General Principles Flashcards
(122 cards)
1
Q
Taxation covers three (3) separate areas or aspects of government activity, namely
A
- Levying or imposition of the tax
- Assessment
- Collection and payment
2
Q
The exercise of the sovereign power to raise revenues for the expenses of the government.
A
Taxation
3
Q
This involves the passage of tax laws which is generally
a legislative act. In the Philippines, the taxing power is exercised by Congress.
A
Levying or imposition of the tax
4
Q
The act of compliance with the tax law by the taxpayer.
A
Collection and payment
5
Q
The process of determining the correct amount of tax due.
A
Assessment
6
Q
What stage/aspect of taxation is Executive or administrative in nature. Done by the Bureau of Internal Revenue (“BIR”)
A
- Assessment
- Collection and payment
7
Q
Inherent Powers of a State
A
1) Power to Tax / Taxation
2) Police Power
3) Power of Eminent Domain
8
Q
the power of _____ is regarded as supreme, plenary, unlimited, and comprehensive.
A
taxation
9
Q
Is the inherent power of a sovereign state to legislate for the protection of the health, general welfare, safety, and morals of the public. It involves the power to regulate both liberty and property for the promotion of the public good.
A
Police power
10
Q
The _____ is the inherent power of a sovereign state to take private property for a public purpose. The Constitution limits the exercise of this power by providing that: “Private property shall not be taken for public use without just compensation.”
A
power of eminent domain
11
Q
The amount of exaction of this inherent power has no limit.
A
Taxation
12
Q
The amount of exaction of this inherent power is zero but private property is taken for public use.
A
Eminent domain
13
Q
The amount of exaction of this inherent power is limited to the cost of regulation, issuance of the license, and/or surveillance.
A
Police Power
14
Q
Benefits received. Unsa na inherent power
A direct benefit results in the form of just compensation to the property owner.
A
Eminent Domain
15
Q
Benefits received. Unsa na inherent power
No direct benefit is received by an individual. A healthy economic standard of society is attained.
A
Police power
16
Q
Benefits received. Unsa na inherent power
No special or direct benefit is received by an individual taxpayer. The public receives the general benefit of protection of person, property and the promotion of the general welfare.
A
Taxation
17
Q
what inherent power
Obligations in contracts may be impaired by the government.
Meaning they are superior to the non-impairment clause of the constitution.
A
Police Power & Eminent Domain
18
Q
What inherent power is this referring
Obligations in contracts may not be impaired by the state where tax exemptions are bilaterally agreed upon by the state and the taxpayer. Tax exemptions bilaterally agreed upon between the government and the taxpayer cannot be withdrawn.
A
Taxation
19
Q
Transfer of property rights
1. Transfer is effected in favour of the State.
2. Taxes paid become part of public funds.
3. No transfer, but only restraint in the exercise of property rights.
a. Taxation
b. Police Power
c. Eminent Domain
A
- c. Eminent Domain
- a. Taxation
- b. Police Power
20
Q
Scope
1. Only upon specific property.
2. All persons, property, rights, privileges, and liberties
3. All persons, property, rights, and privileges.
a. Taxation
b. Police Power
c. Eminent Domain
A
- c. Eminent Domain
- b. Police Power
- a. Taxation
21
Q
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.
A
constitutional limitation
22
Q
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
Exemption from taxation of the government, any political subdivision thereof, or agencies performing purely governmental functions.
A
inherent limitation
23
Q
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation.
A
constitutional limitation
24
Q
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
No person shall be imprisoned for debt or non-payment of a poll tax.
A
constitutional limitation
25
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
As a general rule, the taxing power of the legislature may not be delegated. Exceptions to this non-delegability rule are
i) The authority of the President to fix tariff rates, import and export quotas, tonnage and wharfage dues, and other duties and imposts
Constitution).
ii) Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees, and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local governments
iii) Delegation to administrative agencies for implementation of the tax laws, and collection of the tax to the BIR.
inherent limitation
26
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
Charitable institutions, churches, and parsonages, or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings, and improvements, actually, directly, and exclusively used for religious, charitable, or educational purposes shall be exempt from taxation.
The exemption referred to here is exemption from the real property tax which is a local tax levied by a province or city (not by the National Government).
constitutional limitation
27
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
No law granting any tax exemption shall be passed without the concurrence of a majority of all the members of Congress.
constitutional limitation
28
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
No law impairing the obligation of contracts shall be passed.
constitutional limitation
29
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
No law shall be made respecting an establishment of a religion or prohibiting the free exercise thereof.
constitutional limitation
30
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The tax must be for a public purpose.
inherent limitation
31
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
All appropriation, revenue or tariff bills xxxxxxx shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments.
constitutional limitation
32
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government.
constitutional limitation
33
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
Double taxation
There is no constitutional prohibition against double taxation in the Philippines, though it is not favoured.
