TAXATION
Basic Principles of Taxation
ATTY. MACMOD, CPA
LECTURE NOTES
BASIC PRINCIPLES OF MODERN TAXATION
A. Define Taxation
1. As a state power: Taxation refers to the inherent
power of a sovereign state acting through its
legislature to impose a proportionate burden upon
persons, property rights or transaction to raise
revenue to support government expenditure and
as a tool for general and economic welfare.
2. As a process:
Taxation refers to the act of
imposing a tax by a sovereign state to raise
revenue for government expenses.
B. What are the PURPOSES of taxation?
1. Primary purposes to raise funds for the expenses
of the government: (also called Revenue
Purpose)
2. Secondary purpose: as a tool for general social
and
economic
welfare
(also
called
Regulatory/sumptuary/Compensatory purpose)
C. Give the NATURE or CHARACTERISTICS of the
taxing power
1. It is inherent power of a sovereign state – being
inherent in sovereignty, the state has the power to
tax even if not expressly granted by the
constitution.
2. It is legislative in character – taxation in generally
exercised by the lawmaking body of a state.
3. It is subject to inherent and constitutional
limitations.
D. What is SCOPE of the power of taxation?
In the absence of inherent and constitutional
limitations, the power to tax is comprehensive &
unlimited. As a rule, the state thru the congress can
tax any thing at any time and at any amount.
1. Subject matter of the tax.
2. Situs of taxation.
3. Purpose of the tax.
4. Amount or rate of tax
5. Method of collection / Importance of Taxation
E. Where does the power of taxation proceed from?
It proceeds from the necessity of the existence of the
government, and since it exists for the People, it can
compel them to pay taxes.
F. What is the basis of taxation?
The reciprocal obligation of protection and support
between the state and its citizens. In Return for the
protection provided by the state, the people pay taxes.
Benefit-Protection Theory.
G. Power of judicial REVIEW/ROLE OF COURTS IN
TAX CASES (CTA & SC)
Courts cannot inquire into the wisdom of a taxing act.
Courts can only review the legality of the tax based on
the constitutional as well as inherent limitations and
other applicable laws.
H. Sources of tax laws:
1.
2.
3.
4.
5.
I.
Construction and application of tax laws
1.
2.
J.
What are the three inherent powers of the state?
1.
2.
3.
J-1. Give the similarities and distinctions of Taxation,
Police Power and Power of Eminent Domain.
Three inherent powers of a state:
1. Power of Taxation – refer to letter A
2. Power of Eminent Domain – it refers to the
inherent power of a sovereign state to take private
property for public use upon payment of a just
compensation.
3. Police Power – it refers to the inherent power of a
sovereign state to enact laws to promote public
health, public safety, public morals and the
common good.
SIMILARITIES:
1. They are indispensable to government existence.
2. They can exist independent of the constitution.
3. They are the means by which the state interferes
with private rights and properties.
4. They are generally exercised by the legislature.
5. They contemplate an equivalent compensation or
benefit.
K. What are the forms of avoiding a tax (tax escape)?
1.
2.
3.
4.
5.
The only thing that stands between a man and what he wants from life is often merely the Will to try it and the FAITH
to believe that it is possible. R. Devos
DISTINCTIONS:
Taxation
1. As
subject
to
2. As to
purpose
3. As to
limitation
Imposed
upon
persons,
property,
rights or
transaction
To
raise
revenue for
government
expenses
Generally
unlimited
f.
Eminent
Domain
Imposed upon
private
real
properties
To
acquire
private
property
for
public
use
Limited to the
fair
value of the
expenses
of regulation
4. As to act
involved
Taxpayers
pays taxes
Private
property is
taken
for
public use
5. As to
benefits
Protection &
other
benefits from
the
government
Person
receives
a
just
compensation
Inferior
Superior
received by
the
people
6. As to
relationship
to non–
impairment
clause of
the
Exemption of religious, charitable, educational
entities, non-profit cemeteries and churches
from property taxation.
g. Exemption from taxation of non-stock, nonprofit educational institutions and donations for
educational purposes.
h. Concurrence by a majority of the members of
Congress for passage of a law granting tax
exemption.
i. The power of the President to veto a revenue
or tariff bill.
j. Non-impairment of the jurisdiction of Supreme
Court in tax cases.
