TRUE OR FALSE

Question 1

The power to tax is supreme, plenary, comprehensive and without any limit because the existence of the government is a necessity.

Answer 1

FALSE

Question 2

The power of taxation in the Philippine Constitution are grants of power and not limitations on taxing power.

Answer 2

FALSE

Question 3

Taxes maybe imposed to raise revenue or to provide disincentives to certain activities within the state.

Answer 3

TRUE

Question 4

The amount of money raised for the government in the exercise of its power to tax and police power is bases on the needs of the government.

Answer 4

FALSE
(X - Police power)

Question 5

The power to tax can be exercised even in the absence of a constitutional grant.

Answer 5

TRUE

Question 6

Taxes are pecuniary in nature.

Answer 6

TRUE

Question 7

There are two kinds of double taxation - evasion and avoidance.

Answer 7

FALSE
(direct duplicate taxation and indirect duplicate taxation)

Question 8

The government can enforce contribution upon its citizens only when the constitution grants it.

Answer 8

FALSE
(no need to wait if the constitution grants it)

Question 9

Income tax is an excise tax.

Answer 9

TRUE

Question 10

A tax cannot be imposed without clear and express words for that purpose.

Answer 10

TRUE

Question 11

Taxes are imposed on persons and property beyond the territorial jurisdiction of the state.

Answer 11

FALSE

Question 12

The Constitution is the source of the State’s taxing power.

Answer 12

TRUE

Question 13

The police power of the government may be exercised through taxation.

Answer 13

TRUE

Question 14

In the exercise of the power of taxation, the State can tax anything at any time.

Answer 14

TRUE

Question 15

The money contributed as tax becomes part of public funds.

Answer 15

TRUE

Question 16

The power of taxation may be exercised by government, its political subdivisions, and public utilities.

Answer 16

FALSE

Question 17

If the law is repealed, taxes assessed before repeal of the law may no longer be collected.

Answer 17

FALSE

Question 18

Generally, there is no limit on the amount of tax that may be imposed.

Answer 18

TRUE

Question 19

Tax evasion is known as tax minimization while tax avoidance is known as tax dodging.

Answer 19

FALSE
(Tax evasion is known as tax dodging while tax avoidance is known as tax minimization)

Question 20

The power to tax is subject to inherent and constitutional limitations.

Answer 20

TRUE

Question 21

Statement 1. The rent, in some of the religious order is subject to tax.

Statement 2. The exemption from taxation provided in the Philippine Constitution prohibits We imposition of any tax on the religious order.

Answer 21

Statement 1 is TRUE while Statement 2 is FALSE.

Question 22

Statement 1. This exemption from tax applies whether the educational institution by a religious order or not.
Statement 2. The policy consideration for the tax exemption is to encourage the establishment and not profit-motivated of educational institutions which is public service oriented.

Answer 22

Both statements are TRUE.