Taxation - Introduction to Tax

Statement 1: Imposition of taxes is a legislative act.

Statement 2: Collection of taxes is an administrative act.

• Only the first statement is correct.

• Only the second statement is correct.

• Both statements are correct.

• Both statements are incorrect.

Statement 1: A person cannot be imprisoned for non-payment of property tax.

Statement 2: A law may be passed violating uniformity of taxation.

• Only the first statement is correct.

• Only the second statement is correct.

• Both statements are correct.

• Both statements are incorrect.

Statement 1: Territoriality is one of the constitutional limitations on the power of taxation.

Statement 2: International comity is an inherent limitation in taxation.

• Only the first statement is correct.

• Only the second statement is correct.

• Both statements are correct.

• Both statements are incorrect.

Statement 1: Tax avoidance is a form of tax escape.

Statement 2: Tax evasion is not punishable.

• Only the first statement is correct.

• Only the second statement is correct.

• Both statements are correct.

• Both statements are incorrect.

Also known as tax administration

• Collection of taxes

• Levying of taxes

• Payment of taxes

• Incidence of taxation

In the absence of inherent and constitutional limitation, the power to tax is:

• Comprehensive

• Unlimited

• Both a and c

• Regulatory

It refers to a fraudulent act of minimizing taxes:

• Tax avoidance

• Tax evasion

• Tax minimization

• Multiple taxation

One of the following is NOT an inherent limitation:

• Taxes must be for public purpose

• Equality in taxation

• Territoriality rule

• Rule on double taxation

All of the following is territoriality doctrine except one:

• Residence of the taxpayer

• Source of the income

• Situs of the thing or property taxed

• International organizations

A form of tax escape by a manufacturer or producer who improves his proceeds of production thereby minimizing his unit production cost:

• Tax avoidance

• Capitalization

• Transformation

• Shifting