1.1 General Principles

The primary purpose of taxation is

• To enforce contribution from its subject for private purpose

• To raise revenue for the government

• To achieve economic and social stability

• To regulate the conduct of business or profession

Select the incorrect statement

• the power of eminent domain may be exercised by any private entity

• by police power, the property taken is destroyed

• by eminent domain, the property taken is preserved

• eminent domain and taxation affects only property rights

What is the theory of taxation?

• necessity

• constitutionality

• reciprocal duties of support and protection

• public purpose

What is the basis of taxation?

• constitutionality

• public purpose

• necessity

• reciprocal duties of support and protection

The point in which tax is levied is called?

• impact of taxation

• situs of taxation

• incidence of taxation

• assessment

When the impact and incidence of taxation are merged into the statutory taxpayer, the tax is called?

• personal tax

• direct tax

• indirect tax

• national tax

Which of the following is an administrative act in taxation?

• collection of taxes

• fixing the rate of the tax

• determination of the subject of the tax

• determination of the purpose of the tax

I. Taxation is the rule; exception is the exemption.

II. Police power may be sued to implement the taxation power of the state.

• I is true

• II is true

• I and II are true

• I and II are not true

Which of the following depicts taxation being used to implement police power?

• Oplan Kandado enforced against taxpayer not issuing BIR receipts

• Prohibition of smuggling and the seizure of smuggled goods

• Levy of exorbitant excise taxes on sin products

• All of the above

Select the incorrect statement

• the power to tax includes the power to exempt

• exemption is construed against the taxpayer and in favor of the government

• tax statutes are construed against the government in case of doubt

• taxes should be collected only for public improvement