set 4: Income and business taxation

Question 1

the process by which a government impose charges on its inhabitants to raise money for public use

Answer 1

Taxation

Question 2

primary purpose of taxation

Answer 2

raise revenue that will be used in defraying government expenses

Question 3

secondary purpose of taxation

Answer 3

achieved certain social and economic objectives

Question 4

may be adjusted in order to prevent economic depression

Answer 4

Regulate Inflation

Question 5

tobacco is taxed to discourage smoking; imported goods are taxed to protect local producers, and the like

Answer 5

Minimize the Adverse Effects of Certain activities

Question 6

higher taxes are imposed on those who earn more

Answer 6

Equitable Distribution of Wealth

Question 7

social science (nature of taxation)

Answer 7

Inherent Power

Question 8

appropriate private property for particular uses to promote public welfare (under of inherent power)

Answer 8

Eminent Domain

Question 9

enact laws to promote peace and order, public welfare, security, health and safety, (under of inherent power)

Answer 9

Police Power

Question 10

“lifeblood” or “bread and butter” (under of inherent power)

Answer 10

Tax

Question 11

tax laws must first be enacted before taxes can be imposed (nature of taxation)

Answer 11

Legislative

Question 12

taxation is considered plenary (absolute or supreme), (nature of taxation)

Answer 12

Subject to constitutional and inherent limitations

Question 13

can be levied for public purposes (Inherent limitations)

Answer 13

Purpose

Question 14

may levy only on persons and properties within its jurisdiction (inherent limitations)

Answer 14

Territorial Jurisdiction

Question 15

power to create tax laws with the Congress (inherent limitations)

Answer 15

Non-delegation of legislative power to tax

Question 16

inherent limitation

Answer 16

Tax exemption of government entities

Question 17

may not tax the property belonging to a foreign government

Answer 17

International Comity

Question 18

protect the taxpayer from the promulgation 1 (constitutional limitations)

Answer 18

a. Due of process and equal protection of the laws

Question 19

protect the taxpayer from the promulgation 2 (constitutional limitations)

Answer 19

b. Rule of uniformity and equity in taxation

Question 20

protect the taxpayer from potential abuse 1 (constitutional limitations)

Answer 20

c. Presidents power to veto tax bills

Question 21

protect the taxpayer from potential abuse 2 (constitutional limitations)

Answer 21

d. A law granting any tax exemption needs the concurrence of the majority of the members of the congress

Question 22

protect the taxpayer from potential abuse 3 (constitutional limitations)

Answer 22

e. Supreme Court’s power to make a final judgement on tax cases

Question 23

non-imprisonment for non-payment of poll tax

Answer 23

Constitutional limitations

Question 24

exemption of religious, charitable, or educational institutions

Answer 24

Constitutional limitations

Question 25

exemption of revenues and assets of non-stock, non-profit educational institutions from taxation

Answer 25

Constitutional limitations

Question 26

government protects the welfare of its people, in return, the people support the government (theory and basis of taxation)

Answer 26

Reciprocal duties of protection and support

Question 27

taxes are used for the benefit of the public (theory and basis of taxation)

Answer 27

Benefits received principle

Question 28

specifying the object and amount of taxation are enacted (aspects of taxation)

Answer 28

Levy

Question 29

tax laws are implemented and administered (aspects of taxation)

Answer 29

Collection

Question 30

revenues should be sufficient to defray expenditures (principles of sound tax system)

Answer 30

Fiscal Adequacyt

Question 31

taxes are proportionate to the taxpayer's ability to pay (principles of sound tax system)

Answer 31

Theoretical Justice

Question 32

tax laws can be implemented efficiently and effectively (principles of sound tax system)

Answer 32

Administrative Feasibility

Question 33

mandatory contributions

Answer 33

Taxes

Question 34

Characteristics of tax 1

Answer 34

mandatory

Question 34

Characteristics of tax 2

Answer 34

Levied by the lawmaking body

Question 35

Characteristics of tax 3

Answer 35

imposed primarily to raise revenues for the government

Question 36

Characteristics of tax 4

Answer 36

generally payable in money

Question 37

Characteristics of tax 5

Answer 37

proportionate in character

Question 38

Characteristics of tax 6

Answer 38

levied on persons and property

Question 39

Characteristics of tax 7

Answer 39

levied for public purposes

Question 40

Classification of taxes 1. as subject matter > fixed amount charged to all persons residing within specified territory

Answer 40

Personal, capitation or poll tax

Question 41

Classification of taxes 1. as subject matter > imposed on properties based on their value

Answer 41

Property Tax

Question 42

Classification of taxes 1. as subject matter > imposed upon the performance of an act, the enjoyment of privilege

Answer 42

Excise Tax

Question 43

Classification of taxes 2. as to who bears the burden > taxpayer must pay and cannot shift to another

Answer 43

Direct Tax

Question 44

Classification of taxes 2. as to who bears the burden > taxpayer can shift to another

Answer 44

Indirect Tax

Question 45

Classification of taxes 3. as the determination of the amount > based on the value of the property

Answer 45

Ad Valorem

Question 46

Classification of taxes 3. as the determination of the amount > based on weight, volume or other physical unit of measurement

Answer 46

Specific

Question 47

Classification of taxes 4. as to scope > tax levied by the national government

Answer 47

National Tax

Question 48

Classification of taxes 4. as to scope > tax levied by the local government

Answer 48

Local Tax

Question 49

Classification of taxes 5. as to rate or graduation > based on a fixed rate

Answer 49

Proportional (han sooyoung)

Question 50

Classification of taxes 5. as to rate or graduation > based on an increasing rate as the taxable amount increases

Answer 50

Progressive (Kim Dokja)

Question 51

Classification of taxes 5. as to rate or graduation > based on decreasing rate as the taxable amount increases

Answer 51

Regressive (Yoon Joonghyuk)

Question 52

tax on persons income derived from employment, business, trade, practice of profession, or from property

Answer 52

Income Tax

Question 53

tax on the production, sale, or consumption of goods and services, leasing of property, or other business activities

Answer 53

Business Tax

Question 54

Classification of Individual Income Taxpayers > Filipino residing permanently

Answer 54

Resident Citizen

Question 55

Classification of Individual Income Taxpayers > Filipino citizen residing permanently abroad (183 days)

Answer 55

Non-resident citizena

Question 56

Classification of Individual Income Taxpayers > foreigner residing in the Philippines

Answer 56

Resident Alien

Question 57

Classification of Individual Income Taxpayers > foreigner not residing in the Philippines

Answer 57

Non-resident Alien

Question 58

all inflows of wealth to the taxpayers

Answer 58

Income

Question 59

taxpayers income for taxation purposes

Answer 59

Gross Income