7.

Which of the following is not under the exclusive appellate

jurisdiction of the CTA to review by appeal?
368
a. Decisions of the Commissioner of Customs in cases involving
liability for customs duties, fees of other money charges,
seizure, detention or release of property affected, fines,
forfeitures or other penalties, in relation thereto, or other
matters arising under the Customs
b. Decisions of the Central Board of Assessment Appeals in the
exercise of its appellate jurisdiction over cases involving the
asses~ment and taxation of real property originally decided by
the ]Jr ovincial or city board of assessment appeals
c. Decisions of the Secretary of Finance on customs cases
elevated to him automatically for review from decisions of the
Commissioner of Customs which are adverse to the
Government under Sec.2315 of the Tariff and Customs Code
d. None of the choices
Answer: D
Reference• Section 7 (a), Republic Act No. 1125, as amended by
Re ublic Act No. 9282
The CTA shall exercise exclusiue appellate jurisdiction to reuiew by appeal:
(1) Decision o[the CIR in cases irwoluing disputed assessments, refunds of
internal reuenues, fees or other charges, penalties in relation thereto, or
other matters arising under NIRC or other laws administered by the BIR;
(2) Inaction by the CIR in cases irwolving disputed assessments, refunds of
internal revenue taxes, fees or other charges, penalties in relation thereto,
or other matters arising under NIRC or other laws administered by the
BIR, where the NIRC provides a specifi"c pen.od for action, in which case
the inaction shall be deemed a denial;
(3) Decisions, order, or resolutions o[the Regional Trial Court in local tax
cases originally decided or resolved by them in the exercise of their
original or appellate jurisdiction;
(4) Decisions oft he Commissioner o( Customs in cases involving liability for
customs duties, fees of other money charges, seizure, detention or release
of property affected, fines, forfeitures or other penalties, in relation thereto,
or other matters arising under the Customs;
(5) Decisions o{the Central Board of Assessment Appeals in the exercise of
its appellate jurisdiction over cases involving the assessment and taxation
of real property originally decided by the prouincial or city board of
assessment appeals;
(6) Decisions o[the Secretary of Finance on customs cases elevated to him
automatically for review from decisions of the Commissioner of Customs
which are adverse to the Government under Sec.231 S of the Tanff and
Customs Code;
(7) Decisions o[the Secretan1 o[Trade and Industry in the case of nonagricultural,
product, commodity or article, and the Secreton1 of
Agriculture in the case of agricultural products, commodity or article,
inuoluing dumping and countervailing duties under Section 301 and 301,
respectively, of the Tariff and Customs Code, and safeguard measures
under R.A. No. 8800, where either party may appeol the decision to
im ose or not to im Jose said duties.
Chapter 25: Jurisdictions of the Court of Tax Appeals
8. Which of the following cases involving criminal offense shall be under
the jurisdiction of the CTA?
a. Exclusive original jurisdiction over all criminal offenses
arising from violations of the NIRC or Tariff and Customs
Code and other laws administered by the Bureau of Internal
Revenue or the Bureau of Customs
b. Exclusive appellate jurisdiction in criminal offense over
appeals from judgments, resolutions or orders of the Regional
Trial Court in Tax cases originally decided by them, in their
respective territorial jurisdictions
c. Exclusive appellate jurisdiction in criminal offenses over
petitions for review of the judgments, resolutions or orders of
the Regional Trial Courts in the exercise of their appellate
jurisdiction over tax cases originally decided by the
Metropolitan Circuit Trial Courts in their respective
jurisdictions
d. All of the choices
Answer: D
Reference: Section 7 (b), Republic Act No. 1125, as amended by
Republic Act No. 9282
The CTA shall exercise jurisdiction over cases involving criminal offenses:
(1) Exclusive original jurisdiction over all criminal offenses arising from
violations of the NIRC or Tariff and Customs Code and other laws
administered by the BIR or the BoC: Prouided, however, That
offenses or felonies where the principal amount of taxes and fees,
exclusive of charges and penalties, claimed is less than Pl,OOO,OOO
or where there is no specified amount claimed shall be tried by the
regular courts and the jurisdiction of the CTA shall be appellate.
(2) Exclusive appellate jurisdiction in criminal offenses:
(a) Over appeals from judgments, resolutions or orders of the
Regional Trial Court in Tax cases originally decided by them, in
their respective territorial jurisdictions;
(b) Over petitions for review of the judgments, resolutions or orders
of the Regional Trial Courts in the exercise of their appellate
jurisdiction over tax cases originally decided by the Metropolitan
Circuit Trial Courts in their respective jurisdictions.
