TAXATION_Chapter 1_Introduction to Taxation

TRUE OR FALSE:
There should be direct receipt of benefit before one could be compelled to pay taxes.

• TRUE

• FALSE

Answer explanation

Direct or indirect receipt of benefits must pay taxes

TRUE OR FALSE:
Eminent domain involves confiscation of prohibited commodities to protect the well-being of the people.

• TRUE

• FALSE

Answer explanation

This is POLICE POWER

TRUE OR FALSE:
Horizontal equity requires consideration of the circumstance of the taxpayer

• TRUE

• FALSE

TRUE OR FALSE:
Taxes are the lifeblood of the government

• TRUE

• FALSE

TRUE OR FALSE:
Taxation is a mode of apportionment of government costs to the people.

• TRUE

• FALSE

TRUE OR FALSE:
The exercise of taxation power requires Constitutional grant.

• TRUE

• FALSE

Answer explanation

It does not require constitutional grant, only constitutional limitations

TRUE OR FALSE:
Taxation is inherent in sovereignty

• TRUE

• FALSE

TRUE OR FALSE:
Police power is the most superior power of the government. Its exercise needs to be sanctioned by the Constitution

• TRUE

• FALSE

Answer explanation

It does not need to be sanctioned by the Constitutoned

TRUE OR FALSE:
All inherent powers presuppose an equivalent form of compensation

• TRUE

• FALSE

TRUE OR FALSE:
The reciprocal duty of support between the government and the people underscores the basis of taxation.  

• TRUE

• FALSE