6. what are the classi 23classification. (sunAs 16301 090.0 10 7/.Compare tax with revenue, license, toll, debt, special assessment, tax 6. penalty. 7 . 8. What is a tax system? What are its types. go,oogq 9. Enumerate the principles of a sound tax system. Explain each. 8. 9. 10. Enumerate the powers of the BIR. 11. Enumerate the non-delegated powers of the CIR. Exercise Drill No. 1 Identify the type of tax that is described by the following: 1. A consumption tax collected by non-VAT businesses 2. Tax on gratuitous transfer of property by a living axe donor 3. Tax that decreases in rates as the amount or value of the tax object increases biloano 4. Tax collected upon persons who are not the statutory taxpayers 5. Tax that is imposed based on the value of the tax object duiw nodstog 6. Tax for general purpose 7. Tax imposed by the national government Iw uns Ichorder 8. A tax on sin products or non-essential commodities 000.0 9. Imposed on the gratuitous transfer of property upon death 10. Tax on residents of a country 11. Tax that remains at flat rate regardless of the value of the tax object 12. Tax which is collected on a per unit basis 13. Tax is collected upon the statutory taxpayer 14. Tax imposed to regulate businesses or professions 15. Tax upon performance of an act or enjoyment of a privilege 52chapter 2 - Taxes, fon bows and fax Administration exer - S teigonly Which is true with tax amnesty? 9. a. It is unconditional . b. It covers both criminal and civil liability of the taxpayer. It applies for past and future non-compliance. d. All of these Which one of the following is the BIR not empowered to do? Assess national taxes b. C. Collect income, business and transfer taxes al lo isnojasimmo) on Assess and collect local taxes puntven ismoonisborn to banlist of d. Enforce forfeitures, penalties and fines go brig asliri brammost 1. Which principle demands that ax should be just, reasonable, and fair. a. Theoretical justice b. Fiscal adequacy c. Administrative feasibility d. Economic consistency bu er 818 edT er be delegated? 12. Which among the following powers of the Commissioner of Internal Revenue can The power to conduct inventory surveillance b. The power to recommend promulgateon of revenue regulations. c. The power to issue rulings of first impression. nitsup d. The power to reverse a ruling, amend or modify an existing ruling. 13. The Commissioner of Internal Revenue is not empowered to Make or amend a tax return for and in behalf of the taxpayer. b. Obtain information and to summon, examine, and take testimony of persons to effect tax collections. C. Compromise tax liabilities of taxpayers. X. d. Grant amnesty for erring taxpayers. 14. Which of the following may tax exemption come from? newfilo emisin! SE a Contract c. Law tified? b. Constitution d. All of these 15. Exemption based upon which of the following is repealable? a Contract c. Law b. Constitution d. None of these 16. Select the incorrect statement regarding tax amnesty and condonation, In tax amnesty, violators are required to pay a portion of the tax assessed. . When the remaining unpaid portion of the tax is condoned, the taxpayer cannot ask for refund for the balance already paid. Tax amnesty operates as a general pardon and is rarely available. Tax condonation operates on the whole balance of the assessed tax; hence, the taxpayer can ask for refund for the paid portion of the tax. 61Chapter 3 - Int Chapter 2 - Taxes, Tax Laws and Tax Administration CHAPTER 17. Which of the following is a power of the Commissioner of Internal Revenue? INTRODU a. Assessment and collection of taxes b. Enforcement of all forfeitures, penalties, and fines ozilqqsil Chapter Ove C. Interpretation of the provisions of the NIRC d. Giving effect to and administering the supervisory and police pow conferred by the NIRC and other laws In al galwollof sirlo sna rain This chapter types of taxp 18. The Commissioner of Internal Revenue can delegate the power to log a. refund or credit internal revenue tax.> 6 28982A After this knowledge o b. recommend rules and regulations to the Secretary of Finance. In C . assign and re-assign revenue officer to establishments of excisable articles. *) 1.The con d. compromise or abate tax liability. 