INTRODUCTION TO PERSONAL TAXATION AND TYPES OF TAXES
ACTUAL FINAL EXAM | WITH COMPLETE QUESTIONS AND
ANSWERS | 2025/2026 LATEST UPDATED | 100 % RATED AND
VERIFIED SOLUTIONS | GET AN A+
What are taxes defined as? - (ANSWER)Enforced proportional contributions from persons and
property levied by the lawmaking body of the State for the support of the government and public
needs.
What is a tax charge typically imposed for? - (ANSWER)Public purposes, to defray expenses.
What is one essential characteristic of a tax? - (ANSWER)It is levied by the lawmaking body.
What does it mean for a tax to be enforced? - (ANSWER)It is a mandatory contribution that
individuals or entities must pay.
How is a tax characterized in terms of payment? - (ANSWER)It is generally payable in money.
What is the purpose of imposing taxes? - (ANSWER)To raise revenues for public purposes.
,What are the classifications of taxes based on subject matter? - (ANSWER)1. Personal, poll or
capitation tax; 2. Property tax; 3. Excise/Privilege tax.
What is a personal tax? - (ANSWER)A fixed amount imposed on individuals residing within a
specified territory, regardless of their property or occupation.
What is a property tax? - (ANSWER)A tax imposed on property based on its value or another
reasonable method of apportionment.
What is an excise/privilege tax? - (ANSWER)A tax imposed upon the performance of an act,
enjoyment of a privilege, or engaging in an occupation.
What are direct taxes? - (ANSWER)Taxes demanded from persons who are legally bound to
pay them.
What are indirect taxes? - (ANSWER)Taxes that can be shifted to another party, such as
customs duties or value-added tax.
What is a specific tax? - (ANSWER)A tax imposed based on a physical unit of measurement,
such as weight or volume.
,What is an ad valorem tax? - (ANSWER)A tax based on a fixed proportion of the value of
property.
What is a general or fiscal tax? - (ANSWER)A tax raised for no particular purpose, simply for
whatever need may arise.
What is a special or regulatory tax? - (ANSWER)A tax imposed for a specific purpose,
regardless of whether revenue is raised.
What is a national tax? - (ANSWER)A tax imposed by the national government.
What is a municipal or local tax? - (ANSWER)A tax imposed by municipal or local
government units.
What is a proportional tax? - (ANSWER)A tax based on a fixed percentage of the amount of
property, income, or other basis to be taxed.
What is a progressive tax? - (ANSWER)A tax rate that increases as the tax base increases.
, What is a regressive tax? - (ANSWER)A tax rate that decreases as the tax base increases.
What is the primary purpose of a tax? - (ANSWER)To raise revenue for the support of the
government.
How does a toll differ from a tax? - (ANSWER)A toll is paid for the use of another's property
and can be imposed by both government and private entities, while a tax is a demand of
sovereignty imposed only by the state.
What is a penalty in the context of tax laws? - (ANSWER)A sanction imposed as punishment
for violation of law or acts deemed injurious, which may arise from violations of tax laws.
What distinguishes a permit or license fee from a tax? - (ANSWER)A permit or license fee is
imposed for regulation under police power, while a tax is levied for revenue and involves the
exercise of taxing power.
What is the nature of a debt compared to a tax? - (ANSWER)A debt is based on contract,
assignable, and may be paid in kind, whereas a tax is based on law, generally not assignable, and
payable in money.
ACTUAL FINAL EXAM | WITH COMPLETE QUESTIONS AND
ANSWERS | 2025/2026 LATEST UPDATED | 100 % RATED AND
VERIFIED SOLUTIONS | GET AN A+
What are taxes defined as? - (ANSWER)Enforced proportional contributions from persons and
property levied by the lawmaking body of the State for the support of the government and public
needs.
What is a tax charge typically imposed for? - (ANSWER)Public purposes, to defray expenses.
What is one essential characteristic of a tax? - (ANSWER)It is levied by the lawmaking body.
What does it mean for a tax to be enforced? - (ANSWER)It is a mandatory contribution that
individuals or entities must pay.
How is a tax characterized in terms of payment? - (ANSWER)It is generally payable in money.
What is the purpose of imposing taxes? - (ANSWER)To raise revenues for public purposes.
,What are the classifications of taxes based on subject matter? - (ANSWER)1. Personal, poll or
capitation tax; 2. Property tax; 3. Excise/Privilege tax.
What is a personal tax? - (ANSWER)A fixed amount imposed on individuals residing within a
specified territory, regardless of their property or occupation.
What is a property tax? - (ANSWER)A tax imposed on property based on its value or another
reasonable method of apportionment.
What is an excise/privilege tax? - (ANSWER)A tax imposed upon the performance of an act,
enjoyment of a privilege, or engaging in an occupation.
What are direct taxes? - (ANSWER)Taxes demanded from persons who are legally bound to
pay them.
What are indirect taxes? - (ANSWER)Taxes that can be shifted to another party, such as
customs duties or value-added tax.
What is a specific tax? - (ANSWER)A tax imposed based on a physical unit of measurement,
such as weight or volume.
,What is an ad valorem tax? - (ANSWER)A tax based on a fixed proportion of the value of
property.
What is a general or fiscal tax? - (ANSWER)A tax raised for no particular purpose, simply for
whatever need may arise.
What is a special or regulatory tax? - (ANSWER)A tax imposed for a specific purpose,
regardless of whether revenue is raised.
What is a national tax? - (ANSWER)A tax imposed by the national government.
What is a municipal or local tax? - (ANSWER)A tax imposed by municipal or local
government units.
What is a proportional tax? - (ANSWER)A tax based on a fixed percentage of the amount of
property, income, or other basis to be taxed.
What is a progressive tax? - (ANSWER)A tax rate that increases as the tax base increases.
, What is a regressive tax? - (ANSWER)A tax rate that decreases as the tax base increases.
What is the primary purpose of a tax? - (ANSWER)To raise revenue for the support of the
government.
How does a toll differ from a tax? - (ANSWER)A toll is paid for the use of another's property
and can be imposed by both government and private entities, while a tax is a demand of
sovereignty imposed only by the state.
What is a penalty in the context of tax laws? - (ANSWER)A sanction imposed as punishment
for violation of law or acts deemed injurious, which may arise from violations of tax laws.
What distinguishes a permit or license fee from a tax? - (ANSWER)A permit or license fee is
imposed for regulation under police power, while a tax is levied for revenue and involves the
exercise of taxing power.
What is the nature of a debt compared to a tax? - (ANSWER)A debt is based on contract,
assignable, and may be paid in kind, whereas a tax is based on law, generally not assignable, and
payable in money.
