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WorksheetsTAXATION_Chapter 1_Introduction to Taxation
Total questions: 100
Worksheet time: 50mins
TRUE OR FALSE:
There should be direct receipt of benefit before one could be compelled to pay taxes.
TRUE
FALSE
TRUE OR FALSE:
Eminent domain involves confiscation of prohibited commodities to protect the well-being of the people.
TRUE
FALSE
TRUE OR FALSE:
Horizontal equity requires consideration of the circumstance of the taxpayer
TRUE
FALSE
TRUE OR FALSE:
Taxes are the lifeblood of the government
TRUE
FALSE
TRUE OR FALSE:
Taxation is a mode of apportionment of government costs to the people.
TRUE
FALSE
TRUE OR FALSE:
The exercise of taxation power requires Constitutional grant.
TRUE
FALSE
TRUE OR FALSE:
Taxation is inherent in sovereignty
TRUE
FALSE
TRUE OR FALSE:
Police power is the most superior power of the government. Its exercise needs to be sanctioned by the Constitution
TRUE
FALSE
TRUE OR FALSE:
All inherent powers presuppose an equivalent form of compensation
TRUE
FALSE
TRUE OR FALSE:
The reciprocal duty of support between the government and the people underscores the basis of taxation.
TRUE
FALSE
TRUE OR FALE:
The scope of taxation is regarded as comprehensive, plenary, unlimited, and supreme.
TRUE
FALSE
TRUE OR FALSE:
The Constitutional exemption of religious, charitable, and non-profit cemeteries, churches, and mosques refers to income tax and real property tax.
TRUE
FALSE
TRUE OR FALSE:
Taxpayers under the same circumstance should be taxed differently
TRUE
FALSE
TRUE OR FALSE:
Taxation is subject to inherent and Constitutional limitations
TRUE
FALSE
TRUE OR FALSE:
International comity connotes courtesy between nations.
TRUE
FALSE
TRUE OR FALSE:
Collection of taxes in the absence of a law is violative of the Constitutional requirement for due process.
TRUE
FALSE
TRUE OR FALSE:
No one shall be imprisoned for non-payment of tax.
TRUE
FALSE
TRUE OR FALSE:
The lifeblood doctrine requires the government to override its obligations and contracts when necessary
TRUE
FALSE
TRUE OR FALSE:
2/3 of all members of Congress is required to pass a tax exemption law
TRUE
FALSE
TRUE OR FALSE:
The government should tax itself
TRUE
FALSE
That courts cannot issue injunction against the government’s effort to collect taxes is justified by
the lifeblood doctrine
imprescriptibility of taxes
the ability to pay theory
The point at which tax is levied is also called
Impact of taxation
Situs of taxation
Incidence o taxation
Which of the following inappropriately describes the nature of taxation?
Essentially a legislative function
Subject to inherent and constitutional limitation
Generally for public purpose
Which is correct?
Tax condonation is a general pardon granted by the goverment
The government can still collect tax in disregard of a constitutional limitation because taxes are the lifeblod of the government
The President of the Philippines can change tariff or imposts without necesity of calling Congress to pass a law for that purpose
A. The power to tax includes the power to exempt
B. The power to license includs th epower to tax
Which is true?
A only
B only
A and B
International double taxation can be mitigated by any of the following except.
Providing allowance for tax credit
Provision of reciprocity provisions in tax laws
Entering into treaties to form regional trade blockage against the rest of the world
Which is not an object of taxation?
Persons
Transactions
Public properties
The power to enforce proportional contribution from the people for the support of the government is
Taxation
Police power
Eminent domain
This theory underscores that taxes are indispensable to the existence of the state
Doctrine of equitable recoupment
The Lifeblood Doctrine
The Holmes Doctrine
A. Taxation is the rule, exception is the exemption
B. Vague taxation laws are interpreted liberally in favor of the government
Which is false?
A only
B only
Both A and B
Statement 1: The benefit received theory presupposes that some taxpayers within the territorial jurisdiction of the Philippines will be exempted from paying tax so long as they do not received benefits from the government.
Statement 2: The bility to pay theory suggests that some taxpayers may be exempted from tax provided they do not have the ability to pay the same.
Which statement is true?
Only Statement 1
Only Statement 2
Both Statements 1 and 2
Select the incorrect statement.