1A 2. The typ limbA 3. The gen 19. The BIR is under the supervision of 1 b YouupODE Is58it d 4. The inc a. the Bureau of Customs. c. the Department of Finance. Thoms dow SI b. the President. d. Congress. boxsgolabad THE CONC 20. As to tax payments measures, which of the following threshold for the Why is inc qualification as large taxpayer is incorrect? a. Annual income tax payments of PIM Income is b. Annual value added tax payments of P1M excellent o c. Quarterly percentage tax payments of P200,000 d. Annual documentary stamp tax of P1M What is in 2010 21. Who is not a large taxpayer? The tax co a. Mining companies A taxable c. Banks with P120M authorized capital b. Listed companies d. None of these gross inco 22. In terms of financial measures, which of the following threshold for qualification Gross in as large taxpayers is incorrect? however, a. Gross receipts exceeding P1B deduction b. Net worth exceeding P300M is broad C. Gross purchases exceeding P800M d. Gross sales exceeding P1.5B Gross in whateve employ and oth transac ELEME 1. It h 2. 62 3. ItChapter 2 - Taxes, Tax Laws and Tax Administration zwel xT axal . S walger Exercise Drill No. 2 Said to bbalatoward a don al roidw .2 Identify which item is described by the following: diaintoa banmoine ne al il It refers to all income collections of the government. It is an imposition for the support of the government. It is imposed upon land adjacent to public improvements. examples It is imposed on imported and exported commodities. It is a charge imposed prior to the commencement of ssment,the business or exercise of a profession. It is a post-activity rather than a pre-activity imposition. of It is subject to compensation or set-off. 18. It is a charge for the use of others' property. It is an imposition intended to discourage an act. 0. It arises from contracts rather than from law. Exercise Drill No. 3 Indicate the criteria for the selection of large taxpayer for each of the following: As to payment Criteria Value Added Tax jani of 26 X6T Le Excise Tax To Justid d 3. Income Tax 4 . Withholding Tax Jon al oidW .OI 5. Percentage Tax drunoa isnot Togo beatoina 6. Documentary Stamp Tax d As to conditions and operations baived 1. Gross receipts or sales 2. Net worth to Jord 29x6T .EL 3. Gross purchases Multiple Choice - Theory: Part 1 d 1 . Which is not a source of tax law? oh josido of 26 anoddsoilizesbo xeT .St a. CHED regulations c. Judicial decisions b. BIR Rulings d. Constitution x51 viago19 2. When tax is collected upon someone who is effectively reimbursed by another, the tax is regarded as muz a. direct. c. personal. xed Inmole along .d b. indirect. d. illegal. Jon ob esxat , isstem peldue of 2A PI 3. All are ad valorem taxes, except one. Select the exception. Poll tax c. Real property tax. b. Estate tax d. Capital gains tax on real property capital asset 4. Taxation power can be used to destroy iq s ni jasmogagns ofit to a. as a revenue measure. c. as an implement of police power. d b. even if the tax is invalid. d. when the State is in dire need of funds. 53Chapter 2 - Taxes, Tax Laws and Tax Administration wel xol 297 . Chapter 2 - Tax 5. Which is not a characteristic of tax? a. It is an enforced contribution. offol sid vil badhrob el moout fatty It is generally payable in money. If to enoroslion smoon lin of aunion 16. Which is a a. Real p b. c. It is subject to assignment. d. It is levied by the law-making body of the State having jurisdiction. b. Comm ohiogus bar beriogmi no bozogmiz C. National or local taxona 17. Which of 6. Tax as to source is classified as d. Specific or ad valorem taxesmizu a. Unlim a. Fiscal or regulatory b. Imp b. Direct or indirect tax 10 nobsanogmos of 125iduz al 18. Which is Which of the following is a local tax? 7. c. Documentary stamp tax (1 101 oglu a a. Taxe a. Value added tax d. Other percentage taxes nohizogmina b. Toll b. Real property tax Dad Tax as to purpose is classified as isnicTaleTines most anel d. Spe 8. c. National or local tax a. Fiscal or regulatory 19. Tax as b. Direct or indirect tax d. Specific or ad valorem tax shellTo stig a. Fi b. Di VVI 9. Tax as to incidence is classified as Fiscal or regulatory c. National or local tax XET bobbA but b. Direct or indirect tax d. Specific or ad valorem tax XIs'T said 20. A. Ta xST.smog B. 10. Which is not a nature of tax? ExsT gniblodra C. D. a. Enforced proportional contribution E . b. Enforced within the territorial jurisdiction of the taxing authority F . C. Levied by the lawmaking body aqobsisqo bas anoilibans d. Generally payable in kind Whi a. 11. Taxes that cannot be shifted by the statutory taxpayer are referred to as h a. direct taxes. c. business taxes. b. indirect taxes. d. personal taxes. 