Income Taxation Quiz

What is taxation?

• A legislative process

• A mode of government cost distribution

• A mode of government cost distribution

• A State power

What is the theory of Taxation based on?

• Ability to Pay Theory

• Benefit Received Theory

• Both B and C

• Theories of Cost Allocation

What are the implications of the Lifeblood Doctrine?

• Tax is imposed even in the absence of a constitutional grant

• The government reserves the right to choose the objects of taxation

• The courts are allowed to interfere with the collection of taxes

• Claims for tax exemption are construed in favor of taxpayers

What are the similarities of the three powers of the State?

• They all exist independently of the Constitution

• They are all legislative in nature

• They all presuppose an equivalent form of compensation received by the persons affected by the exercise of the power

• They are all necessary attributes of sovereignty

What are the stages of Taxation?

• All of the above

• Impact of Taxation

• Assessment of Tax

• Levy or Imposition

What are the inherent limitations of Taxation?

• International Comity

• Territoriality of taxation

• Non-delegation of the taxing power

• Exemption of the government

What determines the Situs of Taxation?

• Nature, kind or classification of tax

• Sources of income

• All of the above

• Citizenship of the taxpayer

What is Double Taxation?

• Taxing the object or subject within the territorial jurisdiction once

• Taxing the object or subject outside the territorial jurisdiction twice

• None of the above

• Taxing the object or subject within the territorial jurisdiction twice

What are the forms of Escape from Taxation?

• Shifting

• Capitalization

• All of the above

• Transformation

What is the distinction between Tax Evasion and Tax Avoidance?

• Tax Avoidance is accomplished by breaking the law

• Tax Evasion connotes fraud, deceit and malice

• Tax Avoidance is a scheme used outside of those lawful means

• Tax Evasion is a tax saving device within the means of sanctioned by law