ifting. Backw Chapter 1 - Introduction to Taxation s where buy HousesT of notbouboual ; Finds with numer CHAPTER 1: SELF-TEST EXERCISES the distribut Discussion Questions fting. 1. Define taxation. 2. Distinguish the theory and the basis of taxation. sed on busing 3. 4. What are the theories of government cost allocation? Explain each. Differentiate vertical and horizontal equity. 5. Discuss the Lifeblood Doctrine. lue of an ass 6. Enumerate and explain the inherent powers of the State. angel 7. Distinguish the three powers of the State and enumerate their similarities. 8. Describe the scope of the power of taxation. ingly decrea 9. Distinguish substantive due process from procedural due process. is a form 10. Distinguish the concept of equality from the concept of uniformity in taxation. 11. Distinguish non-payment of debt versus non-payment of tax in terms of consequences. s or losses 12. What institutions are exempt from real property tax in the Constitution? 13. Which of the constitutional limitations are also classified as inherent limitations? mposition 14. Explain the stages of the exercise of taxation power. 15. Explain the concept of situs. arib ed bloode aren't 16. Distinguish the Marshall Doctrine from the Holme's Doctrine. 29%EJ 17. Discuss the doctrine of strict construction of tax laws. mob insalma 18. Explain double taxation, its elements, and its types. so era To gnisd- taxpayers t be part of 19. What are the categories of escapes from taxation? Enumerate and explain each means of escape under each category.gar iver by the 20. Distinguish tax amnesty from tax condonation. to bon Lal moderat iswog nobbyal to setrisks ofT Exercise Drills In the space provided for, indicate whether the statement relates to a Constitutional ayer unde limitation (C) or inherent limitation (1). If it is not a limitation to the taxing power, indicate (N). sif asswaed jogque Jo wub refund, ta 1. Non-assignment of taxes in favor o 2. Territoriality of taxation 3. Taxes must be for public use .amsique 4. Exemption of the property of religious institutions from income tax overs only 5. Exemption of the revenues and assets of non-profit, non- stock educational institutions 6. Non-delegation of the taxing power pnation 7 . Non-appropriation for religious purpose o notbollo ready The requirement of absolute majority in the passage of a 8. tax exemption law. Non-imprisonment for non-payment of tax or debt ortion of 9. S 21Chapter 1 - Introduction to Taxation notleast of nonbubouni - Is this valid exercise of taxation power? co dawhy'shty of aroll a. Yes. It is the discretion of the President to adopt any measures hed Chapter 1 - Intr necessary to alleviate poor conditions in the country. Is this a val priority. b. Yes. Any means beneficial to the public interest should be given opf a. Yes, b Philip C. Yes. The President's proposal will have to be finally approved and pass b. Yes, the legislature. The rule on non-delegation of taxation would not be viol; sover eno d. No. Tax bills shall originate from the House of Representatives. C. No, as d. No, t 15. Ram is the only practicing lung transplant specialist in Baguio City. The 19. Which of Government of Baguio passed a local ordinance subjecting the practice of a. Bant transplant to 2% tax based on receipts. Ram objected claiming that b. Jesu transplant specialists in other regions of the country are not subjected to tax. C. Uni d. AM Is Ram's contention valid? sloiv al gotw offer arts to doidw a. Yes, because the rule of taxation should be uniform and equitably enforced 20. Tax exe has by b. 9 Yes, because Ram is the only one subject. Other practitioners who would a. Ma practice would not be covered by the ordinance. b. So 2/ C. No, because the ordinance would cover all transplant specialist who w C. M zanilut to practice in Baguio City. The uniformity rule would not be violated. d. d. No, because subjecting the new industry to taxation would hamper econo 21. Which growth. a. b. 16. With the country under incessant shortage of sugar, the Philippine Cong C. enacted a law providing tax exemptions and incentives to cane farmers without the same time granting tax exemptions to rice farmers who produce the sta food of the Philippines. Is the new law valid? 22. The a. Yes, since there is a valid classification of the taxpayers who would earn tosalt exempted from tax. a. b. Yes, since sugar is more important than rice. b. C. No, since the grant of exemption is construed in favor of taxpayers. d. No, because there is no uniformity in the grant of tax exemption. hisflo 17. Congress passed a law subjecting government-owned and controlled corporation (GOCCs) to income tax. Is the law valid? Multip b. a. Yes, because all government agencies and instrumentalities are subject to tax Yes, because GOCCs are not government agencies and are essential 1. Se commercial in nature. a. C. No, because government agencies are exempt. This would pose a violation the equality clause in the constitution. b . d. No, because GOCCs are constitutionally exempted from paying taxes. 