3. Contractual limitations – these are restrictions
on the taxing power imposed by previously
existing contracts entered into by the
government with another party who may be
another state or its own citizens.
Police
Power
Imposed
upon
persons,
property,
rights or
transaction
For
regulation
and
control
Limited
to
the cost of
license fee
and other
property
control
Enforcemen
t of laws for
public
welfare and
common
good
Protection &
other
benefits
from the
government
N. Give the steps/stages involved under taxation
system.
1st : Imposition of taxes
2nd : Collection of taxes
a. Assessment
b. Actual tax collection
c. Enforcement of tax laws/criminal prosecution for
wilful violation of tax laws
3rd: Payment of taxes
O. Define TAXES
Taxes are enforced proportional contributions levied by
the state for the support of the government
Superior
P. What are the essential characteristics, requisites
or elements of a tax?
a.
the
TAX
Q. CLASSIFICATION of taxes
1. What are the kinds of taxes as to subject matter?
a. Personal, poll or capitation tax – tax imposed on
persons residing within a specific territory.
Example: Basic Community Tax
b. Property tax – tax imposed on property, whether
real or personal.
Example: Real estate tax
c. Excise tax – tax imposed on the exercise of a right
or privilege. Also called “Privilege tax”
Example: Income tax, estate tax, donor’s tax, etc.,
M. What are the limitations on the power of
taxation?
1. Inherent limitations – those that restrict the power
of taxation even though not provided in the
constitution.
a. Taxes must be for public purpose.
b. Exemption of government agencies and
instrumentalities from taxation.
c. Power to tax cannot be delegated to private
persons or entities.
d. Tax laws do not apply to properties of foreign
government.
e. Tax laws should be applied within the territorial
jurisdiction of the state.
f. Double taxation should be avoided.
2. Constitutional limitations – those that limit the
power of taxation as embodied in the constitution.
a. Due process of law in taxation and equal
protection of the laws.
b. Rule on uniformity and equity in taxation.
c. No imprisonment for non-payment of poll tax.
d. Non-impairment of the obligation of contracts.
e. No appropriation of public money for religious
purposes.
2. What are the kinds of taxes as to who bears the
burden?
a. Direct tax – tax imposed upon a person who is
directly bound to pay it; tax which the taxpayer
cannot shift to another.
Example: Income tax, estate tax, donor’s tax
b. Indirect tax – tax which forms part of the purchase
price; tax which the taxpayer can shift to another.
Example: Excise tax on certain goods, other
percentage taxes, value added tax
3. What are the kinds of taxes as to determination of
amount?
a. Specific tax – tax based on weight, number or
some
other
standards
of
weight
or
measurement.
Example: Excise tax on distilled spirits, wines,
cinematographic films
b. Advalorem tax – tax imposed based on the value
of the taxable item.
Example: Real estate tax
4. What are the kinds of taxes as to purpose?
a. General tax – tax imposed for general
purposes of the government.
Example: Income tax, value added tax
b. Specific tax – tax imposed for a special
purpose or purposes.
constitution
L. Enumerate
and
briefly
principles/characteristics of
SYSTEM
1.
2.
3.
4.
a
define
SOUND
Example: Protective tariff and customs duties,
Special Educational Fund (SEF) Tax,
Special Assessments
5. What are the kinds of taxes as to jurisdiction/scope
or authority imposing tax?
a. National tax –tax imposed on a national and
for the national government.
Example: National Internal Revenue taxes
b. Local tax – tax imposed on a local level for the
support of local governments.
