[Excercise 1-6] Multiple Choice Flashcards
1st Statement: Our Constitution does not favor double taxation.
2nd Statement: If double taxation occurs, the taxpayer may seek relief under the uniformity rule of the equal protection guarantee.
a. 1st statement correct, 2nd statement wrong.
b. 1st statement wrong, 2nd statement correct.
c. Both statements are wrong.
d. Both statements are correct.
ANSWER: a. 1st statement correct, 2nd statement wrong.
The power of taxation is inherent in sovereignty, being essential to the existence of every government. Hence, even if not mentioned in the Constitution, the state can still exercise the power.
It is essentially a legislative function. Even in the absence of any constitutional provision, taxation power falls to Congress as part of the general power of lawmaking.
a. False, False
b. False, True
c. True, True
d. True, False
ANSWER: c. True, True
A tax must be imposed for a public purpose. Which of the following is NOT a public purpose?
a. National defense
b. Purchase of anti-COVID-19 vaccines
c. Improvement of the sugar industry
d. Beautification of a barangay chapel
ANSWER: d. Beautification of a barangay chapel.
The amount required is dictated by the needs of the government in:
a. License fee
b. Tax
c. Toll
d. Debts
ANSWER: b. Tax
Which of the following statements is NOT true?
a. If a taxpayer is acquitted in a criminal violation of the Tax Code, this acquittal does not exonerate him from his civil liability to pay the taxes.
b. A conviction for tax evasion is not a bar for the collection of unpaid taxes.
c. A tax assessment notice is necessary to a criminal prosecution for willful attempt to defeat and evade payment of taxes.
d. Criminal proceedings under the Tax Code are now a mode of collection of internal revenue taxes, fees, or charges.
ANSWER: c. A tax assessment notice is necessary to a criminal prosecution for willful attempt to defeat and evade payment of taxes.
A tax wherein both the incidence of or the liability for the payment of the tax as well as the burden of the tax falls on the same person:
a. Direct tax
b. Indirect tax
c. Personal tax
d. Property tax
ANSWER: a. Direct tax
Which of the following is an inherent limitation on taxation?
a. Non-delegation of the legislative power to tax
b. Non-impairment of the jurisdiction of the Supreme Court in tax cases
c. No appropriation for religious purposes
d. Equal protection of the law
+ANSWER: a. Non-delegation of the legislative power to tax
No law granting any tax exemption shall be passed without the concurrence of:
a. Majority of all the members of the House of Representatives
b. Majority of all the members of the Senate
c. Majority of all the members present
d. Majority of all the members of Congress
ANSWER: d. Majority of all the members of Congress
One of the following is NOT a characteristic of police power in distinguishing it from the other powers:
a. It regulates both liberty and property.
b. The property taken is destroyed for the purpose of promoting the general welfare.
c. The amount imposed should only be sufficient to cover the necessary expenses of police surveillance and regulation.
d. The authority to exercise the power may be granted to public service companies.
ANSWER: d. The authority to exercise the power may be granted to public service companies.
Police power as distinguished from eminent domain:
a. Just compensation is received by the owner of the property.
b. May be exercised by private individuals.
c. Superior to the non-impairment clause of the Constitution.
d. Property taken by the government for public purpose.
ANSWER: c. Superior to the non-impairment clause of the Constitution.
Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxation:
a. Violates substantive due process
b. Does not violate substantive due process
c. Violates the right to equal protection
d. Does not violate the right to equal protection
c. Violates the right to equal protection
The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as:
a. Assessment
b. Levy
c. Payment
d. Collection
ANSWER: d. Collection.
Although the power of taxation is basically legislative in character, it is NOT the function of Congress to:
a. Fix with certainty the amount of taxes
b. Collect the tax levied under the law
c. Identify who should collect the tax
d. Determine who should be subject to the tax
ANSWER: b. Collect the tax levied under the law.
What is the rule on the taxability of income that a government educational institution derives from its school operations? Such income is:
a. Subject to 10% tax on its net taxable income as if it is a proprietary educational institution
b. Exempt from income taxation if it is actually, directly, and exclusively used for educational purposes
c. Subject to the ordinary income tax rates with respect to incomes derived from educational activities
d. Exempt from income taxation in the same manner as government-owned and controlled corporations
ANSWER: b. Exempt from income taxation if it is actually, directly, and exclusively used for educational purposes.
Real property taxes should not disregard increases in the value of real property occurring over a long period of time. To do otherwise would violate the canon of a sound tax system referred to as:
a. Theoretical justice
b. Fiscal adequacy
c. Administrative feasibility
d. Symbiotic relationship
ANSWER: b. Fiscal adequacy.
Which of the following statements is correct? A CPA can have their certificate automatically revoked or canceled upon conviction in a criminal case:
a. For offering to the taxpayer the use of wrong accounting records
b. For willfully falsifying any audit report
c. For rendering a report on unconfirmed statements
d. All of the above
ANSWER: d. All of the above.
No person shall be imprisoned for nonpayment of:
a. Property tax
b. Excise tax
c. Poll tax
d. Answer not given
ANSWER: c. Poll tax.
A fundamental rule in taxation that the property of one country may not be taxed by another country is known as:
a. International law
b. International comity
c. Reciprocity
d. International inhibition
ANSWER: b. International comity.
The state has complete discretion on the amount to be imposed after distinguishing between a useful and a non-useful activity:
a. License fee
b. Tax
c. Toll
d. Customs duty
ANSWER: a. License fee.
Which of the following is NOT correct?
a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.
b. The property of an educational institution operated by a religious order is exempt from property tax and income tax.
c. The prohibition of delegation by the state of the power to tax still allows the Bureau of Internal Revenue to modify the rules for filing of returns and payment of taxes.
d. The power of taxation is shared by the legislative and executive departments of the government.
c. The prohibition of delegation by the state of the power to tax still allows the Bureau of Internal Revenue to modify the rules for filing of returns and payment of taxes.
