Taxation is the means by which the sovereign through its judiciary, imposes burdens upon subjects or objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government.

a. True b. False

6. Taxation refers to the act of a taxing authority actually levying tax. a. True

b. False

7. Nicanor computed his tax and voluntarily paid the same thru the bank. The BIR concluded that Nicanor underpaid. The underpayment was determined thru:

a. Taxation

b. Levy

c. Assessment d. Collection

8. Aliens employed by regional area headquarters or regional area operating headquarters of multi- national companies, off-shore banking units and of those petroleum service contractors are now subject to graduated tax rate in the same manner that ordinary employees. This rule in taxation is in accord with:

a. Uniformity in taxation b. Theory of taxation

c. Scope of taxation

d. Situs of taxation

9. 1st statement Constitutional limitations are restrictions arising from the very nature of the power to tax itself.

2nd statement - Constitutional limitations are restrictions founded on the fundamental law of the land:

a. Only the 1st statement is true

b. Only the 2nd statement is true