Various Doctrines

Question 1

in indirect taxes, what is being shifted is the _________ of paying tax

Answer 1

incidence or the economic burden

Question 2

Normally, ___________ are NOT indirect taxes

Answer 2

Witholding taxes, like VAT

Question 3

(T or F) The concept of Territoriality in taxation is NOT similar to the situs of taxation. It is just ONE aspect/consideration of the situs of taxation

Answer 3

True

Question 4

Double taxation is _______ unconstitutional

Answer 4

not always unconstitutional

Question 5

Direct doubt taxation is ______

Answer 5

unconstitutional

Question 6

methods to eliminate double taxation

Answer 6

tax credit, tax deduction, tax exemption, and imposition of a lower rate

Question 7

Tax abatement

Answer 7

is not a way to minimize double taxation; it is a power of BIR to cancel or lower tax assessments

Question 8

Tax Credit

Answer 8

is the deduction of the actual amount of the tax to be paid (double citizenship, taxes paid in the US can be deducted from the taxes due to be paid in the Philippines)

Question 9

Tax deduction

Answer 9

amount is deducted from the gross income

Question 10

preferential rate

Answer 10

is almost always lower

Question 11

Examples of Tax evasion

Answer 11

non-declaration of the correct amount of sales or overstating expenses

bloating expenses

Question 12

Evidence of tax evasion

Answer 12

1. course of action is unlawful
2. state of mine as being evil, in bad faith, willful or deliberate, and not achievable
3. end to be achieve where payment is less than that is known by the taxpayer to be legally due or non-payment of tax when it is show that tax is due)

Question 13

As a rule, laws are interpreted based on

Answer 13

their ordinary or plain meaning (no doubt or ambiguity)

Question 14

If there is doubt or ambiguity in the language of a tax law, we

Answer 14

apply the different rules n the construction and interpretation of such laws

determine the legislative intent; what is the intent of the legislators when drafting the law

Question 15

In case of doubt, tax laws are construed

Answer 15

strictly against the government and in favor of the taxpayer

Question 16

in case of doubt, tax exclusions or tax exemptions are strictly construed

Answer 16

against the taxpayer

Question 17

tax laws are generally _______ in nature

Answer 17

prospective

Question 18

(T or F) tax laws are special laws that prevail over general laws

Answer 18

TRUE

Question 19

retroactive application of tax laws may be allowed if ___________

Answer 19

it will not amount to a violation of due process

Question 20

A special law is

Answer 20

when the topic/subject of the law is very specific

Question 21

all sources of tax laws in the Philippines

Answer 21

the constitution, statutes, implementing rules, and administrative issuances

Question 22

Tax Amnesty

Answer 22

a general pardon or intentional overlooking by the state of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law partakes of an absolute forgiveness or waiver by the government of its right to collect what otherwise be due to it

Question 23

Exercise of Tax Amnesty

Answer 23

Legislative in Character; may NOT be exercised by the chief executive; may be applied retroactively

Question 24

domestic double taxation happens when the imposition of taxes ____________

Answer 24

are made within the same state

Question 25

(T or F) The following factors determine the situs of taxation: residence, citizenship, nature of the tax, subject matter of the tax, and the source of income.

Answer 25

TRUE

Question 26

Direct double taxation means the same property or object is taxed twice when it should only be taxed once. Taxes are imposed on the same subject matter, for the same purpose, by the same taxing authority, within the same jurisdiction, during the same taxing period, and the taxes are of the same kind and character.

Answer 26

True

Question 27

Indirect double taxation happens when the effect of double taxation is shifted to another person.

Answer 27

False

Question 28

When someone is required to pay quarterly income tax and quarterly percentage tax there is direct double taxation.

Answer 28

False