TRUE OR FALSE: Write True if the statement is correct, or False if the statement is

incorrect.
1. Taxation could be described as a power as a process or as a means. As a
power, taxation is a way of apportioning the cost of government among those
who are privileged to enjoy the benefits.
2. The State can enforce contributions upon its citizens in the form of taxes
even without a constitutional provisions authorized it.
3. Appropriation of taxes is considered valid if intended for the common good of
the people without identifying a particular person to be benefited from it.
4. Taxation is inseparable in the existence of a nation.
5. Taxation is considered as the lifeblood of the government and every
government unit must exercise this power.
6. The amount of taxes may be increased to curve spending power and
minimize inflation.
7. A specific provision in the constitution is the source of the States taxing
power.
8. Taxation is the governments legitimate means of interfering with the private
properties of its subjects.
9. The benefits from taxation have to be experienced to justify the legitimacy of
collection of taxes from the people.
10.Taxation is the primary source of government revenue. Hence, all
government funds come from taxes.
11.Sovereign equality dictates that a nation cannot impose taxes on the
property of another country.
12.The state can still exercise its taxing powers over its citizen, even if he
resides outside such states territory.
13.All government entities regardless of their functions are exempted from taxes
because it would be impractical for the government to be taxing itself.
14.Revenues derived from taxes cannot be used for the exclusive use of private
person.
15.Local tax ordinances must be uniformly and equally applicable throughout the
country.

TRUE OR FALSE 2
1. The primary requisite of equity principle is that each taxpayer should be
required to contribute equal amounts in the form of taxes.
2. Tax assessment refers to the fiscal policy of the government.
3. An aspect of tax power that could be delegated to the president covers both
legislative and administrative discretion.
4. Eminent domain and police power can effectively be performed even without
taxation.
5. When the power to tax is delegated to the local government, only the
legislative branch of the local government can exercise the power.
6. All inherent powers presuppose equivalent compensation.
7. There is no imposition of amount in police power.

8. Police power and eminent domain may defeat the constitutional rights of a
person.
9. Tax exemption applies only to government entities that exercise proprietary
functions.
10.Tax assessment is a process of taxation which involves the passage of tax
laws and ordinances through legislature.
11.Taxation, like eminent domain is limited by the Constitutional provision that
private property may not be taken without just compensation.
12.The exercise of police power is superior to the non-impairment clause of the
constitution.
13.Taxation, like police power is restricted by the due process clause of the
constitution.
14.Dumping duty is the additional duty tax imposed on imported goods with the
lower prices than their fair market values to protect local industries.
15.Tax imprescriptibility is a tax doctrine which states that taxes in general are
not cancellable.
TRUE OR FALSE 3
1. Taxes may be exercised to encourage economic growth by granting tax
exemptions.
2. Taxes may be used as a tool and weapon in international relations and to
protect trade relations.
3. Protection is the basic consideration that justifies tax suits.
4. The tax situs for occupation is the place where occupation is pursued even if
the criterion for nationality is given.
5. There is direct double taxation by taxing corporate income and corporate
stockholders dividends from the same corporation.
6. A nonresident alien is liable to pay transfer taxes for properties within and
outside the Philippines.
7. A tax may be levied for the support of religious activities as long as all
churches benefit from it.
8. A bill, need not be signed by the President to become law.
9. No law granting any tax exemption shall be passed without the concurrence
of two thirds of the members of the Congress.
10.The Constitution grants autonomous regions certain legislative powers which
shall include legislative powers over taxation.
11.Taxes collected by the BIR are local taxes.
12.Real estate tax and income tax collected on the same real estate property is
not a form of double taxation.
13.A tax evader sidestep the law, while the tax avoider breaks it.
14.All revenues and assets of non-stock nonprofit educational institutions used
directly or indirectly for educational purposes shall be exempt from taxes and
duties.
TRUE OR FALSE 4
1. The power of Judicial Review in taxation is limited only to the interpretation
and application of tax laws.

