GENERAL PRINCIPLES Flashcards
1
Q
They exist independent of the constitution being fundamental powers of the State, except a. Power of taxation b. Police power c. Power of imminent domain d. Power to recall
A
d. Power to recall
2
Q
The power to acquire private property upon payment of just compensation for public purpose a. Power of taxation b. Police power c. Power of imminent domain d. Power to recall
A
c. Power of imminent domain
3
Q
The power to regulate liberty and property to promote the general welfare a. Power of taxation b. Police power c. Power of imminent domain d. Power to recall
A
b. Police power
4
Q
The power to demand proportionate contributions from persons and property to defray the expenses of the government a. Power of taxation b. Police power c. Power of imminent domain d. Power to recall
A
a. Power of taxation
5
Q
Basic principles of a sound tax system, except a. Fiscal adequacy b. Equality or theoretical justice c. Administrative feasibility d. Intellectual feasibility
A
d. Intellectual feasibility
6
Q
The tax imposed should be proportionate to the taxpayer’s ability to pay a. Fiscal adequacy b. Equality or theoretical justice c. Administrative feasibility d. Intellectual feasibility
A
b. Equality or theoretical justice
7
Q
The sources of revenue as a whole should
be sufficient to meet the demands of public
expenditures
a. Fiscal adequacy
b. Equality or theoretical justice
c. Administrative feasibility
d. Intellectual feasibility
A
a. Fiscal adequacy
8
Q
The tax laws must be capable of convenient, just and effective administration a. Fiscal adequacy b. Equality or theoretical justice c. Administrative feasibility d. Intellectual feasibility
A
c. Administrative feasibility
9
Q
Persons or things belonging to the same class shall be taxed at the same rate a. Simplicity in taxation b. Reciprocity in taxation c. Equality in taxation d. Uniformity in taxation
A
d. Uniformity in taxation
10
Q
The tax should be proportional to the relative value of the property to be taxed a. Simplicity in taxation b. Reciprocity in taxation c. Equality in taxation d. Uniformity in taxation
A
c. Equality in taxation
11
Q
The following are the nature of taxation, except a. Inherent in sovereignty b. Essentially legislative in character c. Subject to inherent and constitutional limitation d. Subject to approval of the people
A
d. Subject to approval of the people
12
Q
It literally means “place of taxation”, the
country that has the power and jurisdiction
to levy and collect the tax
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation
A
b. Situs of taxation
13
Q
The existence of the government is a necessity and that the state has the right to compel all individual and property within its limit to contribute a. Basis of taxation b. Situs of taxation c. Scope of taxation d. Theory of taxation
A
d. Theory of taxation
14
Q
The reciprocal duties of support and protection between the people and the government a. Basis of taxation b. Situs of taxation c. Scope of taxation d. Theory of taxation
A
a. Basis of taxation
15
Q
Subject to inherent and constitutional limitations, the power of taxation is regarded as supreme, plenary, unlimited and comprehensive a. Basis of taxation b. Situs of taxation c. Scope of taxation d. Theory of taxation
A
c. Scope of taxation
16
Q
Our National Internal Revenue Laws are
a. Political in nature
b. Penal in nature
c. Criminal in nature
d. Civil in nature
A
d. Civil in nature
17
Q
The levying or imposition of tax and the
collection of the tax are processes which
constitute the taxation system
a. Basis of taxation
b. Aspects of taxation
c. Nature of taxation
d. Theory of taxation
A
b. Aspects of taxation
18
Q
The process or means by which the sovereign, through its law making body raises income to defray the expenses of the government a. Toll b. License fee c. Taxation d. Assessment
A
c. Taxation
19
Q
. Enforced proportional contribution from
persons and property levied by the state
by virtue of its sovereignty for the support
of the government and for public needs
a. Toll
b. License fee
c. Taxes
d. Assessment
A
c. Taxes
20
Q
An escape from taxation where the tax burden is transferred by the one on whom the tax imposed or assessed to another a. Shifting b. Exemption c. Transformation d. Capitalization
A
a. Shifting
21
Q
An escape from taxation where the
producer or manufacturer pays the tax an
endeavor to recoup himself by improving
his process of production thereby turning
out his units of products at a lower cost
a. Shifting
b. Exemption
c. Transformation
d. Capitalization
A
c. Transformation
22
Q
An escape from taxation where there is a
reduction in the price of the taxed object
equal to the capitalized value of future
taxes which the taxpayer expects to be
called upon to pay
a. Shifting
b. Exemption
c. Transformation
d. Capitalization
A
d. Capitalization
23
Q
The use of illegal or fraudulent means to avoid or defeat the payment of tax a. Exemption b. Shifting c. Avoidance d. Evasion
A
d. Evasion
24
Q
