Chapter 1 - General Principles of Taxation

d. It can be levied for any purpose

Which of the following is not a characteristic of a tax?

a. It is obligatory

b. It is exercised by legislature

c. It can be collected from persons or properties

d. It can be levied for any purpose

b. It should not grant permission because a tax is generally a pecuniary burden

XYZ Corporation manufactures glass panels and is almost at the point of insolvency. It has no more cash and all it has are unsold glass panels. It received an assessment from the BIR for deficiency income taxes. It wants to pay but due to lack of cash, it seeks permission to pay in kind with glass panels. Should the BIR grant the requested permission? (BAR 2013)

a. It should grant permission to make payment convenient to tax payers

b. It should not grant permission because a tax is generally a pecuniary burden

c. It should grant permission; otherwise, XYZ Corporation would not be able to pay

d. It should not grant permission because the government does not have the storage facilities for glass panels

b. Obligation of the citizens that arises from the constitution

Tax can be described as a/n, except

a. Monetary burden

b. Obligation of the citizens that arises from the constitution

c. Going against the will of the persons being taxed

d. Not subject to an agreement or assent between the government and the taxpayer

a. Situs

In Philippine taxation, it is used to determine if the government can subject the person or property to its tax laws.

a. Situs

b. Location

c. Citizenship

d. Registration

c. Services of an online tutor who lives in Germany paid by a student living in Cebu City.

Which of the following can the state not tax?

a. A business establishment in Marikina City owned by a foreigner who lives in Europe.

b. Income of a Filipino youtuber earned from Google.

c. Services of an online tutor who lives in Germany paid by a student living in Cebu City.

d. Local business who sells goods to a customer located abroad

b. Executive

Who is mandated to implement and enforce the tax laws?

a. Legislative

b. Executive

c. Judiciary

d. Any of the choices

a. The government can take the firearm for it is an exercise of police power.

Mr. Gucci was carrying an unlicensed firearm. Upon the discovery by the NBI, the government seized the firearm. Mr. Gucci questioned the government's act. Which of the following is true?

a. The government can take the firearm for it is an exercise of police power.

b. The government cannot take the firearm for there is no just compensation.

d. The government cannot take the firearm because of the absence of a public purpose that justifies such taking.

d. The government can take the firearm for the state's powers are comprehensive, unlimited, plenary, and supreme.

d. Public Purpose

What is the heart of taxation?

a. Generating Revenue

b. General Welfare

c. Lifeblood theory

d. Public Purpose

a. The power of taxation may be exercises by the government, its political subdivisions, and public utilities

Which statement is WRONG? (2012 BAR)

a. The power of taxation may be exercises by the government, its political subdivisions, and public utilities;

b. Generally, there is no limit on the amount of tax that may be imposed

c. The money contributed as tax becomes part of the public funds

d. The power of tax is subject to certain constitutional limitations

c. Community tax

Which of the following is akin to poll taxes?

a. Income tax

b. VAT

c. Community tax

d. Real property tax

d. False, False

Statement 1: At all times, imprisonment is not a punishment for non-payment of poll tax.

Statement 2: At all times, imprisonment is not a punishment for non-payment of community tax.

a. True, True

b. True, False

c. False, True

d. False, False

a. 126

The House of Representatives 18th Congress is composed of 307 members. During a meeting, only 250 attended. They are voting on a bill that imposes a tax on offshore gaming operators. How many votes must be mustered for the bill to be approved?

a. 126

b. 154

c. 125

d. 153

b. 154

Using the same given in the previous number but assume that the bill being deliberated is a grant of a tax exemption. How many votes will be needed?

a. 126

b. 154

c. 125

d. 153

d. Barrios

Which of the following does not have the power to levy a tax?

a. Cities

b. Provinces

c. Barangays

d. Barrios

b. collect the tax levied under the law.

It is NOT the function of Congress to

a. fix with certainty the amount of taxes.

b. collect the tax levied under the law.

c. identify who should collect the tax.

d. determine who should be subject to the tax.

b. May originate from the Senate and on which same bill the House of Representatives may propose amendments.