21. Tax a. 12. Tax classifications as to object do not include to o s month b. a. Poll tax c. Regulatory tax b. Property tax 22. To d. Excise tax pa 13. Which is a local tax? a a. Donor's tax W b. Professional tax c. Documentary stamp tax d. Excise tax 14. As to subject matter, taxes do not include . Property tax b. Regulatory tax c. Poll tax d. Excise tax 23 15. A tax that is imposed upon the performance of an act, the enjoyment of a p" or the engagement in a profession is known as a. income tax. b. license. c. excise tax. d. transfer tax. 54Chapter 2 - Taxes, Tax Laws and Tax Administration 16. Which is a national tax? sdiction. a. Real property tax b. Community tax c. Income tax Zer boobs day d. Professional tax do s el n 17. Which of the following distinguishes license from tax?out a. Unlimited in imposition c. Does not renders business illegal b. Imposed for revenue d. Pre-activity in application s due alt 18. Which is correct? coquitel tode gain a. Taxes may be subject to compensation. b. Toll, being a demand of ownership, is exercised only by private entities. C. Dacion en pago and cession in payment are applicable to taxation. d. Special assessment applies only when public improvement is made, Mid san 19. Tax as to determination of amount is classified as 060.084 a. Fiscal or regulatory c. National or local tax nomyng of b. Direct or indirect tax d. Specific or ad valorem tax oslounit bbA suley s'T salaxa 20. A. Tax must not violate Constitutional and inherent limitation, etal ail Tamoonl B. Tax must be uniform and equitable. C. Tax must be for public purpose. D. Tax must be levied by the lawmaking body. E. Tax must be proportionate in character. Jammavon adT ority F. Tax is generally payable in money. Jibnos of Which of the above is/ are not an essential characteristic of a valid tax? 91 82010 a. All of the above c. None, except F d d. None of the above d to as . All except F 21. Tax as to rates excludes a. Specific tax c. Mixed tax b. Progressive tax d. Proportional tax 22. To limit the production of an environmentally harmful commodity, Congress passed a law subjecting the sales of an environmentally unfriendly commodity to a P10/kilo tax but a 5% tax is imposed on sales exceeding P100,000. Which is incorrect? The tax is a combination of an ad valorem tax and specific tax. a. b. This is an example of a regulatory tax. C. This is a national tax. d. This is a local tax. 23. Which is not an excise tax? C. Estate tax a. Income tax d. Occupation tax it of a prime b. Community tax 55Chapter 2 - Taxes, Tax Laws and Tax Administration awaxel ever 24. Which is an indirect tax? Chapter 2 - Taxes, T a. Value added tax c. Income tax b. Donor's tax d. Real property tax 32. Tax rulings are Secretary o a. 25. Which is not an ad valorem tax? b. Supreme C olf zondalugabalb giveoffof ing lot a. Real property tax C. Income tax , notlogmal ni balimifall 33. Which of the fo Excise tax on cigar d. Donor's tax Tax laws younever got hoangmt a. b. Revenue R 26. A tax that is imposed based on per unit or per head basis is known as a. Proportional tax c. Ad valorem tax, oldue ed yomi 2axel 34. Which is not a Judicial d b. Specific tax vino bealar d. Progressive tax busmob s galed doT a. b. Revenue 27. Mr. dela Cruz has a tax obligation to the government amounting to P80,000 he is leaving the country, he entered into a contract with Mr. Garcia wherein 35. Which is not It must b shall pay the P80,000 tax in his behalf. On due date, Mr. Garcia failed to pay a. b. It must tax. The BIR sent a letter of demand to Mr. dela Cruz which he refused to pay. C. It must b Which of the following statements is correct? d. It must a. The government cannot enforce collection charges against Mr. dela Cruz sit 36. Tax as to pu he has validly transferred his obligations to Mr. Garcia under the contract. a. Revenu b. The government can no longer run after Mr. dela Cruz because he is alrea Sumpt outside the Philippine territory. b. C. d. The government should wait until Mr. B becomes solvent again. 37. When the The government should force Mr. A to pay because taxes are non-assignable taxpayer, 28. Philippine tax laws are, by nature, a. Perso a. political. Direct b. civil. c. political and civil. d. penal and civil. byods off to LIA 38. Which of 29. Motor vehicles tax is an example of a. Tax la a. Property tax c. Income tax b. Tax b. Privilege tax d. Indirect tax C. Tax 1 d. Tax 30. Which of the following statements is correct? 