1. The power of taxation can only be exercised by the lawmaking body

a.

subject to constitutional and inherent limitations

b.

equality or theoretical justice

c.

legislative in character

d.

inherent in sovereignty

1. The President of the Philippines and the Prime Minister of Japan entered into an executive agreement in respect of a loan facility to the Philippines from Japan whereby it was stipulated that interest on loans granted by private Japanese financial institutions in the Philippines shall not be subject to Philippine income taxes. What basic, characteristic of taxation has been violated by this agreement?

a.

inherent limitation

c.

legislative in character

b.

theoretical justice

d.

administrative feasibility

1. Which statement gives the correct answer? That a feasibility study needs or need to look into the taxes of different political subdivisions of government which may be alternative sites of the business because

a.

Provinces, cities and municipalities must have uniform taxes between and among themselves

b.

The local taxes of a political subdivision need not be uniform with the local taxes of another political subdivision

c.

Business that are to national taxes are exempted from local business taxes

d.

Local business taxes may be credited against national business taxes

1. The power of taxation is inherent in sovereignty being essential to the existence of every government. Hence, even if not mentioned in the Constitution, the state can still exercise the power.

It is essentially a legislative function. Even in the absence of any constitutional provision, taxation power falls to Congress as part of the general power of lawmaking.

a.

False, False

c.

True, True

b.

False, True

d.

True, False