1. In light of the authority vested by the Tax Code to the Commissioner of Internal Revenue (CIR), the CIR recommended to the Secretary of the Department of Finance the creation of revenue district offices (RDOs) throughout the Philippines. The act of the CIR is in keeping with the principle of:

a. Administrative Feasibility

b. Fiscal Adequacy

c. Theoretical Justice

d. Uniformity

2. In view of the powers vested by the Tax Code to the Commissioner of Internal Revenue (CIR), the CIR accredited specific banks and authorized such as its agent in receiving payments of taxes. The act of CIR is in keeping with the principle of:

a. Administrative Feasibility

b. Fiscal Adequacy

c. Situs of Taxation

d. Theoretical Justice

3. In the Philippine taxing jurisdiction, the following statements are correct except:

a. Taxes are based on ones ability to pay

b. Taxes are levied by authority of the law

c. Taxes are obligations created by law

d. The power to tax is not unlimited

4. Jaime is a non-VAT seller of goods. Since he has no official receipts or invoices to support his expenses, he opted for the Optional Standard Deduction (OSD). When he filed his income tax return, he intentionally applied the rate of 20% on his gross sales. In this case, Jaime applied this type of scheme:

a. Capitalization

b. Shifting

c. Evasion

d. Avoidance

5. 1st statement The Legislative Department levies the taxes. 2nd statement The Executive Department, through the Department of Finances line agency, the Bureau of Internal Revenue makes the assessment and collection of internal revenue taxes.

a. Only the 1st statement is true

b. Only the 2nd statement is true

c. Both statements are true

d. Both statements are false

6. A new comprehensive tax reform was enacted by the Congress of the Philippines. To effectively implement the law, the Secretary of the Department of Finance will most likely issue:

a. Revenue Memorandum Circulars

b. Revenue Memorandum Orders

c. Revenue Memorandum Rulings

d. Revenue Regulations

7. Taxation is NOT:

a. A contribution for the support of a government required of persons, groups, or businesses within the domain of that government

b. A means by which governments finance their expenditure by imposing charges on citizens and corporate entities

c. An act by which the sovereign, through its lawmaking body, raises income to defray the necessary expenses

d. The process by which the sovereign through its law-making body, imposes burdens upon subjects or objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government

8. Generally, the following can exercise the power of taxation, except:

a. The local sanggunian

b. The members of the House of Representatives

c. The president

d. The senators

9. The following are the reserved powers of Congress in exercising taxation, except:

a. Determination of the deficiency taxes

b. Discretion on who to tax

c. Identify the method how to collect the tax

d. The purpose of the levy

10. The following principles are inter-related, except:

a. Ability to pay

b. Benefit received theory

c. Progressive tax system

d. Theoretical justice

11. Which is NOT a proper exercise of administrative feasibility?

a. Electronic Tax Payment System (eTPS)/Land Bank Remittance System (LBRS)

b. Payment of tax thru credit/debit/prepaid cards/G-Cash

c. Requirement to all taxpayers to file tax returns

d. Substituted Filing of Qualified Compensation Income Earners