The power to tax includes the power to exempt
Exemption is construed against the taxpayer and in favor of the government
Taxes should be collected only for public improvements
Which is not a public purpose?
National defense
Transportation
Public education
None of these
Which does not properly describe the scope of taxation?
Comprehensive
Supreme
Discretionary
Unlimited
All of these are secondary purposes of taxation except
To reduce social inequality
To protect local industries
To raise revenue for the support of the government
What is the theory of taxation?
Reciprocal duties of support and protection
Necessity
Constitutionality
A. Taxes should not operate retrospectively
B. Tax is generally for public purpose
Which is true?
A only
B only
A and B
Which provision of the Constitution is double taxation believed to violate?
A. Equal protection guarantee
B. Progressive scheme of taxation
C. Uniformity rule
D. Either A or C
Which limitation of taxation is the concept of “situs of taxation” based?
Territoriality
International comity
Exemption of the government
Which tax exemption is irrevocable?
A. Tax exemption based on contract
B. Tax exemption based on the Constitution
C. Tax exemption based on law
D. Both A and B
Which statement is incorrect?
Every person must contribute his share in government costs
The government provides protection and other benefits while the people provide support
Only those who are able to pay tax can enjoy the privileges and protection of the government
Which is the most incorrect statement regarding taxes?
The obligation to pay tax does not rest upon the privelege enjoyed by or the protection afford to the citizen of the government, but upon the necessity of money for the upport of the State.
There should be personal benefit enjoyed from the government before one is required to pay tax
Taxes are necessary for the continued existence of the government.
Statement 1: In the selection of the objects of taxation, the courts have no power to inquire into wisdom, objectivity, motive, expediency, or necessity of a tax law.
Statemet 2: An imposition can be both a tax and a regulation. Taxes may be levied to provide means for rehabilitation and stabilization of threatened industry.
Which is correct?
Statement 1 only
Statement 2 only
Both statements
Which of the following acts in taxation is administered by nature?
Determination of the amount to be imposed
Fixing the allocation of the amount to be collected between the local government and the national government
Levy or distraint of taxpayers' property for tax delinquency
This refers to the privilege or immunity from a tax burden which others are subject to:
Exclusion
Reciprocity
Tax holiday
Which is not a legislative act?
Determination of the subject of the tax
Setting the amount of the tax
Assessment of the tax
Which of the following statements does not support the principle that tax is not subject to compensation or set-off?
Tax is not in the nature of contract but it grows out of a duty wherein taxpayers are bound to obey even without the personal consent of the taxpayer
Taxes arise from law, not from contracts
Both tax and debt partake the nature of an obligation
Statement 1: Taxation is the rule; exemption is the exception
Statement 2: Taxation may be used to implement the police power of the state.
I is true
II is true
I and II are true
Which of the following powers of the Commissioner of Internal Revenue cannot be delegated?
The examination of tax return and determination of tax due thereon
The power to compromise or abate any tax liability involving basic deficiency tax of P500,000 and minor criminal violatons
The power to reverse a ruling of the Bureau of Internal Revenue
When exemption from a tax imposition is silent or not clearly stated, which is true?
Taxation applies since exemptions are construed against the government
Exemption still applies since this is an instance of exemption by omission
Taxation applies since exemptions are construed against the taxpayer
What is the basis of taxation?
Reciprocal duties of support and protection
Constitutionality
Necessity
When the provisions of tax laws are silent as to the taxability of an item, which is true?
Taxation applies since taxation is the rule, exemption is the exception
Exemption applies since vague tax laws are construed against the government
Taxation applies due to the Lifeblood Doctrine
Which is not legally tenable in refusing to pay tax?
Absence of benefit from the government
Lack of jurisdiction of the taxing authority
Prescription of the tax authority's right to collect
What is the primary purpose of taxation?
To enforce contribution from its subjects for public purpose
To raise revenue
To achieve economic and social stability
That all taxable articles or properties of the same class shall be taxed at the same rate underscores
Equality in taxation
Equity of taxation
Uniformity in taxation
The Constitutional exemption of religious or charitable institutions refers only to
Real property tax
Income tax
Property tax and income tax
An educational institution operated by a religious organization was being required by a local government to pay real property tax. Is the assessment valid?
