Name: Ronna Mae A. Dungog Instructor: Ms.

Alessa Cruz
Schedule: 3162 10:40am-12:20pm Date: June 23, 2020

TAX A ASSIGNMENT NO. 1: BASIC PRINCIPLES OF TAXATION

1. The principal purpose of taxation is

a. To encourage the growth of home industries through the proper use of tax exemptions
and tax incentives '
b. To implement the police power of the stale
c. The reduce excessive inequalities of wealth
d. To raise revenues for governmental needs
2. The aspects of taxation are
a. Legislative in character
b. Executive in character
c. Shared by the legislative and executive departments
d. Judicial in character
3. Taxation as distinguished from police power and power of eminent domain
a. Property is taken to promote the general welfare
b. May be 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
4. Which of the inherent powers may be exercised even by public service corporations and public
entities?
a. Power of taxation
b. Police Power
c. Power of Eminent Domain
d. A and C
5. Which the following statements is correct?
a. Income tax is an indirect tax.
b. Our National Internal Revenue Laws are criminal in nature.
c. The theory of taxation states that the power of taxation is supreme, plenary, unlimited,
and comprehensive.
d. Toll is subject to inherent and constitutional limitations.
6. 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 public purpose
7. 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
8. The power to acquire private property upon payment of just compensation for public purpose
a. Power of taxation c. Power of eminent domain
b. Police power d. Power of love
9. The power to regulate liberty and property to promote the general welfare
a. Police power c. Power of eminent domain
b. Power of taxation d. Super power rangers
10. The tax imposed should be proportionate to the taxpayer's ability to pay
a. Fiscal adequacy c. Administrative feasibility
 b. Equality or theoretical justice d. Economic consistency
11. The sources of revenue as a whole should be sufficient to meet the demands of the public
expenditures
a. Fiscal adequacy
b. Equality or theoretical justice

c. Administrative feasibility
d. Revenue generation
12. The tax laws must be capable of convenient. just and effective administration
a. Fiscal adequacy c. Administrative feasibility
b. Equality or theoretical justice d. Psychological compatability
13. True or False
Statement l - The point on which a tax is originally imposed is impact of taxation
Statement 2 - Police power is superior to the non-impairment clause of the constitution
Statement 3 - As a rule, taxes are subject to set-off or compensation
Statement 4 - As a rule, provisions on the validity of tax exemptions are resolved liberally
in favor of the taxpayer
a. True, False, False, False
b. True, True, False, True
c. True, True, False, False
d. False, True, False, False
14. 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
15. Which is not an essential characteristic of a tax?
a. It is unlimited as to amount c. It is proportionate in character
b. It is payable in money d. It is an enforced contribution
16. It is the privilege of not being imposed a financial obligation to which others are subject
a. Tax incentive c. Tax amnesty
b. Tax exemption d. Tax credit
17. Which of the following is a nature of taxation?
a. The power is exercised by legislative action c. It is generally payable in money.
b. It is essentially an administrative function d. The state can exist without it
18. The use of illegal or fraudulent means to avoid or defeat the payment of tax
a. Shifting c. Avoidance
b. Exemption d. Evasion
19. The use of legal or permissible means to minimize or avoid taxes
a. Shifting c. Avoidance
b. Exemption d. Evasion
20. Synonymous to tax evasion
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax shield
21. Synonymous to tax avoidance
a. Tax dodging c. Tax exemption
b. Tax minimization d. Tax shield
22. The strongest of alI inherent powers of the state because without it, the government can neither
survive nor dispense any of its other powers and functions effectively.
a. Police Power c. Power of Taxation
b. Power of Eminent Domain d. Power of Greystone
23. This power is superior to the non-impairment clause and is broader in application because it is
the power to make and implement the laws.
 a. Power of Taxation c. Power of Eminent Domain
b. Power of Recah d Police Power
24. Which of the following statements is not correct?
a. An inherent limitation may be disregarded by the application of a constitutional limitation
b. lncome tax liabiiities shall be paid by the inhabitants even if foreign invaders occupy our
country.
c. Taxes may be imposed retroaclively by law,but unless so expressed by such law, these taxes
must only be imposed prospectively.
d. Tax laws are political in nature.
25. Which of the following is not a constitutional limitation on the Power of Taxation?
a. No person shall be deprived of life, liberty or property without due process of law.
b. No person shall be denied the equal protection of the law.
c. No person shall be imprisoned for debt or non-payment of tax.
d. No law granting any tax exemption shall be passed without the concurrence of a majority of all
the members of Congress.