General Principles Part 2

1. 1. All are similarities of taxation, police power and power of eminent domain, except

• All are necessary attributes of the Constitution

• All exist independently of the Constitution

• All contemplate an equivalent benefit

• All are superior to the non-impairment clause of the Constitution

2. 2. Our national internal revenue laws are

• Penal in nature

• Political in nature

• Criminal in nature

• Civil in nature

3. 3. The levying or imposition of tax and collection of the tax are processes which constitute the

taxation system.

• Basis of taxation

• Nature of taxation

• Aspect of taxation

• Theory of Taxation

4. 4. Which of the following statements is correct?

• Tax law is still valid when its theory purposes and basis are disregarded.

• There can be tax exemption solely on the ground of equity.

• Levying or imposition of taxes is known as tax administration.

• The power to tax generally includes the power to destroy.

5. 5. The tax should be proportional to the relative value of the property to be taxed.

• Simplicity of taxation

• Reciprocity of taxation

• Equality of taxation

• Uniformity of taxation

6. 6. Which is not an essential characteristic of a tax?

• It is unlimited as to amount.

• It is payable in money.

• It is proportionate in character.

• It is and enforced contribution.

7. 7. An escape from taxation where the producer or manufacturer pays the tax and endeavors

to recoup himself by improving his process of production thereby turning out his units of products at lower

cost.

• Shifting

• Capitalization

• Transformation

• Minimization

8. 8. Which of the following real property of a non-stock, non-profit hospital shall be subject to

   real property taxes

• Second and third floors of hospital building used as wards for paying in-patients.

• Fourth floor of the hospital building used as doctors’ and nurses’ resting quarters.

• Parking lot for hospital administrators, personnel, patients and visitors.

• Ground floor leased to a canteen concessionaire and to doctors holding their clinics.

10. 10. This rule is not applicable on the construction of tax laws

• Provisions intended for the security of the taxpayer or to insure equality or uniformity of taxation are

  mandatory.

• If the law is repealed, taxes assessed before repeal of the law may no longer be collected.

• Where the intent to tax is clear and the taxpayer claims he is exempt from the tax obligation, the tax shall

  be construed against the taxpayer.

• If the intent of the tax is not clear as to whether the taxpayer is covered by the tax obligation, the law shall

  be construed against the government.