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TAXATION > GENERAL PRINCIPLES > Flashcards

GENERAL PRINCIPLES Flashcards

1
Q 
They exist independent of the constitution 
being fundamental powers of the State, 
except
a. Power of taxation
b. Police power
c. Power of imminent domain
d. Power to recall
A

d. Power to recall

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2
Q 
The power to acquire private property upon 
payment of just compensation for public 
purpose
a. Power of taxation
b. Police power
c. Power of imminent domain
d. Power to recall
A

c. Power of imminent domain

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3
Q 
The power to regulate liberty and property 
to promote the general welfare 
a. Power of taxation
b. Police power
c. Power of imminent domain
d. Power to recall
A

b. Police power

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4
Q 
The power to demand proportionate 
contributions from persons and property to 
defray the expenses of the government
a. Power of taxation
b. Police power
c. Power of imminent domain
d. Power to recall
A

a. Power of taxation

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5
Q 
Basic principles of a sound tax system, 
except
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual feasibility
A

d. Intellectual feasibility

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6
Q 
The tax imposed should be proportionate 
to the taxpayer’s ability to pay
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual feasibility
A

b. Equality or theoretical justice

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7
Q

The sources of revenue as a whole should
be sufficient to meet the demands of public
expenditures
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual feasibility

A

a. Fiscal adequacy

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8
Q 
The tax laws must be capable of 
convenient, just and effective 
administration
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual feasibility
A

c. Administrative feasibility

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9
Q 
Persons or things belonging to the same 
class shall be taxed at the same rate
a. Simplicity in taxation
b. Reciprocity in taxation
c. Equality in taxation
d. Uniformity in taxation
A

d. Uniformity in taxation

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10
Q 
The tax should be proportional to the 
relative value of the property to be taxed
a. Simplicity in taxation
b. Reciprocity in taxation
c. Equality in taxation
d. Uniformity in taxation
A

c. Equality in taxation

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11
Q 
The following are the nature of taxation, 
except
a. Inherent in sovereignty
b. Essentially legislative in character
c. Subject to inherent and 
constitutional limitation
d. Subject to approval of the people
A

d. Subject to approval of the people

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12
Q

It literally means “place of taxation”, the
country that has the power and jurisdiction
to levy and collect the tax
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

A

b. Situs of taxation

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13
Q 
The existence of the government is a 
necessity and that the state has the right 
to compel all individual and property within 
its limit to contribute
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation
A

d. Theory of taxation

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14
Q 
The reciprocal duties of support and 
protection between the people and the 
government
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation
A

a. Basis of taxation

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15
Q 
Subject to inherent and constitutional 
limitations, the power of taxation is 
regarded as supreme, plenary, unlimited 
and comprehensive
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation
A

c. Scope of taxation

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16
Q

Our National Internal Revenue Laws are

a. Political in nature
b. Penal in nature
c. Criminal in nature
d. Civil in nature

A

d. Civil in nature

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17
Q

The levying or imposition of tax and the
collection of the tax are processes which
constitute the taxation system
a. Basis of taxation
b. Aspects of taxation
c. Nature of taxation
d. Theory of taxation

A

b. Aspects of taxation

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18
Q 
The process or means by which the 
sovereign, through its law making body 
raises income to defray the expenses of 
the government
a. Toll
b. License fee
c. Taxation
d. Assessment
A

c. Taxation

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19
Q

. Enforced proportional contribution from
persons and property levied by the state
by virtue of its sovereignty for the support
of the government and for public needs
a. Toll
b. License fee
c. Taxes
d. Assessment

A

c. Taxes

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20
Q 
An escape from taxation where the tax 
burden is transferred by the one on whom 
the tax imposed or assessed to another
a. Shifting
b. Exemption
c. Transformation
d. Capitalization
A

a. Shifting

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21
Q

An escape from taxation where the
producer or manufacturer pays the tax an
endeavor to recoup himself by improving
his process of production thereby turning
out his units of products at a lower cost
a. Shifting
b. Exemption
c. Transformation
d. Capitalization

