BAM 031: INCOME TAXATION

Statement 1: Taxation is a mode of raising revenue for public purposes.

Statement 2: Taxation is the exercise of the sovereign power to raise revenues.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Statement 1: The imposition of the tax is generally an executive act.

Statement 2: The taxing power is exercised by the President.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Statement 1: Imposition of the tax is the process of determining the correct amount of tax due.

Statement 2: Assessment is the process of determining the correct amount of tax due.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Statement 1: Collection and payment is the act of compliance with the tax law by the taxpayer.

Statement 2: Tax assessment is essentially executive in nature.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

All of the following are inherent powers of government, except;

• The Power to Tax

• Police Power

• Lifeblood Theory

• Power of Eminent Domain

Statement 1: The power to tax is subject only to inherent limitations.

Statement 2: The power to tax is subject only to constitutional limitations.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Statement 1: The power to tax is unlimited in nature.

Statement 2: The power to tax is comprehensive in nature

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Statement 1: Police power is the inherent power of a sovereign state to legislate for the protection of the public.

Statement 2: Power of eminent domain is the inherent power of a sovereign state to take public property for private purposes.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect

Which of the following is a limitation on the power to tax?

• Fiscal Adequacy

• International Comity

• Theoretical Justice

• Administrative Feasibility

Statement 1: Direct double taxation is not expressly prohibited.

Statement 2: Our current tax laws provide for single taxation only.

• Only Statement 1 is correct

• Only Statement 2 is correct

• Both Statements are correct

• Both Statements are incorrect