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SUGGESTED ANSWERS
Chapter 1: General Principles
and Concepts of Taxation
CHAPTER 1
GENERAL PRINCIPLES AND CONCEPTS OF TAXATION
Problem 1 – 1 TRUE OR FALSE
1. False – Without money provided by tax power, the other inherent powers cannot
function well.
2. True
3. True
4. True
5. True
6. True
7. False – Taxation power is subject to inherent and Constitutional limitations.
8. False – Taxation power is not absolute because it is subject to limitations.
9. True
10. False – penalty is an example of imposition of amount for police power.
11. True
12. False – governmental function unless stated otherwise.
13. False – government agencies engaged in proprietory functions are subject tax unless
stated otherwise.
14. True
11. True
12. False – Doubts must be resolved liberally in favor of the taxpayer.
13. True
14. True
15. False – null and void