Indirect double taxation, which lacks one or more of the elements of direct double taxation, is also permissible.
inherent limitation
34
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The Supreme Court shall have the power to review, revise, reverse, modify, or affirm on appeal or certiorari as the law or the Rules of Court may provide, final judgments and orders of lower courts in xxxx all cases involving the legality of any tax, impost, assessment, or toll, or any penalty imposed in relation thereto.
constitutional limitation
35
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties.
constitutional limitation
36
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
International comity
inherent limitation
37
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The President shall have the power to veto any particular item or items in an appropriation, revenue, or tariff bill, but the veto shall not affect the item or items to
which he does not object.
constitutional limitation
38
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
All money collected or any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which a special fund was created has been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of the Government.
constitutional limitation
39
Limitations on the power to tax
Is this a
(a) constitutional limitation or an (b) inherent limitation
The levy must apply within territorial limits for the exercise of effective tax jurisdiction.
inherent limitation
40
Kanus a maka ingon naay direct double taxation
(1) the same subject is taxed twice;
(2) by the same taxing authority;
(3) within the same jurisdiction;
(4) during the same taxing period; and
(5) covering the same kind or character of tax
41
Basic Principles of a Sound tax system
1. Fiscal Adequacy
2. Administrative Feasibility
3. Theoretical justice or Equality
42
which means that the sources of revenue should be sufficient to meet the demands of public expenditures
Fiscal Adequacy
43
which means that the tax imposed should be proportionate to the taxpayer’s ability to pay
Equality or Theoretical Justice
44
which means that the tax laws should be capable of convenient, just, and effective administration
Administrative Feasibility
45
Theory or basis
Without taxes, no government can
function.
Life-blood theory
46
Theory or basis
Taxes are what we pay for a civilized or organized society. Without taxes, the government would be paralyzed for lack of the motive power to activate and operate it
Benefits Protection Theory (Symbiotic Relationship)
47
1. Enforced contribution
2. Exacted pursuant to legislative authority
3. For raising revenue for public needs
4. Proportionate in character or uniform
5. Payable in money
6. Imposed within the state’s jurisdiction
7. Personal to the taxpayer
Essential Elements or Characteristics of a Tax
48
Imposed by the National Government
Examples
Income tax, Estate tax, Donor’s tax,
VAT, OPT, Excise Tax, DST
National tax
49
Imposed by local government units
Examples
Occupation tax, Real property tax (RPT)
Municipal or local tax
50
Fixed amount imposed upon persons of a certain class without regard to property, trade, business, or occupation.
Example
Community tax
Personal, capitation, or poll tax
51
Imposed upon the performance of an act; the exercise of a right; or he engaging in business or profession
Exs. VAT, Donor’s tax, Estate tax, Income tax, Occupation tax, Excise tax
Excise tax
52
The liability for the tax (impact), and the burden thereof (incidence) fall on the same taxpayer
Ex. Income tax
Direct tax
52
The liability or impact for the tax falls on the original taxpayer, but the burden or incidence thereof is shifted to another.
Ex. VAT, excise tax, custom duties
Indirect tax
53
Levied without a specific or pre-determined purpose
Ex. Income tax, VAT, etc.
General or Revenue tax
54
Levied for a special purpose
Ex. Protective tariffs; special
assessments
Special tax
55
Based on a fixed percentage of the
tax base
Exs. RPT, VAT, Donor’s tax,
Estate tax.
Proportional
56
The tax rate increases as the tax base increases
Ex. Income tax on individuals under the graduated rates
Progressive
56
The tax rate decreases as the tax base increases
Ex. None
Regressive
57
Based on the value of the property and may require the intervention of assessors and appraisers
Exs. RPT; excise tax on liquors, cigars, and automobiles
Ad Valorem
58
Measured by number, or based on weight or physical measurement
Exs. Excise tax on lubricating oils, waxes, petroleum, etc.
