Taxation Exams

MANUEL S. ENVERGA UNIVERSITY FOUNDATION-CATANAUAN INC.
Catanauan, Quezon
`
Taxation
Midterm Examinations
Name:___________________________ Score:____/45
Instructor: Kathlene Jao Date:_______
GENERAL DIRECTIONS: READ AND FOLLOW THE DIRECTIONS, NO ERASURES,

ERASURES WILL BE TREATED AS A WRONG ANSWER.
PART I: MULTIPLE CHOICE - Encircle the correct answer.

1. Taxation as distinguished from police power and power of eminent domain.
A. Property is taken to promote the general welfare.
B. May be exercised only by the government.
C. Operates upon the whole citizenry.
D. There is generally no limit as to the amount that may be imposed.
2. The following are constitutional limitations, except
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institutions, cemeteries, churches, personage or
convents appurtenant thereto, as well as all lands, buildings and improvements actually,
directly and exclusively used for religious, charitable and educational purposes.
3. Which of the following statements is correct?
A. The President is authorized to increase or decrease national internal revenue tax rates.
B. One of the nature of taxation is the reciprocal duties of protection and support between
the state and subjects thereof.
C. Every sovereign government has the inherent power to tax.
D. Income tax in an indirect tax.
4. A tax must be imposed for public purpose. Which of the following is not a public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road.
5. 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.
6. Special assessment is an enforced proportional contribution from owners of land especially
benefited by 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.
7. It is the privilege of not being imposed a financial obligation to which others are subject.
A. Tax incentive
B. Tax exemption
C. Tax amnesty
D. Tax credit
8. As to the scope of the legislative power to tax, which is not correct?
A. Where there are no constitutional restrictions, and provided the subjects are within the
Email address: enverga_catanauan@mseuf.edu.ph Manuel S. Enverga University Foundation Catanauan, Inc.

Brgy.9, Don Abella Drive, Catanauan, Quezon; Tele-Fax No. (042) 315-8203
Catanauan, Quezon
`
territorial jurisdiction of the state, Congress has unlimited discretion as to the persons,
property or occupations to be taxed.
B. In the absence of any constitutional prohibition, Congress has the right to levy a tax of
any amount it sees fit.
C. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax,
unless restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall be levied is Congress, provided
the purpose is public and the courts may not review the levy of the tax to determine
whether or not the purpose is public.
9. Which of the following is the nature of taxation?
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
D. Without it the state can continue to exist.
10. Which of the following is not a determinant of the place of taxation?
A. Source of the income
B. Citizenship of the taxpayer
C. Residence of the taxpayer
D. Amount of tax to be imposed
11. The existence of the government is a necessity and that the state has the right to compel all
individuals and property within its limits to contribute
A. Basis of taxation
B. Situs of taxation
C. Scope of taxation
D. Theory of taxation
12. 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
13. An escape from taxation where the tax burden is transferred by the one on whom the tax is
imposed or assessed to another.
A. Shifting
B. Exemption
C. Transformation
D. Capitalization
14. An escape from taxation where the producer or manufacturer pays the tax and endeavors 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
15. The strongest of all inherent powers of the state because without it, the government can neither
survive nor dispense any of its other powers and functions effectively.
A. Police Power
B. Power of Eminent Domain
C. Power of Taxation
D. Power of Recall
16. This power is superior to the non-impairment clause and is broader in application because it is a
power to make and implement laws.
A. Police Power
B. Power of Eminent Domain
C. Power of Taxation
D. Power of Recall

Catanauan, Quezon
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17. Which of the following statements is not correct?

A. An individual citizens of the Philippines who is working and deriving income from
abroad as an overseas contract worker is taxable on income from sources within and
without the Philippines.
B. A seaman who is a citizen of the Philippines and who receives compensation for
services rendered abroad as a member of the complement of vessel engaged exclusively
in international trade shall be treated as a resident citizen.
C. A non- resident citizen who is not engaged in business in the Philippines is treated as
non-resident alien who is not engaged in business in the Philippines
D. An alien individual, whether a resident or not of the Philippines, is taxable only on income
derived from sources in the Philippines
18. Which of the following statements is not correct?
A. In the case of married individuals, where only one of the spouses is deriving gross
income, only such spouse shall be allowed the personal exemption.
B In the case of married individuals, the additional exemptions may be claimed by only
one of the spouses
C. As a rule, the husband shall be the head of the family and proper claimant of the
additional exemption
D. In the case of legally separated spouses, additional exemption may be claimed by the
spouses who has custody of the children but shall not exceed four(4) for each spouse
19. A resident citizen is taxable on all income derived from sources
A. Within the Philippines only
B. Without the Philippines only
C. Partly within and partly without
D. Within and without the Philippines
20. I. In the Philippines, there may be double taxation.
II. Taxation may be used to implement the police power of the state.
A. True; True
B. True; false
C. False; true
D. False; false
Part II - Computation (show your computations at the space provided, no computation no points) 3pts each
1. Renz earns 25,000 per month as compensation for being an instructor, he wonders how much tax he
should pay annually as a tax student; help Renz compute his income tax due.
2. Anna works at BPI as a branch manager; she earns 150,000 per month with the benefit of 14th month
pay. Compute her annual income tax due.
3. Syra works part-time as a barista at Starbucks, she earns 300 pesos per day, at the end of the year how
much is her income tax due

Catanauan, Quezon
`
4. Jay is employed at 7-11 he is paid 45 pesos per hour, he works 40 hours every week. How much is his
tax due?
5. Cristina works as the CEO of S rentals, she has 2,250,000 pesos as her monthly compensation. How
much is her income tax due?
Part III - Essay 5 points (use the back of the page, if the space is insuficcient)
1. Lallybroch University is a non-stock, non-profit educational institution. Its campus houses a dormitory
with rooms being leased to students, a canteen leased to concessionaires, and an information
technology center. Is Lallybroch University liable for tax? Why? Explain.
2. Explain and differentiate the three powers of the state.
Part IV. Bonus (10 points)
1. Enumerate at least 5 tax exemptions enumerated in the law.

2. Enumerate 5 tax limitations under the constitution..


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MANUEL S. ENVERGA UNIVERSITY FOUNDATION-CATANAUAN INC.

GENERAL DIRECTIONS: READ AND FOLLOW THE DIRECTIONS, NO ERASURES,

PART I: MULTIPLE CHOICE - Encircle the correct answer.

Email address: enverga_catanauan@mseuf.edu.ph Manuel S. Enverga University Foundation Catanauan, Inc.

Email address: enverga_catanauan@mseuf.edu.ph Manuel S. Enverga University Foundation Catanauan, Inc.

17. Which of the following statements is not correct?

Email address: enverga_catanauan@mseuf.edu.ph Manuel S. Enverga University Foundation Catanauan, Inc.

2. Explain and differentiate the three powers of the state.

Part IV. Bonus (10 points)

1. Enumerate at least 5 tax exemptions enumerated in the law.

Email address: enverga_catanauan@mseuf.edu.ph Manuel S. Enverga University Foundation Catanauan, Inc.

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