TAXES,TAX LAWS, AND TAX ADMINISTRATION

Basic Principles of a sound tax system, except

• Fiscal adequacy

• Intellectual sensitivity

• Equality or theoretical justice

• Administrative feasibility

The tax imposed should be proportionate to the taxpayer’s ability to pay.

• Fiscal adequacy

• Intellectual sensitivity

• Equality or theoretical justice

• Administrative feasibility

The sources of revenue as a whole, should be sufficient to meet the demands of public

expenditures.

• Fiscal adequacy

• Intellectual sensitivity

• Equality or theoretical justice

• Administrative feasibility

The tax laws must be capable of convenient, just and effective administration.

• Fiscal adequacy

• Intellectual sensitivity

• Equality or theoretical justice

• Administrative feasibility

Our National Internal Revenue Laws are

• Political in nature

• Criminal in nature

• Penal in nature

• Civil in nature

Which of the following statements is not correct?

• Tax laws are either political or penal in nature.

• An inherent limitation of taxation may be disregarded by the application of a

  constitutional limitation.

• Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our

  country.

• Taxes may be imposed retroactively by law, but unless so expressed by such law, these

  taxes must only be imposed prospectively.

A tax wherein both the incidence of or the liability for the payment of the tax as well as the

burden of the tax falls on the same person.

• Percentage tax

• Value added tax

• Direct tax

• Indirect tax

Which one of the following is not a characteristic or element of a tax?

• It is an enforced contribution.

• It is legislative in character.

• It is based on the ability to pay.

• It is payable in money or in kind.

The power of taxation is exercised by

• Congress

• The Supreme Court

• Bureau of Internal Revenue

• The President

Value-added tax is an example of:

• Progressive tax

• Graduated tax

• Regressive tax

• Proportional tax