Ethics - Taxation

Question 1

What is the primary purpose of taxation?
A. To regulate businesses
B. To fund government operations and public services
C. To punish wealthy individuals
D. To increase government power

Answer 1

B. To fund government operations and public services

Question 2

Without taxes, governments wouldn’t have the financial resources to function or
support their citizens.

Answer 2

True

Question 3

aims to distribute the tax burden equitably, not to target specific groups out of spite.

Answer 3

Taxation

Question 4

Which agency is primarily responsible for collecting national taxes in the Philippines?
A. Department of Finance
B. Bureau of Internal Revenue (BIR)
C. Bureau of Customs
D. Civil Service Commission

Answer 4

B. Bureau of Internal Revenue (BIR)

Question 5

is the government agency primarily responsible for the assessment and collection of all national internal revenue taxes in the Philippines.

Answer 5

Bureau of Internal Revenue (BIR)

Question 6

The BIR operates under the

Answer 6

Department of Finance

Question 7

It oversees fiscal policy and supervises revenue-generating agencies but does not directly collect taxes.

Answer 7

Department of Finance (DOF)

Question 8

It is responsible for collecting customs duties and import/export taxes, not national internal revenue taxes like income tax or VAT. Their focus is on trade-related taxes.

Answer 8

Bureau of Customs (BOC)

Question 9

It is responsible for human resource management and personnel matters in the government. It has nothing to do with tax collection.

Answer 9

Civil Service Commission (CSC)

Question 10

The authority of a government to impose taxes is based on which principle?
A. Lifeblood Doctrine
B. Police Power
C. Doctrine of Equality
D. Due Process Doctrine

Answer 10

A. Lifeline Doctrine

Question 11

Without taxes, the government would not have the financial resources to function and provide services to its people.

Answer 11

True

Question 12

This is the government’s power to regulate behavior and enforce order for the welfare, health, and safety of the people. While related to governance, it is not the basis for taxation.

Answer 12

Police Power

Question 13

This refers to the idea that taxation should be fair and equitable, meaning taxpayers should be treated equally under similar circumstances. It’s

Answer 13

Doctrine of Equality

Question 14

This ensures that no person shall be deprived of life, liberty, or property without legal procedures and fairness.

Answer 14

Due Process Doctrine

Question 15

The authority of the local government to impose local taxes is derived from:

Answer 15

Local Government Code of 1991

Question 16

Local Government Code of 1991

Answer 16

(Republic Act No. 7160)

Question 17

This law governs national taxes, such as income
tax and VAT, which are collected by the Bureau of Internal Revenue (BIR).

Answer 17

National Internal Revenue Code

Question 18

These are administrative guidelines for
enforcing national tax laws, but they do not grant legal authority for LGUs to impose
taxes.

Answer 18

Bureau of Internal Revenue regulations

Question 19

What type of tax is automatically included in the price of goods and services?

Answer 19

Value-Added Tax (VAT)

Question 20

is an indirect tax, meaning it is not directly paid by the consumer to the government but is embedded in the price of goods and services.

Answer 20

Value-Added Tax (VAT)

Question 21

This is a direct tax imposed on individuals and corporations based on their earnings. It is not included in the price of goods or services.

Answer 21

Income Tax

Question 22

This is a tax on the profit from the sale of capital assets like property or investments. It is not related to the price of consumer goods or services.

Answer 22

Capital Gains Tax

Question 23

This is a partial payment of income tax withheld by employers from an employee’s salary or by payers of income. It is not related to the selling price of goods/services.

Answer 23

Withholding Tax

Question 24

The power to impose taxes lies with which branch of government?

Answer 24

Legislative

Question 25

interprets laws and settles tax disputes, but it does not create or impose taxes.

Answer 25

Judicial

Question 26

enforces tax laws (through agencies like the BIR), but it does not have the power to impose or create new taxes.

Answer 26

Executive

Question 27

Failure to pay taxes within the prescribed period will result in:

Answer 27

Surcharge and penalties

Question 28

What is the tax imposed on a person’s total compensation and business income?

Answer 28

Income Tax

Question 29

Which of the following taxes is imposed on business operations at the local level?

Answer 29

Business Tax

Question 30

impose Business Tax on businesses operating in their jurisdiction.

Answer 30

Local Government Units (LGUs)

Question 31

A national tax on corporate profits, administered by the BIR.

Answer 31

Corporate Income Tax

Question 32

A national tax on specific goods (like alcohol, tobacco, petroleum), not related to local business operations.

Answer 32

Excise Tax

Question 33

What is the penalty for under-declaring taxable income?

Answer 33

Payment of tax deficiency with interest and penalty