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3. Which of the following is NOT a form to tax avoidance which could be legally used by the taxpayer?
a. Tax Condonation
b. Tax Amnesty
c. Exemption
d. Tax Evasion
4. It is a form of escape from taxation by which a taxpayer uses illegal or unlawful means to defeat,
evade, or lessen the payment of tax:
a. Tax Avoidance
b. Tax Evasion
c. Tax Amnesty
d. Tax Condonation
8. In case of conflict between tax laws and generally accepted accounting principles (GAAP):
a. Both tax laws and GAAP shall be enforced
b. GAAP laws shall prevail over tax laws
c. Tax laws shall prevail over GAAP
d. The issue shall be resolved by the courts
9. The following are similarities of the inherent power of taxation, eminent domain, and police power,
EXCEPT one:
a. Are necessary attributes of sovereignty
b. Interfere with private rights and property
c. Affect all persons or the public
d. Are legislative in implementation
12. The distinction of a tax from permit or license fee is that a tax is:
a. Imposed for regulation
b. One which involves an exercise of police power
c. One which there is generally no limit on the amount that may be imposed
d. Answer not given
13. The following are taxation powers that cant be delegated to other branches EXCEPT:
a. Power to value property
b. Determining the place of tax imposition
c. Selecting the property to be taxed
d. Fixing the amount to be imposed
15. Rate where the tax rate increases as the tax base increases:
a. Proportional Rate
b. Regressive Rate
c. Graduated Rate
d. Mixed Rate
17.Tax exemptions that are intentional/accidental or those not mentioned that is deemed exempted by
omission:
a. Contractual Exemption
b. Implied Exemption
c. Expressed Exemption
d. Non-Contractual Exemption
18.Which principle state that revenue should be sufficient to meet public expenditures regardless of
business conditions:
a. Equality
b. Theoretical Justice
c. Fiscal Adequacy
d. Feasibility
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
22.A non- resident alien 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
23. A citizen of the Philippines who works and derives income abroad is a resident citizen if he stayed
outside the Philippines:
a. For less than 180 days
b. For more than 180 days
c. For 183 days or more
d. For less than 183 days
24. A citizen of a foreign country is considered a non-resident alien engaged in business in the
Philippines if he stayed inside the Philippines:
a. For 183 days or more
b. For less than 183 days
c. For more than 180 days
d. For less than 180 days
25. Which is NOT an essential characteristic of Tax?
a. It is an enforced contribution
b. It is generally payable in money
c. It is proportionate in character
d. It is levied for private purpose
26. It is a tax imposed on the gains presumed to have been realized by the seller from the sale,
exchange, or other dispositions of capital assets:
a. Documentary Stamp Tax
b. Donor's Tax
c. Capital Gains Tax
d. Estate Tax
27. It is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and
the beneficiaries at the time of death and on certain transfers which are made by law as equivalent to
testamentary disposition:
a. Documentary Stamp Tax
b. Donor's Tax
c. Capital Gains Tax
d. Estate Tax
28. A tax imposed on goods manufactured or produced in the Philippines for domestic sale or
consumption or any other disposition:
a. Value Added Tax
b. Excise Tax
c. Expanded Withholding Tax
d. Final Withholding Tax
29. A kind of withholding tax which is prescribed only for certain payers and is not creditable against the
income tax due of the payee for the taxable year, I.e., tax withheld by banks on the interest income
earned on bank deposits:
a. Value Added Tax
b. Excise Tax
c. Expanded Withholding Tax
d. Final Withholding Tax
30. A kind of withholding tax which is prescribed only for certain payers and is creditable against the
income tax due of the payee for the taxable quarter year:
a. Value Added Tax
b. Excise Tax
c. Expanded Withholding Tax
d. Final Withholding Tax
31. The following are objects of taxation, EXCEPT:
a. Persons
b. Excise Objects
c. Right
d. Circle
32. Limitations of taxation is inherent or natural restrictions. These DOES NOT include:
a. Taxes levied only for public purposes
b. International comity
c. Territorial jurisdiction
d. Due process of law
33. Under our Constitution, the President's failure to communicate his veto of any bill within 30 days
after receipt thereof causes the bill to:
a. Automatically considered as refused
b. Be idle on the President's desk
c. Become a law
d. None of the above
34. The administrative powers to tax can Is exercised by the legislative only:
a. Absolutely, True
b. Absolutely, False
c. Generally, True
d. Generally, Maybe
a. True, True
b. True, False
c. False, True
d. False, False
38. The personal exemption of the non-resident alien engage in trade or business in the Philippines is
equal to that allowed by:
a. The income tax law of his country to a citizen of the Philippines not residing there
b. The income tax law of his country to a citizen of the Philippines not residing there or the
amount provided by the NIRC to a citizen or resident whichever is lower
c. The NIRC to a citizen or resident
d. The income tax law of his country to a citizen of the Philippines not residing there or
the amount provided by the NIRC to a citizen or resident whichever is higher
42.Which of the following individual taxpayers cannot avail of the deduction for health and
hospitalization insurance premium?