369
Chapter 25: Jurisdictions of the Court of Tax Appeals
9. First statement: Criminal offenses or felonies where the principal
amount of taxes and fees, exclusive of charges and penalties,
claimed is less than Pl,OOO,OOO or where there is no specified
amount claimed shall be tried by the regular courts and the
jurisdiction of the CTA shall be appellate.
Second statement: Any provision of law or the Rules of Court to the
contrary notwithstanding, the criminal action and the
corresponding action for the recovery of civil liability for taxes and
penalties shall at all times be simultaneously instituted with, and
jointly determined in the same proceeding by the CTA, the filing of
the criminal· action being deemed to necessarily carry with it the
filing of the civil action, and no right to reserve the filing of such
civil action separately from the criminal action will be recognized.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
Answer: A
Reference: Section 7 (b) ( 1), Republic Act No. 1125, as amended
by Republic Act No. 9282
10. Which of the following cases involving tax collection cases shall be
under the jurisdiction of the CTA?
370
a. Exclusive original jurisdiction in tax collection cases involving
final and executory assessments for taxes, fees, charges and
penalties
b. Exclusive appellate jurisdiction in tax collection cases over
appeals from the judgments, resolutions or orders of the
Regional Trial Courts in tax collection cases originally decided
by them, in their respective territorial jurisdictions
c. Exclusive appellate jurisdiction in tax collection cases over
petitions for review of the judgments, resolutions or orders of
the Regional Trial Courts in the exercise of their appellate
jurisdiction over tax collection cases decided by the
Metropolitan Trial Courts and Municipal Circuit Trial Courts,
in their respective jurisdictions
d. All of the choices
Answer: D
Reference: Section 7 (c), Republic Act No. 1125, as amended by
Republic Act No. 9282
Chapter 25: Jurisdictions of the Court of Tax Appeals
11. (Phil. CPA Modified) Which of the following cases does not fall within
the jurisdiction of the Court of Tax Appeals?
a. Criminal action for violation of the National Internal Revenue
Code
b. Question of whether or not to impose a deficiency tax
assessment upon a taxpayer
c. Appeal from an undisputed tax assessment
d. Action for refund of real property tax
Answer: C
12. Which of the following statements is not correct?
a. The Court of Tax Appeals may review tax cases motu pro pia
under its expanded jurisdiction.
b. The findings of fact of the Court of Tax Appeals is binding
upon the Supreme Court.
c. The Court of Tax Appeals may dismiss a petition for want of
jurisdiction even if the question is not raised in the pleadings
or even suggested by counsel.
d. The Court of Tax Appeals may review the findings of the
Secretary of Finance in seizure and forfeiture cases.
Answer: A
371
1
Chapter 26
INHERENT POWERS OF THE STATE
~'vfore pmverju( tfian tfie cwf{{ to win is tfie COUr£1f}C to fiegin. - )1nonymous
Multiple Choice: Choose the best possible answer.
1. It is the act of laying a tax, i.e. the process or means by which the
sovereign, through its lawmaking body, raises income to defray the
necessary expenses of government.
a. Taxation c. Police power
b. Power of eminent domain d. None of the choices
Answer: A
2. It is the power of the State or those to whom the power has been
delegated to take private property for public use upon paying the
owners a just compensation to be ascertained according to law.
a. Taxation c. Police power
b. Power of eminent domain d. None of the choices
Answer: B
3. It is the power of the State to enact such laws in relation to persons
and property as may promote public health, public morals, public
safety and general welfare of the people.
a. Taxation c. Police power
b. Power of eminent domain d. None of the choices
Answer: C
j 4. (Phil. CPA) Which statement refers to police power as distinguished
from taxation?
372
a. It can only be imposed on specific property or properties.
b. The amount imposed depends on whether the activity is
useful or not.
c. It involves the taking of property by the government.
d. The amount imposed has no limit.
Answer: B
Chapter 26: Inherent Powers of the State
,/ 5. (Phil. CPA) Which of the following may not raise money for the
government?
a. Power of taxation
b. Police power
c. Power of eminent domain
d. Privatization of government's capital assets
Answer: C
Distinction among the inherent powers as to amount of imposition
Taxation No limit
Police power Limited to the cost ofthe license and the
necessary expenses of police surveillance
and regulation
Power of eminent No imposition, the owner is paid the fair
domain market value of his property
6. In this power of the State, the person who is parting with his money
or property is presumed to receive a benefit.
a. Taxation c. Eminent domain
b. Police power d. Forfeiture power
Answer: A
../7. (Phil. CPA) Police power as distinguished from eminent domain.
a. Just compensation is received by the owner of the property.
b. May be exercised by private individuals.
c. Superior to impairment clause of the Constitution.
d. Property is taken by the government forpublic purposes.