Specific
59
1. Tax laws are prospective, generally, but can have retrospective application.
2. A statute will not be construed as imposing a tax unless it does so clearly, and unambiguously.
3. Tax exemptions are to be construed strictly against the taxpayer.
4. Revenue laws are not political in nature.
5. Legislative intention must be considered.
6. Tax laws are special laws, and prevail over general laws.
Nature or Construction of Tax Laws
60
1. The 1987 Constitution;
2. Tax statutes such as the National Internal Revenue Code (“NIRC”), the Tariff and Customs Code, the VAT Law, the Revised Documentary Stamp Tax Law, the Amended Excise Tax Law, and portions of the Local Government Code;
3. Executive orders on taxation, and local tax ordinances;
4. Tax treaties and conventions with foreign countries;
5. Judicial decisions;
6. Rules and regulations promulgated by the Department of Finance, the Bureau of Internal Regulations (“BIR”), Bureau of Customs, etc.
7. Administrative interpretations and opinions of tax officials particularly those of the Commissioner of Internal Revenue.
Sources of Tax Laws
61
1. Shifting the burden of the tax.
2. Capitalization.
3. Transformation.
4. Tax exemption.
5. Tax avoidance.
6. Tax evasion.
Forms of Escape from Taxation
62
By not selling property which has increased in value, the owner avoids the income tax to be paid on the gain if the same is sold. An increase in the value of an asset is merely an unrealized increase (gain) in capital.
Capitalization
63
The manufacturer or producer upon whom the tax has been imposed, fearing the loss of his market if he should add the tax to the price, pays the tax. He then endeavors to recoup the tax paid by making his production more efficient and lowering his cost of production.
Transformation
64
the freedom from the burden of paying tax
Tax exemption
64
occurs when the means used to minimize taxes are legal and not prohibited by law.
Tax avoidance
65
connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes
Tax evasion
66
non-payment of ______ makes the business illegal
non-payment of ______ does not make the business illegal
License
Tax
67
Imposed only on property which benefit from the improvement
Special Assessment
68
1. A special assessment can be levied only on land;
2. A special assessment cannot (at least in most states) be made a personal liability of the person assessed;
3. A special assessment is based wholly on benefits; and
4. A special assessment is exceptional both as to time and locality.
Characteristics of Special Assessment
69
T/F
Tax is generally assignable
False
Tax is not assignable
70
T/F
Debt is not assignable
False
Debt is generally assignable
71
Compensation/set-off is allowed in
a. Tax
b. Debt
b. Debt
Walay compensation/set-off sa tax
72
Its form of payment is money, property, or services
Debt.
In tax, only money
73
Demand of ownership or proprietorship
Toll
74
A compensation charged by the owner for the voluntary use of the property/improvements
Toll
75
It is a system involving assessment, collection, and enforcement of taxes, including the execution of judgment in all tax cases decided in favor of the Bureau of Internal Revenue by the courts.
Tax Administration
76
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
The assessment and collection of all national internal revenue taxes, fees, and charges
Powers and Duties of the Bureau of Internal Revenue (“BIR”)
77
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to interpret tax laws subject to review by the Secretary of Finance
Powers of the Commissioner of Internal Revenue (“CIR”)
77
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to decide disputed assessments, refunds of internal revenue taxes, fees and other
charges, penalties imposed in relation thereto, other matters arising under the National Internal Revenue Code (“NIRC”) or other laws or portions thereof administered by the Bureau of Internal Revenue (“BIR”), subject to the exclusive appellate jurisdiction of the Court of Tax Appeals (“CTA”)
Powers of the Commissioner of Internal Revenue (“CIR”)
77
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
The enforcement of all forfeitures, penalties, and fines connected therewith
Powers and Duties of the Bureau of Internal Revenue (“BIR”)
77
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to examine any book, paper, record, or other data which may be relevant or material to a tax inquiry
Powers of the Commissioner of Internal Revenue (“CIR”)
78
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
The giving effect to and the administering of the supervisory and police power conferred to it by the Tax Code or other laws
Powers and Duties of the Bureau of Internal Revenue (“BIR”)
78
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to obtain information from any person other than the person whose internal revenue tax liability is subject to audit or investigation or from any office or officer of the national or local governments, government agencies and instrumentalities
Powers of the Commissioner of Internal Revenue (“CIR”)
79
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
The execution of judgments in all cases decided in its favor by the Court of Tax Appeals, and the ordinary courts;
Powers and Duties of the Bureau of Internal Revenue (“BIR”)
80
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to summon the person liable for tax or required to file a return, or any officer or employee of such person, or any person having possession, custody, or care of the books of accounts and other accounting records
Powers of the Commissioner of Internal Revenue (“CIR”)
81
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry
Powers of the Commissioner of Internal Revenue (“CIR”)
82
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to make assessments
Powers of the Commissioner of Internal Revenue (“CIR”)
83
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Is authorized to inquire into the bank deposits and other related information held by financial institutions of:
(a) A decedent to determine his gross estate;
(b) A taxpayer who has filed an application for compromise of his tax liability by reason of financial incapacity to pay his tax liability; and
(c) A taxpayer who is subject of a request for the supply of tax information from a foreign tax authority pursuant to an international agreement or treaty.
