GENERAL PRINCIPLES OF TAXATION 1

 

1.     Statement 1: Police power aims to regulate behavior and promote the general welfare, while taxation aims to raise revenue.

Statement 2: Unlike taxes, debts may be subject to imprisonment in case of non-payment.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

2.     Statement 1: The exercise of the power of taxation is subject to constitutional limitations such as due process and equal protection of the laws.
Statement 2: The power of taxation is inherent in sovereignty and needs no constitutional grant.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

 

3.  Statement 1: Eminent domain may raise money for the government.
Statement 2: Tax exemption applies only to government entities that exercise proprietary functions.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

3. 3. Statement 1: Tax avoidance is synonymous with tax dodging.
   Statement 2: The aspects of taxation are shared by the legislative and executive branches of the government.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

5. 5. Statement 1: No law granting any tax exemption shall be passed without the concurrence of 2/3 of all members of Congress.
   Statement 2: Levying local government taxes should be exercise only by the legislative branch of the local government.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

6. 6. Statement 1: There is no constitutional prohibition against double taxation in the Philippines. It is something not favored, but nevertheless permissible.
   Statement 2: In case of ambiguity, tax laws shall be interpreted liberally in favor of the government.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

7. 7. Statement 1: The rule of uniformity in taxation means that all taxpayers must pay the same rate of tax regardless of classification.

Statement 2: Taxes are the lifeblood of the government, and their prompt and certain availability are crucial for its existence.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

8. 8. Statement 1: In the exercise of the power of taxation, the State can tax anything at any time.

Statement 2: The distinction of a tax from permit or license fee is that a tax is one in which there is generally no limit on the amount that may be imposed.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

9. 9. Statement 1: Our income tax system is one good example of such progressivity because it is built on the principle of the taxpayer’s ability to pay.
   Statement 2: Barrios, barangays, municipalities/cities and provinces may collect taxes from their inhabitants.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false

10.      Statement 1: The distinction of a tax from permit or license fee is that a tax is imposed for regulation.
Statement 2: The three fundamental powers of the state may be exercised only by the government.

• Only Statement 1 is true

• Only Statement 2 is true

• Both statements are true

• Both statements are false