CHAPTER 1- Def. Of Terms

Question 1

Process or means by which the sovereign through its law making body imposes burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of the government

Answer 1

Taxation

Question 2

Three Inherent Powers of the State

Answer 2

1. Police Power
2. Power of Taxation
3. Power of Eminent Domain

Question 3

Promoting public welfare by restraining and regulating the use of liberty and property.

Answer 3

Police Power

Question 4

The state raises revenue to defray the necessary expenses of the government

Answer 4

Power of Taxation

Question 5

Power of the state to acquire private property for the public purpose upon payment of just compensation

Answer 5

Power of Eminent Domain

Question 6

Similarities among the three inherent powers of the state

Answer 6

1. Inherent in the state
2. Exist independently in the constitution
3. State interferes with private rights and properties
4. Legislative in nature and character
5. Presuppose an equivalent compensation received, directly or indirectly, by the persons affected.

Question 7

Power to enforce contributions to raise government funds

Answer 7

Taxation

Question 8

Power to make and implement laws for the general welfare

Answer 8

Police power

Question 9

Purposes of Taxation

Answer 9

• Primary : Revenue
• Secondary: Regulatory

Question 10

Provide funds of property to promote general welfare

Answer 10

Primary : Revenue

Question 11

Device for regulation or control

Answer 11

Secondary : Regulatory

Question 12

Theory of taxation

Answer 12

• Necessity Theory
• Lifeblood Theory

Question 13

Preserve the state’s sovereignty and to give protection and facilities

Answer 13

Necessity Theory

Question 14

Government’s basic function

Answer 14

Lifeblood Theory

Question 15

Reciprocal duties of protection and support between the state and its inhabitants

Answer 15

Basis of Taxation

Question 16

Manifestation of Lifeblood Theory

Answer 16

• No estoppel against the government
• Collection of taxes cannot be stopped by injunction
• Taxes could not be the subject compensation set-off
•Right to select objects (subjects) of taxation
• A valId tax may result in the destruction of the taxpayer’s property

Question 17

Scope of the power of taxation

Answer 17

• Comprehensive
• Unlimited
• Plenary
• Supreme

Question 18

Essential Elements of Tax

Answer 18

• Enforced contribution
• Payable in money
• Proportionate
• Levied on persons, property, rights
• Levied by the law-making body
• Levied for public purpose

Question 19

Aspects of Taxation

Answer 19

• Levying or imposition if tax
• Assessment of the correct amount
• Collection of tax

Question 20

Nature/ characteristics of the state’s power to tax

Answer 20

• Inherent in sovereignty
• Legislative
• Exemptions of government entities, agencies and instrumentalities
• International Comity
• Limitation if Territorial Jurisdiction
• Strongest among the inherent powers

Question 21

Exceptions to Non-Delegation Rule

Answer 21

•President
•Local Government
•Administrative Agencies
•Constitutional and Inherent limitations

Question 22

Exception of government entities, agencies and instrumentalities

Answer 22

• Agencies performing governmental functions
• Agencies performing propriety functions
• GOCCs
• GSIS
• SSS
• PHIC
• Local water district

Question 23

Classification of taxes:

Answer 23

Scope
- National
- Local

Subject Matter
- Personal
- Property
- Excise

Who bears the burden
-Direct
-Indirect

Determination of fixed amount
- Specific Tax
- Ad valorem

Question 24

Elements of sound tax system

Answer 24

• Fiscal Adequacy
• Theoretical justice or equity
• Administrative feasubility

Question 25

Limitations on the state power to tax

Answer 25

• Inherent limitations • Constitutional Limitations

Question 26

Situs of Taxation

Answer 26

• Place of Taxation • The state or political unit which has jurisdiction to impose a particular tax

Question 27

Factors in Determining Situs of Taxation

Answer 27

a. Subject matter (person, property, or activity) B. Nature of tax C. Citizenship D. Residence of tax payer E. Source of Income F. Place of excise, business or occupation being taxed.

Question 28

Sum of money for the use of something

Answer 28

Toll

Question 29

A sanction imposed as a punishment

Answer 29

Penalty

Question 30

Proportional contribution from owners of lands for special benefits

Answer 30

Special Assessment

Question 31

All funds or income derived by the governement

Answer 31

Revenue

Question 32

Pecuniary aid directly granted the government to an individual or private commercial enterprise

Answer 32

Subsidy

Question 33

Pecuniary aid directly granted the government to an individual or private commercial enterprise

Answer 33

Subsidy

Question 34

Charged imposed under the police power

Answer 34

Permit/license fee

Question 35

Taxes imposed exported from or imported into a country

Answer 35

Customs Duties

Question 36

Book of rates containing kinds of merchandise with corresponding duties to pay

Answer 36

Tariff

Question 37

True or False: There is a burden of two or more impositions

Answer 37

True

Question 38

DIRECT DOUBLE TAXATION means taxing twice

Answer 38

1. By the same taxing authority, jurisdiction or taxing district 2. For the same purpose 3. In the same year or taxing period 4. Same subject or object 5. Same kind or character of the tax

Question 39

Avoiding/Minimizing the burden of tax

Answer 39

•Shifting •Transformation •Evasion •Tax Avoidance •Exemption •Capitalization

Question 40

Transfer of tax burden

Answer 40

Shifting

Question 41

Producer pays the tax and endeavor to recoup himself by improving his process of production

Answer 41

Transformation

Question 42

Use of illegal means

Answer 42

Evasion

Question 43

Exploitation of legally permissible alternative

Answer 43

Tax Avoidance

Question 44

Grand of immunity

Answer 44

Exemption

Question 45

Reduction in the selling price

Answer 45

Capitalization