Taxation EXTRA

Which of the following is NOT examples of violation of tax laws?

• Failure to pay annual fee

• Tax avoidance

• Failure to register

• Tax evasion

The taxpayer asks for restitution of the money paid as tax which is either excessive or erroneous.

• Refund

• Assessment and Collection

• Levy

• Payment

As the tax base increases the tax due also increases such as tax on individual earning pure compensation income.

• Proportionate tax

• Regressive tax

• Progressive tax

• Fractional tax

The power to demand proportionate contribution from persons and property to defray the necessary expenses of the government.

• Power of taxation

• Police power

• Power of eminent domain

• Power of recall

Which statement is wrong?

• The power of taxation may be exercised by the government, its political subdivisions, and public utilities.

• Generally, there is no limit on the amount of tax that may be imposed.

• The money contributed as tax becomes part of public funds.

• The power to tax is subject to inherent and constitutional limitations.

Active income is subject to

• Regular tax

• Capital gains tax

• Final tax

• Any of these

Which is not generally subject to regular income tax?

• Compensation income

• Business income

• Professional income

• Passive income

Which is not an essential characteristic of a tax?

• it is unlimited as to amount

• it is payable in money

• it is proportionate in character

• it is an enforced contribution

The tax imposed should be proportionate to the taxpayer's ability to pay

• Fiscal adequacy

• Equality or theoretical justice

• Administrative feasibility

• Economic consistency

The tax laws must be capable of convenient, just and effective administration

• Fiscal adequacy

• Equality or theoretical justice

• Administrative feasibility

• Due process of law