Income Taxation

Prelim Quiz 1

A tax must be imposed for public purpose. Which of the following is not a public purpose?

Improvement of a subdivision road.

Which is not an essential characteristic of a tax?

It is unlimited as to amount.

It is the privilege of not being imposed a financial obligation to which others are subject.

Tax exemption

Which of the following is not a determinant of the place of taxation?

Amount of tax to be imposed

A tax system where the greater bulk of the tax revenues is derived by direct taxes.

Progressive

This is an inherent limitation on the power of taxation.

ax must be for the public purpose.

They exist independent of the constitution being fundamental powers of the state, except

Power of recall

Power of Eminent domain

The power to acquire private property upon payment of just compensation for public purpose

Police power

The power to regulate liberty and property to promote the general welfare.

Power of taxation

The power to demand proportionate contributions from persons and property to defray the expenses of the government.

Subject to approval by the people.

The following are the nature of taxation, except

Situs of taxation

It literally means “place of taxation”; the country that has the power and jurisdiction to levy and collect the tax.

Civil in nature

Taxes under National Internal Revenue Code are essentially

Taxation

The process or means by which the sovereign, through its law-making body raises income to defray the expenses of the government.

Evasion

The use of illegal or fraudulent means to avoid or defeat the payment of tax.

Avoidance

The use of legal or permissible means to minimize or avoid taxes.

 

Tax Code shall prevail over PAS.

In case of conflict between the Tax Code and the Philippine Accounting Standards (PAS).

Territoriality of taxation

 

Inherent Limitation

Police power is the most superior power of the government. Its exercise needs to be sanctioned by the Constitution. 

False