PRELIMS

Question 1

There should be direct receipt of benefit before one could be compelled to pay taxes.

Answer 1

False

Question 2

Eminent domain involves confiscation of prohibited commodities to protect the well-being of the people.

Answer 2

False

Question 3

Horizontal equity requires consideration of the circumstance of the taxpayer.

Answer 3

True

Question 3

Taxes are the lifeblood of the government.

Answer 3

True

Question 3

Police power is the most superior power of the government.

Answer 3

True

Question 4

All inherent powers presuppose an equivalent form of compensation.

Answer 4

True

Question 4

The reciprocal duty of support between the government and the people underscores the basis of taxation.

Answer 4

True

Question 5

Taxation is a mode of apportionment of government costs to the people.

Answer 5

True

Question 6

The exercise of taxation power requires constitutional grant.

Answer 6

False

Question 7

Taxation is inherent in sovereignty.

Answer 7

True

Question 8

Is the process or means by which the sovereign, through its lawmaking body imposes burden upon subject within its jurisdiction for the purpose of raising revenue to carry out the legitimate objects of government.

Answer 8

Taxation

Question 8

Taxation is an inherent power of the state

Answer 8

As to state power

Question 9

Taxation is a process of levying taxes by the legislature of the state

Answer 9

As to process

Question 10

Taxation is a mode by which the state allocates its cost or burden to its subject who are benefited by its spending

Answer 10

As a mode of cost distribution

Question 11

Lifeblood of the government

Answer 11

Taxes

Question 12

Power of the state to enforce proportional contribution from its subjects to sustain itself

Answer 12

Taxation power

Question 13

The general power of state to enact law to protect the well-being of the people

Answer 13

Police power

Question 14

The power of the state to take private property for public use after paying just compensation

Answer 14

Eminent Domain

Question 15

Place of taxation

Answer 15

Situs

Question 16

Businesses are subject to tax in the place where the business is conducted

Answer 16

Business tax situs

Question 17

When all the all element of double taxation exist for both imposition

Answer 17

Direct double taxation

Question 18

When at least one of the secondary element of double taxation is not common for both imposition

Answer 18

Indirect double taxation

Question 19

Any misrepresentation made by one party toward another

Answer 19

Doctrine of estoppel

Question 19

Tax avoidance is also know as

Answer 19

Tax minimization

Question 20

Tax evasion is also know as

Answer 20

Tax dodging

Question 21

Any act that reduces or totally escapes taxes by any legally permissible means


Answer 21

Tax avoidance

Question 21

Tax exemption is also know as

Answer 21

Tax holiday

Question 22

Any act that tends to illegally reduce or avoid the payment of tax

Answer 22

Tax evasion

Question 23

Refers to immunity privilege or freedom from being subject to a tax

Answer 23

Tax exemption

Question 24

Process of transferring tax burden to other taxpayers

Answer 24

Shifting

Question 25

Adjustment of the value of an asset caused by changes in tax rate

Answer 25

Capitalization

Question 26

The elimination of waste or losses by the tax payer to form savings

Answer 26

Transformation

Question 27

The enforced proportional contributions from persons and property levied by the lawmaking body of the State by virtue of its sovereignty for the support of the government and all public needs

Answer 27

Tax