Income Taxation - Midterm Exam

Maria bought a new smartphone worth ₱20,000 at a mall. When she checked the receipt, she noticed that ₱2,400 was added as VAT.
What type of tax did Maria pay?

• Direct Tax

• Indirect Tax

• Income Tax

• 
  Excise Tax

The government increased taxes on cigarettes to discourage smoking and improve public health.
What is the main purpose of this tax increase?

• Administrative Feasibility

• Property Taxation

• Non-Revenue (Regulatory) Purpose

• Revenue Purpose

The Bureau of Internal Revenue (BIR) issued a notice to a businessman requiring him to pay unpaid income taxes.
Which aspect of taxation does this represent?

• Collection/Administration

• Levy/Imposition

• Limitation of Taxation

• Principle of Fiscal Adequacy

During a national emergency, Congress passed a law imposing a new tax on luxury goods to raise funds for disaster relief.
Which aspect of taxation is shown in this case?

• Administrative Feasibility

• Collection by BIR

• Double Taxation

• Levy or Imposition

Mr. Cruz, a high-income earner, pays a higher percentage of income tax compared to a minimum wage earner.
Which principle or classification of tax applies?

• Indirect Tax

• Progressive Tax

• Proportional Tax

• Regressive Tax

The government expropriates a private lot to build a public highway but pays the owner fair market value.
This situation shows which governmental power?

• Taxation
  

• Eminent Domain

• Regulatory Power

• Police Power

A business owner underreports his income to avoid paying the correct amount of taxes.
What type of tax avoidance is this?

• Tax Avoidance
  

• Tax Shifting

• Tax Evasion

• Tax Exemption

A senior citizen bought maintenance medicine and was not charged VAT.
What concept of taxation is demonstrated here?

• Tax Evasion

• Tax Exemption

• Tax Avoidance

• Tax Shifting

A local government imposes a real property tax on all residential lands within its area.
Which type of tax is being collected?

• Personal Tax

• Excise Tax

• Direct Tax

• Property Tax

The government uses part of the taxes collected to build public schools and pay teachers’ salaries.
Which purpose of taxation is demonstrated?

• Regulatory Purpose

• Protective Purpose

• Revenue Purpose

• Non-Revenue Purpose