Taxation

Question 1

use of illegal means to avoid or minimize payment of the tax.

Answer 1

Tax Evasion

Question 2

use of legally permissible methods to reduce tax liability.

Answer 2

Tax Avoidance

Question 3

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

Answer 3

Political Organization

Question 4

the first political philosopher to use the term ‘state’ in its specific sense.

Answer 4

Machiavelli

Question 5

the enforced proportional contribution.

Answer 5

Taxes

Question 6

the inherent power by which the sovereign state imposes financial burden upon persons and property.

Answer 6

Taxation

Question 7

the primary purpose of taxation.

Answer 7

To raise revenue to satisfy government needs

Question 8

Basis of Taxation is Two-Fold:

Answer 8

1. Necessity
2. Reciprocal duties

Question 9

Two Aspect of Taxation:

Answer 9

1. LEVY
2. Collection

Question 10

legislative act of imposing tax exercised by congress.

Answer 10

LEVY

Question 11

administrative act of collecting the tax exercised by Executive branch.

Answer 11

Collection

Question 12

7 Essential Characteristics of a Tax

Answer 12

1. Enforced contribution
2. Payable in the form of money
3. Laid by some rule of apportionment
4. Levied on persons, property, acts, privileges, or transactions.
5. Levied by the state
6. Levied by law-making body
7. Levied for public purposes.

Question 13

3 Basic Principles of a Sound Tax System

Answer 13

1. Fiscal Adequacy
2. Equality or Theoretical Justice
3. Administrative Feasibility

Question 14

sources of revenue should be sufficient to meet the demand of public expenditures.

Answer 14

Fiscal Adequacy

Question 15

tax imposed should be proportionate to the tax paper’s ability.

Answer 15

Equality or Theoretical Justice

Question 16

tax law should be capable of convenient, just, and effective administration.

Answer 16

Administrative Feasibility

Question 17

3 Constitutional Limitations

Answer 17

1. Due Process Clause
2. Equal Protection Clause
3. Uniformity Clause

Question 18

a limitation that states that taxpayer may not be deprived of life … without due process of law.

Answer 18

Due Process Clause

Question 19

a limitation that states that taxpayer shall be treated alike under similar circumstances.

Answer 19

Equal Protection Clause

Question 20

a limitation that states that taxable article or property of the same class shall be taxed at the same rate.

Answer 20

Uniformity Clause

Question 21

6 Classification of Taxes

Answer 21

1. As to subject matter or object
2. As to who bears the burden
3. As to determination of amount
4. As to purpose
5. As to authority imposing the tax
6. As to gradation or rate