6. What are the kinds of taxes as to graduation or
rate?
a.
b.
c.
Proportional tax – the tax rate of which is fixed
or constant.
Example: Corporate Income Tax, value added
tax
Progressive tax – the tax rate increases as the
taxable amount or tax bracket increases.
Example: Individual income tax, estate tax,
donor’s tax
Regressive tax – the tax rate decreases as the
taxable amount or tax bracket increases.
We have no regressive tax in the Philippines.
R. Tax distinguished from OTHER CHARGES and FEES
1. Differentiate tax from toll
TAX
TOLL
a. Demand of sovereignty
Demand of proprietorship
b. Generally amount is unlimited
Amount is limited to the cost and
maintenance of public improvement.
c. For the support of the government
For the use of another’s property
d. May be imposed by the State only
May be imposed by private individuals or entities
2. Differentiate tax from special assessment
TAX
a. Imposed on persons, property rights
or transactions
b. For the support of the government
c. Regular exaction
3. Differentiate tax from license fee
TAX
a. Imposed to raise revenue
b. Collected under the power
of government
c. Generally amount is unlimited
d.
e.
Imposed on persons, property,
rights or transaction
Non-payment does not make the
SPECIAL ASSESSMENT
Levied only on lands
Contribution to the cost of public improvement
Exceptional as to time and place
LICENSE FEE
For regulation and control
Collected under the police power
Limited to the necessary expenses of
regulation and control
Imposed on the exercise of a right or
privilege
Non –payment makes the business illegal business illegal
4. Differentiate tax from penalty
TAX
a. Imposed to raise revenue
b. May be imposed by the
State only
PENALTY
Imposed to regulate conduct
May be imposed by the private entity
5. Differentiate tax from custom’s duty
TAX
a. Imposed upon persons, property,
rights or transactions
b. It comprehends more than the
term custom’s duty
CUSTOM’S DUTY
Imposed on imported or
exported goods
It is also a tax
6. Differentiate tax from debt
TAX
a. Based on law
b. Not assignable
c. Payable in money
d. Not subject to set-off
e. Non-payment may result to
imprisonment
f. Bears interest only if
delinquent
7. Differentiate tax from tithe
TAX
a. Based on law
b. Rates vary
z
DEBT
Based on Contract
Assignable
Payable in kind or in money
Subject to set-off
No imprisonment (except when
debt arises from crime)
Interest depend upon the
stipulation of the parties.
TITHE
Based on religious obligation
fixed at 10% of one’s earning
S. Tax Administration
It is a system involving assessment, collection and
enforcement of taxes, including the execution of judgment
in all tax cases decided in favor of the BIR by the courts.
T. Powers and duties of the BIR
1. Assessment and collection of all national internal
revenue taxes, fees and chargers
2. Enforcement of all forfeitures, penalties and fines
connected therewith
3. Execution of judgement in all cases decided in its
favor by CTA and ordinary courts
4. Give effect to and administer the supervisory and
police power conferred to it by the NIRC or other
laws.
U. Official of the BIR
The BIR shall have a chief to be known as Commissioner of
internal revenue and four assistant chiefs to be known as
Deputy Commissioners.
I. GENERAL PRINCIPLES / EXERCISES
A. Identification
_________1. The overall administrative and judicial
machinery in the determination and
collection of taxes.
_________2. The laws which enumerate the national
taxes and its collection or enforcement.
_________3. A system where the tax increases as the
income of the taxpayer increases.
_________4. Any income derived by the government
whether from tax or other sources.
_________5. Limitations on the power of taxation not
found in the constitution.
_________6. Under this specific limitation, properties of
foreign government are exempted from
taxation.
_________7. The theory that justifies the necessity of
taxation.
_________8. The
theory
that
emphasizes
the
relationship
between
state
and
its
inhabitants.