A

c. Transformation

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22
Q

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

A

d. Capitalization

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23
Q 
The use of illegal or fraudulent means to 
avoid or defeat the payment of tax
a. Exemption
b. Shifting
c. Avoidance 
d. Evasion
A

d. Evasion

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24
Q 
The use of legal and permissive means to 
minimize or avoid taxes
a. Exemption
b. Shifting
c. Avoidance
d. Evasion
A

c. Avoidance / Tax Planning

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25
Q

Synonymous to tax evasion

a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion

A

a. Tax dodging

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26
Q

Synonymous to tax avoidance

a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion

A

b. Tax minimization

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27
Q 
In every case of doubt, tax statutes are 
construed
a. Strictly against the government 
and the taxpayer
b. Liberally in favor of the 
government and the taxpayer
c. Strictly against the government 
and liberally in favor of the 
taxpayer
d. Liberally in favor of the 
government and strictly against 
the taxpayer
A

c. Strictly against the government
and liberally in favor of the
taxpayer

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28
Q 
In every case of doubt, tax exemptions are 
construed 
a. Strictly against the government 
and the taxpayer
b. Liberally in favor of the 
government and the taxpayer
c. Strictly against the government 
and liberally in favor of the 
taxpayer
d. Liberally in favor of the 
government and strictly against 
the taxpayer
A

d. Liberally in favor of the
government and strictly against
the taxpayer

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29
Q 
In case of conflict between the Tax Code 
and the Philippine Accounting Standards 
(PAS)
a. PAS shall prevail over the Tax Code
b. Tax Code shall prevail over PAS
c. PAS and Tax Code shall be both 
disregarded
d. The taxpayer may choose between 
the PAS or the Tax Code
A

b. Tax Code shall prevail over PAS

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30
Q 
Tax of a fixed amount imposed upon all 
persons residing within a specified territory 
without regard to their property or 
occupation they may be engaged
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
A

a. Personal, poll or capitation

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31
Q 
Tax imposed on personal or real property 
in proportion to its value or on some 
reasonable method of apportionment 
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
A

b. Property

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32
Q 
Tax imposed upon the performance of an 
act, the enjoyment of privilege or the 
engaging in an occupation
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
A

c. Excise

33
Q 
Tax which is demanded from the person 
whom the law intends or desires to pay it
a. Direct
b. Indirect
c. Excise
d. Percentage
A

a. Direct

34
Q 
Tax which is demanded from one person in 
the expectation and intention that he shall 
indemnify himself at the expense of 
another
a. Direct
b. Indirect
c. Property
d. Income
A

b. Indirect

35
Q 
Tax which imposes a specific sum by the 
head or number or by some standard of 
weight or measurement and which requires 
no assessment other than a listing or 
classification of the objects to be taxed
a. Specific
b. Ad-valorem
c. Excise
d. Income
A

a. Specific

36
Q

Tax of a fixed proportion of the amount or
value of the property with respect to which
the tax is assessed
a. Specific
b. Ad-valorem
c. Excise
d. Percentage

A

b. Ad-valorem

37
Q 
Tax based on a fixed percentage of the 
amount of property, income or other basis 
to be taxed
a. Proportional
b. Progressive
c. Regressive
d. Indirect
A

a. Proportional

38
Q 
Tax where the rate decreases as the tax 
base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
A

c. Regressive

39
Q 
Tax where the rate increases as the tax 
base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
A

b. Progressive

40
Q 
Which of the following statements is not 
correct?
a. Tax burdens shall neither be 
imposed nor presumed to be 
imposed beyond what the statute 
expressly and clearly states 
because tax statutes should be 
construed strictly against the 
government.
b. Tax exemption, tax amnesty, tax 
condonations and their equivalents 
are not presumed and, when 
granted, are strictly construed 
against the taxpayer because such 
provisions are highly disfavored by 
the government.
c. Exemptions from taxation are 
highly disfavored in law and he 
who claims tax exemption must be 
able to justify his claim or right.
d. The House of Representatives has 
the duty and the exclusive power 
of constructing and interpreting tax 
laws.
A

d. The House of Representatives has
the duty and the exclusive power
of constructing and interpreting tax
laws.

41
Q

The strongest of all inherent powers of the
State because without it, the government
can neither survive nor dispense any of its
powers and functions effectively
a. Police power
b. Power of imminent domain
c. Power of taxation
d. Power of recall

A

c. Power of taxation

42
Q

This power is superior to the nonimpairment clause and is broader in
application because it is a power to make
and implement laws
a. Power of taxation
b. Power of recall
c. Power of imminent domain
d. Police power

A

d. Police power

43
Q

Which of the following statements is not
correct?
a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.
b. Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our country.
c. Taxes may be imposed
retroactively by law, but unless so expressed by such law, these taxes
must only be imposed
prospectively.
d. Tax laws are either political or penal in nature.

A

d. Tax laws are either political or penal in nature.

