EXERCISES

1. All of the following are elements of the state, except: [B] Strongest among the inherent powers
[A] Supremacy [C] Personal to the taxpayer
[B] People [D] Payable in money
[C] Territory 11. On theoretical basis of taxation which of the following
[D] Government statement is correct?
2. It is an inherent power of the state to enforce proportional [A] People pay taxes which their government uses to
contribution from its subjects to sustain itself. expand its powers and territorial domination
[A] Police Power [B] People Demand from their government certain
[B] Eminent Domain responsibilities and they provide this government with
[C] Taxation the means to carry them out.
[D] Sovereignty [C] State needs taxation to exist, while people must support
3. All of the following are similar among the three inherent taxation because they need the presence of the state.
power of the state [D] B and C
[A] All necessary attribute of sovereignty 12. Which of the following could not be considered as purpose of
[B] It exist independently with Constitution taxation?
[C] It interferes with private right and property [A] To raise revenue to support the government
[D] Limited by the Constitution [B] To impose monetary burden to the people
4. Which statement refers to police power as distinguished [C] To check inflation
from taxation? [D] To distribute the wealth of the nation
[A] It involves the taking of property by the government 13. All of the following are basic principle of a sound tax system,
[B] The amount imposed has no limit except:
[C] It is superior to the non-impairment clause of the [A] Fiscal Adequacy
constitution [B] Administrative Feasibility
[D] It is restricted by Constitutional provision [C] Theoretical Justice
5. Which statement refers to eminent domain as distinguished [D] Due process of Law
from taxation power? 14. To spread the burden of taxation, the corresponding
[A] The benefit derived is the market value of the property estimated tax is collected at once every payroll period so that
taken at the end of the taxable year, the amount withheld will be
[B] It is an inherent power of the state equal or approximate to the actual tax for the year. This
[C] It involves taking of property taxation system of collection at source is based on what tax
[D] The persons affected is the community or an individual principle?
6. Which of the following may not raise money for the [A] Due process of law
government? [B] Administrative Feasibility
[A] Power of taxation [C] Fiscal Adequacy
[B] Power of Eminent Domain [D] Theoretical Justice
[C] Police Power 15. Which is correct process of taxation?
[D] Privatization of governments capital asset [A] Assessment , Enactment of Law, Collection
7. Which of the following is true? [B] Collection, Assessment, Enactment of Law
Police Eminent [C] Enactment of Law, Collection, Assessment
Taxation [D] Enactment of Law, Assessment, Collection
Power Domain
[A] Inherent Power No Yes Yes 16. All of the following are legislative aspect of taxation, except:
[B] Not Legislative In [A] Selection of the object or subject of tax
No Yes No [B] Valuation of property for taxation
Nature
[C] Superior to non- [C] Fixing of tax rates
Yes Yes Yes [D] Prescribing the general rules of taxation
impairment clause
[D] Presupposes an 17. All of the following are administrative functions of taxation,
equivalent Yes Yes Yes except:
compensation [A] Selection of object of tax
8. The following statements correctly described the power of [B] Equalization of assessment
the state to tax except: [C] Valuation of property for taxation
[A] As a Power: It refers to the inherent power of an [D] Collection for taxes
independent state, co-extensive with sovereignty to 18. A kind of tax imposed on the exercise of privilege.
demand contributions for public purposes to support [A] Personal Tax
the government [B] Property Tax
[B] As a Process: It passes a legislative undertaking [C] Excise Tax
through the enactment of laws by the Congress which [D] Custom Tax
will be implemented by the Executive Branch of the 19. Value Added Tax is an example of:
government through its Bureau of Internal Revenue to [A] Progressive Tax
raise revenue for the inhabitants in order to pay the [B] Direct Tax
necessary expenses of the government [C] Indirect Tax
[C] As a Means: It is a way of collecting and apportioning [D] Digressive Tax
the cost of government among those who are 20. All are examples of Ad Valorem, except:
privileged to enjoy its benefits [A] Income Tax
[D] None of the above [B] VAT
9. Which of the following is incorrect? [C] Donors Tax
[A] Taxation is a process or means by which the Sovereign, [D] Excise Tax on Liquors
through its law making body, raises income to defray 21. Which is an example of a Special Tax?