18. The Philippine Congress enacted a law requiring foreign banks to withhold taxe earned by Filipino residents in their country and to remit the same to thi Philippine government. 30ures he deer Chapter 1 - Introduction to Taxation given optim johnu Is this a valid exercise of taxation power? Philippines. hiw s allYes, because foreign banks are within the territorial jurisdiction of the d and passed b. ot be violate Yes, the Philippines can enforce tax requirements to subjects of foreign C. sovereignty even if they are outside the country. No, as this leads to encroachment of foreign sovereignty. d. No, this is prohibited by the Constitution. City. The practice of lu 19. Which of the following normally pays real property tax? ing that oth a. Bantay Bata, a non-profit charitable institution ted to tax. b. Jesus Crusade movement, a religious institution noidW c. University of Pangasinan, a private proprietary educational institution Ind. AM Property Holdings, a registered property development company bly enforced. who would late 20. Tax exemption bills are approved by I'd vilemig bartons singood a. Majority of all members of Congress b. Solely by the President of the Republic list who wou C. 2/3 of all members of Congress ted. d. Majority of the representatives constituting a quorum mper econom 21. Which of the following is not a constitutional limitation of the power to tax? Didw a. Non-impairment of obligation or contracts ppine Congres b. Due process and equal protection of the law mers withouta C. Non-appropriation for religious purposes of Towon jones d. Non-delegation of police power duce the staph 22. The Japanese government invested P100,000,000 in a Philippine local bank and who would be earned P10,000,000 interest. Which is correct? a . The income is exempt on grounds of territoriality. b . The income is exempt due to international comity. C. The income is subject to tax on the basis of sovereignty. ers. . The income is subject to tax because the income is earned within the Philippines. btanos lon bsan Ingmmoving ads ,nounkat anoffelimil usdal ed corporations goodkansqmostout Multiple Choice - Theory: Part 39) 6 subject to tax 1. Select the correct statement. The benefit received theory explains that the government is obliged to serve are essentially a. the people since it is benefiting from the tax collection from its subjects. The lifeblood theory underscores that taxation is the most superior power of se a violation of b. the State. The police power of the State is superior to the non-impairment clause of the taxes. C. Constitution, ofroque Rom s d. The power of taxation is superior to the non-impairment clause of the withhold taxes same to the Constitution. 31notsxeT of noibubount - [ youth Chapter 1 - Introduction to Taxation Chapter 1 - Introd 2. When a legislative body taxes persons and property, rights and privileges uns to the same taxable category at the same rate, this is referred to as compliant aoniqqility C. Taxation the constitutional limitation of: par x51 5 c. Due process ailing ord near Constitut d. Taxes ma nglavo a. Equity Patmos siltobed. Equal protection clause 19voz from law b. Uniformity 3. Which is not a legislative act? 12. Which is prin a. Assessment of the tax C. Determination of the subject of they a. Eminent b. Setting the amount of the tax 1 ed. Determining the purpose of the b. Police p 4. The inherent powers of the State are similar in the following respect, except 13. Statement a. They are inherent to the existence of the State. Constitution b. They are exercisable without the need for an express Constitutional gram Statement C. All are not exercised by private entities. domain, an d. They are exercised primarily by the legislature. is allid moliqmexs der Which stat 5. Which is mandatorily observed in implementing police power a. Statem c. Public use 219dmom Its to ENS b. a. Public interest Staten b. Just compensation d. All of these its to yallofshot 14. Which of 6. Which is considered in the exercise of eminent domain? oflo air to daw governme Public use c. Both a and b a. Polic a. h Emin b. Just compensation wal grid. Neither a nor b 2295074 sud 15. Which po 7. The general power to enact laws to protect the well-being of the people is call a. Polic a. Police power c. Taxation b. Emi b. Eminent domain 060.000:009d. All of these misvog sesasql SAT 16. Which o 8. Which of the following entities will least likely exercise the power of emi a. Tax domain? b. Pol a. Electric cooperatives b. Water cooperatives be to eiend