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Chapter 1 Exam

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9 views2 pages

Chapter 1 Exam

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zosbhsjxbdbdbnxjs
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Name: ______________________________________________________________________________

Section Code: ____________________________ Class Schedule: ________________________

Income Taxation Chapter 1 Examination

True or False. Write T if the statement is TRUE. Write F if the statement is FALSE.
________1. Taxes are the lifeblood of the government. T
________2. The BIR is under the supervision of Department of Budget. F
________3. Subject to constitutional and inherent restrictions, the power of taxation is regarded as comprehensive,
limited, plenary and supreme. F
________4. The government should tax itself. F
________5. When the tax law is vague, as if there is no law. T
________6. When the tax exemption is vague, as if there is an exemption. F
________7. Under the ability to pay theory, the more benefit he receives, the more taxes he should pay. F
________8. Taxpayers under the same circumstance should be taxed differently. F
________9 Taxation is inherent in sovereignty. T
________10. The point on which tax is originally imposed is impact of taxation. T
________11. Eminent domain is inferior to non-impairment clause of the constitution. T
________12. As a rule, taxes are subject to set-off or compensation. F
________13. As a rule, provisions on the validity of tax exemptions are resolved liberally in favor of the taxpayer. F
________14. The discretion of Congress in imposing taxes extends to the mode, method or kind of tax, unless restricted
by the constitution. T
________15. The President is authorized to increase or decrease national internal revenue tax rates. F

Multiple Choice. Write you answer on the space before the number.
__D 1. This is an inherent limitation on the power of taxation.
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. Tax must be for the public purpose.
__C2. This is a constitutional limitation on the power of taxation.
A. Tax laws must be applied within the territorial jurisdiction of the state.
B. Exemption of government agencies and instrumentalities from taxation.
C. No appropriation of public money for religious purposes.
D. Power to tax cannot be delegated to private persons or entities.
__D 3. 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 of recall
__ D 4. Basic Principles of a sound tax system, except
A. Fiscal adequacy B. Equality or theoretical justice C. Administrative feasibility D. Intellectual sensitivity
__ D 5. Persons or things belonging to the same class shall be taxed at the same rate.
A Simplicity in taxation C. Equality in taxation
B. Reciprocity in taxation D. Uniformity in taxation
__ C6. The tax should be proportional to the relative value of the property to be taxed.
A Simplicity in taxation C. Equality in taxation
B. Reciprocity in taxation D. Uniformity in taxation
___ D7. The following are the nature of taxation, except
A. Inherent in sovereignty C. Subject to inherent and constitutional limitation
B. Essentially legislative in character D. Subject to approval by the people.
___ A8. 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
___ C9. Enforced proportional contributions from persons and property levied by the state by virtue
of its sovereignty for the support of the government and for all public needs.
A. Toll B. License fee C. Taxes D. Assessment
___ A10.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
__D11. 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. Power of Taxation B. Power of Recall C. Power of Eminent Domain D. Police Power
__ D12. The use of illegal or fraudulent means to avoid or defeat the payment of tax.
A. Exemption B. Shifting C. Avoidance D. Evasion
___ C13. Police power as distinguished from the power of eminent domain:
A. Just compensation is received by the owner of the property. C.May regulate both liberty and property.
B. Maybe exercised by private individuals. D. Property is taken by the government for public
purpose.
___ A 14. One of the characteristics of internal revenue laws is that they are:
A. Generally prospective in application C. Political in nature
B. Penal in nature D. Criminal in nature
___ B15. The following are similarities of the inherent power of taxation, eminent domain, and police
power, except one:
A. Are necessary attributes of sovereignty C. Compensation is received.
B. Superior to the non-impairment clause of the constitution. D. Are legislative in character.

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