2. Interpretations made by the executive branch for the enforcement of tax laws
are generally respected by the Courts because they are conclusive.
3. Tax laws are given retroactive effect because the rule of ex post facto law is
applicable for tax purposes.
4. In taxation, it is ones civil liability to pay taxes which gives rise to criminal
liability.
5. No person shall be imprisoned for the nonpayment of income tax.
6. Tax laws must be construed strictly against the government, and tax
exemptions must be construed strictly against the taxpayer.
7. As a rule, doubts as to imposition must be resolved liberally in favor of the
government and strictly against the taxpayer.
8. The Philippine tax laws are not political and penal in nature.
9. The doctrine of equitable recoupment is applicable to cases where the taxes
involved are totally unrelated.
10.When there is ambiguity of tax laws, the rule of statutory construction may
be used to search for the legislative intent. However, when the meaning of
the law is clear, the statute must be enforced as written.
11.Tax exemption is transferrable and assignable.
12.Revenue regulations that are inconsistent with law have the effect and force
of law if they are useful and reasonable.
13.BIR Rulings are the best opinions regarding the interpretations of tax laws
and are considered sound law until changed by the Court.
14.The tax doctrine of Marshall Dictum explains that tax is power to destroy.
15.Tax rulings of the Secretary off Finance are binding to the Courts because the
Department of Finance is the highest agency regarding tax administration.
MULTIPLE CHOICE
1. Which of the following statements is/are correct?
i.
Taxation is a process
ii.
Enactment of Tax Laws is part of the taxation process
iii.
The Constitution expressly conferred the power of Taxation to the
President of the Philippines
iv.
Taxation requires voluntary contribution from the inhabitants to
support the government
Choices:
a. i, ii, iii and iv
b. i, ii and iii only
c. i and ii only
d. i only
2. Which of the following is/are natural qualities of Taxation Power?
i.
An inherent power
ii.
Essentially an executive function
iii.
An absolute power
iv.
Territorial in operation
Choices:
a. i and iv only

3.

4.

5.

6.

7.

8.

9.

b. ii and iii only

c. i and ii only
d. i only
Taxation co-exist with the four elements of the state which includes all,
except
a. Government
b. Property
c. Sovereignty
d. Territory
Which of the following statements is not correct?
a. The government automatically possesses the power to collect taxes from
its inhabitants.
b. The government can enforce contribution upon its citizen only when the
constitution grants it.
c. Taxation power exists inseparably with the State.
d. The State has the supreme power to command and enforce contribution
from the people within its jurisdiction.
Which of the following statements is not correct?
a. Only the National government exercises the inherent power of taxation.
b. The power of tax by the local government units is a delegated power
granted by the Constitution and other special law.
c. National legislation is exercised by Congress.
d. Interpretation of tax laws is done by the Legislative branch of the
government.
Which of the following statements is not correct?
a. Collection from taxes are public money.
b. Appropriation of taxes for the common good of the people is valid.
c. Construction of private road from taxes is a valid appropriation.
d. Allocation of taxes for the benefit of greater portion of population is
considered for public purposes.
All of the following statements are correct except one.
a. Taxation power is an absolute power.
b. Taxation power is the strongest of all inherent power of the government.
c. Tax laws must not violate Constitutional restrictions.
d. Exercise of taxation power is subject to restrictions.
One of the following is not among the basic justification for taxation.
a. Taxation is based on necessity
b. Taxation is the lifeblood of the government
c. Taxation is the bread and butter of the government.
d. Taxation is a voluntary contribution for the benefits received.
Which of the following could be the object of taxation?
i.
Person
ii.
Tangible property
iii.
Intangible property
iv.
Rights
Choices:
a. i and ii
b. i, ii, and iii

c. i and iv
d. i, ii, iii and iv
10.These refers to the rules or orders having force of law issued by the executive
branch of the government to ensure uniform application of the tax law.
a. Revenue regulations
b. BIR rulings
c. Memorandum orders
d. Local tax ordinances
MULTIPLE CHOICES
1. This refers to the process of taxation to determine the amount of tax based
on existing tax law.
a. Levying
b. Imposition
c. Assessment
d. Collection
2. All of the following are legislative aspect of taxation except
a. Selection of the object or subject of tax
b. Fixing of tax rates
c. Valuation of property for taxation
d. Prescribing the general rule of taxation
3. Which of the following is/are elements of impact of taxation
i.
Levy
ii.
Assessment
iii.
Collection
Choices:
a. i, ii and iii
b. i, and ii only
c. ii and iii only
d. iii only
4. All of the following are administrative functions of taxation except
a. Selection of object of tax
b. Valuation of property for taxation
c. equalization of assessment
d. Collection of taxes
5. The statement that he who received more should give more is based on
this basic principle
a. Fiscal adequacy
b. Theoretical justice
c. Administrative feasibility
d. Due process of law
6. To spread the burden of taxation, the corresponding estimated tax is
collected at once every payroll period so that at the end of taxable year, the
amount of tax withheld will be equal or approximate to the actual tax for the
year. This taxation system of collection at source is based on what tax
principle.
a. Fiscal adequacy
b. Theoretical justice

c. Administrative feasibility
d. Due process of law
7. All of the following are inherent restrictions on the exercise of taxation powr
except
a. Rule of uniformity
b. For public purposes
c. Territorial jurisdiction
d. International comity
8. Which of the following is not correct.
a. In the absence of specific tax provision, taxes in general are not
cancelable.
b. Prescriptive period for assessment and collection is applicable to
returnable taxes.
c. The law on prescription being a remedial measure should be interpreted
liberally in order to protect the taxpayer.
d. The prescriptive period should be the shorter between the required filing
date and the actual date of filing.
9. Which of the following statements is correct?
a. Indirect double taxation is legal as long as there is no violation of equal
protection and uniformity clauses of the constitution.
b. Indirect double taxation violates the Constitutional provision of uniformity
and equal protection.
c. There is direct double taxation in taxing the income of the corporation and
again subject the portion of that income declared as dividend to final tax.
d. Direct double taxation is prohibited by the Constitution.
10.Which of the following remedies against double taxation requires tax treaty?
a. Tax exemption
b. Tax credit
c. Reciprocity
d. Deduction allowance