c. Telecommunication business 17. Select d. Transportation operators a. Sin 9. In exercising taxation, the government need not consider zoniaqilids go a. Inherent limitations c. Due process of law b. On b. Just compensation d. Constitutional limitations siqui C. Th d. Po 10. Licensing of business or profession is an exercise of Police power b. Taxation c. Eminent domain sad andT s allgo yasd) (to d. All of these ponieslgogg erdt 18. The f excep 11. Select the correct statement. a. a. Eminent domain refers to the power to take public property for private after paying just compensation. b. limitation. b. Police power being the most superior power of the State is not subject to 32ivileges un Chapter 1 - Introduction to Taxation mpliance bidsy C. Taxation power shall be exercised by Congress even without an express Constitutional grant.b Juan d. Taxes may be collected even in the absence of a law since obligation arising from law is always presumed. of the tax ad nba hovion nous the tax and 12. Which is principally limited by the requirement of due process? ? a. Eminent domain b. Police power c. Taxation except: d. All of these 13. Statement 1: Congress can exercise the power of taxation even without nal grant. Constitutional delegation of the power to tax. KS XET .O arts to Statement 2: Only the legislature can exercise the power of taxation, eminent domain, and police power. Which statement is correct? Tovroger ball a. Statement 1 b. Statement 2 no59 bre linenog 10 C. Statements 1 and 2 d. Neither statement 1 nor 2 14. Which of the following powers is inherent or co-existent with the creation of the government? a. Police power b. meninC. Taxation g bigode Eminent domain mortal d. All of these ple is called 15. Which power of the State affects the least number of people? a. Police power C. Taxation b. Eminent domain d. Taxation and police power 16. Which of the following is not exercised by the government? ongmaxa er of emine a. Taxation c. Eminent domain b. Police power Mommyvog oft d. Exploitation mavoucparaildug to 17. Select the incorrect statement. a. Since there is compensation, eminent domain raises money for the government. Once a government is established, taxation is exercisable. b. C. The most important of the power is taxation. Police power is more superior than the non-impairment clause of the d. Constitution, 18. The following statements reflect the differences among the inherent powers except: a. 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 private us b. taxation, being a formidable power, requires constitutional grant. BE 33 ubject to anChapter 1 - Introduction to Taxation noitexsT of notjubount . jo verinxs C. Only eminent domain can be exercised by private entities.ourx d. Taxation, police power, and eminent domain are ways in whi Chapter 2 - Taxes, Tax L giant nongovernment interferes with private right and property. fri edxat is al wel mont CHAPTER 2 19. Statement 1: The Taxation power can be used to destroy if the law is valid TAXES, TAX LA Statement 2: A tax law which destroys things, business, or enterprises purpose of raising revenue is an invalid tax law. niemob Jusnima Chapter Overview a Which is incorrect? -powzog. callat A a. Statement 1 b. c. Both statements This Chapter discuss Statement 2 d. Neither statement and the administrati 20. Select the correct statement. After this chapter, lamal end via0 knowledge on the f a. The provisions on taxation in the Philippine Constitution are grants of 1. The type of taxa power to tax. 2. Distinction amo b. The power to tax includes the power to destroy. fromsiste rhinw 3 . Tax, its element C. When taxation is used as a tool for general and economic welfare, this is 4 . Distinction of fiscal purpose. Tax system an on in no d. The sumptuary purpose of taxation is to raise funds for the government. 6. The principles 7. How tax is ad 21. Which of the following is not an inherent limitation of the power to tax? a 8. The powers a . Tax should be levied for public purpose. oq 95109 in Internal Reve b . Taxation is limited to its territorial jurisdiction. Themob mortima .d 9. The criteria f C . Tax laws shall be uniform and equitable. d. Government agencies and instrumentalities are exempt from tax. vog roidW .at TAXATION LAW 22. Select the incorrect statement. mismob frianimal Taxation law ref a. The power to tax includes the power to exempt. of the State. b. wollol erto doiw Exemption is construed against the taxpayer and in favor of the government Types of taxati C. Tax statutes are construed against the government in case of doubt. d. Taxes should be collected only for public improvement. 1. Tax laws - taxes. 