Answer: C
Article III, Section 10. "No law impairing the obligation of contracts
shall be passed."
Distinction among the three inherent powers as to relationship to the
non-zmpazrment o1 0 bl"z gatzons c l ause o1 t h e c onstztutzon
Taxation . . I,nferim; to the·~lause
Police power Superior to the clause
Power of eminent domain Inferior to the clause
/s. (Phil. CPA) The following are common to the inherent power of
taxation, power of eminent domain and police power, except for
which of the following?
a. They are necessary attributes of sovereignty.
b. They interfere with private rights and property.
c. They affect all persons or the public.
d. They are legislative in implementation.
373
Chapter 26: Inherent Powers of the State
Answer: C
Similarities among the three inherent powers:
1) They are inherent in the State;
2) They exist independently of the Constitution;
3) They constitute the three methods by which the State
interferes with private rights and property;
4) They are legislative in natur.e and character;
5) Each presu poses an equivalent compensation.
9. The basic principle of taxation, where, "Taxes must be based on the
taxpayer's ability to pay" is called:
a. equality in taxation. c. theoretical justice.
b. ability to pay theory. d. equity in taxation.
Answer: C
Basic Principles of a Sound Tax System (Canons of Taxation)
a. Fiscal Adequacy - This means that the sources of revenue
should be sufficient to meet the demands of public expenditures.
b. Equality or Theoretical Justice - This means that the tax
burden should be proportionate to the taxpayer's ability to pay
(ability to pay principle).
c. Administrative Feasibility - This means that the laws should
be capable of convenient, just and effective administration. ·
10. Under this basic principle of a sound tax system, the government
should not incur a deficit.
a. Theoretical justice c. Fiscal adequacy
b. Administrative feasibility d. Debt restructuring
Answer: C
./ 11. What basic principle of a sound tax system is met when Congress
evolves a progressive system of taxation as mandated in the
Constitution? l~Hi~ -\()~ ~\'W\dt>\e
a. Fiscal adequacy c. Administrative feasibility
b. Theoretical justice d. Balanced budget
Answer: B
374
Chapter 26: Inherent Powers of the State
./ 12. Which of the following is not a basic principle of a sound taxation
system?
a. It should be capable of being effectively enforced. Ar
b. It must be a progressive tax. 't 3
c. It must be sufficient to meet government expenditures and
other public needs.f! fJ,.
d. It should be exercised to promote public welfare.
Answer: D
13. Which one of the following is not a characteristic of the State's power
to tax?
a. It is inherent in sovereignty.
b. It is legislative in character.
c. It based on the ability to pay.
d. It is subject to constitutional and inherent limitations.
Answer: C
Characteristics (or Nature) of the State's Power to Tax
a. It is inherent in sovereignty, hence, it may be exercised although
not expressly granted by the Constitution.
b. It is legislative in character, hence, only the legislature can impose
taxes (high prerogative of sovereignty).
c. It is subject to Constitutional and inherent limitations, hence, •
it is not an absolute power than can be exercised by the legislature
anyway it pleases.
14. (Phil. CPA) Statement 1: The power of taxation is inherent in
sovereignty being essential to the existence of every government.
Hence, even if not mentioned in the Constitution, the State can still
exercise the power.
Statement 2: Taxation is essentially a legislative function. Even in
.·
.·
the absence of any constitutional provision, taxation power falls on "
Congress as part of the general power of lawmaking.
a. Both statements are false c. Both statements are true
b. Only statement 1 is false d. Only statement 1 is true
·Answer: C
375
l
j
I
Chapter 26: Inherent Powers of the State
j 15. (Phil. CPA) Which of the following statements is not correct?
a. Taxes may be imposed to raise revenue or to provide
~incentives or disincentives for certain activities within the
State.
b. The State can have the power of taxation even if the
Constitution does not expre~l.fgive it the power to tax.
c. For the exercise of the power of taxation, the state can tax
anything at any time.
d. The provisio'ns of taxation in the Philippine Constitution are
grants of power and not limitations on the taxing power.