Yes, with respect to all properties held by such educational institution
Yes, with respect to properties not actually devoted to educational purposes
No, with respect to any properties held by such educational institution
Which is not a Constitutional limitation?
No tax law shall be passed without the concurrence of a majority of of all members of Congress
Non-appropriation for religious purpose
No law imparing government obligations on contracts shall be passed
Which of the following is not an inherent limitation of the power to tax?
Tax should be levied for public purpose
Exemption of government agencies and instrumentalities
Tax laws shall be uniform and equitable
The following are inherent limitations to the power of taxation except one. Choose the exception.
Territoriality of taxes
For public purpose
Non-appropriation for religious purpose
The following are limitations of taxation:
A. Territoriality of taxation
B. Exemption of the government
C. Taxation is for public purpose
D. Non-impairment of contracts
E. Non-delegation of the power to tax
Which of these are classified as both constitutional and inherent limitations?
A and B
C and E
D and E
The provisions in the Constitution regarding taxation are
Grants of the power to tax
Limitations to the power to tax
Limitations against double taxation
The agreement among nations to lessen tax burden of their respective subjects is called
Reciprocity
International comity
Tax minimization
The Constitutional exemption of non-stock, non-profit educational institutions refer to
Real property tax
Property tax and income tax
Business tax
Which of the following is violative of the principle of non-delegation?
Authorizing the President to fix the amount of impost on imported and exported commodities
Authorizing certain private corporation to collect taxes
Allowing the Secretary of Finance and the BIR to issue regulation or rulings which go beyond the scope of a tax law
Which of the following violates Constitutional provisions?
Payment of salaries to priests or religious ministers employed by the Armed Forces of the Philippines
Imposition of license for the sale of religious literature
Imposing tax on properties or religious institutions which are not directly and exclusively used for religious purposes
In order to phase-out a huge deficit, the President of the Philippines passed a law offering all taxpayers with previous tax delinquency to pay a minimum tax in exchange for relief from tax assessment in the period of delinquency.
Is this a valid exercise of taxation power?
Yes, because the President is merely exercising his presidential discretion
No, because the power of taxation is non-delegated
No, because only the Department of Finance can issue such ruling
Concerned with increasing unemployment rates in the country, the President of the Philippines encouraged the Philippine Senate to pass a law granting special tax privileges to foreign investors who will establish businesses in the country. The Senate accordingly drafted the bill and passed to Congress for approval.
Is this valid exercise of taxation power?
Yes. Any means beneficial to the public interest should be given optimum priority
Yes. The President's proposal will have to be finally approved and passed by the legislature. The rule on non-delegation of taxation would not be violated.
No. Tax bills shall originate from the House of Representatives
Ram is the only practicing lung transplant specialist in Baguio City. The City Government of Baguio passed a local ordinance subjecting the practice of lung transplant to 2% tax based on receipts. Ram objected claiming that other transplant specialists in other regions of the country are not subjected to tax.
Is Ram’s contention valid?
Yes, because Ram is the only one subject. Other practitioners who would later practice would not be covered by the ordinance.
No, because subjecting the new industry to taxation would hamper economic growth.
No, because the ordinance would cover all transplant specialist who would practice in Baguio City. The uniformity rule would not be violated.
With the country under incessant shortage of sugar, the Philippine Congress enacted a law providing tax exemptions and incentives to cane farmers without at the same time granting tax exemptions to rice farmers who produce the staple food of the Philippines.
Is the new law valid?
Yes, since there is a valid classification of the taxpayers who would be exempted from tax.
Yes, since sugar is more important than rice.
No, since the grant of exemption is construed in favor of taxpayers.
Congress passed a law subjecting government-owned and controlled corporations (GOCCs) to income tax.
Is the law valid?
Yes, because all government agencies and instrumentalities are subject to tax.
Yes, because GOCCs are not government agencies and are essentially commercial in nature.
No, because government agencies are exempt. This would pose a violation of the equality clause in the Constitution.
The Philippine Congress enacted a law requiring foreign banks to withhold taxes earned by Filipino residents in their country and to remit the same to the Philippine government.
Is this a valid exercise of taxation power?
Yes, the Philippines can enforce tax requirements to subjects of foreign sovereignty even if they are outside the country.
No, as this leads to encroachment of foreign sovereignty.
No, this is prohibited by the Constitution.
Which of the following normally pays real property tax?