The use of legal and permissive means to minimize or avoid taxes a. Exemption b. Shifting c. Avoidance d. Evasion
A
c. Avoidance / Tax Planning
25
Synonymous to tax evasion
a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion
a. Tax dodging
26
Synonymous to tax avoidance
a. Tax dodging
b. Tax minimization
c. Tax exemption
d. Tax evasion
b. Tax minimization
27
```
In every case of doubt, tax statutes are
construed
a. Strictly against the government
and the taxpayer
b. Liberally in favor of the
government and the taxpayer
c. Strictly against the government
and liberally in favor of the
taxpayer
d. Liberally in favor of the
government and strictly against
the taxpayer
```
c. Strictly against the government
and liberally in favor of the
taxpayer
28
```
In every case of doubt, tax exemptions are
construed
a. Strictly against the government
and the taxpayer
b. Liberally in favor of the
government and the taxpayer
c. Strictly against the government
and liberally in favor of the
taxpayer
d. Liberally in favor of the
government and strictly against
the taxpayer
```
d. Liberally in favor of the
government and strictly against
the taxpayer
29
```
In case of conflict between the Tax Code
and the Philippine Accounting Standards
(PAS)
a. PAS shall prevail over the Tax Code
b. Tax Code shall prevail over PAS
c. PAS and Tax Code shall be both
disregarded
d. The taxpayer may choose between
the PAS or the Tax Code
```
b. Tax Code shall prevail over PAS
30
```
Tax of a fixed amount imposed upon all
persons residing within a specified territory
without regard to their property or
occupation they may be engaged
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
```
a. Personal, poll or capitation
31
```
Tax imposed on personal or real property
in proportion to its value or on some
reasonable method of apportionment
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
```
b. Property
32
```
Tax imposed upon the performance of an
act, the enjoyment of privilege or the
engaging in an occupation
a. Personal, poll or capitation
b. Property
c. Excise
d. Regressive
```
c. Excise
33
```
Tax which is demanded from the person
whom the law intends or desires to pay it
a. Direct
b. Indirect
c. Excise
d. Percentage
```
a. Direct
34
```
Tax which is demanded from one person in
the expectation and intention that he shall
indemnify himself at the expense of
another
a. Direct
b. Indirect
c. Property
d. Income
```
b. Indirect
35
```
Tax which imposes a specific sum by the
head or number or by some standard of
weight or measurement and which requires
no assessment other than a listing or
classification of the objects to be taxed
a. Specific
b. Ad-valorem
c. Excise
d. Income
```
a. Specific
36
Tax of a fixed proportion of the amount or
value of the property with respect to which
the tax is assessed
a. Specific
b. Ad-valorem
c. Excise
d. Percentage
b. Ad-valorem
37
```
Tax based on a fixed percentage of the
amount of property, income or other basis
to be taxed
a. Proportional
b. Progressive
c. Regressive
d. Indirect
```
a. Proportional
38
```
Tax where the rate decreases as the tax
base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
```
c. Regressive
39
```
Tax where the rate increases as the tax
base increases
a. Proportional
b. Progressive
c. Regressive
d. Indirect
```
b. Progressive
40
```
Which of the following statements is not
correct?
a. Tax burdens shall neither be
imposed nor presumed to be
imposed beyond what the statute
expressly and clearly states
because tax statutes should be
construed strictly against the
government.
b. Tax exemption, tax amnesty, tax
condonations and their equivalents
are not presumed and, when
granted, are strictly construed
against the taxpayer because such
provisions are highly disfavored by
the government.
c. Exemptions from taxation are
highly disfavored in law and he
who claims tax exemption must be
able to justify his claim or right.
d. The House of Representatives has
the duty and the exclusive power
of constructing and interpreting tax
laws.
```
d. The House of Representatives has
the duty and the exclusive power
of constructing and interpreting tax
laws.
41
The strongest of all inherent powers of the
State because without it, the government
can neither survive nor dispense any of its
powers and functions effectively
a. Police power
b. Power of imminent domain
c. Power of taxation
d. Power of recall
c. Power of taxation
42
This power is superior to the nonimpairment clause and is broader in
application because it is a power to make
and implement laws
a. Power of taxation
b. Power of recall
c. Power of imminent domain
d. Police power
d. Police power
43
Which of the following statements is not
correct?
a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.
b. Income tax liabilities shall be paid by the inhabitants even if foreign invaders occupy our country.
c. Taxes may be imposed
retroactively by law, but unless so expressed by such law, these taxes
must only be imposed
prospectively.
d. Tax laws are either political or penal in nature.
d. Tax laws are either political or penal in nature.
