Statement 1: The imposition of the tax is generally an executive act.

Statement 2: The taxing power is exercised by the President.

Statement 1: Imposition of the tax is the process of determining the correct amount of tax due.

Statement 2: Assessment is the process of determining the correct amount of tax due.

Statement 1: Collection and payment is the act of compliance with the tax law by the taxpayer.

Statement 2: Tax assessment is essentially executive in nature.

All of the following are inherent powers of government, except;

Statement 1: The power to tax is subject only to inherent limitations.

Statement 2: The power to tax is subject only to constitutional limitations.

Statement 1: The power to tax is unlimited in nature.

Statement 2: The power to tax is comprehensive in nature

Statement 1: Police power is the inherent power of a sovereign state to legislate for the protection of the public.

Statement 2: Power of eminent domain is the inherent power of a sovereign state to take public property for private purposes.

Which of the following is a limitation on the power to tax?

Statement 1: Direct double taxation is not expressly prohibited.

Statement 2: Our current tax laws provide for single taxation only.

Statement 1: Fiscal Adequacy means that tax revenues should be sufficient to meet the demands of public expenditures

Statement 2: Theoretical Justice means that tax imposed should be sufficient to meet government expenditures.

Statement 1: Theoretical Justice means the tax imposed is proportionate to the taxpayer’s ability to pay

Statement 2: Administrative Feasibility means tax laws are capable of convenient, just and effective administration.

Statement 1: Taxes are the lifeblood of the government.

Statement 2: Some government can function without taxes.

Statement 1: Benefits Protection Theory states that when a citizen pays their taxes, they will be secured in the enjoyment of the benefits of organized society.

Statement 2: Lifeblood Theory states that taxes must be levied in order to defray the various government functions.

Choose the incorrect statement.

Choose the incorrect statement.

Statement 1: National tax is levied and collected by the local government unit and is enforced throughout the country.

Statement 2: Property tax is imposed on property, in proportion to its value.

Statement 1: Direct tax is where the liability and burden of the tax falls on the same taxpayer.

Statement 2: General tax is levied without a specific or predetermined purpose.

Choose the incorrect statement.

Which of the following is not a source of tax laws?

Which of the following is an illegal form of escape from taxation?

Statement 1: Tax avoidance connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes.

Statement 2: Tax evasion occurs when the means used to minimize taxes are legal and not prohibited by law.

Statement 1: Non-payment of tax does not make the business illegal.

Statement 2: Non-payment of license fee does not make the business illegal

Statement 1: Taxes generally draws interest.

Statement 2: Debts are payable in money, property and services.

Statement 1: Tax is a demand of sovereignty and imposed by the government or state.

Statement 2: A toll is compensation charged by the owner for the voluntary use of the property and/or its improvement.

Which is the correct number of Chief Officials of the Bureau of Internal Revenue?

Statement 1: The Commissioner of the Bureau of Internal Revenue has the power to interpret tax laws and subject to review by the Secretary of Agriculture.

Statement 2: The Commissioner of the Bureau of Internal Revenue has the power to interpret tax laws and subject to review by the Secretary of Finance.

Statement 1: The Commissioner of the Bureau of Internal Revenue has the power to interpret tax laws and subject to review by the Secretary of Finance.

Statement 2: The Commissioner of the Bureau of Internal Revenue has the power to decide matters arising under the Tax Code or other laws or portions thereof administered by the BIR, subject to the exclusive appellate jurisdiction of the Supreme Court.

Taxes are not assignable obligation, whereas, debts are generally assignable

A tax is imposed by the government or state, while a toll may be imposed by private persons or entities.