03 20 a. The Marshall Doctrine is not used in practice since it is unconstitutional. 39. Tax as to b. An ex post facto tax law violates the constitution. a. Pers c. A tax bill personally drafted by the president shall become a law after b . Pro approval by congress, d. It is in the public interest that errors of public officials should bind the 40. Which i government to limit government abuse. Dut 31. Who issues revenue regulations? b. Im a. Department of Finance c. Commissioner of Internal Revenue b. 41. A tax th Congress d. Commissioner of Customs a. Di b. In 56 42. Staten StaterChapter 2 - Taxes, Tax Laws and Tax Administration. 32. Tax rulings are issued by the a. Secretary of Finance b. Supreme Court c. Court of Tax Appeals d. Commissioner of Internal Revenue nown as 33. Which of the following is limited in application? amsiesa dioff a. Tax laws c. Tax treaties b. Revenue Regulations d. BIR Ruling Saet banibat an au blow 2 34. Which is not a source of tax law? a. Judicial decisions ing to P80,0 c. Opinions of tax experts xirational b. Revenue regulations Garcia where d. Tax treaties and ordinancesmoon Al cia failed to 35. Which is not an element of tax? But insoley ba refused to pa a. It must be for public purpose. b. It must not violate Constitutional or inherent limitation.A . C. It must be progressive by nature. Mr. dela Cruz d. It must be uniform and equitable. r the contra 36. Tax as to purpose does not include cause he is Revenue c. Regulatory Shel :roadT - onion) siquituts a. b. Sumptuary d. Poll baca sisluger ol babrisdni al didy ain. 37. When the impact and incidence of taxation are merged into the statutory non-assigna taxpayer, the tax is known as a. Personal tax c. Indirect tax b. Direct tax d. National tax gelsmoon) 38. Which of the following levy is fiscal or revenue by nature? a. Tax law geared to phase out a deficit balance of the government. b. Tax law intended to prohibit gambling in the Philippines. C. Tax law intended to protect local industries. d. Tax law supporting the development of a particular industry. 39. Tax as to object includes a. Personal tax c. Excise tax utional b. Property tax d. All of these a law 40. Which is not an indirect tax? Duties C. Excise tax a. b. Impostor d. Personal tax ald bind 41. A tax that cannot be avoided is c. Specific tax a. Direct tax d. Personal tax Indirect tax 42. Statement 1: Taxes are voluntary contributions to the government. Statement 2: Taxes are mandatory contributions to the government. 57Chapter 2 - Taxes, Tax Laws and Tax Administration Chapter Which is correct? a. Only statement 1 is correct. 7moja 6. Wha b. Only statement 2 is correct. a. b . C. Both statements are correct. bestnil al galwolfof ardito C. d. Neither statement is correct. d. gnoliclugof ouroral 43. Which is an indirect tax? 7. Wh Other percentage tax c. Donor's tax a. b. Income tax d. Estate tax anoiztoob labibul b. 1:194x8 X6 C . 44. Income tax is not a/an brin aalso get .hu d. a. Ad valorem tax c. Revenue tax b. Direct tax d. Property tax 8. TH mug bildug to1 5d Jeumat a. 45. A transfer tax is not a/andlotsnolfi derma explory Jondrum!! b . a. Regressive tax c. National taxdaum b. Ad valorem tax d. Excise taxanointed laura s 9. Multiple Choice - Theory: Part 2 1. Which is intended to regulate conduct? a. Penalty c. Police power 101 / b. License d. Toll 2. Which is not an excise tax? 10. a. Income tax c. Personal tax b. Business tax d. Transfer tax hel Yval griwallof ord To noidw 3. Which of the following do not relate to tax? o scarfq of being wal XET a. Does not render business illegal when not paid obmini want b. Arises from law rather than from contracts q of lybegin wal sT 11 C. Intended to cover cost of regulations sob sil garronup wal wal d. Intended for public purpose improvement is 4. A levy from a property which derives some special benefit from pub 1 a. Special assessment c. Taxation b. Eminent domain d. Toll 5. A. Government revenue may come from tax, license, toll and penalties. B. Penalty may arise either from law or contracts. Which is false? ove and funn a. A only C. A and B b. Bonly d. Neither A nor B 58Chapter 2 - Taxes, Tax Laws and Tax Administration isiqsr 6. What distinguishes tax from license? oni font zsob wham hajdu of 28 ANT .AL a. Tax is a regulatory measure. b. Tax is a