Powers of the Commissioner of Internal Revenue (“CIR”)
83
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to prescribe real property values by dividing the country into different zones and determining the FMV of real properties located in each zone
Powers of the Commissioner of Internal Revenue (“CIR”)
84
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Has the authority to accredit and register individuals and general professional partnerships (GPPs) and their representatives who prepare and file tax returns, statements, reports and other papers, or who appear before the BIR, for taxpayers
Powers of the Commissioner of Internal Revenue (“CIR”)
85
Is it a
Power and Duty of the Bureau of Internal Revenue (“BIR”) OR
Powers of the Commissioner of Internal Revenue (“CIR”)
Power to prescribe additional procedural or documentary requirements in connection with the submission or preparation of financial statements accompanying the tax returns
Powers of the Commissioner of Internal Revenue (“CIR”)
86
Statement 1: The principal purpose of the power to tax is to raise revenues for governmental expenses.
Statement 2: A revenue bill may originate from the Senate as long as the House of Representatives is given the opportunity to study the bill upon three full readings of the same.
A. Both are true.
B. Both are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.
C. Only Statement 1 is true.
86
Statement 1: The principal purpose of taxation is the raising of revenues to cover expenditures of the government. On the other hand, one of taxation’s sumptuary/secondary purposes is its use to implement the police power of the state.
Statement 2: The imposition of taxes is both legislative and administrative in nature.
a) Both are true.
b) Both are false.
c) Only Statement 1 is true.
d) Only Statement 2 is true.
c) Only Statement 1 is true.
imposition of taxes = levy of taxes = making of tax laws = legislative body
86
The power to collect national taxes is exercised by the
a. Court of Tax Appeals
b. Supreme Court
c. BIR
d. Congress
c. BIR
87
This is a constitutional limitation on the power of taxation, except
a. Rule on uniformity and equity in taxation
b. Due process of law and equal protection of the laws
c. Non-impairment of the jurisdiction of the Supreme Court in tax cases
d. Limiting double taxation
d. Limiting double taxation
88
The aspects of taxation are
a. Legislative in character
b. Executive in character
c. Shared by the legislative and executive departments
d. Judicial in character
c. Shared by the legislative and executive departments
89
Although the power of taxation is basically legislative in character, it is NOT the function of Congress to
a. Fix with certainty the amount of taxes
b. Collect the tax levied under the law
c. Identify who should collect the tax
d. Determine who should be subject to the tax
b. Collect the tax levied under the law
90
I. Police power regulates both liberty and property while the power of eminent domain and the power of taxation affect only property rights.
II. Police power and the power of taxation may be exercised only by the government while the power of eminent domain may be exercised by some private entities.
III. The property taken in police power is destroyed while the property taken under the power of
eminent domain and power of taxation is not destroyed.
IV. In the power of taxation, the compensation received is the protection of the state afforded to its citizens; in police power, a higher standard of living is enjoyed by the citizens; and in the power of eminent domain, a citizen receives just compensation for the property taken from him.
a. All true
b. All false
c. Half true
d. None of the above
a. All true
91
Statement 1 – Congress, which has the power to tax, also has the power to grant tax exemptions.
Statement 2 – Power to tax includes the power to destroy.
Statement 3 – Police power includes the power to tax.
Statement 4 – Police power may be exercised through taxation.
a. True False False False
b. True True False True
c. True True False False
d. False True False False
b. True True False True
S3 two powers are independent
92
Which is not an essential characteristic of a tax?
a. It is unlimited as to amount
b. It is payable in money
c. It is proportionate in character
d. It is an enforced contribution
a. It is unlimited as to amount
93
Special assessment is an enforced proportional contribution from owners of land especially benefited by the public improvement. Which one of the following is not considered as one of its characteristics?
a. It is levied on land.
b. It is based on the government’s need of money to support its legitimate objectives.
c. It is not a personal liability of the persons assessed.
d. It is based solely on the benefit derived by the owners of the land.
b. It is based on the government’s need of money to support its legitimate objectives.