44
```
Which of the following is not a
constitutional limitation on the power of
taxation?
a. No person shall be deprived of life,
liberty or property without due
process of law.
b. No person shall be denied the
equal protection of the law.
c. No person shall be imprisoned for
debt or non-payment of tax
d. No law granting any tax exemption
shall be passed without the
concurrence of a majority of all the
members of Congress.
```
c. No person shall be imprisoned for
| debt or non-payment of tax
45
The distinction of a tax from permit or license fee is that a tax is
a. Imposed for regulation
b. One which involves an exercise of police power
c. One in which there is generally no limit on the amount that may be imposed.
d. Limited to the cost of regulation.
c. One in which there is generally no limit on the amount that may be imposed.
46
. Police power as distinguished from the
power of imminent domain
a. Just compensation is received by
the owner of the property.
b. Maybe exercised by private individuals
c. May regulate both liberty and property
d. Property is taken by the
government for public purpose
c. May regulate both liberty and property
47
A tax wherein both the incidence of or the
liability for the payment of the tax as well
as the burden of the tax falls on the same
person
a. Direct tax
b. Value added tax
c. Indirect tax
d. Percentage tax
a. Direct tax
48
```
Which of the following is not a
characteristic or element of a tax?
a. It is an enforced contribution.
b. It is legislative in character.
c. It is based on the ability to pay.
d. It is payable in money or in kind.
```
d. It is payable in money or in kind.
49
```
Tax as distinguished from license fees
a. Limited to cover cost of regulation
b. A regulatory measure
c. Non-payment does not necessarily
render the business illegal.
d. Imposed in the exercise of police
power.
```
c. Non-payment does not necessarily
| render the business illegal.
50
The power of taxation is exercised by
a. The president
b. The Supreme Court
c. Bureau of Internal Revenue
d. Congress
d. Congress
51
```
One of the characteristics of internal
revenue laws is that that are
a. Criminal in nature
b. Penal in nature
c. Political in nature
d. Generally prospective in
application.
```
d. Generally prospective in
| application.
52
Which of the following is an example of excise tax?
a. Transfer tax
b. Sales tax
c. Real property tax
d. Income tax
c. Real property tax
53
```
The following are similarities of the
inherent power of taxation, imminent
domain and police power, except
a. Are necessary attribute of
sovereignty
b. Interfere with private rights and
property
c. Tangible compensation is received
d. Are legislative in character
```
c. Tangible compensation is received
54
```
Which of the following is not a scheme of
shifting the incidence of taxation?
a. The manufacturer transfers the tax
to the consumer by adding the tax
to the selling price of the goods
sold.
b. The purchaser asks for a discount
or refuses to buy at regular prices
unless it is reduced by the amount
equal to the tax he will pay.
c. Changing the terms of the sale like
FOB shipping point in the
Philippines to FOB destination
abroad, so that the title passes
abroad instead of in the
Philippines.
d. The manufacturer transfers the
sales tax to the distributor, then in
turn to the wholesaler and finally
to the consumer.
```
c. Changing the terms of the sale like FOB shipping point in the Philippines to FOB destination abroad, so that the title passes abroad instead of in the Philippines.
55
```
Which of the following statements is
correct?
a. Taxes may be imposed to raise
revenue or to provide disincentives
to certain activities within the
state.
b. The state can have the power to
taxation even if the Constitution
does not expressly give it the
power to tax.
c. For the exercise of the power of
taxation, the state can tax
anything at any time.
d. The provisions of taxation in the
Philippine Constitution are grant of
powers and not limitations n taxing
power.
```
c. For the exercise of the power of
taxation, the state can tax
anything at any time.
56
```
License fee as distinguished from tax
a. Non-payment does not necessary
render the business illegal.
b. A revenue-raising measure.
c. Imposed in the exercise of taxing
power
d. Limited to cover cost of regulation
```
d. Limited to cover cost of regulation
57
Value-added tax is an example of
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
d. Proportional tax
58
```
Which tax principle is described in the
statement “The more income earned by
the taxpayer, the more tax he has to pay”
a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Inherent sovereignty
```
b. Theoretical justice
59
```
The most superior and least limitable
among the fundamental powers of the
state
a. Power to recall
b. Police power
c. Power of taxation
d. Power of imminent domain
```
b. Police power
60
```
One of the characteristics of a tax is that
a. It is generally based on contract
b. It is generally payable in money
c. It is generally assignable
d. It is generally subject to
compensation.
