EXERCISE DRILLS
In the space provided for, indicate whether the statement relates to a Constitutional limitation
(C) or Inherent limitation (I). If it is not a limitation to the taxing power, indicate (N).
1
Non-assignment of taxes
C&I
2
Territoriality of taxation
I
3
Taxes must be for public use
I
4
Exemption of the property of religious institutions from income tax
N
5
Exemption of the revenues and assets of non-profit, non -stock
educational institutions
C
6
Non-delegation of the taxing power
C&I
7
Non-appropriation for religious purpose
C
8
The requirement of absolute majority in the passage of a tax exemption law
C
9
Non-imprisonment for non-payment of tax or debt
N
10
Taxpayers under the same circumstance should be treated equal both in
terms of privileges and obligations
C
11
Exemption from property taxes of religious, educational and charitable entities
C
12
Government income and properties are not objects of taxation.
I
13
Each local government shall have the power to create its own sources
of revenue
C
14
Imprescriptibility in taxation
N
15
Non-impairment of obligations and contracts
C
16
Guarantee of proportional system of taxation
C
17
International courtesy
I
18
Non-impairment of the jurisdiction of the Supreme Court to review tax rates
C
19
The government is not subject to estoppel
N
20
Imprisonment for non-payment of poll tax
N
TRUE OR FALSE: PART 1
1. Eminent domain involves confiscation of prohibited commodities to protect the well-being
of the people. FALSE (POLICE POWER NOT EMINENT DOMAIN)
2. Horizontal equity requires consideration of the circumstances of the taxpayer. TRUE
3. Taxes are the lifeblood of the government. TRUE
4. Taxation is a mode of apportionment of government cost to the people. TRUE 5.
There should be direct receipt of benefit before one could be compelled to pay taxes.
FALSE (THE RECEIPT IS CONCLUSIVELY PRESUMED.)
6. The exercise of taxation power requires Constitutional grant. FALSE
7. Taxation is inherent in sovereignty. TRUE
8. Police power is the most superior power of the government. Its exercise needs to be
sanctioned by the Constitution. FALSE
9. All inherent powers presuppose an equivalent form of compensation. TRUE 10. The
reciprocal duty of support between the government and the people underscores the basis of
taxation. TRUE
TRUE OR FALSE: PART 2
1. The Constitutional exemption of religious, charitable, non-profit cemeteries, churches
and mosques refers to income tax and real property tax. FALSE (PROPERTY TAX
ONLY)
2. Taxpayers under the same circumstances should be taxed differently. FALSE
(DIFFERENT TAXPAYERS WARRANTS DIFFERENT TAX TREATMENTS) 3.
Taxation is subject to Inherent and Constitutional limitations. TRUE
4. International comity connotes courtesy between nations. TRUE
5. Collection of taxes in the absence of a law is violative of the Constitutional requirement
for due process. TRUE (IT WILL RESULT TO VIOLATION OF SUBSTANTIVE DUE
PROCESS)
6. The scope of taxation is regarded as comprehension, plenary, unlimited, and supreme.
TRUE
7. No one shall be imprisoned for non-payment of tax. FALSE (THE CONSTITUTIONAL
GUARANTEE FOR NON IMPRISONMENT OF DEBT AND POLL TAX NOT TAX) 8. The
lifeblood doctrine requires the government to override its obligations and contracts when
necessary. FALSE (THE CONSTITUTION GUARANTEE THE SANCTITY OF CONTRACT
BY ITS NON-IMPAIRMENT CLAUSE)
9. ⅔ of all members of Congress is required to pass a tax exemption law. FALSE (THE
CONSTITUTION REQUIRES THE MAJORITY OF ALL MEMBERS OF CONGRESS TO
PASS A TAX EXEMPTION LAW)
10. The government should tax itself. FALSE
EXERCISE DRILL
Identify the type of tax that is described by the following:
1
A consumption tax collection by non-VAT business PERCENTAGE TAX - 3% OF
GROSS SALES
2
Tax on gratuitous transfer of property by a living donor DONOR’S TAX - 6% OF
TOTAL GIFTS IN
EXCESS
OF PHP 250,000 DURING
THE CALENDAR YEAR.
FOR DONATIONS TO BE
EXEMPT FROM DONOR’S
TAX THERE ARE
AUTHORIZED CHANNELS
PROVIDED BY TAX CODE
AND SPECIAL LAWS.
3
Tax that decreases in rates as the amount or value of
REGRESSIVE TAX
the tax object increases
4
Tax collected upon persons who are not the statutory
INDIRECT TAX - 12% VAT
taxpayers
5
Tax that is imposed based on the value of the tax
AD VALOREM TAX
object
EX: PROPERTY TAXES ON
REAL ESTATE, SALES TAX
ON CONSUMER OF
GOODS AND VAT
6
7
Tax for general purposes FISCAL/GENERAL/REVENU E TAX
Tax imposed by the national government NATIONAL TAX
8
A tax on sin products or non-essential commodities EXCISE TAX OR SIN TAX
9
Imposed on the gratuitous transfer of property upon
ESTATE TAX - 6% OF NET
death
ESTATE
10
Tax on residents of a country COMMUNITY TAX OR RESIDENCY TAX
11
Tax that remains at flat rate regardless of the value of
PROPORTIONAL TAX
the tax object
12
Tax which is collected on a per unit basis SPECIFIC TAX
13
Tax is collected upon the statutory taxpayer DIRECT TAX
14
Tax imposed to regulate businesses or professions REGULATORY TAX
15
Tax upon performance of an act or enjoyment of a
EXCISE TAX OR
privilege
PRIVILEGE TAX