the necessary expense of the government [A] Income Tax
[B] Tax laws are civil and not penal in nature, even though [B] Tariff
there are penalties provided [C] Estate Tax
[C] Internal revenues are not political in nature [D] Donors Tax
[D] The State can exercise the power of taxation only if it is 22. Which are examples of a Municipal Tax?
expressly mentioned in the Constitution. [A] Real Estate Tax
10. Which is not a characteristic of Taxation? [B] Community Tax
[A] Absolute Power [C] Professional Tax
 [D] All of the above 34. All of the following are description of International Comity,
23. Levied only on land based wholly on benefit accruing thereon except:
as a result of improvements or public works undertaken by [A] The property of a foreign State or government may not
government within the vicinity be taxed by another
[A] Toll [B] It limits the authority of the government to effectively
[B] Subsidy impose taxes on sovereign state
[C] Special Assessment [C] It dictates peace and harmony among states
[D] Custom duties and fees [D] None of the choices
24. The use by the taxpayer of fraudulent means to lessen 35. Which of the following is incorrect
payment of tax [A] No person shall be deprived of life, liberty or property
[A] Shifting without due process of law nor shall any person be
[B] Capitalization denied the equal protection of law
[C] Tax Evasion [B] As a general rule, under the constitution, the President
[D] Tax Avoidance may veto a bill in part and approve it in part.
25. Which of the following distinguishes special assessment from [C] No law impairing the obligations of contract shall be
tax? passed
[A] Levied only on land [D] Non-payment of income tax can validly be subjected by
[B] Personal Liability attaches on the person assessed in the law to imprisonment
case of non-payment 36. Which of the following is not an element of direct duplicate
[C] Exemption granted is applicable taxation which violates equal protection and uniformity
[D] Not based on special or direct benefit clauses in the constitution?
26. Which of the following distinguishes tax from license fee? [A] Same property is taxed twice
[A] Non-payment does not necessarily render the business [B] Same taxing authority
illegal [C] Same amount
[B] A regulatory measure [D] Sam purpose
[C] Imposed in the exercise of police power 37. Which of the following statements is correct?
[D] Limited to cover cost of regulation [A] Tax laws can never have a retroactive affect
27. Which of the following distinguishes debt from tax? [B] The government cannot tax its agencies and
[A] Non-payment is punished by imprisonment except poll instrumentalities
tax [C] A taxpayers suit can be filed by any taxpayer in any
[B] Assignable instance against the government
[C] Generally payable in money [D] In the Philippines, the Constitution does not prohibit
[D] Imposed only by public authority double taxation
28. All of the following are inherent limitation, except 38. In cases of deductions and exemptions on tax, doubts shall
[A] Public Purpose be resolved
[B] Exemption of the Government [A] Strictly against the taxpayer
[C] Non-delegation of the power of tax [B] Strictly against the government
[D] All of the above [C] Liberally in favour of the taxpayer
29. All of the following are exception for non-delegation of the [D] Liberally in favour of the government
power to tax, except 39. It is otherwise known as tax minimization
[A] Delegation to the president to fix tariff rates and import [A] Tax exemption
or export quotas [B] Tax evasion
[B] Delegation to barangay officials the power to create its [C] Tax avoidance
own tax laws [D] Transformation
[C] Delegation to local governments the power to create its 40. Some franchise holders who are paying the franchise tax are
own source of revenues being required by an amendatory law to pay the value-added
[D] Delegation to administrative agencies certain aspects of tax, while others remain subject to franchise tax. Which of
the taxing process the following constitutional provision makes the law
30. All of the following are non-taxable agencies, except: unconstitutional?
[A] SSS [A] No law shall be passed impairing the obligation of
[B] Municipality of Baguio contract
[C] NAPOCOR [B] The rule of taxation shall be uniform
[D] PAGCOR [C] No person shall be deprived of property without due
31. Which is not a public purpose? process of law
[A] Public education [D] None of the above
[B] National defence
[C] Transportation
[D] None of the choices
32. 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] The 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
33. Which of the following is incorrect:
[A] The tax laws can operate beyond a countrys territorial
limit
[B] A person may be tax where there is between him and
the taxing State a privity of relationship justifying the
levy
[C] A property which is wholly within the jurisdiction of
another State receive none of the protection for which a
tax is supposed to be compensated.
[D] Provision of exemption, allowance of deduction and
treaties with other States are remedies against
multiplicity of situs