[QUIZ] Feb 12 Flashcards
The proportional contribution by 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 is referred to as:
a. Taxes
b. Special assessment
c. License fee
d. Penalty
ANSWER: a. Taxes
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. Debt restructuring
ANSWER: c. Fiscal adequacy
What basic principle of a sound tax system is met when Congress evolves a progressive system of taxation as mandated in the Constitution?
a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Balanced budget
ANSWER: b. Theoretical justice
Which of the following is NOT a basic principle of a sound tax system?
a. It should be capable of being effectively enforced.
b. It must be a progressive tax.
c. It must be sufficient to meet government expenditures and other public needs.
d. It should be exercised to promote public welfare.
ANSWER: d. It should be exercised to promote public welfare.
Which one of the following is NOT a characteristic of the State’s power to tax?
a. It is inherent in sovereignty.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is subject to constitutional and inherent limitations.
ANSWER: c. It is based on the ability to pay.
Statement 1: 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.
Statement 2: Taxation 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. Both statements are false
b. Both statements are true
c. Only Statement 1 is false
d. Only Statement 1 is true
ANSWER: b. Both statements are true
Upon taxation depends the government’s ability to serve the people for whose benefit taxes are collected. Hence, taxes may be imposed even in the absence of constitutional grants, and collection of taxes cannot be stopped.
a. Government is a necessity theory
b. Benefits received theory
c. Ability to pay
d. Lifeblood theory
ANSWER: d. Lifeblood theory
One of the following is NOT a manifestation of the lifeblood theory:
a. Imposition of tax even in the absence of a constitutional grant.
b. Right to select objects and subjects of taxation.
c. No injunction to enjoin tax collection.
d. Equal protection of law.
ANSWER: d. Equal protection of law.
The power of taxation proceeds upon what theory?
a. Government is a necessity theory
b. Benefits received theory
c. Ability to pay
d. Severance test
ANSWER: a. Government is a necessity theory
The basis of taxation is the reciprocal duty of protection and support between the State and its inhabitants.
a. Government is a necessity theory
b. Benefits received theory
c. Ability to pay
d. Lifeblood theory
ANSWER: b. Benefits received theory
Statement 1: Symbiotic relation is the reason why the government could impose taxes on the incomes of resident citizens derived from sources outside the Philippines.
Statement 2: Jurisdiction is the reason why citizens must provide support to the State so the latter could continue to give protection.
a. Both statements are true
b. Both statements are false
c. Only Statement 1 is correct
d. Only Statement 2 is correct
b. Both statements are false
Your two classmates are engaged in a discussion as to what is included in the inherent limitations on the power of taxation. They decided to make you their referee to enlighten them on which of the following is generally NOT included among the inherent limitations. What should you choose?
a. Double taxation
b. Recognition of comity
c. No improper delegation of the legislative authority to tax
d. The taxing power should only be exercised within the territorial boundaries of the taxing authority
ANSWER: a. Double taxation
An annual tax of P500.00 was imposed upon all residents of the Philippines who are above 21 years old, with a gross annual income of P250,000.00, whether or not they send their children to public schools, for the purpose of raising funds to improve public school buildings. The tax is:
a. Violative of the equal protection clause of the Constitution
b. Confiscatory
c. For public purpose
d. Contradicts the inherent limitations
ANSWER: c. For public purpose
A tax does not meet the public purpose limitation if it:
a. Is for the welfare of the nation or a greater portion of the population
b. Affects the areas as a community rather than as individuals
c. Is for the benefit principally of limited subjects or objects
d. Is designed to support the services of the government for some of its recognized objects
c. Is for the benefit principally of limited subjects or objects
A person may be imprisoned for:
a. Non-payment of poll tax
b. Failure to pay a debt
c. Non-payment of his income tax
d. Failure to pay his community tax
ANSWER: c. Non-payment of his income tax
Which of the following may NOT raise money for the government?
a. Power of taxation
b. Power of eminent domain
c. Police power
d. Privatization of government’s capital assets
ANSWER: b. Power of eminent domain
As a basic principle of taxation, “Taxes must be based on the taxpayer’s ability to pay” is called:
a. Equality in taxation
b. Ability to pay theory
c. Theoretical justice
d. Equity in taxation
c. Theoretical justice
Statement 1: In the exercise of the power of taxation, the State can tax anything, at any time, at any amount.
Statement 2: Taxes may be imposed not only to raise revenue but also to provide incentives and disincentives to certain activities within the State.
a. Both statements are correct
b. The 1st statement is correct, the 2nd is incorrect
c. Both statements are incorrect
d. The 1st statement is incorrect, the 2nd is correct
a. Both statements are correct
A fundamental rule in taxation is that the property of one country may not be taxed by another country. This is known as:
a. International law
b. International comity
c. Reciprocity
d. International inhibition
ANSWER: b. International comity
A tax must be imposed for a public purpose. Which of the following is NOT a public purpose?
a. National defense
b. Public education
c. Improvement of the sugar industry
d. Construction of a private resort
ANSWER: d. Construction of a private resort
