Income Taxation

Question 1

The Inherent Powers of the State

Answer 1

Taxation power
Police power
Eminent domain

Question 2

is the power of the State to enforce proportional contribution from its subjects to sustain itself

Answer 2

Taxation power

Question 3

Is the general power of the state to enact laws to protect the well being of the people

Answer 3

Police power

Question 4

Is the power of the State To take private property for public use after paying just compensation.

Answer 4

Eminent domain

Question 5

May be defined as a state power, a legislative process and the mode of government cost distribution

Answer 5

Taxation

Question 6

Taxation is an inherent power of the state to enforce a proportional contribution from its subjects for public purpose

Answer 6

As a state power

Question 7

Taxation is a process of levying taxes by the legislature of the state to enforce proportional contributions from its subjects for public purpose

Answer 7

As a process

Question 8

Taxation is a mode by which the state allocates its costs or burden to its subjects who are benefited by its spending.

Answer 8

As a mode of cost distribution

Question 9

What is taxation

Answer 9

As a state power
As a process.
As a mode of cost distribution

Question 10

What is the theory of taxation

Answer 10

The government’s necessity for funding.

Question 11

The mutuality of support between the people in the government

Answer 11

Basis of Taxation

Question 12

Theories of cost allocation

Answer 12

Benefit received Theory
Ability to pay theory.

Question 13

Presupposes that the more benefit one receives from the government , the more taxes should pay

Answer 13

Benefit received theory

Question 14

Taxpayers should be required to contribute based on their relative capacity to sacrifice for the support of the government.

Answer 14

Ability to pay theory.

Question 15

Taxes are the life blood of the government

Answer 15

The life blood doctrine.

Question 16

The limitations of the taxation power

Answer 16

Inherent limitations
Constitutional limitations

Question 17

Inherent limitations of the taxation power

Answer 17

Territoriality of taxation
international comity
Public purpose
exemption of the government
Nondelegation of the taxing power.

Question 18

Stages or aspects of taxation

Answer 18

Levy or imposition
Assessment and collection
Payment of tax

Question 19

This process involves the passage of tax laws or the ordinances trough the legislature

Answer 19

Levy or imposition

Question 20

this process involves the act of administration and implementation
of tax laws by the executive through its administrative agencies such as the Bureau of Internal Revenue or Bureau of Customs.

Answer 20

Assessment and collection

Question 21

This process involves the act of compliance by the taxpayer in contributing his share to pay the expenses of the government.

Answer 21

Payment of Tax

Question 22

Businesses are subject to tax in the place where the business is conducted.

Answer 22

Business tax situs

Question 23

Service fees are subject to tax where they are rendered.

Answer 23

Income tax situs on services

Question 24

The gain on sale is subject to tax in the place of sale.

Answer 24

Income tax situs on sale of goods

Question 25

Properties are taxable in their location.

Answer 25

Property tax situs

Question 26

Persons are taxable in their place of residence

Answer 26

Personal tax situs

Question 27

occurs when the same taxpayer is taxed twice by the same tax jurisdiction for the same thing.

Answer 27

Double taxation

Question 28

Elements of double taxation

Answer 28

1. Primary element:
   Same object
2. Secondary elements:
   a. Same type of tax
   b. Same purpose of tax
   c. Same taxing jurisdiction
   d. Same tax period

Question 29

Types of Double Taxation

Answer 29

1. Direct double taxation
2. Indirect double taxation

Question 30

This occurs when all the element of double taxation exists for both
impositions.

Answer 30

1. Direct double taxation

Question 31

This occurs when at least one of the secondary elements of double
taxation is not common for both impositions.

Answer 31

Indirect double taxation

Question 32

ESCAPE FROM TAXATION (those that result to loss of government revenue)

Answer 32

1. Tax evasion
2. Tax avoidance
3. Tax exemption

Question 33

– also known as tax dodging, refers to any act or trick that tends to illegally reduce or avoid the payment of tax.

Answer 33

1. Tax evasion

Question 34

also known as tax minimization, refers to any act or trick that reduces or totally escapes taxes by any legally permissible means.

Answer 34

2. Tax avoidance

Question 35

also known as tax holiday, refers to the immunity privilege or freedom from beingsubject to a tax which others are subject to.

Answer 35

Tax exemption