Please choose the letter of the correct answer. Thank you! (explain if u can)

1. This is a principle of a sound tax system which suggests that taxation should consider the taxpayer's ability to pay.

a. Fiscal adequacy

b. Theoretical justice

c. Administrative feasibility

2. This principle of a sound tax system requires that the sources of government funds must be sufficient to cover government costs. The government must not incur a deficit.

a. Fiscal adequacy

b. Theoretical justice

c. Administrative feasibility

3. 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?

A. Yes because the rule of taxation should be uniform and equitably enforced.

B. Yes because Ram is the only one subject. Other practitioners who would later practice would not be covered by the ordinance.

C. No because the ordinance would cover all transplant specialist who would practice in Baguio City. The uniformity rule would not be violated.

D. No because subjecting the new industry to taxation would hamper economic growth.

4. It is the general power to enact laws to protect the well-being of the people:*

A. Police power

B. Eminent domain

C. Taxation

D. All of these

5. Which is not a nature of tax:

A. Enforced proportional contribution

B. Enforced within the territorial jurisdiction of the taxing authority

C. Levied by the law-making body

D. Generally payable in kind.

6. A tax that is imposed upon the performance of an act, the enjoyment of a privilege or the engagement in a profession is known as:

A. Income tax

B. License

C. Excise tax

D. Transfer tax

7. X has a tax obligation to the government amounting to P80,000. Since he is leaving the country, he entered into a contract with Y wherein Y shall pay the P80,000 tax in his behalf. On due date, Y failed to pay the tax. The BIR sent a demand letter to X which he refused to pay. Which of the following statements is correct:

A. The government cannot enforce collection charges against X since he has validly transferred his obligation to Y under the contract

B. The government can no longer run after X because he is already outside the Philippine territory

C. The government should wait until Y becomes solvent again.

D. The government should force X to pay because taxes are non-assignable.

8. Which is not a source of tax law?

A. Judicial decisions

B. Revenue regulations

C. Opinion of tax experts

D. Tax treaties

9. Which is not an element of tax?

A. It must be for public purpose

B. It must not violate constitutional or inherent limitation.

C. It must be progressive by nature

D. It must be uniform and equitable.

10. Which of the following do not relate to tax?

A. Does not render business illegal when not paid.

B. Arises from law rather than from contracts.

C. Intended to cover cost of regulations

D. Intended for public purpose.

11. A levy from a property which derives some special benefit from public improvements is:

A. Special assessment

B. Eminent domain

C. Taxation

D. Toll

12. 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.

13. Which is true with tax amnesty?

A. It is unconditional.

B. It covers both criminal and civil liability of the taxpayer.

C. It applies for past and future non-compliance

D. All of these.

14. Which is not subject to income tax?

A. Donation

B. Sale of service

C. Sales of goods.

D. Barter of goods.

15. When paid for, which of the following items may involve a return on capital?

A. House and lot

B. Life

C. Dignity

D. Health

16. Which of the following constitutes taxable income?

A. Return of premium on life insurance received by the insured.

B. Moral damages received from slander

C. Proceeds of crop insurance

D. Compensation for personal injury.

17. Which is required to pay income tax?

A. Revocable trust

B. Estates under extrajudicial settlement

C. Co-ownership

D. Business partnership

18. All of the following are taxable only on income earned from sources within the Philippines except:

A. Resident alien

B. Non-resident citizen

C. Non-resident corporation

D. Domestic corporation.

19. Jake sued an unscrupulous person for derogatory remarks which he considered to have besmirched his reputation. The court awarded him an indemnity of P1,000,000 inclusive of P200,000 reimbursement for Attorney's fees and P100,000 exemplary damages. Compute Jake's total return on capital.

A. P1,000,000

B. P800,000

C. P700,000

D. P 0