Which statement is wrong? Tax laws (RPCPA)

a. Must originate from the House of Representatives and on which same bill the Senate may propose amendments.

b. May originate from the Senate and on which same bill the House of Representatives may propose amendments.

c. May have a House version and Senate version approved separately.

d. May be recommended by the President to Congress.

b. Symbiotic relation in taxation

Which among the following concepts of taxation is the basis for the situs of income taxation? (2011 Bar Question)

a. Lifeblood doctrine of taxation

b. Symbiotic relation in taxation

c. Compensatory purpose of taxation

d. Sumptuary purpose of taxation

b. Administrative Feasibility

Taxes are generally payable in cash. If a law is passed which allows the payment of taxes in kind, it is valid, but it will become a problem in the principle of

a. Theoretical Justice

b. Administrative Feasibility

c. Fiscal Adequacy

d. None of the above

c. Civil in nature

One of the characteristics of the Philippine internal revenue laws is that it is

a. Criminal in nature

b. Penal in nature

c. Civil in nature

d. Political in nature

a. National tax

Taxes imposed under the NIRC are described as a

a. National tax

b. Property tax

c. Poll tax

d. Regressive tax

b. Theoretical Justice

The non-observance of the following may lead to the invalidity of a tax law

a. Fiscal Adequacy

b. Theoretical Justice

c. Administrative Feasibility

d. All of the above

c. Administrative Feasibility

Which of the following is an incidence of taxation?

a. Refund of tax

b. Imposed of tax

c. Administrative Feasibility

d. All of the above

a. Equal protection

Direct double taxation violates

a. Equal protection

b. Due process

c. Reciprocity

d. Territoriality

c. Strictly against the government and liberally in favor of the taxpayer

In every case of doubt, tax statutes are constructed

a. Strictly against the government and the taxpayer

b. Liberally in favor of the government and the taxpayer

c. Strictly against the government and liberally in favor of the taxpayer

d. Liberally in favor of the government and strictly against the taxpayer

d. That he will derive no benefit from the tax

A taxpayer gives the following reasons for refusing to pay a tax. Which of his reasons is not acceptable for legally refusing to pay the tax?

a. That he has been deprived of due process of law

b. That there is lack of territorial jurisdiction

c. That the prescriptive period for the tax has lapsed

d. That he will derive no benefit from the tax

c. To raise revenue for the support of the government

All of these are secondary purposes of taxation except

a. To reduce social inequality

b. To protect local industries

c. To raise revenue for the support of the government

d. To encourage growth of local industries

c. No, because the properties are used for educational purposes

Huang Ming College is a higher educational institution operated by Buddhist Monks that offer courses in arts and religious teachings. The land and building of the college were being required by a local government to pay real property tax. Is the assessment valid?

a. No, because the properties are used for religious purposes

b. Yes, because the properties are owned directly by the college, a private institution, and not by the Buddhist Monks

c. No, because the properties are used for educational purposes

d. Yes, because the properties have a mixed use and not purely used for education or religious purposes

d. Tax exemption

This form of escaping tax will most likely result in a loss of revenue for the government

a. Shifting

b. Transformation

c. Capitalization

d. Tax exemption

c. The bill lapsed into law.

Congress passed a bill amending the NIRC which includes expanding the tax exemption privileges and revising the income tax rates for individuals. The bill was transmitted to the Office of the President for signature. 31 days have passed, and the bill was not yet signed. Which of the following is correct?

a. The bill must await the approval and sign of the president before it becomes a law.

b. The bill was impliedly denied by the president and must be transmitted back to Congress.

c. The bill lapsed into law.

d. The bill was vetoed.

d. There is generally no limit as to the amount that may be imposed.

Taxation as distinguished from police power and power of eminent domain.

a. Property is taken to promote the general welfare.

b. Maybe 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.

d. Exemption from income tax of charitable institutions, cemeteries, churches, personage, or convents

The following are constitutional limitations, except

a. Non 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

b. Every sovereign government has the inherent power to tax.