_________9. The theory under the canons of taxation
which emphasizes on the economic
aspect of taxation.
_________10. It also means characteristics of a sound
taxation system.
_________11. It means taxes should be based on the
taxpayer’s ability to pay and benefits
received.
_________12. It means taxable items of the same class
should be taxed at the same rate.
_________13. Refers to the taxes imposed by the
legislature other than duties on imports
and exports.
_________14. It refers to the National Internal Revenue
Code.
_________15. A taxation system wherein a taxpayer is
not entitled to claim any deduction.
_________16. A principle which prohibits the delegation
of a taxing power which has already been
delegated.
_________ 17. A form of tax escape by transferring the
burden of taxation to another.
_________ 18. A form of tax escape through illegal
means.
_________ 19. A form of tax escape through permissible
or legal means.
_________ 20. A taxation system wherein all income of a
taxpayer are added together less related
deductions and subject to only one or
single rate.
True or False: In each of the following, write:
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
21. a. A person may refuse to pay a tax on the ground
that he receives no personal benefit from it.
b. Any citizen has a legal right to question illegal
expenditures of public funds.
22. a. One of the essential characteristics of a tax is it is
unlimited in amount..
b. A tax is generally unlimited because it is based on
the needs of the state.
23. a. A License Fee is a charge imposed under the power
of the taxation.
b. Special assessment is regular exaction.
24. a.
Imposition of taxes is the first step in stages of
taxation.
b. Collection of taxes is a legislative act.
25. a. A state has the power to tax even if not granted by
the Constitution.
b. A state cannot exercise police power if not granted
by the Constitution.
26. a. There can only be a tax if there is a law imposing
the tax.
b. Non delegation rule is absolute.
27. a.
A tax is based on law while debt is based on
contract.
b. A tax is also a custom’s duty.
28. a. A person cannot be imprisoned for non-payment of
a tax.
b.
A tax may be passed violating uniformity of
taxation.
29. a.
The RDO is known as the alter ego of the BIR
Commissioner.
b.
The BIR Commissioner is directly under the
President’s Office.
30. a.
Provisions in the Philippine Constitution on
Taxation are grants of power.
b. Due process of law in taxation in the Constitution
is a grant of power.
31. a. An excise tax is also called privilege tax.
b. A tax which is neither personal or property is an
excise tax.
32. a.
The power or jurisdiction of court of tax appeals
over tax cases cannot be impaired.
b. Equal protection clause is a direct limitation on the
power of taxation.
33. a. Taxation without representation is tyranny.
b.
In the exercise of taxation, the state can tax
anything at anytime and at any amount.
34. a.
Taxation and power of Eminent Domain may be
exercised simultaneously.
b.
Taxation and Police Power may be exercised
simultaneously.
35. a. All of our tax laws are statutory laws.
b.
The non-impairment clause is a statutory law on
taxation.
36. a. Non-payment of tax makes the business illegal.
b. The non-payment of license fee makes the business
illegal.
37. a. Margin fee is a tax.
b. Custom’s duty is a tax.
38. a. Territoriality is one of the constitutional limitations
on the power of taxation.
b. International comity is an inherent limitation in
taxation.
39. a. Taxes may be used for sectarian purposes also if
allowed by an ordinance.
b. The President can refuse to implement a tax law if
it appears to be unconstitutional.
40. a. There can be double taxation in the Philippines.
b. Inherent limitations prevail over constitutional ones.
41. a. A progressive system of taxation means a tax
structure where the tax base decreases as the tax rate
increases.
b. Tax exemption is a grant of immunity to a particular
taxpayer from tax where others are obliged to pay.
42. a. Tax avoidance is a form of tax escape that is
illegal.
b. Tax evasion is not punishable.
43. a. Taxation includes the power to destroy always.
b. Taxation can modify an existing contract.
44. a. A tax may be subjected to set-off or compensation.
b. A tax ordinarily includes interest.
45. a.