93
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 exemptions, tax amnesty, tax condonations and their equivalent provisions 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. Congress has the duty and the exclusive power of enacting, implementing and interpreting tax laws.
e. None of the above.
d. Congress has the duty and the exclusive power of enacting, implementing and interpreting tax laws.
implenting --> executive
interpreting --> BIR
94
In 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
95
License fee as distinguished from tax:
a. Non-payment does not necessarily 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
POLICE POWER
96
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 the purpose is to raise revenues
d. based on necessity and the purpose is to raise revenues
96
This is a demand of ownership:
a. License fee
b. Tax
c. Toll
d. Customs duties
c. Toll
97
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
97
A law granting tax exemption requires the concurrence of
a. majority vote of all 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 all members of Congress
98
President Rodrigo Duterte and President Vladimir Putin entered into a bilateral agreement. In such agreement, Russian pharmaceutical firms which establish branches in the Philippines shall be exempt from all national and local taxes. In exchange, such firms shall provide COVID-19 drugs and vaccines to the Philippine population at a 50% discount rate. The agreement is:
a. Valid, because it is pursuant to the President’s executive power.
b. Void, because the power to grant tax exemption is vested in Congress
c. Void, because it is unfair to other foreign pharmaceutical firms.
d. Valid, because the purpose is to promote public welfare.
b. Void, because the power to grant tax exemption is vested in Congress
99
I. The point on which a tax is originally imposed is impact of taxation.
II. The point on which a tax burden finally rests or settles down is incidence of taxation.
III. Police power is superior to the non-impairment clause of the constitution.
IV. Power of taxation is not superior to the non-impairment clause of the constitution
a. All true
b. All false
c. Half true
d. None of the above
a. All true
100
I. There can only be a tax if there is a law imposing the tax.
II. The power to tax includes the power to destroy.
a. True, true
b. True, false
c. False, true
d. False, false
a. True, true
101
I. Due process of law in taxation under the constitution is a grant of power.
II. Provisions in the Philippine constitution on taxation are grants of power.
III. There may be double taxation in the Philippines.
IV. Taxation may be used to implement the police power of the state.
a. One statement is true.
b. Two statements are true.
c. Three statements are true. d. All statements are true.
b. Two statements are true.
I. False. Limitation
II. False. Limitation
III. True
IV. True
102
I. License fee is a charge imposed under police power.
II. Special assessment is levied on land only.
III. Tax is imposed regardless of public improvements.
IV. Special assessment is imposed regardless of public improvements.
a. One statement is true.
b. Two statements are true.
c. Three statements are true.
d. All statements are true.
c. Three statements are true.
IV False
103
A system of taxation where the amount of revenue from indirect taxes is more than the direct
taxes is
a. Progressive b. Regressive
c. Proportional d. Schedular
b. Regressive
104
This is not an inherent limitation on the power of taxation:
a. Double taxation, though not prohibited, is disfavored.
b. Equality and uniformity in taxation
c. Public purpose of taxation
d. Territoriality
b. Equality and uniformity in taxation
Constitutional limitation
105
Revenue Memorandum Circulars (RMCs) are:
a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.
d. None of the above.
Revenue Memorandum Circulars (RMCs) are:
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
105
Revenue regulations (RRs) are:
a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.
d. None of the above.
Revenue regulations (RRs) are:
a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.
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Revenue Memorandum Orders (RMOs) are:
a. Issuances signed by the Secretary of Finance, upon recommendation of the CIR, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes.
b. Issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
c. Issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.
d. None of the above.
Revenue Memorandum Orders (RMOs) are:
c. Issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.
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Statement 1: Any person convicted of a crime penalized under the Tax Code shall be subject to the penalties of incarceration and/or fine.
Statement 2: A person convicted of a crime penalized under the Tax Code shall be dismissed from public office if he is a public officer/employee.
Statement 3: A person convicted of a crime penalized under the Tax Code shall be perpetually disqualified from holding any public office, from voting, and from participating in any election.
Statement 4: Atty. Dehado was convicted of tax evasion back in 2010 but was elected Senator in 2019. This violates the non-impairment clause in the Constitution.
(A) All statements are true.
(B) All statements are false.
(C) 2 statements are true.
(D) 3 statements are true.
(E) None of the above.
(D) 3 statements are true.
S1 True
S2 True
S3 True
S4 False. Violates the equal protection
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Mr. Compton sells shoes in Makati through a retail store. He pays the VAT on his gross sales to the BIR, and the local business tax based on the same gross sales to the City of Makati. He comes to you for advice because he thinks he is being subjected to double taxation which he thinks is illegal.
a. There is double taxation and it is not allowed.
b. The City of Makati has no taxing power.
c. There is double taxation, and it is allowed.
d. All of the above.
c. There is double taxation, and it is allowed.
