Power of Taxation Flashcards
Who may exercise the power of taxation?
The President, to a limited extent, under Art. VI of the 1987 Constitution
Local legislative bodies under Article X of the 1987 Constitution
All of the choices
Primarily, the legislature
All of the choices.
The President, to a limited extent, under Art. VI of the 1987 Constitution
Local legislative bodies under Article X of the 1987 Constitution
Primarily, the legislature
In Commissioner of Internal Revenue v. Algue, the Supreme Court ruled that taxes should be collected without necessary hindrance. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. This ruling reflects what legal doctrine?
Lifeblood doctrine
Lifeline doctrine
Lifeboat doctrine
Bloodline doctrine
Lifeblood doctrine
This pertains to the situation wherein additional taxes are laid on the same subject by the same taxing jurisdiction during the same taxing period and for the same purpose.
Double taxation
Flat tax system
Regressive tax system
Progressive tax system
Double taxation
Charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, _________ used for religious, charitable, or educational purposes shall be exempt from taxation.
Actually and directly
Actually, directly, and exclusively
Actually and exclusively
Directly and exclusively
Actually, directly, and exclusively
What is the meaning of “Taxes should be uniform and equitable”?
All persons or things in the same class shall be subject to the same tax rate, and payment of taxes shall be based on a person’s capacity to pay.
None of the choices.
The amount of taxes to be paid should be the same for everyone, in line with the overarching principle of equality.
All persons or things shall be subject to the same tax rate, regardless of class and other pertinent factors.
All persons or things in the same class shall be subject to the same tax rate, and payment of taxes shall be based on a person’s capacity to pay.
The Constitution allows money to be collected pursuant to a tax levied for a special purpose. This is treated as a special fund. What happens if the purpose for the special fund has been fulfilled or abandoned, and there is a balance?
The balance shall be redistributed to the taxpayers in the form of tax deduction.
The balance shall be retained in the special fund, notwithstanding the fulfillment or abandonment of the purpose.
The balance shall be transferred to the general funds of the government.
The balance shall be redistributed to the taxpayers in the form of tax credit.
The balance shall be transferred to the general funds of the government.
In Gerochi v. Department of Energy, the Court explained the difference between police power and the power of taxation. What is the standard in saying that a certain generation of revenue is a tax and not a police power measure?
If the taxing authority considers the generation of revenue to be a tax, then the taxing authority’s opinion takes precedence; corollarily, the imposition is a tax.
If the generation of revenue is the primary purpose and regulation is just incidental, the imposition is a tax.
None of the choices.
Even if both generation of revenue and regulation are the primary purposes of an imposition, then the same is still a tax.
If the generation of revenue is the primary purpose and regulation is just incidental, the imposition is a tax.
What is the Bureau of Internal Revenue’s role vis-à-vis the power of taxation?
It has the power to impose taxes.
All of the choices.
It has the power to administer the collection of taxes and to issue implementing rules and regulations regarding the collection of taxes.
It has the power to create and enact tax laws.
None of the choices.
It has the power to administer the collection of taxes and to issue implementing rules and regulations regarding the collection of taxes.
Laws granting tax exemption are to be construed _______.
Strictly against both the taxpayer and taxing power.
Strictly against the taxing power; liberally in favor of the taxpayer
Liberally in favor of both the taxpayer and taxing power.
Strictly against the taxpayer; liberally in favor of the taxing power.
Strictly against the taxpayer; liberally in favor of the taxing power.
In Pascual v. Secretary of Public Works, the Court explained the concept of “public purpose” vis-à-vis the power of taxation. What, according to the Court, is the test of the constitutionality of a statute requiring the use of public funds?
If, at the very least, benefit redounds to the public, albeit incidentally, then the tax measure is valid.
None of the choices.
Both of the choices.
If the statute is designed to promote public interests, then the tax measure is valid.
If the statute is designed to promote public interests, then the tax measure is valid.
What is the statutory construction rule if a local government invokes the power to tax on national government instrumentalities, as discussed in the case of Manila International Airport Authority (MIAA) v. Court of Appeals?
The LGU’s exercise of the power is construed liberally in favor of the LGU.
None of the choices.
The LGU’s exercise of the power is construed strictly against the national government instrumentalities.
The LGU’s exercise of the power is construed strictly against the LGU.
The LGU’s exercise of the power is construed strictly against the LGU.
In Manila International Airport Authority (MIAA) v. Court of Appeals, the Court ruled that MIAA’s airport lands and buildings are exempt from real estate tax. How did the Court justify this ruling?
MIAA is an instrumentality of the National Government, and its properties are owned by the Republic. As such, the properties are exempt from local taxation.
MIAA is expressly exempted by law from payment of real estate tax.
MIAA is exempt from real estate tax because the taxing authority — the City Government of Parañaque — is barred by laches and prescription under the law.
MIAA’s properties cannot possibly be taxed because they are outside the local government’s taxing jurisdiction.
MIAA is an instrumentality of the National Government, and its properties are owned by the Republic. As such, the properties are exempt from local taxation.
Which of the following are exempt from taxation?
All grants, endowments, donations, or contributions used actually, directly, and exclusively for educational purposes
None of the choices
All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes
All of the choices
Charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes
All of the choices
All grants, endowments, donations, or contributions used actually, directly, and exclusively for educational purposes
All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes
Charitable institutions, churches, and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes
What is the difference between a license fee and tax?
None of the choices.
Both of the choices.
License fee is paid for the privilege of doing something and may be revoked when public interest requires; tax is imposed on persons or property for revenue.
License fee is a police power measure; tax is a revenue measure.
Both of the choices.
License fee is paid for the privilege of doing something and may be revoked when public interest requires; tax is imposed on persons or property for revenue.
License fee is a police power measure; tax is a revenue measure.