23. Which of the following is not a constitutional limitation of the power to tax? Examples: a Non-impairment of obligation or contracts a. The Na b. Due process and equal protection of the law mintavon s sono Insmmevog sob. The Ta C . .d Non-appropriation for religious purposes trichogini from ad'T C. The Lo d. Non-delegation of the taxing power from at nowoq salla d. The R 24. Which of the powers of the State is the most superior? Which is regarded as the he viu 2. Tax exem most important? taxation. a. Taxation; Eminent domain Examples b. Police power; Taxation mob Inshima nehru aster whogong sift :3q93xs a. The C. d. Eminent domain; Police power beyondzhai towog saflog to said b. The All the powers are equally superior and important o inanimal C. Bara d iswor sidshimo) canis mobsted d. Coop ES 34Chapter 1 - Introduction to Taxation 10. Taxpayers under the same circumstance should be 11 treated equal both in terms of privileges and obligations. Chapter 1 - Introd Exemption from property taxes of religious, educational, and charitable entities. 8. The lifeblood 12. Government income and properties are not objects of contracts wh taxation. 9. 2/3 of all me 13. 10. The govern Each local government shall have the power to create its own sources of revenue. Multiple Choic 14. Imprescriptibility in taxation 1. That court 15. is justified Non-impairment of obligation and contracts. a. the lif 16. Guarantee of proportional system of taxation. b. impre 17. International courtesy 18. Non-impairment of the jurisdiction of the Supreme Court 2. The point a. Imp to review tax cases. b. Situs 19 The government is not subject to estoppel. 20. Imprisonment for non-payment of poll tax. 3. Which of sla pale 916 arron a. Inhe True or False 1 lowor noise! lo seipraxe eidl to b. Ess 1. There should be direct receipt of benefit before one could be compelled to C. Sub d. Ge taxes. 2. Eminent domain involves confiscateon of prohibited commodities to proted 4. Which well-being of the people. bun a. 3. Horizontal equity requires consideration of the circumstance of the taxpayer b. 4. Taxes are the lifeblood of the government. C. 5. Taxation is a mode of apportionment of government costs to the people. 6. The exercise of taxation power requires Constitutional grant. d. 7 . Taxation is inherent in sovereignty. 8. Police power is the most superior power of the government. Its exercise net A. T to be sanctioned by the Constitution. B. T 9 . All inherent powers presuppose an equivalent form of compensation. 10. The reciprocal duty of support between the government and the peo underscores the basis of taxation. a. east do inomnal b. True or False 2 1. The scope of taxation is regarded as comprehensive, plenary, unlimited, a 6. Int supreme. a. 2. The Constitutional exemption of religious, charitable, and non-profit cemeterit churches, and mosques refers to income tax and real property tax. 3. Taxpayers under the same circumstance should be taxed differently. 4. Taxation is subject to inherent and Constitutional limitations. 5. International comity connotes courtesy between nations. 7. 6. Collection of taxes in the absence of a law is violative of the Constitution requirement for due process. 7. No one shall be imprisoned for non-payment of tax.mozigminon 22Chapter 1 - Introduction to Taxation Heendeld 8. The lifeblood doctrine requires the government to override its obligations and contracts when necessary. 9. 2/3 of all members of Congress is required to pass a tax exemption law. 10. The government should tax itself. Multiple Choice - Theory: Part 1 1. That courts cannot issue injunction against the government's effort to collect taxes is justified by a. the lifeblood doctrine. b. c. the ability to pay theory. imprescriptibility of taxes. d. the doctrine of estoppel. 2. The point at which tax is levied is also called a. Impact of taxation c. Incidence of taxation b. Situs of taxation d. Assessment 3. Which of the following inappropriately describes the nature of taxation? a. Inherent in sovereignty b. Essentially a legislative function elled to pa C. Subject to inherent and constitutional limitation d. Generally for public purpose protect th ed dositi veg of valide unft s a 4. Which is correct? nob vorti be xpayer. a. Tax condonation is a general pardon granted by the government. b. The BIR has five deputy commissioners. C. The government can still collect tax in disregard of a constitutional limitation le. because taxes are the lifeblood of the government. d. The President of the Philippines can change tariff or imposts without necessity of calling Congress to pass a law for that purpose. cise need 5. A. The power to tax includes the power to exempt. B. The power to license includes the power to tax. e people Which is true? C. A and B Yocoming sildage a. A only b. Bonly d. Neither A nor B 6. International double taxation can be mitigated by any of the following except ited, and a. Providing allowance for tax