Chapter 1

Question 1

Persons and properties of the same class should be taxed at the same rate

Answer 1

To be uniform

Question 2

Tax should be imposed in proportion to taxpayer’s ability to pay.

Answer 2

To be equitable

Question 3

True or False

Imprisonment for non payment of poll tax.

Answer 3

False

No imprisonment for non payment of poll tax.

Question 4

Constitutional Limitation of Power to Tax

Answer 4

• Observance of due process of law and equal protection
• Rule of uniformity and equity in taxation
• No imprisonment for non-payment of poll tax
• Non-impairment of obligations and contracts
• Prohibition against infringement of religious freedom
• Prohibition against appropriations for religious purposes. Related to the non-establishment clause
• Exemption of all revenues and assets of non-stock, non-profit educational institutions
• Concurrence by a majority of all members of Congress in the passage of a law granting tax exemptions.
• Congress may not deprive the Supreme Court of its jurisdiction to review

Question 5

Situs of Taxation

Answer 5

1. Real property tax
2. Tangible Personal Property tax
3. Intangible Personal Property tax
4. Income tax
5. Poll or residence Tax
6. Transfer tax
7. Business, Occupation and transaction

Question 6

Is the state or country which has jurisdiction to tax a person, property, or interest

Answer 6

Situs of Taxation

Question 7

in short, __________________ is the place of taxation

Answer 7

Situs of Taxation

Question 8

The place where it is located

Answer 8

Real Property Tax

Question 9

where the act is done, or occupation is pursued

Answer 9

Business, Occupation and transaction

Question 10

Residents or domiciled of the state whether citizen or not

Answer 10

Poll or Residence Tax

Question 11

Where it is physically located

Answer 11

Tangible Personal Property Tax

Question 12

Source of income

Answer 12

Income Tax

Question 13

taxable in the domicile of the owner under the maxim of “Mobilia Seguuntur Personam”

Answer 13

Intangible Personal Property Tax

Question 14

Where the transferor is a citizen or resident or where the property is located

Answer 14

Transfer Tax

Question 15

Means taxing twice by the same taxing authority with the same jurisdiction or taxing district for the same purpose in the same year or taxing period.

Answer 15

Double Taxation

Question 16

True or False

Double Taxation is prohibited by the Constitution and there is double taxations when the same person is taxed by the same jurisdiction for the same purpose.

Answer 16

False

Double Taxation is NOT prohibited by the Constitution and there is double taxations when the same person is taxed by the same jurisdiction for the same purpose.

Question 17

Double Taxation in the narrow sense

Answer 17

Unconstitutional

Question 18

Double taxation in the broader sense

Answer 18

it is not necessarily to

Question 19

Sources of Tax Law

Answer 19

• The 1987 Constitution
• Statutory Enactments
• Administrative Rulings and regulations
• Judicial Decisions of the supreme court

Question 20

Regulated by but taxation may exist without the constitution

Answer 20

The 1987 Constitution

Question 21

Are interpretations of tax law by the Comissioner of the BIR

Answer 21

Administrative Rulings

Question 22

For purpose of administration and procedure by Secretary of Finance upon recommendation of the Commissioner

Answer 22

Administative Regulations

Question 23

All Tax Laws passed by Congress

Answer 23

Statutory Enactments

Question 24

is not the power to legislate and the under the guise of regulation, legislation may not be enacted.

Answer 24

Nature of power to make regulations

Question 25

The purpose is only to implement the law or put it into effect.

Answer 25

Nature of power to make regulations

Question 26

True or False The stature or law being administered may not be altered or added to by the power to make regulation thereunder

Answer 26

True

Question 27

True or false Regulations may not increase or decrease the requirements of the law or embrace matters not covered or intended to be covered by the tax statute

Answer 27

True

Question 28

Requisites of Valid Regulation

Answer 28

- Necessary to the proper enforcement of the law - Must not be contrary to the law or consitution - Published in the official Gazette

Question 29

The effectivity of regulations

Answer 29

Under the Administrative Code (E.O No. 292), every agency shall file with the UP Law Center 3 certified copies of rules adopted by it. Such rules shall be effective 15 days from the date of filing unless a different day is fixed by law or specified under said rule in cases of imminent danger to public health, safety and welfare.

Question 30

Are not political.

Answer 30

National Internal Revenue Code (NIRc)

Question 31

Tax Laws are civil and not Penal (Although there are Penalties for violation This is to compel timely payment or punish evasion or neglect of duty to pay taxes)

Answer 31

National Internal Revenue Code (NIRC)

Question 32

True or False Legislative intention must not be considered

Answer 32

False Legislative intention must be considered

Question 33

Are to receive a reasonable construction or interpretation with a view to carrying out their purpose and intent.

Answer 33

Tax statutes

Question 34

They should not be construed as to permit the taxpayer to easily evade the payment of tax.

Answer 34

Legislative intention must be considered

Question 35

Construction of Tax laws

Answer 35

a. Legislative intention mus t be considered b. Where there is doubt c. Where Language is plain d. Where taxpayer claims exemption e. When there is a conflict with other laws

Question 36

No person or property is subject to taxation unless within the terms or pain import of a taxing statute.