A tax bill normally embraces more than one
subject.
b. Tax bills may come from either Senate or Lower
House if certified by the President.
C. Multiple Choice: In each of the following, choose
the best answer.
46. All are characteristics of the power of taxation,
EXCEPT:
a. It is an inherent power.
b. It is a legislative in character.
c. It is civil in character.
d. It is subject to inherent and constitutional
limitations.
47. Our tax laws are:
a. Political in nature
b. Civil in nature
c. Penal in nature.
d. Social in nature.
48. Also known as tax administration
a. Collection of taxes
c. Payment of taxes
b. Levying of taxes.
d. Incidence of taxation
49. Taxation is an inherent power because:
a. It is the life blood of the government.
b. Protection and benefit theory.
c. It co-exists with the existence of the state.
d. It is exercised for the general welfare of the
people.
50. All
a.
b.
c.
d.
are essential characteristics of a tax, EXCEPT:
It is an enforced contribution.
It is generally unlimited in amount.
It is generally payable in money.
It is a proportionate burden.
51. A tax is invalid in the following cases, EXCEPT:
a. Theory of taxation and its purpose are disregarded.
b. Basis of taxation is not recognized.
c. Inherent and constitutional limitations are not
observed.
d. It results to double taxation.
52. All are secondary purposes of taxation, EXCEPT:
a. Sumptuary purpose
c. Compensatory purpose
b. Regulatory purpose
d. Revenue purpose
53. In the absence of inherent and constitutional
limitation, the power of tax is:
a. Comprehensive, unlimited and plenary
b. Unlimited and plenary
c. Broad and penal
d. Unlimited and political
54. All are similarities of taxation, police power, and power
of eminent domain, EXCEPT:
a. All are necessary attributes of the Constitution
b. All exist independently of the Constitution
c. All contemplate and equivalent benefit
d. All are superior to the non-impairment clause of
the Constitution
55. Below are characteristics of a sound taxation system,
EXCEPT:
a. Administrative feasibility and compliance
b. Fiscal Adequacy
c.
d.
Theoretical Justice or equality
Uniformity of taxation
56. It refers to a fraudulent act of minimizing taxes.
a. Tax avoidance
c. Tax minimization
b. Tax evasion
d. Multiple taxation
57. One of the following is NOT an inherent limitation:
a. Taxes must be for public purposes
b. Equality in Taxation
c. Territoriality rule
d. Rule on double taxation
58. All of the following are exceptions to the territoriality
doctrine which is not?
a. In case of taxation of resident or citizens of the
Philippines.
b. If provided under a treaty obligation.
c. In case of International Comity.
d. In case of International organizations.
59. Taxation is equitable in all of the following, EXCEPT:
a. Its burden falls on those better to pay.
b. It is based on ability to pay.
c. It is based on benefits received.
d. It is based on uniformity rule.
60. The only tax where non-payment of which will not
result to imprisonment:
a. Excise tax
c. Personal tax
b. Donor’s tax
d. Property tax
61. All
a.
b.
c.
d.