credit b. Provision of reciprocity provisions in tax laws meteries C. Provision of tax exemptions d. Entering into treaties to form regional trade blockage against the rest of the world anteubri lesol -dog 7. Which is not an object of taxation? c. Transactions itutional a. Persons d. Public properties wong sautumns of b. Business 23Chapter 1 - Introduction to Taxation noitsxsT of noidubount 8. The power to enforce proportional contribution from the people for the Chapter 1 - Introducti of the government is a. Taxation b. Police power SXal B 2arg C. Eminent domain 69 10 213dmam Is to zy 16. What is the theor d. Exploitation xia bluoriz insmumoving on) a. Reciprocal d 9 . This theory underscores that taxes are indispensable to the existence of the b. Necessity c. Constitution a . Doctrine of equitable recoupment thisy's nationinjail abeel Joanto crudo in d. Public purp b. The Lifeblood Doctrine C. The benefit received theory 17. A. Taxes should d. The Holmes Doctrine of alllidsadia onthebob booldollars B. Tax is gener Which is true? 10. A. Taxation is the rule, exception is the exemption. a. A only B. Vague taxation laws are interpreted liberally in favor of the government. b. Bonly Which is false? a. A only 18. Which provis c. Both A and B b. Bonly a. Equal pr yo sunen or and d. Neither A nor Benigniwollol ort to rotin b. Progress Uniform 11. Statement 1: The benefit received theory presupposes that some taxpayers C. d. Either A the territorial jurisdiction of the Philippines will be exempted from payingt long as they do not receive benefits from the government. 19. Which limit Territo Statement 2: The ability to pay theory suggests that some taxpayers ma a. b. Public exempted from tax provided they do not have the ability to pay the same. Which statement is true? 20. Which tax a. Only statement 1 a. Tax ex b. Only statement 2 bings12C. Both statements 1 and 2 armsvog BT b. Tax ex nomerid. Neither statement 1 nor 2 C. Tax ex 12. Select the incorrect statement. nailing ardi to thebrasil andT d. Both b. a. . The power to tax includes the power to exempt. lo yfizzsoon C. Exemption is construed against the taxpayer and in favor of the governme 21. Which st a. Ever d. Tax statutes are construed against the government in case of doubt. Taxes should be collected only for public improvements. b. The C. The 13. Which is not a public purpose? prov a. Public education c. Transportation d. Only b. National defense d. None of these the 14. Which does not properly describe the scope of taxation? olli galbyvul 22. Which i a. Comprehensive c. Discretionary | ybington to nonhurt a. Ta b. Supreme d. Unlimited of qnto get to gomayor b. Th 15. All of these are secondary purposes of taxation except pr To reduce social inequality m Th b. To protect local industries ed jun. C. To raise revenue for the support of the government re C . . To encourage growth of local industries d. T 24 nople for the sun Chapter 1 - Introduction to Taxation 16. What is the theory of taxation? xistence of the sta b. Necessity wa. Reciprocal duties of support and protectionwisdom ought bsivul 9 c. Constitutionality bel E winded ano saidlaogrinAS manual d. Public purpose resilient time notingif iffer intenswin shebang es 17. A. Taxes should not operate retrospectively. B. Tax is generally for public purpose. Which is true? government. a. A only len vid avithe c. A and B b. anas an wollot off to winter is B only helpallos d. Neither A nor Blasts .d 18. Which provision of the Constitution is double taxation believed to violate? a. Equal protection guarantee Ford to dohiw b. Progressive scheme of taxation ster loiszoqing sill gninimissed C . Uniformity rule me taxpayers wit 916 27 d. Either A or c *61 5 moil vlinummi id sgaliving off of zolot aint 28 d from paying tax 19. Which limitation of taxation is the concept of "situs of taxation" based? a. Territoriality c. International comity e taxpayers may b. Public purpose d. Exemption of the government ay the same. Edon al dboldW as 20. Which tax exemption is irrevocable? do aside and to nailsminreuse a. Tax exemption based on contract b. Tax exemption based on the Constitution it to Inomanual C. Tax exemption based on law d. Both A and B 21. Which statement is incorrect? Every person must contribute his share in government costs. r of the government nordic a. The existence of a government is expected to improve the lives of the people. ase of doubt. nistad b. The government provides protection and other benefits while the people orby to C. provide support. Only those who are able to pay tax can enjoy the privileges and protection of d. Just the government. usgildo n 10 9) 22. Which is the most incorrect statement regarding taxes? Taxes are necessary for the continued existence of the government. a. The obligation to pay tax does