TRUE or FALSE

1. Consumption tax is a tax levied upon businesses.

2. A purchase is a form of consumption.

3. A tax on consumption will effectively cause all residents of the state to pay tax.

4. Consumption is the acquisition or utilization of goods and services.

5. Income tax is based on the taxpayers' capacity to sacrifice for the support of

the government.

6. Consumption tax is more consistent with the "ability to pay" theory rather

than the "benefit received" theory.

7. A tax on consumption would support a savings initiative.

8. Consumption taxes should not apply to basic necessities. W

9. Both domestic consumption and foreign consumption are subject to consumption tax.

10. Non-resident sellers are exempt from consumption taxes on their domestic sales.

11. Resident sellers shall pay consumption tax on foreign consumption.

12. The sale by non-resident persons abroad is subject to Philippine

consumption tax.

13. The utilization or consumption of goods or services shall be taxable in their

country of origin.

14. The sale by non-resident persons in the Philippines is exempt from

consumption tax.

15. The sale by resident in the Philippines is subject to consumption tax.