are privilage tax under the Tax Codeexcept:
Income tax
Donor’s tax
Excise tax on certain goods
Estate tax
62. One of the following can be BOTH a progressive tax
and a proportional tax:
a. Donor’s tax
b. Basic Income tax on individuals
c. Both a and b
d. Estate tax
63. A tax which is BOTH under taxation and Police Power:
a. Compensatory Tax
c. National Tax
b. Regulatory Tax
d. General Tax
64. A demand of Proprietorship:
a. Tax
c. Toll
b. Special Assessment
d. License Fee
65. Levied only on lands:
a. Tax
b. Special Assessment
c. Toll
d. License Fee
66. A proportional tax:
a. Individual income tax
b. Corporate income tax
c. Donor’s tax
d. Estate tax
67. Imposed to regulate conduct as a sanction:
a. Tax
c. Penalty
b. Toll
d. License fee
68. All are excise taxes as to subject matter except:
a. Real estate tax
b. Income tax
c. Excise tax on wine
d. Excise tax on cinematographic films
69. One of the following is NOT a source of our tax laws:
a. Administrative rulings and opinions
b. Judicial decisions
c. 1987 Constitution
d. Expert Opinion on Taxation
70. The government may not do all except one:
a. Tax itself
b. Delegate its power to tax to private agencies
c. Impose tax arbitrarily
d. Disregard uniformity in taxation
71. A form of tax escape through which one is given tax
immunity wherein others are subjected to tax:
a. Shifting
c. Tax exemption
b. Tax immunity
d. Tax avoidance
72. A form of tax escape by a manufacturer or producer
who improves his proceeds of production thereby
minimizing his unit production cost:
a. Tax avoidance
c. Transformation
b. Capitalization
d. Shifting
73. A waiver by the government’s right to collect tax:
a. Tax exemption
c. Tax avoidance
b. Tax amnesty
d. Tax evasion
74. A tax imposed based on the number:
a. Income Tax
c. Advalorem Tax
b. Specific Tax
d. Custom’s Duties
75. The theory which most justifies the necessity of
taxation:
a. Protection and benefits theory
b. Revenue purposes theory
c. Lifeblood theory
d. Ability to pay theory
76. One of the characteristics of internal revenue laws is
that they are:
a. Criminal in nature
b. Penal in nature
c. Political in nature
d. Generally prospective in application
77. Which of the following is not example of excise tax:
a. Transfer tax
c. Real property tax
b. Sales tax
d. Income tax
78. The following are similarities of the inherent power of
taxation, eminent domain, and police power, except
one:
a. Are necessary attributes of sovereignty
b. Interfere with private rights and property
c. Superior to the non-impairment clause
d. Are legislative in character.
79. The power of taxation is inherent in sovereignty being
essential to the existence of every government. Hence,
even if not mentioned in the Constitution the state can
sill exercise the power. It is essentially a legislative
function. Even in the absence of any constitutional
provision, taxation power fails to Congress as part of
the general power of law-making.
a. False; False
c. True; True
b. False; True
d. True; False
80. Which of the following is not a scheme of shifting the
incidence of taxation?
a. The manufacturer transfer the tax to the consumer
by adding the tax to the selling price of the goods
sold;
b. The tax forms part of the purchase price;
c. Changing the terms of the sale like FOB shipping
point in the Philippines to FOB destination abroad,
so that the title passes abroad instead of in the
Philippines.
d. The manufacturer transfer the sales tax to the
distributor, then in turn to the wholesaler, in turn
to the retailer and finally to the consumer.
81. In case of conflict between the tax code and generally
accepted accounting principles (GAAP):
a. Both tax codes and GAAP shall be enforced;
b. GAAP shall prevail over tax code;
c. Tax code shall prevail over GAAP;
d. The issue shall be resolved by the courts.
82. Which of the following statements is not correct?
a. Taxes may be imposed to raise revenues or to
regulate certain activities within the state;
b. The state can have the power of taxation even if
the Constitution does not expressly give it the
power to tax;
c. For the exercise of the power of taxation, the state
can tax anything at any time;
d. The provisions of taxation in the Philippines
Constitution are grants of power and not
limitations on taxing powers.
83. Tax as distinguished from license fee:
a. Non-payment does not necessary render
business illegal;
b. A regulatory measure;
c. Imposed in the exercise of police power;
d. Limited to cover cost of regulation.
the
84. Value-added tax is an example of:
a. Graduated tax;
b. Progressive tax;
c. Regressive tax;
d. Proportional tax.
85.Which statement refers to police power as distinguished
from taxation?
a. It can only be imposed on specific property or
properties;
b. The amount imposed depends on whether the
activity is useful or not;
c. It involves the taking of property by the
government;
d. The amount imposed has no limit.
