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Taxation - Introduction to Tax

Total questions: 15

Worksheet time: 4mins

Name
Class
Date
1.

Statement 1: Imposition of taxes is a legislative act.

Statement 2: Collection of taxes is an administrative act.

a)

Only the first statement is correct.

b)

Only the second statement is correct.

c)

Both statements are correct.

d)

Both statements are incorrect.

2.

Statement 1: A person cannot be imprisoned for non-payment of property tax.

Statement 2: A law may be passed violating uniformity of taxation.

a)

Only the first statement is correct.

b)

Only the second statement is correct.

c)

Both statements are correct.

d)

Both statements are incorrect.

3.

Statement 1: Territoriality is one of the constitutional limitations on the power of taxation.

Statement 2: International comity is an inherent limitation in taxation.

a)

Only the first statement is correct.

b)

Only the second statement is correct.

c)

Both statements are correct.

d)

Both statements are incorrect.

4.

Statement 1: Tax avoidance is a form of tax escape.

Statement 2: Tax evasion is not punishable.

a)

Only the first statement is correct.

b)

Only the second statement is correct.

c)

Both statements are correct.

d)

Both statements are incorrect.

5.

Also known as tax administration

a)

Collection of taxes

b)

Levying of taxes

c)

Payment of taxes

d)

Incidence of taxation

6.

In the absence of inherent and constitutional limitation, the power to tax is:

a)

Comprehensive

b)

Unlimited

c)

Both a and c

d)

Regulatory

7.

It refers to a fraudulent act of minimizing taxes:

a)

Tax avoidance

b)

Tax evasion

c)

Tax minimization

d)

Multiple taxation

8.

One of the following is NOT an inherent limitation:

a)

Taxes must be for public purpose

b)

Equality in taxation

c)

Territoriality rule

d)

Rule on double taxation

9.

All of the following is territoriality doctrine except one:

a)

Residence of the taxpayer

b)

Source of the income

c)

Situs of the thing or property taxed

d)

International organizations

10.

A form of tax escape by a manufacturer or producer who improves his proceeds of production thereby minimizing his unit production cost:

a)

Tax avoidance

b)

Capitalization

c)

Transformation

d)

Shifting

11.

A form of tax escape through which one is given tax immunity wherein others are subjected to tax:

a)

Shifting

b)

Tax exemption

c)

Tax immunity

d)

Tax avoidance

12.

A waiver by the government’s right to collect tax:

a)

Tax exemption

b)

Tax amnesty

c)

Tax avoidance

d)

Tax evasion

13.

Which of the following is not a scheme of shifting the incidence of taxation?

a)

The manufacturer transfer the tax to the consumer by adding the tax to the selling price of the goods sold.

b)

The tax forms part of the purchase price.

c)

The manufacturer transfer the sales tax to the distributor, then in turn to the wholesaler, in turn to the retailer and finally to the customer.

d)

Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination abroad, so that the title passes abroad instead of in the Philippines.

14.

Aspects of taxation, except?

a)

Levying of tax

b)

Administration of tax

c)

Collection of tax

d)

Interpretation of tax

15.

Which of the following is not an element of double taxation?

a)

Two taxes

b)

Same subject matter

c)

Same year

d)

Same amount