not rest upon the privilege enjoyed by or the b . protection afforded to the citizen of the government, but upon the necessity of money for the support of the State. There should be personal benefit enjoyed from the government before one is done C. required to pay tax. Taxes should be collected without unnecessary delay, but its collection should not be tainted with arbitrariness. lidsilx as 25Chapter 1 - Introduction to Taxation 23. Statement 1: In the selection of the objects of taxation, the courts have no po inquire into the wisdom, objectivity, motive, expediency, or necessity of a tay juli C. Chapter 1 - Introdu Statement 2: An imposition can be both a tax and a regulation. Taxes may be The powe to provide means for rehabilitation and stabilization of threatened industry tax of P50 Which is correct? d. The powe Statement 1 only 30. When exemp b. Statement 2 only C. Both statements To dimanog cat true? d. Neither statement a. Taxation 24. Which of the following acts in taxation is administrative by nature? .2020 b. Exempt a. Determination of the amount to be imposed col Taxation 20cd. Exemp b. Fixing the allocation of the amount to be collected between the hence government and the national government no sdilo C. Levy or distraint of taxpayers' property for tax delinquency upa 31. What is the a. Recip d. Determining the purpose of the tax to impose smoran 2918019 b. Cons 25. This refers to the privilege or immunity from a tax burden which others c. Publi subject to: d. Nec a. Exclusion Exil to audie c. Tax holiday asiszero tomy lil want 32. When th b. Deduction Wimod. Reciprocity true? weorring gildeded a. Ta 26. Which is not a legislative act? Ex a. Determination of the subject of the tax m I hadgroske xsi dated Setting the amount of the tax go b . goto notbezed noliqmasys xef Ta C . Assessment of the tax ueno )orno based noligmoxs AT d 9300/10 C. d. Ex d. Determining the purpose of the tax heard nutfamous IsT 27. Which of the following statements does not support the principle that tax is 33. Whic subject to compensation or set-off? a. a. The government and the taxpayer are not creditors and debtors of each oth b. b . Tax is not in the nature of contract but it grows out of a duty where C. taxpayers are bound to obey even without the personal consent of d. taxpayer. C. Taxes arise from law, not from contracts. sandy Ino 34. Wh d. Both tax and debt partake the nature of an obligation. a. b . 28. Statement 1: Taxation is the rule; exemption is the exception. now ss C. a. I is true Statement 2: Taxation may be used to implement the police power of the state. d . 10c. I and II are true b. II is true d. I and II are not true ousalong Mult qre off rot venom delegated? 29. Which of the following powers of the Commissioner of Internal Revenue cannot b 1. The examination of tax return and the determination of tax due thereon b. To refund or credit tax liabilities in certain cases Whatis 26ave no pow Chapter 1 - Introduction to Taxation ity of a tax es may be le C.The power to compromise or abate any tax liability involving basic deficiency industry. d. tax of P500,000 and minor criminal violations The power to reverse a ruling of the Bureau of Internal Revenue true? 30. When exemption from a tax imposition is silent or not clearly stated, which is a. Taxation applies since exemptions are construed against the government. C. b. Exemption still applies since this is an instance of exemption by omission. Taxation applies since exemptions are construed against the taxpayer. ween the lo d. Exemption applies since obligation arising from law cannot be presumed and hence construed against the government. 31. What is the basis of taxation? a. Reciprocal duties of support and protection 257100 to godman b. Constitutionality hich others a c. Public purpose d. Necessity 32. When the provisions of tax laws are silent as to the taxability of an item, which is true? a. Taxation applies since taxation is the rule, exemption is the exception. b. Exemption applies since vague tax laws are construed against the government. C. Taxation applies due to the Lifeblood doctrine. d. Exemption applies since obligation arising from law is presumed; ignorance of the law is not an excuse. e that tax is no 33. Which is not legally tenable in refusing to pay tax? a. Absence of benefit from the government sedging sildug To' rs of each other b. Lack of jurisdiction of the taxing authority a duty where C. Prescription of the tax authority's right to collect imilyas aniwollot and? consent of the d. All of these 34. What is the primary purpose of taxation? o notigmox? a. To enforce contribution from its subjects for public purpose b. To raise revenue non Jo ansardemi-nall c. To achieve economic and social stability I hollegalsb-now d. To regulate the conduct of business