TAX TEST BANK
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1. Taxation as distinguished from police power and pow- D
er of eminent domain.
A. Property is taken to promote the general welfare.
B. Maybe 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
2. The following are constitutional limitations, except D
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institu-
tions, cemeteries, churches,
personage or convents appurtenant thereto, as well
as all lands, buildings and
improvements actually, directly and exclusively used
for religious, charitable and
educational purposes.
3. Which of the following statements is correct? C
A. The President is authorized to increase or decrease
national internal revenue tax rates.
B. One of the nature of taxation is the reciprocal
duties of protection and support between
the state and subjects thereof.
C. Every sovereign government has the inherent pow-
er to tax.
D. Income tax in an indirect tax
, TAX TEST BANK
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4. A tax must be imposed for public purpose. Which of D
the following is not a public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road
5. Which is not an essential characteristic of a tax? A
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
D. It is an enforced contribution
6. Special assessment is an enforced proportional con- B
tribution from owners of land especially benefited by
public improvement. Which one of the following is not
considered as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to
support its legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the
owners of the land.
7. It is the privilege of not being imposed a financial B
obligation to which others are subject.
A. Tax incentive
B. Tax exemption
, TAX TEST BANK
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C. Tax amnesty
D. Tax credit
8. As to scope of the legislative power to tax, which is not D
correct?
A. Where there are no constitutional restrictions, and
provided the subjects are within the territorial jurisdic-
tion of the state, Congress has unlimited discretion as
to the persons, property or occupations to be taxed.
B. In the absence of any constitutional prohibition,
Congress has the right to levy a tax of any amount it
sees fit.
C. The discretion of Congress in imposing taxes ex-
tends to the mode, method or kind of tax, unless
restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall
be levied is Congress, provided
the purpose is public and the courts may not review
the levy of the tax to determine
whether or not the purpose is public
9. Which of the following is a nature of taxation? A
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
D. Without it the state can continue to exist.
10. Which of the following is not a determinant of the D
place of taxation?
A. Source of the income
B. Citizenship of the taxpayer
, TAX TEST BANK
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C. Residence of the taxpayer
D. Amount of tax to be imposed
11. Which of the following statements is not correct? C
A. An inherent limitation of taxation may be disregard-
ed by the application of a
constitutional limitation.
B. The property of an educational institution operated
by a religious order is exempt from
property tax, but its income is subject to income tax.
C. The prohibition of delegation by the state of the
power of taxation will still allow the
BIR to modify the rules in time for filing of returns and
payment of taxes.
D. The power of taxation is shared by the legislative
and executive departments of the
government
12. Statement 1 - The point on which tax is originally C
imposed is impact of taxation.
Statement 2 - Eminent domain is inferior to non-im-
pairment 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.
Statement 1Statement 2Statement 3Statement 4
A. True False False True
B. False True True False
Study online at https://quizlet.com/_bqcl7h
1. Taxation as distinguished from police power and pow- D
er of eminent domain.
A. Property is taken to promote the general welfare.
B. Maybe 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
2. The following are constitutional limitations, except D
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institu-
tions, cemeteries, churches,
personage or convents appurtenant thereto, as well
as all lands, buildings and
improvements actually, directly and exclusively used
for religious, charitable and
educational purposes.
3. Which of the following statements is correct? C
A. The President is authorized to increase or decrease
national internal revenue tax rates.
B. One of the nature of taxation is the reciprocal
duties of protection and support between
the state and subjects thereof.
C. Every sovereign government has the inherent pow-
er to tax.
D. Income tax in an indirect tax
, TAX TEST BANK
Study online at https://quizlet.com/_bqcl7h
4. A tax must be imposed for public purpose. Which of D
the following is not a public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road
5. Which is not an essential characteristic of a tax? A
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
D. It is an enforced contribution
6. Special assessment is an enforced proportional con- B
tribution from owners of land especially benefited by
public improvement. Which one of the following is not
considered as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to
support its legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the
owners of the land.
7. It is the privilege of not being imposed a financial B
obligation to which others are subject.
A. Tax incentive
B. Tax exemption
, TAX TEST BANK
Study online at https://quizlet.com/_bqcl7h
C. Tax amnesty
D. Tax credit
8. As to scope of the legislative power to tax, which is not D
correct?
A. Where there are no constitutional restrictions, and
provided the subjects are within the territorial jurisdic-
tion of the state, Congress has unlimited discretion as
to the persons, property or occupations to be taxed.
B. In the absence of any constitutional prohibition,
Congress has the right to levy a tax of any amount it
sees fit.
C. The discretion of Congress in imposing taxes ex-
tends to the mode, method or kind of tax, unless
restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall
be levied is Congress, provided
the purpose is public and the courts may not review
the levy of the tax to determine
whether or not the purpose is public
9. Which of the following is a nature of taxation? A
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
D. Without it the state can continue to exist.
10. Which of the following is not a determinant of the D
place of taxation?
A. Source of the income
B. Citizenship of the taxpayer
, TAX TEST BANK
Study online at https://quizlet.com/_bqcl7h
C. Residence of the taxpayer
D. Amount of tax to be imposed
11. Which of the following statements is not correct? C
A. An inherent limitation of taxation may be disregard-
ed by the application of a
constitutional limitation.
B. The property of an educational institution operated
by a religious order is exempt from
property tax, but its income is subject to income tax.
C. The prohibition of delegation by the state of the
power of taxation will still allow the
BIR to modify the rules in time for filing of returns and
payment of taxes.
D. The power of taxation is shared by the legislative
and executive departments of the
government
12. Statement 1 - The point on which tax is originally C
imposed is impact of taxation.
Statement 2 - Eminent domain is inferior to non-im-
pairment 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.
Statement 1Statement 2Statement 3Statement 4
A. True False False True
B. False True True False