86. 1st Statement – Tax exemptions are strictly construed
against the government.
2nd Statement – When the tax law is not clear and
there is doubt whether he is taxable or not, the doubt
shall be settled against the government.
a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
87. 1st Statement – The income from bank deposit of a
Tax-exempt Catholic Church is taxable.
2nd Statement – Donations for educational purposes
are tax exempt under the NIRC.
a. True; False
c. True; True
b. False; True
d. False; False
88. 1st Statement – Tax imposed outside the situs of
Taxation is voidable.
2nd Statement – International Comity is an exception
to the territoriality doctrine.
a. True; False
c. True; True
b. False; True
d. False; False
89. Imposed based on the control & superiority of one
country over another:
a. TITHE
b. TAX
c. TRIBUTE
d. TOLL
90. Imposed based on religious obligation:
a. TITHE
c. TRIBUTE
b. TAX
d. TOLL
2nd Statement Tax regulations promulgated by the
Secretary of Finance need not be published in a
newspaper of general circulation.
a. True, True
c. False, True
b. False, False
d. True, False
91. Taxes are:
a. Retroactive
b. Prospective
c. Generally proportional
d. Personal to the taxpayer
92. 1st Statement
Government owned and controlled
corporation are exempt from tax.
2nd Statement Tax liabilities of a corporation will also
extend to the stockholders as a rule.
a. True, True
c. False, True
b. False, False
d. True, False
93. All
a.
b.
c.
d.
are objectives of taxation except:
Revenue purpose
Regulation
Increase of social inequity
Encourage economic growth
94. 1st Statement Courts can review or inquire into the
wisdom or advisability of a tax law under the Power of
Judicial Review in Taxation
2nd Statement Our constitution does not contain any
provision granting tax exemption to the provision
granting tax exemption to the government.
a. True, True
c. False, True
b. False, False
d. True, False
95. 1st Statement
To be exempt from taxation under the
Constitution land & buildings must be exclusively and
actually used for religious, educational or charitable
purpose, even if not directly.
2nd Statement
Exemptions of non-profit schools are
only limited to revenue and assets derived from strictly
school operations.
a. True, True
c. False, True
b. False, False
d. True, False
96. 1st Statement A taxpayer’s tax exempt status justifies
the non-keeping of books of accounts & other
accounting records.
2nd Statement
Fiscal tax and regulatory tax are the
same.
a. True, True
c. False, True
b. False, False
d. True, False
97. 1st Statement
Code.
98. Our tax laws are both:
a. Progressive and prospective
b. Civil and prospective
c. Penal and regulatory
d. Personal and regulatory
99. All
a.
b.
c.
d.
are indirect constitutional limitations except:
Non imprisonment for non-payment of poll tax
Due process clause
Equal protection clause
Religions freedom
100. All are sources of Public Revenues except:
a. Grants and Foreign aids
b. Administrative revenues
c. Commercial revenues
d. Taxes and tithes
101. 1st statement- Taxation as a rule is unlimited,
plenary, comprehensive but not supreme.
2nd statement- Taxation has a dual nature, legislative
in character & subject to limitations.
a. True, True
c. False, True
b. False, False
d. True, False
102. 1st statement- As a rule, the non-observance of the
canons of taxation will make the tax imposition
invalid.
2nd statement- According to US Supreme Court
Justice Malcolm, Police Power is the strongest of all
the powers of the government.
a. True, True
c. False, True
b. False, False
d. True, False
103. 1st statement- A revenue regulation without approval
of Congress does not have the force and effect of
law.
2nd statement- Tax avoidance & Tax shifting are two
of the most common methods of tax escape.
a. True, True
c. False, True
b. False, False
d. True, False
Our Civil Code prevails over the Tax
“ If you think you can find the passion and ready to take a chance.
If you really believe you can make it….
Then the Power is in your hands.”
Moment of Truth
By: Survivor