44
Q 
Which of the following is not a 
constitutional limitation on the power of 
taxation?
a. No person shall be deprived of life, 
liberty or property without due 
process of law.
b. No person shall be denied the 
equal protection of the law.
c. No person shall be imprisoned for 
debt or non-payment of tax
d. No law granting any tax exemption 
shall be passed without the 
concurrence of a majority of all the 
members of Congress.
A

c. No person shall be imprisoned for

debt or non-payment of tax

45
Q

The distinction of a tax from permit or license fee is that a tax is

a. Imposed for regulation
b. One which involves an exercise of police power
c. One in which there is generally no limit on the amount that may be imposed.
d. Limited to the cost of regulation.

A

c. One in which there is generally no limit on the amount that may be imposed.

46
Q

. Police power as distinguished from the
power of imminent domain
a. Just compensation is received by
the owner of the property.
b. Maybe exercised by private individuals
c. May regulate both liberty and property
d. Property is taken by the
government for public purpose

A

c. May regulate both liberty and property

47
Q

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. Value added tax
c. Indirect tax
d. Percentage tax

A

a. Direct tax

48
Q 
Which of the following is not a 
characteristic or element of a tax?
a. It is an enforced contribution.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is payable in money or in kind.
A

d. It is payable in money or in kind.

49
Q 
Tax as distinguished from license fees
a. Limited to cover cost of regulation
b. A regulatory measure
c. Non-payment does not necessarily 
render the business illegal.
d. Imposed in the exercise of police 
power.
A

c. Non-payment does not necessarily

render the business illegal.

50
Q

The power of taxation is exercised by

a. The president
b. The Supreme Court
c. Bureau of Internal Revenue
d. Congress

A

d. Congress

51
Q 
One of the characteristics of internal 
revenue laws is that that are
a. Criminal in nature
b. Penal in nature
c. Political in nature
d. Generally prospective in 
application.
A

d. Generally prospective in

application.

52
Q

Which of the following is an example of excise tax?

a. Transfer tax
b. Sales tax
c. Real property tax
d. Income tax

A

c. Real property tax

53
Q 
The following are similarities of the 
inherent power of taxation, imminent 
domain and police power, except
a. Are necessary attribute of 
sovereignty 
b. Interfere with private rights and 
property
c. Tangible compensation is received
d. Are legislative in character
A

c. Tangible compensation is received

54
Q 
Which of the following is not a scheme of 
shifting the incidence of taxation?
a. The manufacturer transfers the tax 
to the consumer by adding the tax 
to the selling price of the goods 
sold.
b. The purchaser asks for a discount 
or refuses to buy at regular prices 
unless it is reduced by the amount 
equal to the tax he will pay.
c. Changing the terms of the sale like 
FOB shipping point in the 
Philippines to FOB destination 
abroad, so that the title passes 
abroad instead of in the 
Philippines.
d. The manufacturer transfers the 
sales tax to the distributor, then in 
turn to the wholesaler and finally 
to the consumer.
A

c. Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination abroad, so that the title passes abroad instead of in the Philippines.

55
Q 
Which of the following statements is 
correct?
a. Taxes may be imposed to raise 
revenue or to provide disincentives 
to certain activities within the 
state.
b. The state can have the power to 
taxation even if the Constitution 
does not expressly give it the 
power to tax.
c. For the exercise of the power of 
taxation, the state can tax 
anything at any time.
d. The provisions of taxation in the 
Philippine Constitution are grant of 
powers and not limitations n taxing 
power.
A

c. For the exercise of the power of
taxation, the state can tax
anything at any time.

56
Q 
License fee as distinguished from tax
a. Non-payment does not necessary 
render the business illegal.
b. A revenue-raising measure.
c. Imposed in the exercise of taxing 
power
d. Limited to cover cost of regulation
A

d. Limited to cover cost of regulation

57
Q

Value-added tax is an example of

a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax

A

d. Proportional tax

58
Q 
Which tax principle is described in the 
statement “The more income earned by 
the taxpayer, the more tax he has to pay”
a. Fiscal adequacy 
b. Theoretical justice
c. Administrative feasibility
d. Inherent sovereignty
A

b. Theoretical justice

59
Q 
The most superior and least limitable 
among the fundamental powers of the
state
a. Power to recall
b. Police power
c. Power of taxation
d. Power of imminent domain
A

b. Police power

60
Q 
One of the characteristics of a tax is that
a. It is generally based on contract
b. It is generally payable in money
c. It is generally assignable
d. It is generally subject to 
compensation.
A

b. It is generally payable in money

61
Q 
The following are the characteristics of our 
internal revenue laws, except
a. Political in nature
b. Civil in nature
c. Generally prospective in application
d. May operate retrospectively if 
Congress so provides
A

a. Political in nature

62
Q 
Which of the following has no power of 
taxation?
a. Provinces
b. Cities
c. Barangays
d. Barrios
A

d. Barrios

63
Q 
Which of the following statements is 
wrong? A revenue bill
a. Must originate from the House of 
Representatives and on which 
same bill the Senate may propose 
amendments
b. May originate from the Senate and 
on which the same bill the House 
of Representatives may propose 
amendments.
c. May have a House version and a 
Senate version approved 
separately and then consolidated, 
with both houses approving the 
consolidating version
d. May be recommended by the 
President to Congress.
A

b. May originate from the Senate and
on which the same bill the House
of Representatives may propose
amendments.

