Module 2

Question 1

is the inherent power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government.

Answer 1

Taxation

Question 2

are the enforced proportional contributions from persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs, [Cooley]

Answer 2

Taxes

Question 3

Three types of taxes

Answer 3

National, Local and Special Taxes

Question 4

are fees that the BIR collects from taxpayers all over the Philippines. Imposed on different incomes and transactions in the Philippines, as defined by the BIR (e.g Income tax)

Answer 4

National taxes

Question 5

are involuntary fees that local government units (LGUS) collect from their constituents to finance activities and projects for their city or municipality. (eg Real property tax)

Answer 5

Local taxes

Question 6

are taxes that must be paid during certain cransactions or purchases (e.g. Motor vehicle user charge)

Answer 6

Special Taxes

Question 7

The determination of _________ for which taxes shall be levied provided it is for the benefit the public.

Answer 7

purposes

Question 8

The determination of _________
taxation such as the person, property, or occupation within jurisdiction.

Answer 8

subjects

Question 9

The determination as to the __________________ of tax unless constitutionally prohibited.

Answer 9

amount or rates

Question 10

The determination as to the _____ of tax to collect (i.e., property tax, income tax, inheritance tax, etc.).

Answer 10

Kind

Question 11

The determination of __________________ the taxes

Answer 11

agencies to collect

Question 12

The power to specify or provide ____________ and _____________.

Answer 12

administrative
judicial remedies

Question 13

The power to _________________ and condonations.

Answer 13

grant tax exemptions

Question 14

Requirement that levy must be for a public purpose.

Answer 14

Inherent Limitations

Question 15

Non-delegation of the legislative power to tax.

Answer 15

Inherent Limitations

Question 16

Exemption from taxation of government entities

Answer 16

Inherent limitations

Question 17

International comity

Answer 17

Inherent Limitations

Question 18

Territorial jurisdiction

Answer 18

Inherent Limitations

Question 19

The 2 Limitations on the power or tax

Answer 19

Inherent Limitations and Constitutional Limitations

Question 20

Due Process

Answer 20

Constitutional Limitations

Question 21

Equal protection of the Laws

Answer 21

Constitutional Limitations

Question 22

Uniformity & Progressivity

Answer 22

Constitutional Limitations

Question 23

Non-imprisonment for non-payment of poll tax

Answer 23

Constitutional Limitations

Question 24

Exemption from Property Tax of Religious, Charitable, and Educational Institutions

Answer 24

Constitutional Limitations

Question 25

Exemption of Non Stock Non profit educational Institutions

Answer 25

Constitutional Limitations

Question 26

Veto Power of the President

Answer 26

Constitutional Limitations

Question 27

Revenue and Tariff Bill must exclusively originate from the lower house

Answer 27

Constitutional Limitations

Question 28

Grant of Exemption Requires the Majority votes of congress

Answer 28

Constitutional Limitations

Question 29

Local Government’s power to tax

Answer 29

Constitutional limitations

Question 30

No Appropriation for Religious Purposes

Answer 30

Constitutional Limitations

Question 31

Non-impairment of Contracts

Answer 31

Constitutional Limitations

Question 32

Religious Freedom

Answer 32

Constitutional limitations

Question 33

The 3 Principles of Sound Tax System (FAT)

Answer 33

Fiscal Adequacy
Administrative Feasibility
Theoretical Justice

Question 34

revenue raised must be sufficient to meet government/public expenditures and other public needs.

Answer 34

Fiscal Adequacy

Question 35

tax laws must be clear and concise; capable of effective and efficient enforcement; convenient as to time and manner of payment, and must not obstruct business growth and economic development.

Answer 35

Administrative Feasibility

Question 36

must take into consideration the taxpayer’s ability to pay (Ability to Pay Theory). Art. VI, Sec. 28(1) of the 1987 Constitution mandates that the rule on taxati must be uniform and equitable and that the State evolve a progressive system of taxation.

Answer 36

Theoretical Justice

Question 37

it is taxing the same person for the same tax period and the same activity twice, by the same jurisdiction.

Answer 37

Double Taxation

Question 38

in broad sense is the opposite of direct double taxation and is not legally objectionable.

Answer 38

Double Taxation

Question 39

The absence of one or more of the foregoing requisites of obnoxious direct tax makes it indirect.

Answer 39

Double Taxation

Question 40

exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income, in order to avoid or reduce tax liability. Also known as “tax minimization.” (e.g., utilizing all permissible allowable deductions)

Answer 40

Tax Avoidance

Question 41

use of a taxpayer of illegal or fraudulent means to defeat or lessen the payment of tax.

Answer 41

Tax Evasion

Question 42

Also known as “tax dodging.” it presupposes malice, fraud, bad faith, or willful intent on the part of the taxpayer either to under-declare income or over-declare deductions to defeat tax liability,

Answer 42

Tax Evasion