Answer 36

Where there is doubt

Question 37

True or False In every case of doubt, Tax statutes are construed strictly against the government and liberally in favor of the taxpayer.

Answer 37

True

Question 38

The rule of strict construction against the government is not applicable where the language of the tax statute is plain and there is no doubt as to the legislative intent.

Answer 38

Where Language is plain

Question 39

Example: Good faith of the taxpayer is not sufficient justification for exemption from surchages imposed by law

Answer 39

Legislative intention must be considered

Question 40

Example: The word "individual" is changed to "persons", this clearly indicates that the tax applies to both natural and juridicial persons unless otherwise expressly provided.

Answer 40

Where Language is plain

Question 41

True or False Exemptions are construed not against the government but against the one who asserts the exemption.

Answer 41

True

Question 42

Taxation = ?; Exemption =?

Answer 42

Rule; Exception

Question 43

are in the nature of exemptions, thus they are strictly construed against the claimant who now has the burden of proving the factual basis of the claim for refund.

Answer 43

Tax refunds

Question 44

Are construed not against the government but against the one who asserts the exemption

Answer 44

Exemption

Question 45

Is one which embraces a class of subjects or places and does not omit any subject or place naturally belonging to such class

Answer 45

General Laws

Question 46

Is one which relates to particular persons or things of a class.

Answer 46

Special Law

Question 47

Application of Tax Laws

Answer 47

1. Generally Prospective in Operation 2. Applicability of Tax Treaties

Question 48

The reason being that the nature and amount of the tax could not be foreseen and understood by the taxpayer at the time the transaction which the law seek to tax was completed.

Answer 48

Generally Prospective in Operation

Question 49

Application of tx laws may be subject to the provisions of the tax treaties entered into by the Philippines with other countries.

Answer 49

Applicability of Tax Treaties

Question 50

Generally for the avoidance of double taxation which is a deterrent to international trade and investment.

Answer 50

Applicability of Tax treaties

Question 51

are between 2 states for allocating tax revenue between them.

Answer 51

Tax Treaties

Question 52

seek to eliminate double taxation when 2 or more governments tax the same item of income.

Answer 52

Tax treaties

Question 53

These are the provisions intented for the security of citizens or to insure equality of taxation or certainty as to the nature and amount of each.

Answer 53

Mandatory

Question 54

Those provisions designed merely for the information or direction of officers or to secure methodical and systematic modes of proceedings.

Answer 54

Directory

Question 55

Omission of _____________ provisions renders invalid the act or proceeding to which it relates

Answer 55

Mandatory

Question 56

Omission of _____________ does not involve the same consequences

Answer 56

Directory

Question 57

Are the enforced contribution from persons and property levied by the law-making body of the state by virtue of its sovereignty for the support of the government and all public needs

Answer 57

Taxes

Question 58

Is the act of laying a tax

Answer 58

Taxation

Question 59

It is merely a way of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and therefore must bear its burdens.

Answer 59

Taxation

Question 60

What is the purpose of taxation

Answer 60

To provide funds or property with which to promote the general welfare and protection of its citizens.

Question 61

Essential Characteristics

Answer 61

1. It is an enforced contribution 2. It is proportionate in character 3. it is levied by the law-making body of the state 4. It is levied for public purpose 5. It is generally payable in money 6. It is levied on persons and property by the State which has jurisdiction over the person or property

Question 62

the power of taxation is ___________________________ as an incident or attribute thereof, being essential to the existence of every government.

Answer 62

It is inherent in sovereignty

Question 63

It exists apart from the Constitution and without being expressly conferred by the people.

Answer 63

It is inherent in sovereignty

Question 64

The power of taxation is pecuniary and ______________ and cannot be exercised by the executive or judicial branch of government.

Answer 64

It is Legislative in character

Question 65

Nature of taxing power

Answer 65

1. It is inherent in sovereignty 2. It is legislative in character

Question 66

It cannot continue without the means to pay its expenses. Thus, it has the right to compel citizens and property to contribute

Answer 66

Existence of Government

Question 67

The State and the citizens have the duty to protect and support each other. In return for their contribution, the taxpayer receives the advantages and protection the government provides.

Answer 67

Reciprocal duties of the state and its inhabitants

Question 68

Stages in imporsition taxes

Answer 68

1. levy 2. Assessment 3. Collection

Question 69

Enactment of tax laws

Answer 69

Levy

Question 70

Getting of tax imposed

Answer 70

Collection

Question 71

Ascertaining the amount of tax due

Answer 71

Assessment

Question 72

Inherent Limitations of Tax Laws

Answer 72

1. Taxation must be for a public purpose 2. Taxation is a power legislative in nature 3. Taxation is limited to the territory of the State 4. Taxation respects international comity 5. Government agencies performing governmental functions are exempt from taxation.

Question 73

This is a legislative act. Lawmakers make tax laws and decide what to tax, who to tax and at what tax rate

Answer 73

Levy

Question 74

Levy = ?; Collection = ?

Answer 74

Taxation; Tax administration