination In the implementation of tax laws.
C. ll and Il only
a. land Il only
d. I, l and lll
b. Iand Il only

on the power of taxation recognizes

53 Which of the following restrictions
laws shail not be applied to the property of
that the country's tax
foreign government?

a. Taxation is inherently a legislative function

b.
b. Exercise of taxation is subject to international comity
Due process of law
d. Equal protection of law

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

Exemption versus Amnesty

55. Exemption from tax is a privilege, which is being looked upon by law
with disfavor because everyone should be sharing the burden of
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;
C. Amount foregone by the government is substantial;
d. It applies to all
past, present and future tax obligations.

55
 Chapter Erercises Princisles
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 impractical for the
government to be taxing itself
a. Statements 1& 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

58. Which of the following statements correctly described the tax

exemption of the government?
.The State cannot be taxed without its consent, otherwise, such
is derogation to its sovereignty.
II. Tax exemption applies only to government entities through
which the government immediately and directly exercises its
governmental functions like the Department of Justice,
Department of Foreign Affairs, Philippine National Police, and
the like.
Il. Government agencies performing governmental functions are
exempt from tax unless expressly taxed, while those
performing proprietary functions are subject to tax unless
expressly exempted.
a. I only C. ll only
b. Il only d. I, Il and lil

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
through donation where tax liability would be rather than
d. All of the above higher
60. Which of the
a. Tax
following is correct?
avoidance, or tax
not punishable by law. minimization, through legal means, is
b. Deliberate reduction
of taxable income
is an that has been received
example of tax avoidance.
C. Evasion of the
tax takes
place only when there are no
proceeds on the
d. All of the above part of the
government.

56
 Chapter Erercises Princisles
enent 1: An attempt to minimize
61. S t a
61. one's tax
constitute fraud,
taxpaye may
diminish|his liability
by any means, which thefraud
law
permits
Statement 2: To avoid is legal but to evade is
f a taxpayer to decrease the amount of what illegal. The
legal rights
O1axes, altogether avoid them, otherwise would be his
by means which the law
be doubted. permits, cannot
a. Statements 1 & 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
9 Which of the following is an element of double taxation?
I. Same kind of tax
I. Same subject matter
I1. Same taxable period
IV. Same taxing authority
a. I and Il only C. All of the above
b.1, ll and ll 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.

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.
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 subject to real dealer's tax.
a. Statements 1& 2 arefalse
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

LIgaya Educational Foundation, Inc., a stock educational institution

organized for profit, decided to lease for commercial use a 1,500 sq.

.portion ofits school. The school actually, directly, and exclusively

Used the rents for the maintenance of its school buildings, including
subject to real
Pyent of janitorial services. Is the leased portion
property tax? educational institution.
CTes, since Ligaya is a stock and for profit

57
 Chapter Etercises - Principles

No. since the school actually, directly, and exclusively used the
b.
rents for educational purposes.
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.