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Question 1

A tax system where the revenues are supplied mostly by indirect taxes.

Answer 1

Regressive

Question 2

The power to acquire private property upon payment of just compensation for public purpose.

Answer 2

Power of Eminent Domain

Question 3

The power to regulate liberty and property to promote the general welfare.

Answer 3

Police Power

Question 4

The tax imposed should be proportionate to the taxpayer’s ability to pay.

Answer 4

Equality or Theoretical Justice

Question 5

The sources of revenue as a whole, should be sufficient to meet the demands of public expenditures.

Answer 5

Fiscal Adequacy

Question 6

The tax laws must be capable of convenient, just and effective administration.

Answer 6

Administrative feasibility

Question 7

Persons or things belonging to the same class shall be taxed at the same rate.

Answer 7

Uniformity of taxation

Question 8

The tax should be proportional to the relative value of the property to be taxed.

Answer 8

Equality in taxation

Question 9

It literally means “place of taxation”; the country that has the power and jurisdiction to levy and collect the tax.

Answer 9

Situs of taxation

Question 10

The existence of the government is a necessity and that the state has the right to compel all individuals and property within its limits to contribute.

Answer 10

Theory of taxation

Question 11

These are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.

Answer 11

Revenue Regulations

Question 12

These are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedure necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Answer 12

Revenue Memorandum Orders

Question 13

These are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Answer 13

Revenue Memorandum Circulars

Question 14

Taxes that is imposed upon the performance of an act, enjoyment of a privilege or the engagement in a profession.

Answer 14

Excise tax

Question 15

Collection system where the payor of the income deducts the tax on the income before releasing the same to the payee, and remits such to the govern.

Answer 15

Withholding tax system on income tax

Question 16

It is the privilege of not being imposed a financial obligation to which others are subject.

Answer 16

Tax exemption

Question 17

A tax system where the greater bulk of the tax revenues is derived by direct taxes.

Answer 17

Progressive

Question 18

This is an inherent limitation on the power of taxation.

Answer 18

Tax must be for the public purpose

Question 19

The power to demand proportionate contributions from personal and property to defray the expenses of the government.

Answer 19

Power of taxation

Question 20

The reciprocal duties of support and protection between the people and the government.

Answer 20

Basis of taxation

Question 21

Subject to inherent and constitutional limitations, the power of taxation is regarded as supreme, plenary, unlimited, and comprehensive.

Answer 21

Scope of taxation

Question 22

Our national internal revenue laws are

Answer 22

Civil in nature

Question 23

The levying or imposition of tax and the collection of the tax are processes which constitute the taxation system

Answer 23

Aspects of taxation

Question 24

The process or means by which the sovereign, through its law-making body raises income to defray the expenses of the government.

Answer 24

Taxation

Question 25

Enforced proportional contributions from persons property levied by the state by virtue of its sovereignty for the support of the government and for all public needs.

Answer 25

Taxes

Question 26

An escape from taxation where the tax burden is transferred by the one on whom the tax is imposed or assessed to another.

Answer 26

Shifting

Question 27

And escape from taxation where the producer or manufacturer pays the tax and endeavors to recoup himself by improving his process of production thereby turning out his units of products at a lower cost.

Answer 27

Transformation

Question 28

An escape from taxation where there is reduction in the price of a taxed object equal to the capitalized value of future taxes which the taxpayer expects to be called upon to pay.

Answer 28

Capitalization

Question 29

The use of illegal or fraudulent means to avoid or defeat the payment of tax.

Answer 29

Evasion

Question 30

The use of legal or permissible means to minimize or avoid taxes.

Answer 30

Avoidance