[Excercise 1-1] TRUE OR FALSE

Question 1

[TRUE OR FALSE] A taxpayer who deliberately admits to over-declaring their taxable income is guilty of tax evasion.

Answer 1

Ans: False. A taxpayer who deliberately under-declares their taxable income is guilty of tax evasion.

Question 2

[TRUE OR FALSE] The power to tax can extend over any jurisdiction to impose taxes on persons or property.

Answer 2

Ans: False. The power to tax is generally limited to the territorial jurisdiction of the taxing authority.

Question 3

[TRUE OR FALSE] Salaries of Supreme Court justices and judges of lower courts are exempt from income tax.

Answer 3

Ans: False.

Question 4

[TRUE OR FALSE] A person cannot refuse to pay a tax on the ground that they were previously diagnosed as positive for COVID-19.

Answer 4

Ans: True.

Question 5

[TRUE OR FALSE] Taxes must only be imposed prospectively unless the law provides for its retroactivity.

Answer 5

Ans: True.

Question 6

[TRUE OR FALSE] Tax evasion in one year can be offset by paying excessive taxes in the following year.

Answer 6

Ans: False. Tax evasion is illegal and cannot be offset by overpaying in a different tax period.

Question 7

[TRUE OR FALSE] Taxation can be exercised by local government units even without a previous constitutional authority.

Answer 7

Ans: False. Local government units derive their power to tax from the Constitution and laws enacted by Congress.

Question 8

[TRUE OR FALSE] Tax laws should always be aimed at revenue collection.

Answer 8

Ans: False. Tax laws can also be used for regulatory purposes, social justice, and economic development.

Question 9

[TRUE OR FALSE]

A tax is a voluntary donation to the government.

Answer 9

Ans: False. A tax is a compulsory contribution imposed by the government.

Question 10

[TRUE OR FALSE] The salary of the President of the Philippines is not subject to income tax.

Answer 10

Ans: False. The salary of the President is subject to income tax.

Question 11

[TRUE OR FALSE]

The salary of a priest as a chaplain in the Armed Forces of the Philippines is subject to income tax.

Answer 11

Ans: True.

Question 12

[TRUE OR FALSE]

The income of a non-stock, non-profit educational institution is exempt from income tax.

Answer 12

Ans: True.

Question 13

[TRUE OR FALSE] NON-DELEGATION of the legislative power to tax is both a constitutional and inherent limitation on the power of taxation.

Answer 13

Ans: True.

Question 14

[TRUE OR FALSE] The power to tax is limited to the territorial jurisdiction of the taxing government.

Answer 14

Ans: True.

Question 15

[TRUE OR FALSE]

The power to tax may include the power to destroy.

Answer 15

Ans: True.

Question 16

[TRUE OR FALSE] The test for exemption from real property tax of private institutions is its use and not its ownership.

Answer 16

Ans: True.

Question 17

[TRUE OR FALSE]

As a general rule, a tax exemption is an act of liberality which can be revoked by the government.

Answer 17

Ans: True.

Question 18

[TRUE OR FALSE]

Taxes are paid only by those who are directly benefiting from the government.

Answer 18

Ans: False. Taxes are imposed on all qualified taxpayers regardless of direct benefit.

Question 19

[TRUE OR FALSE]

All revenue bills must originate from the Senate.

Answer 19

Ans: False. All revenue bills must originate from the House of Representatives.

Question 20

[TRUE OR FALSE]

All laws granting tax exemption must be approved by a two-thirds (2/3) vote of all the members of Congress.

Answer 20

Ans: False. A majority vote of all members of Congress is required for tax exemption laws.

Question 21

[TRUE OR FALSE] A law passed by Congress which granted tax amnesty to those who have not paid income taxes for a certain year without at the same time providing for the refund of taxes of those who have already paid them is invalid because it is a violation of the equal protection clause.

Answer 21

Ans: False. Valid because there is a valid classification.

Question 22

[TRUE OR FALSE] The doctrine of “incidental and reasonably necessary use” as a basis in the granting of exemption from real property tax on educational institutions is still applicable under the 1987 Constitution.

Answer 22

Ans: False. The 1987 Constitution strictly requires that properties be actually, directly, and exclusively used for educational purposes to qualify for tax exemption.

Question 23

[TRUE OR FALSE] The power to grant tax exemption is essentially a legislative prerogative.

Answer 23

Ans: True.

Question 24

[TRUE OR FALSE] The non-impairment clause is violated if franchises are revoked even if the reason for its revocation is public welfare.

Answer 24

Ans: False. The government can revoke franchises for valid public welfare reasons without violating the non-impairment clause.

Question 25

[TRUE OR FALSE] The Congress may delegate to the President the power to fix tariff rates.

Answer 25

Ans: True.

Question 26

[TRUE OR FALSE] DOUBLE TAXATION is not an inherent limitation on the exercise of the power of taxation.

Answer 26

Ans: True. While undesirable, double taxation is not inherently unconstitutional unless prohibited by law.

Question 27

[TRUE OR FALSE] Constitutional limitations are part and parcel of the power of taxation and originate from the very nature of taxation.

Answer 27

Ans: True.

Question 28

[TRUE OR FALSE] A law passed imposing a tax of P2.00 on every citizen for the purpose of raising funds to be given as loans to earthquake victims in Mindanao is NOT valid because it violates the equal protection clause.

Answer 28

Ans: False. The tax serves a public purpose, and the requirement of collateral for loans does not necessarily violate equal protection.

Question 29

[TRUE OR FALSE] A tax does not meet the public purpose limitation if it is for the benefit principally of limited subjects or objects.

Answer 29

Ans: True.

Question 30

[TRUE OR FALSE] The Congress has the power to tax the Armed Forces of the Philippines.

Answer 30

Ans: True.

Question 31

# [TRUE OR FALSE] A person may be imprisoned for non-payment of a poll tax.

Answer 31

Ans: False. The Constitution prohibits imprisonment for non-payment of a poll tax.

Question 32

[TRUE OR FALSE] The police power can be used to implement the power of taxation.

Answer 32

Ans: False.

Question 33

[TRUE OR FALSE] Value-added tax is not a regressive tax.

Answer 33

Ans: True.

Question 34

[TRUE OR FALSE] In case of doubts, statutes are construed strictly against the Government and liberally in favor of the taxpayer.

Answer 34

Ans: True.

Question 35

[TRUE OR FALSE] Internal revenue laws are civil in nature and not political.

Answer 35

Ans: True.