Which of the following statements is correct?

a. The President is authorized to increase or decrease national internal revenue tax rates.

b. Every sovereign government has the inherent power to tax.

c. Income tax in an indirect tax.

d. All of the above

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.

As to 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 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.

c. May regulate both liberty and property.

Police power as distinguished from the power of eminent domain:

a. Just compensation is received by the owner of the property.

b. Maybe exercised by private individuals.

c. May regulate both liberty and property.

d. Property is taken by the government for public purpose.

d. Amount of tax to be imposed

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

c. The power of taxation will still allow the BIR to modify the rules in time for filing of returns and payment of taxes.

Which of the following statements is not correct?

a. An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.

b. The property of an educational institution operated by a religious order is exempt from property tax, but its income is subject to income tax.

c. The power of taxation will still allow the BIR to modify the rules in time for filing of returns and payment of taxes.

d. The power of taxation is shared by the legislative and executive departments of the government.

a. Personal, poll or capitation

Tax of a fixed amount imposed upon all persons residing within a specified territory without regard to their property or occupation they may be engaged.

a. Personal, poll or capitation

b. Excise

c. Property

d. Regressive

c. Property

Tax imposed on personal or real property in proportion to its value or on some other reasonable method of apportionment.

a. Personal, poll or capitation

b. Excise

c. Property

d. Regressive

b. Excise

Tax imposed upon performance of an act, the enjoyment of privilege or the engaging in an occupation.

a. Personal, poll or capitation

b. Excise

c. Property

d. Regressive

a. Direct

Tax which is demanded from the person whom the law intends or desires to pay it.

a. Direct

b. Excise

c. Indirect

d. Percentage

c. Indirect

Tax which is demanded from one person in the expectation and intention that he shall indemnify himself at the expense of another.

a. Direct

b. Excise

c. Indirect

d. Percentage

a. Specific

Tax which imposes a specific sum by the head or number or by some standard of weight or measurement and which requires no assessment other than a listing or classification of the objects to be taxed.

a. Specific

b. Excise

c. Ad-valorem

d. Income

d. The provisions of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers.

Which of the following statements is not correct?

a. Taxes may be imposed to raise revenues or to provide disincentives to certain activities within the state.

b. The state can have the power of taxation even if the Constitution does not expressly give it the power to tax.

c. For the exercise of the power of taxation, the state can tax anything at any time.

d. The provisions of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers.

d. Limited to cover cost of regulation.

License fee as distinguished from tax

a. Non-payment does not necessary render the business illegal.

b. A revenue raising measure

c. Imposed in the exercise of taxing power.

d. Limited to cover cost of regulation.

b. Void, because the power to grant tax exemption is vested in Congress

The Department of Finance thru its officers entered into a contract with foreign investors granting them exemption from all forms of taxes to encourage investments in the Phils. The contract is

a. Void, unless the President ratifies it

b. Void, because the power to grant tax exemption is vested in Congress

c. Valid, if the President has authorized the officers to enter such contract

d. Valid, because the purpose is to promote public welfare

c. House of Representatives

Revenue bills shall originate from the

a. Senate

b. President

c. House of Representatives

d. BIR

a. Basis of taxation

The state has the right to compel the contributions as the existence of the government is a necessity. This is in accordance with the ___

a. Basis of taxation

b. Situs of taxation

c. Scope of taxation

d. Theory of taxation

b. Proportional tax

The 12% VAT is an example of a

a. Local tax

b. Proportional tax

c. Specific tax

d. Special tax

b. Due process of law

It states that there can be no tax unless there is a law imposing that tax

a. Uniformity of taxation

b. Due process of law

c. Non-delegation of the power to tax

d. Administrative feasibility

b. A very broad power

The legislative body can impose a tax of any amount underscores the legal truism that taxation is

a. On inherent power

b. A very broad power

c. Essentially a legislative power

d. For public purpose

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