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TAXES,TAX LAWS, AND TAX ADMINISTRATION

Total questions: 20

Worksheet time: 7mins

Name
Class
Date
1.

Basic Principles of a sound tax system, except

a)

Fiscal adequacy

b)

Intellectual sensitivity

c)

Equality or theoretical justice

d)

Administrative feasibility

2.

The tax imposed should be proportionate to the taxpayer’s ability to pay.

a)

Fiscal adequacy

b)

Intellectual sensitivity

c)

Equality or theoretical justice

d)

Administrative feasibility

3.

The sources of revenue as a whole, should be sufficient to meet the demands of public

expenditures.

a)

Fiscal adequacy

b)

Intellectual sensitivity

c)

Equality or theoretical justice

d)

Administrative feasibility

4.

The tax laws must be capable of convenient, just and effective administration.

a)

Fiscal adequacy

b)

Intellectual sensitivity

c)

Equality or theoretical justice

d)

Administrative feasibility

5.

Our National Internal Revenue Laws are

a)

Political in nature

b)

Criminal in nature

c)

Penal in nature

d)

Civil in nature

6.

Which of the following statements is not correct?

a)

Tax laws are either political or penal in nature.

b)

An inherent limitation of taxation may be disregarded by the application of a

constitutional limitation.

c)

Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our

country.

d)

Taxes may be imposed retroactively by law, but unless so expressed by such law, these

taxes must only be imposed prospectively.

7.

A tax wherein both the incidence of or the liability for the payment of the tax as well as the

burden of the tax falls on the same person.

a)

Percentage tax

b)

Value added tax

c)

Direct tax

d)

Indirect tax

8.

Which one of the following is not a characteristic or element of a tax?

a)

It is an enforced contribution.

b)

It is legislative in character.

c)

It is based on the ability to pay.

d)

It is payable in money or in kind.

9.

The power of taxation is exercised by

a)

Congress

b)

The Supreme Court

c)

Bureau of Internal Revenue

d)

The President

10.

Value-added tax is an example of:

a)

Progressive tax

b)

Graduated tax

c)

Regressive tax

d)

Proportional tax

11.

Which tax principle is described in the statement “ the more income earned by the taxpayer,

the more tax he has to pay.”

a)

Fiscal Adequacy

b)

Inherent in sovereignty

c)

Theoretical justice

d)

Administrative feasibility

12.

Which of the following is not acceptable for legally refusing to pay the tax?

a)

That the right of the state to collect the tax has prescribed.

b)

That there is no jurisdiction to collect the tax.

c)

That the tax law was declared as unconstitutional.

d)

That there is no benefit derived from the tax.

13.

The Bureau of Internal Revenue shall have a chief and four (4) assistant chiefs to be known

as

a)

Commissioners and Deputy Commissioners

b)

Commissioner and Assistant Commissioners

c)

Secretary and Undersecretaries

d)

Secretary and Assistant Secretaries

14.

I. No person shall be imprisoned for debt or non-payment of tax.

II. Tax laws are civil and penal in nature because there are penalties provided in case of

violation.

a)

True; True

b)

False; true

c)

True; false

d)

False; false

15.

I. Tax is a demand of sovereignty.

II. Toll is a demand of sovereignty.

a)

False; false

b)

True; True

c)

False; true

d)

True; false

16.

A charge imposed on land for special benefits derived resulting from public improvements.

a)

Special assessment

b)

Tax

c)

License

d)

Toll

17.

Tax as distinguished from debt

a)

based on law

b)

may be paid in kind

c)

based on contract

d)

no imprisonment for non-payment

18.

Tax rulings are issued by the

a)

Secretary of finance

b)

Supreme court

c)

Court of tax appeals

d)

Commissioner of internal revenue

19.

As to tax payments measures which of the following threshold for the qualification as large taxpayer is incorrect?

a)

Annual income tax payments of P1M

b)

Annual value added tax payments of P1M

c)

Quarterly percentage tax payments of P200,000

d)

Annual documentary stamp tax of P1M

20.

The BIR is under the supervision of

a)

The bureau of customs

b)

The president

c)

The department of finance

d)

Congress