CHAPTER 1

Question 1

it is the power to enact laws to promote the general welfare of the people.

Answer 1

Police power

Question 2

it is the power to take private property for public use upon payment of just compensation.

Answer 2

eminent domain

Question 3

it is the power to take property (generally money) for the support of the government and the public purpose.

Answer 3

Taxation power

Question 4

To raise revenue/funds to defray the necessary expenses of the government (also called Revenue Purpose).

Answer 4

Primary purpose

Question 5

As a tool for general, social and economic welfare (also called regulatory/Sumptuary/Compensatory Purpose).

Answer 5

Secondary purpose

Question 6

The existence of government is necessity, it cannot continue
without means to pay its expenses, for this reason, it has the right to compel all its citizens and property to continue.

Answer 6

Necessity theory

Question 7

Taxes are what we pay for a civilized society. The
government and the people have a reciprocal and mutual duties of support and protection to one another (symbolic relationship between the government and the taxpayer).

Answer 7

The benefits protection theory

Question 8

Taxes are the lifeblood of the government without it can neither exist nor endure.

Answer 8

Lifeblood doctrine

Question 9

Are enforced proportional contributions from persons and property, levied by the State by
virtue of its sovereignty for the support of the government and for all its public needs.

Answer 9

Tax

Question 10

The process involves the passage of tax law or ordinance through the legislature.

Answer 10

Levy or imposition

Question 11

This process involves the act of administration and
implementation of tax laws by the executive through its administrative agencies such as the bureau of Internal Revenue or Bureau of Customs.

Answer 11

Assessment and collection

Question 12

This process involves the act of compliance by the taxpayer on contributing his share to pay the expenses of the government

Answer 12

Payment of tax

Question 13

The sources of government revenue must be sufficient to meet government expenditures and other public needs.

Answer 13

Fiscal adequacy

Question 14

Tax laws must be capable of convenient, just and effective administration- free from confusion and uncertainty.

Answer 14

Administrative feasibility

Question 15

A good tax system must be based on the taxpayer’s ability to pay. This suggests that taxation must be progressive conformably with the constitutional mandate that congress shall evolve a progressive system of taxation.

Answer 15

Theoretical justice

Question 16

this is objectionable and prohibited because of violates the constitutional provision on uniformity and equality.

Answer 16

Direct duplicate taxation

Question 17

proceed from the very nature of the taxing power itself. The taxing power has very distinct and positive limitations some of which inherit in its very nature and exist whether declared or not declared in the written constitution.

Answer 17

Inherent limitations

Question 18

is not legally objectionable. It extends to all cases in which imposition but imposed by different taxation authorities.

Answer 18

Indirect duplicate taxation

Question 19

a State cannot tax another State based on the on the principle of Sovereign imposing taxes on foreign ambassadors is not valid law.

Answer 19

International comity or treaty

Question 20

of taxation is purely legislative, hence the power
cannot be delegated either to the executive or judicial department. The limitation arises from the doctrine of separation of powers among the three branches of the government.

Answer 20

Non dilatability of the taxing power

Question 21

subject to some limitations and restriction, to fix within specified limits, tariff rates and tonnage or wharfage duties and other duties and imposts.

Answer 21

Delegation to the president

Question 22

where the occupation is engaged in.

Answer 22

Occupation

Question 23

where the transaction took or citizenship of the taxpayer; or location of property

Answer 23

Transaction

Question 24

the following provisions may be said to be limitations prescribed in the Constitution on the taxing power of the government.

Answer 24

Constitutional limitations of a taxing power

Question 25

Tax laws are civil and not penal in nature, although there are penalties provided for their violation. The purpose of tax laws in imposing penalties for delinquencies is to compel the timely payment of taxes or to punish evasion or neglect of duty in respect thereof.

Answer 25

Nature of internal revenue laws

Question 26

tax of a fixed amount imposed upon individual, whether citizens or not, residing within a specified territory without regard to their property or the occupation in which he may be
engaged (e.g. basic community tax)

Answer 26

Personal, poll, or capitation tax

Question 27

tax imposed on property, whether real or personal, in proportion either to its value, or in accordance with some other reasonable
method of apportionment (e.g. real estate tax)

Answer 27

Property tax

Question 28

any tax which does not fall within the classification of a poll tax or a property tax. This is a tax on the exercise of certain rights and privileges (e.g. income tax, estate tax, donor’s tax, VAT)

Answer 28

Excise tax

Question 29

imposed on the person obliged to pay the same and this burden cannot be shifted or passed on to another. (e.g. income tax, estate tax, donor’s tax)

Answer 29

Direct tax

Question 30

the payment is demanded from a person who is allowed to transfer the burden of taxation to another. (e.g. VAT)

Answer 30

Indirect tax

Question 31

this is fixed amount based on volume, weight or quality of goods as measured by tools, instruments or standards. (e.g. excise tax on cigars and liquors)

Answer 31

Specific tax

Question 32

levied without a specific or pre-determined
purpose. (e.g. Income tax, donor’s tax and estate tax)

Answer 32

Revenue tax

Question 33

this imposition is based on the value of the property subject to tax. (e.g. VAT, income tax, donor’s tax and estate tax)

Answer 33

Ad valorem tax

Question 34

those intended to achieve some
social or economic goals. (e.g. tariff and certain duties on imports)

Answer 34

Sumptuary tax

Question 35

imposed by the National Government
National Internal Revenue Taxes Under The Administration Of The Bir

Answer 35

National tax

Question 36

imposed by municipal corporations (e.g. real estate tax)

Answer 36

Local tax

Question 37

as the tax base grows, the tax rate increase. (e.g. income tax on individuals)

Answer 37

Progressive / Graduated tax

Question 38

unitary or single rate. (e.g. VAT)

Answer 38

Flat rate tax

Question 39

the tax rate increases as the tax base decreases.

Answer 39

Regressive tax

Question 40

All items of gross income and deductions are reported in one
income tax return and the applicable tax rate is applied on the tax based.

Answer 40

Global system

Question 41

Different types of income are subject to different sets of
graduated or flat income tax rates.

Answer 41

Schedular system

Question 42

Claim for refund which is prevented by prescription may be
allowed to be used as payment for unsettled tax liabilities if both taxes arise from the
same transactions in which overpayment is made and underpayment is due.

Answer 42

Eqitable recoupment

Question 43

Taxes are not subject to set-off or legal compensation because the
government and the taxpayer are not mutual creditors and debtors of each other.

Answer 43

Set of taxes

Question 44

This provides that a taxpayer suit can only be allowed of the act
involves a direct and illegal disbursement of public funds derived from taxation.

Answer 44

Taxpayer suit

Question 45

also called tax minimization, it is the reduction or totally escaping payment of tax through legally permissible means.

Answer 45

Avoidance

Question 46

the taxpayer uses unlawful means to evade or lessen the payment of tax.

Answer 46

Evasion Or Dodging

Question 47

basically, it is the transfer of tax burden to another. The imposition of tax is transferred from the statutory taxpayer to another without violation the law.

Answer 47

Shifting

Question 48

the seller is willing to lower the price of the commodity provided the taxes will be shouldered by the buyer.

Answer 48

Capitalizations

Question 49

the manufactured absorbs the additional taxes imposed by the government without passing it to the buyers for fear of lost his/its market. Instead, he/it increase quantity of production, thereby turning their units of production at a lower cost

Answer 49

Transactions

Question 50

it is an immunity, privilege or freedom from payment of a charge or burden to which others are obliged to pay

Answer 50

Exemption

Question 51

Document/proof

Answer 51

Tax return