Bantay Bata, a non-profit charitable institution
University of Pangasinan, a private proprietary educational institution
AM Holdings, a registered property development company
Tax exemption bills are approved by
Majority of all members of Congress
2/3 of all members of Congress
Solely by the President of the Republic
Which of the following is not a constitutional limitation of the power to tax?
Non-impairment of obligations or contracts
Non-appropriation for religious purposes
Non-delegation of police power
The Japanese government invested P100,000,000 in a Philippine local bank and earned P10,000,000 interest. Which is correct?
The income is exempt on grounds of territoriality.
The income is exempt due to international comity.
The income is subject to tax because the income is earned within the Philippines.
Select the correct statement.
The lifeblood theory underscores that taxation is the most superior power of the State.
The police power of the State is superior to the non-impairment clause of the Constitution.
The power of taxation is superior to the non-impairment clasue of the Constitution.
When a legislative body taxes persons and property, rights and privileges under the same taxable category at the same rate, this is referred to as compliance with the constitutional limitation of:
Equity
Uniformity
Equal protection clause
Which is not a legislative act?
Assessment of the tax
Setting the amunt of the tax
Determination of the subject of the tax
The inherent powers of the State are similar in the following respect, except:
They are inherent to the existence of the State.
They are exercisable without the need for an express Constitutional grant.
All are not exercised by private entities.
Which is mandatorily observed in implementing police power?
Public interest
Just compensation
Public use
Which is considered in the exercise of eminent domain?
A. Public use
B. Just compensation
C. Both A and B
The general power to enact laws to protect the well-being of the people is called
Police power
Eminent domain
Taxation
Which of the following entities will least likely exercise the power of eminent domain?
Electric cooperatives
Wtaer cooperatives
Transportation operators
In exercising taxation, the government need not consider
Inherent limitations
Just compensation
Due process of law
Licensing of business or profession is an exercise of
Police power
Taxation
Eminent domain
Select the correct statement.
Eminent domain refers to the power to take public property for private use after paying just compensation.
Taxes may be collected even in the absence of a law sinc eobligation arising from law is always presumed.
Taxation power shall be exercised by Congress even without an express Constitutional grant.
Which is principally limited by the requirement of due process?
Eminent domain
Police power
Taxation
Statement 1: Congress can exercise the power of taxation even without Constitutional delegation of the power to tax.
Statement 2: Only the legislature can exercise the power of taxation, eminent domain, and police power.
Which statement is correct?
Statement 1
Statement 2
Statements 1 and 2
Which of the following powers is inherent or co-existent with the creation of the government?
Police power
Eminent domain
Taxation
All of these
Which power of the State affects the least number of people?
Taxation
Police power
Eminent domain
Which of the following is not exercised by the government?
Taxation
Police power
Eminent domain
Exploitation
Select the incorrect statement.
Since there is compensation, eminent domain raises money for the government.
Once a government is established, taxation is exercisable.
The most important of the power is taxation.
The following statements reflect the differences among the inherent powers except:
The property taken under eminent domain and taxation are preserved but that of police power is destroyed.
Eminent domain and police power do not require Constitutional grant, but taxation, being a formidable power, requires constitutional grant.
Only eminent domain can be exercised by private entities.
Statement 1: The Taxation power can be used to destroy if the law is valid.
Statement 2: A tax law which destroys things, business, or enterprises for the purpose of raising revenue is an invalid tax law.
Which is incorrect?
Statement 1
Statement 2
Both statements
Neither statement
Select the incorrect statement.
The power to tax includes the power to exempt.
Exemption is construed against the taxpayer and in favor of the government.
Taxes should be collected only for public improvement.
Select the correct statement.
The provision on taxation in the Philippine Constitution are grants of the power to tax.
The power to tax includes the power to destroy.
When taxation is used as a tool for general and economic we;fare, this is called fiscal purpose.
Which of the following is not an inherent limitation of the power to tax?
Tax should be levied for public purpose.
Tax laws shall be uniform and equitable.
Government agencies and instrumentalities are exempt from tax.
Which of the powers of the State is the most superior? Which is regarded as the most important?
Taxation; Eminent domain
Police power; Taxation
Eminent domain; Police power
Which of the following is not a constitutional limitation of the power to tax?
Non-impairment of obligation or contracts
Due process and equal protection of the law
Non-delegation of the taxing power