```
b. It is generally payable in money
61
```
The following are the characteristics of our
internal revenue laws, except
a. Political in nature
b. Civil in nature
c. Generally prospective in application
d. May operate retrospectively if
Congress so provides
```
a. Political in nature
62
```
Which of the following has no power of
taxation?
a. Provinces
b. Cities
c. Barangays
d. Barrios
```
d. Barrios
63
```
Which of the following statements is
wrong? A revenue bill
a. Must originate from the House of
Representatives and on which
same bill the Senate may propose
amendments
b. May originate from the Senate and
on which the same bill the House
of Representatives may propose
amendments.
c. May have a House version and a
Senate version approved
separately and then consolidated,
with both houses approving the
consolidating version
d. May be recommended by the
President to Congress.
```
b. May originate from the Senate and
on which the same bill the House
of Representatives may propose
amendments.
64
```
Tax as distinguished from special
assessment
a. Not a personal liability of the
person assessed
b. Based wholly on benefits
c. Exceptional as to time and place
d. Based on necessity and is of general application
```
d. Based on necessity and is of general application
65
Under this basic principle of a sound tax
system, the Government should not incur a
deficit
a. Theoretical justice
b. Administrative feasibility
c. Fiscal adequacy
d. Uniformity in taxation
c. Fiscal adequacy
66
```
Which of the following may not raise
money for the government?
a. Power of taxation
b. Police power
c. Eminent domain
d. License
```
c. Eminent domain
67
No person shall be imprisoned for nonpayment of this
a. Excise tax
b. Value added tax
c. Income tax
d. Poll tax
d. Poll tax
68
This is a demand of ownership
a. License fee
b. Tax
c. Toll
d. Customs duties
c. Toll
69
Income tax is generally regarded as
a. An excise tax
b. A tax on persons
c. A property tax
d. Tax on profits
a. An excise tax
70
```
Which of the following is not acceptable for
legally refusing to pay tax?
a. That the right of the state to collect
the tax has prescribed.
b. That there is no jurisdiction to
collect the tax
c. That the tax law was declared as
unconstitutional
d. That there is no benefit derived
from the tax
```
d. That there is no benefit derived from the tax
71
It is important to know the source of
income for income tax purposes, i.e. from
within or without the Philippines because
a. The Philippines imposes income tax
on income from sources within and
without of a non-resident citizen
b. Some individual taxpayers are
citizens while others are aliens.
c. Separate graduated rates are imposed on different types of income
d. Some taxpayers are taxed on their
worldwide income while others are taxable only upon income from
sources within the Philippines.
d. Some taxpayers are taxed on their worldwide income while others are taxable only upon income from sources within the Philippines.
72
```
A law granting tax exemption requires the
concurrence of
a. Majority vote of members of Congress
b. 2/3 vote of members of Congress
c. ¾ vote of members of Congress
d. Unanimous vote of members of
Congress
```
a. Majority vote of members of Congress
73
```
No person shall be imprisoned for debt or
non-payment of poll tax. This is an (a)
a. Inherent limitation
b. Constitutional limitation
c. International limitation
d. Territorial limitation
```
b. Constitutional limitation
74
The Department of Finance thru its officers
entered into a contract with foreign
investors granting them exemption from all
forms of taxes to encourage investments in
the Philippines. The contract is
a. Void, unless the President ratifies it
b. Void, because the powers to grant
tax exemptions is vested in
Congress
c. Valid, if the President has
authorized the officers to enter into
such contract
d. Valid, because the purpose is to
promote public welfare.
b. Void, because the powers to grant tax exemptions is vested in Congress
75
Tax as distinguished from debt
a. No imprisonment for non-payment
b. May be paid in kind
c. Based on contract
d. Based on law
d. Based on law
76
```
Congress can impose a tax at any amount
and at anytime shows that
a. Taxation is an inherent power of
the estate
b. Taxation is essentially a legislative
power
c. Taxation is a very broad power of
the state
d. Taxation is based on taxpayer’s
ability to pay
```
c. Taxation is a very broad power of the state
77
```
The amount required is dictated by the
needs of the government
a. License fee
b. Tax
c. Toll
d. Debts
```
b. Tax
78
```
Which of the following are National Internal
Revenue Taxes?
I. Income Tax
II. Estate Tax
III. Donor’s Tax
IV. Value Added Tax
V. Other Percentage Tax
VI. Excise Tax
VII.Documentary Tax
a. I, II, III, IV
b. I, II, III. IV, V
c. I, II, III. IV, V, VI
d. I, II, III. IV, V, VI, VII
```
d. I, II, III. IV, V, VI, VII
