TAXATION

Question 1

A president who recognizing the vital role of a tax research
institution in the overall economic development thrust
of the New Society

Answer 1

President Ferdinand E.
Marcos

Question 2

the NTRC was organized as a purely single-headed agency
under the administrative supervision of the ________

Answer 2

National
Economic and Development Authority (NEDA).

Question 3

the use of the tax prayer of illegal
means to avoid or minimize payment of the tax ‘

Answer 3

TAX EVASION

Question 4

the use of the taxpayer of legally permissible methods to
reduce his tax liability’’

Answer 4

TAX AVOIDANCE

Question 5

formal organization of a community by means of which community takes cognizance of the common good and reflects & acts
upon possible solution to these problems.

Answer 5

POLITICAL ORGANIZATION

Question 6

Legal power & physical power to exact obedience
from citizen in view of the common good.

Answer 6

AUTHORITY

Question 7

may have interests other
than common good.

Answer 7

COMMUNITY

Question 8

the first political philosopher to use the term
‘state’ in its specific sense, referring to the government
apparatus which guides the political society and is at the
service of this society.”

Answer 8

Machiavelli

Question 9

Taxes are the enforced proportional contribution,
generally payable in money, levied by the law
making body of the state by virtue of its sovereignty
upon the persons or property within its jurisdiction for
the support of the government and all public needs.

Answer 9

TAXATION

Question 10

PURPOSE OF TAXATION

Answer 10

to raise revenue to satisfy government
needs

Question 11

government cannot exist and function
without means to pay its expenditures.

Answer 11

Necessity

Question 12

legislative act of imposing the tax, exercised by
Congress

Answer 12

LEVY

Question 13

administrative act of collecting the tax,
exercised by executive branch

Answer 13

COLLECTION

Question 14

executive branch to collect the tax

Answer 14

1.Bureau of Internal Revenue - national taxes
2. Bureau of Customs - customs duties
3. Local government Units - local taxes and real
property taxes
4. Appropriate government &charges

Question 15

“the sources of revenue should be sufficient to meet the demands of public expenditures”.

Answer 15

FISCAL ADEQUACY

Question 16

“the tax imposed should be proportionate to the taxpayer’s ability to
pay”.

Answer 16

EQUALITY OR THEORETICAL JUSTICE

Question 17

“tax laws should be capable of convenient, just and effective
administration”

Answer 17

ADMINISTRATIVE FEASIBILITY

Question 18

3 CONSTITUTIONAL LIMITATIONS

Answer 18

DUE PROCESS CLAUSE
EQUAL PROTECTION CLAUSE
UNIFORMITY CLAUSE

Question 19

taxpayer may not be deprived of life, liberty or property without due process of law.

Answer 19

DUE PROCESS CLAUSE

Question 20

taxpayers shall be treated alike under similar circumstances and
conditions, both in privileges and liabilities imposed.

Answer 20

EQUAL PROTECTION CLAUSE

Question 21

taxable articles or property of the same class shall be taxed at the same rate. No direct double taxation.

Answer 21

UNIFORMITY CLAUSE

Question 22

HOW DOUBLE TAXATION WORKS

Answer 22

Double taxation often occurs because corporations are considered separate legal entities from their shareholders. As such, corporations
pay taxes on their annual earnings, just like individuals. When corporations pay out dividends to shareholders, those dividend payments incur income-tax liabilities for the shareholders who receive them, even though the earnings that provided the cash to pay the dividends were already taxed at the
corporate level.

Question 23

personal, poll or capitation: fixed amount imposed
on individuals residing within specified territory.
e.g. community tax

property, real or personal, e.g. real estate tax

Answer 23

AS TO SUBJECT MATTER OR OBJECT

Question 24

demanded from the person who is
intended to pay it

Answer 24

DIRECT TAX

Question 25

demanded from one person in the expectation and intention that he shall indemnity himself at the expense of another.
e.g. value added tax

Answer 25

INDIRECT TAX

Question 26

is referred to as tax on all yearly profits
arising from property, professions, trades or offices, or
as a tax on a person’s income emoluments, profits
and the like.”

Answer 26

INCOME TAX