MULTIPLE CHOICE
1. Which of the following tax escape is permissible under Tax Code?
a. Tax avoidance
b. Tax evasion
c. Tax dodging
d. Overstatement of expenses
2. Statement 1: Government units performing governmental functions are
exempt from tax expressly taxable.
Statement 2: Government owned or controlled corporations exercising
proprietary functions are taxable unless expressly exempt.
a. Only Statement 1 is correct
b. Only statement 2 is correct
c. Bothe statements are correct
d. Bothe statements are not correct
3. Which of the following is incorrect description of taxation?
a. Legislative and inherent for the existence of the government.

b. Necessary and public purposes.

c. Supreme and absolute power of the government.
d. Restricted by Constitutional and inherent limitations.
4. Which of the following is not true?
Taxation power
Police power
Eminent power
a. Inherent to the existence
Of the government
b. Not legislative in nature
c. Superior to the non-impairment
Clause

Yes

Yes

Yes

No

No

No

Yes

Yes

No

d. Restricted by just compensation

No
No
Yes
5. Which of the following is correct nature of restriction to exercise taxation
power?
Constitutional Limitation Inherent Limitation
a. Territorial jurisdiction
Yes
Yes
b. International comity
Yes
No
c. Rule of uniformity and equity
No
No
d. Due process of law
Yes
No
6. Which statement refers to police power as distinguished from taxation/
a. It is restricted by Constitutional provision.
b. It is superior to the non-impairment clause of the constitution.
c. It involves the taking of the property by the government.
d. The amount imposed has no limit.
7. Police power is distinguished from the taxation power because?
a. It involves the taking of the property
b. The amount collected is limited to the cost of regulations
c. It is the inherent power of the State
d. The benefit derived is the protection given by the State.
8. The following restrictions are inherent on the exercise of taxation power,
except?
a. Rule of uniformity
b. For public purposes
c. Territorial jurisdiction
d. International comity
9. Which of the following statements is not correct?
a. The national and local government units exercise the inherent power to
tax.
b. Local government units could exercise the power of taxation through
lrgislated delegation.
c. National legislation is exercised by Congress.
d. Interpretation of tax law is done by the judicial branch of the government.
10.Tax affects the area or nation as a community rather than as individuals. This
is a specific explanation of
a. International comity
b. Public purpose
c. Supreme power

d. Reciprocity
MULTIPLE CHOICE:
1. It is achieved through the passage of tax law that defines the tax system of a
nation?
a. Tax legislation
b. Tax administration
c. Tax policy
d. Tax assessment
2. A fundamental rule in taxation is that the property of one country may not be
taxed by another country. This is known as?
a. International law
b. International comity
c. Reciprocity
d. International inhibition
3. Which of the following statements is not correct?
a. Collection from taxes are public money.
b. Appropriation of taxes for the common good of the people is valid.
c. Construction of private road from taxes is a valid appropriation.
d. Allocations of taxes for the benefit of greater portion of population is
considered for public purposes.
4. A taxpayer gives the following reasons in refusing to pay a tax. Which of this
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 he derives no benefit from the tax.
d. That the prescriptive period for the tax has elapsed.
5. The following are the constitutional limitations on the power of taxation,
except?
a. Taxes are not subject to set-off or compensation
b. Only Congress can exercise the power of taxation
c. Non impairment of the obligation of contracts
d. The rule of taxation must be uniform
6. Which of the following is/are taxable for income earned within the
Philippines?
i.
Nonresident citizen
ii.
Nonresident alien
iii.
Resident citizen
iv.
Resident alien
Choices:
a. i, ii, and iii only
b. i, ii, and iv only
c. i and ii only
d. iii and iv only
7. Which of the following are characteristics of taxes?
i.
Voluntary contribution
ii.
Imposed by legislative body
iii.
Proportionate in character

iv.

Used for public purpose

Choices:
a. i, ii, and iii only
b. i,ii and iv only
c. i, and ii only
d. ii,iii and iv only
8. The following are business taxes except?
a. Value-added tax
b. Other percentage tax
c. Excise tax
d. Custom duties
9. All of the following are National Taxes as to collecting authority except?
a. Income tax
b. Real property tax
c. Estate tax
d. Value-added tax
10.Which of the following tax rates behaves in the same direction with the
taxable value/
a. Proportionate
b. Progressive
c. Regressive
d. Disgressive