a. Non-resident citizen
b. Resident alien
c. Non-resident alien engaged in business in the Philippines
d. Non-resident alien not engaged in business in the Philippines
43. The process where the sovereign raises income to defray the expenses of the government
a. Subsidiary
b. Tariff
c. Taxation
d. Tribute
44. One of the characteristics of internal revenue tax is that they are
a. Criminal in nature
b. Penal in nature
c. Political in nature
d. Generally prospective in application
45. In case of conflict between tax laws and generally accepted accounting principles
a. Both tax laws and GAAP shall be enforced
b. GAAP shall prevail over tax laws
c. Tax laws shall prevail over GAAP
d. The issue shall be received by the court
50. 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
52. A taxpayer gives the following reasons in 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 he derives no benefit from the tax
d. That the prescriptive period for the tax has elapsed
53. 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
59. The term "foreign", when applied to a corporation, means a corporation which is not domestic is the
same as to the term "alien":
a. True
b. False
c. Either
d. I dont know
a. True, True
b. True, False
c. False, False
d. False, True
61. One of the following is a primary purpose of taxation
a. Protection of local industries against foreign competition through imposition of high customs
duties on imported goods
b. Reduction of inequalities in wealth and income by imposing progressively higher tax rates
c. To secure revenue for the support of the government
d. Strengthening of anemic enterprises by giving tax exemptions
63. Which of the following is not one of the canons of a sound tax system?
a. Quantifiability
b. Equity
c. Certainty
d. Convenience
64. The requirement of equality of theoretical justice is complied with if the tax is
a. Progressive
b. Regressive
c. Ad valorem
d. Specific
65. The power of taxation can only be exercised by the lawmaking body
a. Subject to constitutional and inherent limitations
b. Equality or theoretical justice
c. Legislative in character
d. Inherent in sovereignty
66. The legislative body can impose a tax at any amount underscores the legal truism that taxation is
a. Inherent power of tax
b. A very broad power of state
c. Essentially legislative power
d. For public purpose
67. Statement 1: Imposition of taxes is a legislative act.
Statement 2: Collection of taxes is an administrative act.
a. First statement is correct
b. Second statement is correct
c. Both statements are correct
d. Both statements are incorrect
68. The only tax where non-payment of which will not result to imprisonment:
a. Excise Tax
b. Donor's Tax
c. Personal Tax
d. Property Tax
71. Which one of the following is NOT a major tax under the Tax Code?
a. Income tax
b. Donor's tax
c. Excise tax
d. Estate tax
75. The courts cannot issue injunction against the government's effort to collect taxes is justified by:
a. The lifeblood doctrine
b. Imprescriptible of taxes
c. The ability to pay theory
d. The doctrine of estoppel
76. Which of the following is NOT a legislative act in the stages in exercising taxation power?
a. Determining the purpose of the tax
b. Assessment of the tax
c. Determination of the subject of the tax
d. Setting the amount of the tax
78. Which of the following shows a WRONG statement between the difference of Taxes and Tolls?
a. Tax is a demand of sovereignty while toll is a demand of ownership
b. The amount of tax depends on the need of the government while the amount of toll depends
upon the value of the property released
c. Both government and private entities may impose tolls but private entities cannot impose
taxes
d. Tax is a demand of ownership while toll is a demand of sovereignty
79. Which of the following is NOT exercised by the government?
a. Taxation
b. Police Power
c. Eminent Domain
d. Exploitation
81. The following are Inherent limitations of the Taxation Power EXCEPT:
a. Public Purpose
b. Exemption of Government
c. Equal Protection of Law
d. International Comity
82. It occurs when all the elements of Double Taxation exist for both impositions:
a. Double Taxation
b. Indirect Double Taxation
c. Direct Double Taxation
d. None of the Above
86. Taxation co-exist with the four elements of the state which includes:
a. Government
b. Property
c. Sovereignty
d. Territory
a. I and IV only
b. II and III only
c. I and II only
d. I only
a. I only
b. II only
c. Both I and II
d. Neither I nor II
92. It is also known as Tax Dodging, refers to any act or trick that tends to illegally or avoid the payment
of tax:
a. Tax Evasion
b. Tax Exemption
c. Tax Avoidance
d. None of the Above
93. It occurs when at least one of the secondary elements of Double Taxation is not common for both
impositions:
a. Double Taxation
b. Indirect Double Taxation
c. Direct Double Taxation
d. None of the Above
97. The proportional contribution by persons and properties levied by the law-making body of the State
by virtue of its sovereignty for the support of the government and public needs is referred to as:
a. Taxes
b. Special assessment
c. License fees
d. Answer not given
98. One of the characteristics of a tax is that:
a. It is generally based on contract
b. It is generally payable in money
c. It is generally assignable
d. Answer not given
99. Tax of a fixed proportion of the value of the property with respect to which the tax is assessed and
requires the intervention of assessors or appraisers to estimate the value of such property before the
amount due from each taxpayer can be determined is known as:
a. Specific
b. Ad valorem
c. Special or regulatory
d. Answer not given
100. The process by which the sovereign raises income to defray the expenses of the government is
called:
a. Subsidy
b. Tariff
c. Taxation
d. Tribute