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General Principles of Income Taxation

Total questions: 25

Worksheet time: 9mins

Name
Class
Date
1.

TRUE OR FALSE:

The point on which a tax is originally imposed is impact of taxation.

a)

True

b)

False

2.

TRUE OR FALSE:

Police power is superior to the non-impairment clause of the constitution.

a)

True

b)

False

3.

TRUE OR FALSE:

As a rule, taxes are subject to set-off or compensation.

a)

True

b)

False

4.

TRUE OR FALSE:

As a rule, provisions on the validity of tax exemptions are resolved liberally in favor of the taxpayer.

a)

True

b)

False

5.

Which is not an essential characteristic of a tax?

a)

It is unlimited as to amount.

b)

It is payable in money

c)

It is proportionate in character

d)

It is an enforced contribution

6.

It is a privilege of not being imposed a financial obligation to which others are subject

a)

Tax incentive

b)

Tax exemption

c)

Tax amnesty

d)

Tax credit

7.

As to scope of the legislative power to tax, which is not correct?

a)

Where there are no constitutional restrictions and provided the subjects are within the territorial jurisdiction of the state, Congress has unlimited discretion as to the persons, property or occupations to be taxed.

b)

In the absence of any constitutional prohibition, the House of Representatives has the right to levy a tax of any amount it sees fit.

c)

The discretion of Congress in imposing taxes extends to the mode, method or kind of tax, if not restricted by the constitution.

d)

The sole arbiter of the purpose for which taxes shall be levied is the Commissioner of Internal Revenue, provided the purpose is public.

8.

Synonymous to tax evasion

a)

Tax dodging

b)

Tax minimization

c)

Tax exemption

d)

Tax shield

9.

In case of doubt, tax statutes are construed

a)

Strictly against the government and the taxpayer

b)

Liberally in favor of the government and the taxpayer

c)

Strictly against the government and liberally in favor of the taxpayer.

d)

Liberally in favor or the government and strictly against the taxpayer.

10.

TRUE OR FALSE:

Tax exemptions, tax amnesty, tax condonations and their equivalent provisions are not presumed and, when granted, are strictly construed against the taxpayer because such provisions are highly disfavored by the government.

a)

True

b)

False

11.

The Bureau of Internal Revenue has the duty and exclusive power or enacting, implementing and interpreting tax laws.

a)

True

b)

False

12.

Tax as distinguished from license fees:

a)

Limited to cover cost of regulation

b)

A regulatory measure

c)

Non-payment does not necessarily render the business illegal

d)

Imposed in the exercise of police power.

13.

The power to impose taxes is exercised by the

a)

President

b)

Supreme Court

c)

BIR

d)

Congress

14.

Which of the following is not an example of excise tax?

a)

Transfer Tax

b)

Sales Tax

c)

Real Property Tax

d)

Income Tax

15.

TRUE OR FALSE:

Taxes may be imposed to raise revenues or to provide disincentives to certain activities within the state.

a)

True

b)

False

16.

TRUE OR FALSE:

For the exercise of the power of taxation, the state can tax anything at any time.

a)

True

b)

False

17.

TRUE OR FALSE:

The provisions of taxation in the Philippine Constitution are grants of power enabling the state to impose taxes.

a)

True

b)

False

18.

Donor's tax is an example of a:

a)

Graduated Tax

b)

Progressive Tax

c)

Regressive tax

d)

Proportional Tax

19.

TRUE OR FALSE:

A revenue bill may originate from the Senate and on which same bill the House of Representatives may propose amendments.

a)

True

b)

False

20.

The Department of Finance thru its officers entered into a contract with foreign investors, granting them tax exemption from all forms of taxes to encourage investments in the Philippines. The contract is

a)

Valid

b)

Void

21.

TRUE OR FALSE:

The point on which a tax is originally imposed is impact of taxation.

a)

True

b)

False

22.

The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as

a)

Assessment

b)

Levy

c)

Payment

d)

Collection

23.

TRUE OR FALSE:

The theory of taxation states that the power of taxation is supreme, plenary, unlimited and comprehensive.

a)

True

b)

False

24.

TRUE OR FALSE:

Tax code prevails over the Civil Code.

a)

True

b)

False

25.

These are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.

a)

Revenue Memorandum Circulars

b)

Revenue Memorandum Orders

c)

Revenue Regulations

d)

BIR Rulings