or profession of the state. Multiple Choice - Theory: Part 2 1. That all taxable articles or properties of the same class shall be taxed at the same venue cannot be rate underscores c. Uniformity in taxation. notarveig unit a. Equality in taxation d. None of these of moving and to afraid Equity of taxation He thereon b. 85 27Chapter 1 - Introduction to Taxation nobexsT of follsubout 2. The Constitutional exemption of religious or charitable institutions refers C. Property tax and income tax Chapter 1 a. Real property tax Income tax oil to d. Business tax amove b. 3. An educational institution operated by a religious organization w G. d. required by a local government to pay real property tax. Is the assessment a.Yes, with respect to all properties held by such educational institution 9. The b. Yes, with respect to properties not actually devoted to educational calle No, with respect to any properties held by such educational institution a. d. No, with respect to properties not actually devoted to educational pur b. Andi deninge boutsano 4. Which is not a Constitutional limitation? 10. The a. No tax law shall be passed without the concurrence of a majority ref members of Congress. b. b. Non-appropriation for religious purpose C. No law impairing government obligations on contracts shall be passed, 11. W d. Non-impairment of religious freedom a. b. 5. Which of the following is not an inherent limitation of the power to tax? a. Tax should be levied for public purpose. b. Taxation is limited to its territorial jurisdiction. d. C. Tax laws shall be uniform and equitable. sprite esilgge noliaast d. Exemption of government agencies and instrumentalities. 12. W 6. The following are inherent limitations to the power of taxation except one. ( the exception. a. Territoriality of taxes b. Legislative in character c. For public purpose amovog odd moil iftoned to sansadA d. Non-appropriation for religious purpose cobolbutalsoshed 13. I 7. The following are limitations of taxation: A. Territoriality of taxation B. Exemption of the government to seoquig viamig en el jury C. Taxation is for public purpose.oil gonudrunoo sardine of D. Non-impairment of contracts E. Non-delegation of the power to tax Sindicos everbe of Which of these are classified as both constitutional and inherent limitations? 14. a. A and B c. C and E b. Band Censored. D and Egg to gelatin eldersi lis felt 8. The provisions in the Constitution regarding taxation areup a. Grants of the power to tax 28rs only Chapter 1 - Introduction to Taxation b. Limitations to the power to tax was be d. bartosh C. { Grants and limitations to the power to tax gyal is nt valid ion. mur Limitations against double taxation roog sinival purpose 9. The agreement among nations to lessen tax burden of their respective subjects is vd bazan called ion. .bedclo a. Reciprocity C. Territorialityon 2sy urposes b. International comity d. Tax minimization o finds allid NET 10. The Constitutional exemption of non-stock, non-profit educational institutions youl to refers to ority of Tarkto a. Real property tax b . Income tax mes C. Property tax and income tax Inammavon d. Business tax Insigeneu ed. 11. Which of the following is violative of the principle of non-delegation? a. Requiring that legislative enactment must exclusively pertain to Congress Todel b/ b. Authorizing the President to fix the amount of impost on imported and exported commodities W .SE blnow C.Authorizing certain private corporation to collect taxes d. Allowing the Secretary of Finance and the BIR to issue regulation or rulings olmodus which go beyond the scope of a tax lawen guilpetdup seung 12. Which of the following violates Constitutional provisions? angionoa. Payment of salaries to priests or religious ministers employed by the Armed ne. Choos Forces of the Philippines elusia ab. Imposing tax on properties of religious institutions which are not directly and exclusively used for religious purposes Imposition of license for the sale of religious literature ed bluec. Authorizing the President of the Philippines to fix the rates of tariffs or d. imposts 13. 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 (20505) exercise of taxation power? a. Yes, because the measure adopted is grounded upon necessity. b. Yes, because the President is merely exercising his presidential discretion. c. No, because the power of taxation is non-delegated. d. No, because only the Department of Finance can issue such ruling. 14. Concerned with increasing unemployment rates in the country, the President of the Philippines encouraged the Philippine Senate to pass a law granting special ons? tax privileges to foreign investors who will establish businesses in the country. The Senate accordingly drafted the bill and passed to Congress for approval. 0 29