demand of ownership.gil .b C. Tax arises from contract. d. Tax is a post-activity imposition. noud ilgqu its ton al dainty 7. Which of the following distinguishes license from tax? borde axal a. It is imposed under taxation power.urged bluode nobezel b. It is a charge for other's property. on againcons bigofa notexel C. d. Non-compliance to it will render businesses illegal. gear to groll It is generally payable in money. hisnoteaimmod anfT 8. The amount imposed is based on the value of the property ( jongstill a. Eminent domain c. Toll License .d b. unoval sirglumorg d. Special assessment of ne dianimal 9. Toll exhibits all of the following characteristics, except one. Which is the exception? soyoil to isnoleaimmod erdi to 19wor s ion gi noidw a. Demand of ownership evsqxe1 to aborisq xblogrisdo oTs b. Compensation for the use of another's propertymoni boulenoT C. Maybe imposed by private individuals Levied for the support of the government 10. Which of the following is incorrect? a. The collected tax is referred to as revenue. b. Tax is the sole source of government revenue. c. License is imposed before commencement of a business or profession. d. Debt can be subject to compensation or set-off. ibidw 11. What distinguishes debt from tax? a. Arises from contract c. Non-payment will lead to imprisonment b. Never draws interest d. Generally payable in money ofA . 12. Debt as compared to tax public a. It is a demand of ownership. b. It is not assignable. C. It will not cause imprisonment when not paid. d. It is generally payable in money. latin Riffto nabslope 13. Select the incorrect statement. a. Tax may be unlimited in amount. b. Non-payment of license renders the business illegal. C. Special assessment is not a liability of the person owning the property. d. Special assessment can be imposed on building and other real right attaching or pertaining to land. 59Chapter 2 - Taxes, Tax Laws and Tax Administration zwall ST agyET Chapter 2 - Tax 14. Tax as to subject matter does not include soil mol xsi esdaiuantrain a. Real property tax c. Excise tax puresam violalugu netyet Which is tr d. Regulatory tax wolo brismob net zay 9. It is un b. Personal tax JobTinoo moil 292his IT a. It cove b. Multiple Choice - Theory: Part 3 nolfizogmi vivitos-120g nalxen It app C. 1. Which is not an application of a principle of a sound tax system? d. All of a. Taxes should adjust based on government needs. Wool andlong b. Taxation should be progressive. wornollsxsi Tobru bozoqmizin 10. Which on Asse c. Taxation should encourage convenient compliance. 95 213 a. Coll d. None of these b. venom al sidaysq visionsg alf C . Ass 2. The Commissioner of Internal Revenue is not authorized to d. Enf a. interpret the provisions of the National Internal Revenue Code s so b. promulgate Revenue Regulations. HOT hima 11. Which p a. The c. terminate an accounting period. 39qeb b. Fis art al d. prescribe presumptive gross receipts. wollot ofis 10 His etidisixs Hot 3. Which is not a power of the Commissioner of Internal Revenue? noliqso 12. Which a. To change tax periods of taxpayers be dele awo lo basmall b. To refund internal revenue taxes s lo sau aril 10) nonsensgmod a. TH C. To prescribe assessed value of real properties bacogrisdysMA b. T d. To inquire into bank deposits only under certain cases C. 4. d. a. The principles of a sound tax system exclude on al gniwollot art to whoity or Economic efficiency b. Fiscal adequacy c. Theoretical justice iselinonT 13. The d. Administrative feasibility a. b. 5. Which of the following best describes the effect of tax condonation? a. It only covers the unpaid balance of a tax liability. b. It is conditional on the taxpayer paying some portion of the unpaid tax. C. c. It generally applies to all taxpayers. d. d. All of these 14. Wh 6. By which principle of a sound tax system is the elasticity in tax rates is justified? a. Theoretical justice a. b. Fiscal adequacy C. Administrative feasibility b . d. All of these 15. Ex a. 7. Violation of this principle will make a tax law invalid Fiscal adequacy c. Administrative feasibility a. b. Theoretical justice d. Economic consistency b a. 8. Which of the following is not an application of the lifeblood doctrine? 16. S The government has the right to select the object of taxation. guidos b. Taxation is the rule; exemption is the exception. C. Claim for exemption is strictly construed against the taxpayer. d. None of these 60