64
Q 
Tax as distinguished from special 
assessment
a. Not a personal liability of the 
person assessed
b. Based wholly on benefits
c. Exceptional as to time and place
d. Based on necessity and is of general application
A

d. Based on necessity and is of general application

65
Q

Under this basic principle of a sound tax
system, the Government should not incur a
deficit
a. Theoretical justice
b. Administrative feasibility
c. Fiscal adequacy
d. Uniformity in taxation

A

c. Fiscal adequacy

66
Q 
Which of the following may not raise 
money for the government?
a. Power of taxation
b. Police power
c. Eminent domain
d. License
A

c. Eminent domain

67
Q

No person shall be imprisoned for nonpayment of this

a. Excise tax
b. Value added tax
c. Income tax
d. Poll tax

A

d. Poll tax

68
Q

This is a demand of ownership

a. License fee
b. Tax
c. Toll
d. Customs duties

A

c. Toll

69
Q

Income tax is generally regarded as

a. An excise tax
b. A tax on persons
c. A property tax
d. Tax on profits

A

a. An excise tax

70
Q 
Which of the following is not acceptable for 
legally refusing to pay tax?
a. That the right of the state to collect 
the tax has prescribed.
b. That there is no jurisdiction to 
collect the tax
c. That the tax law was declared as 
unconstitutional
d. That there is no benefit derived 
from the tax
A

d. That there is no benefit derived from the tax

71
Q

It is important to know the source of
income for income tax purposes, i.e. from
within or without the Philippines because
a. The Philippines imposes income tax
on income from sources within and
without of a non-resident citizen
b. Some individual taxpayers are
citizens while others are aliens.
c. Separate graduated rates are imposed on different types of income
d. Some taxpayers are taxed on their
worldwide income while others are taxable only upon income from
sources within the Philippines.

A

d. Some taxpayers are taxed on their worldwide income while others are taxable only upon income from sources within the Philippines.

72
Q 
A law granting tax exemption requires the 
concurrence of
a. Majority vote of members of Congress
b. 2/3 vote of members of Congress
c. ¾ vote of members of Congress
d. Unanimous vote of members of 
Congress
A

a. Majority vote of members of Congress

73
Q 
No person shall be imprisoned for debt or 
non-payment of poll tax. This is an (a)
a. Inherent limitation
b. Constitutional limitation
c. International limitation
d. Territorial limitation
A

b. Constitutional limitation

74
Q

The Department of Finance thru its officers
entered into a contract with foreign
investors granting them exemption from all
forms of taxes to encourage investments in
the Philippines. The contract is
a. Void, unless the President ratifies it
b. Void, because the powers to grant
tax exemptions is vested in
Congress
c. Valid, if the President has
authorized the officers to enter into
such contract
d. Valid, because the purpose is to
promote public welfare.

A

b. Void, because the powers to grant tax exemptions is vested in Congress

75
Q

Tax as distinguished from debt

a. No imprisonment for non-payment
b. May be paid in kind
c. Based on contract
d. Based on law

A

d. Based on law

76
Q 
Congress can impose a tax at any amount 
and at anytime shows that
a. Taxation is an inherent power of 
the estate
b. Taxation is essentially a legislative 
power
c. Taxation is a very broad power of 
the state
d. Taxation is based on taxpayer’s 
ability to pay
A

c. Taxation is a very broad power of the state

77
Q 
The amount required is dictated by the 
needs of the government
a. License fee
b. Tax
c. Toll
d. Debts
A

b. Tax

78
Q 
Which of the following are National Internal 
Revenue Taxes?
I. Income Tax
II. Estate Tax
III. Donor’s Tax
IV. Value Added Tax
V. Other Percentage Tax
VI. Excise Tax
VII.Documentary Tax
a. I, II, III, IV
b. I, II, III. IV, V
c. I, II, III. IV, V, VI
d. I, II, III. IV, V, VI, VII
A

d. I, II, III. IV, V, VI, VII

TAXATION (4 decks)

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