Chapter 14: Classification of Taxes

Question 1

Taxes imposed by the national government and are national in scope.

Answer 1

National

Question 2

Taxes imposed by local governments

Answer 2

Municipal or Local

Question 3

Taxes that are imposed as specific amounts on a specific standard of measurement

Answer 3

Specific

Question 4

A tax which is added into the assesed value of a taxable Entitiy

Answer 4

Ad Valorem

Question 5

Taxes that are computed as a fixed proportion of the value of an entity being taxed or the rate of consumption

Answer 5

Proportional

Question 6

Taxes whose rates increase as the entity being taxed also increases

Answer 6

Progressive or Graduated

Question 7

The Tax bracket decreases as the entity taxed increases

Answer 7

Regressive

Question 8

The earnings of a person are taxed by the national government and are progressive in nature

Answer 8

income Tax

Question 9

The act of a certain person in disposing a certain thing without the consideration of money

Answer 9

Donor’s Tax

Question 10

Tax imposed on the right of a deceased person to transfer the estate to his lawful heir or beneficiary

Answer 10

Estate Tax

Question 11

Tax imposed on the sale and/or exchange of goods and services

Answer 11

Value-Added Tax

Question 12

Tax imposed on specific goods produced in the Philippines for local consumption or sale in the country, or to goods made in other countries and imported and consumed in the Philippines

Answer 12

Excise Tax

Question 13

Tax imposed on and based the selling price or gross value of goods and services being sold, imported, exchanged, or bartered

Answer 13

Other Percentage Taxes

Question 14

Tax on legal documents and papers. All documents without stamp are rendered void and legally non-useable

Answer 14

Documentary Stamp Taxes

Question 15

Taxes imposed on the importation and exportations of goods and in and out of the country.

Answer 15

Customs Duties

Question 16

A book of “book of rates” of customs duties for different goods

Answer 16

Custom Tariff

Question 17

Tax imposed on travel whether local or foreign

Answer 17

Travel Tax

Question 18

Tax imposed on the use of petroleum products

Answer 18

Energy Tax

Question 19

Tax imposed on the owners of private motor vehicles for the use of the vehicles.

Answer 19

Private Motor Vehicles Tax

Question 20

The act of putting up taxes on persons, activities, and products

Answer 20

Tax Levying

Question 21

The official action of an officer duly authorized by law in determining the amount of tax due

Answer 21

Tax Assesment

Question 22

The process of getting the taxes imposed by the proper government agencies

Answer 22

Tax Collection

Question 23

What are the limitations on the power of Taxation

Answer 23

1) The principle of Due Process of Law
2) The principle of Equal Protection of the Law
3) Rule of Uniformity in Taxation
4) Non-Impairment of the Obligation of Contracts
5) The President has the Authority
6) Final Jurisdiction of the Supreme Court

Question 24

The use by a taxpayer of legally permissible means or methods in order to avoid or reduce tax liability. It is not punishable by law.

Answer 24

Tax Avoidance

Question 25

The use by the taxpayer of illegal or fraudulent means to defeat or reduce the payment of a tax. It is punishable by law.

Answer 25

Tax Evasion