INCOME TAXATION
Pre-Quiz #001
TRUE OR FALSE
1.) Tax exemption is transferable and assignable.
ANSWER: FALSE (Tax exemption is NOT transferable and assignable.)
2.) Tax assessment is a process of taxation which involves the passage of tax laws
and ordinances through legislature.
ANSWER: FALSE (Tax levy or tax imposition.)
3.) The primary requisite of Equality or Theoretical Justice principle is that each
taxpayer should be required to contribute equal amounts in the form of taxes.
ANSWER: FALSE (Taxes are not of equal amounts for all taxpayers. Taxes paid
by a taxpayer depends on which tax bracket their income (before taxes) fall
into; taxes paid vary per individual.)
4.) When the power to tax is delegated to the local government, only the
legislative branch of the local government can exercise the power.
ANSWER: FALSE (All branches of the local government can exercise the power.)
5.) No person shall be imprisoned for non-payment of income taxes.
ANSWER: FALSE (Non-payment of income tax laws are punishable by
imprisonment. However, non-payment of POLL taxes is not punishable by
imprisonment.)
6.) Special assessment is imposed on persons, property, and rights.
ANSWER: FALSE (Special assessment is only done on LAND; TAXES are
imposed on persons, property, and rights.
7.) One essential characteristic of a tax is it is unlimited in amount.
ANSWER: TRUE
8.) Police power and power to tax may be exercised only by the government while
the power of eminent domain may be exercised by some private entities.
ANSWER: TRUE
9.) The president is authorized to increase or decrease national internal revenue
tax rates.
ANSWER: FALSE (The president only approves tax laws and tax rates, but
authorization to increase or decrease national internal revenue tax rates lie in
the hands of the CONGRESS.)
10.)
The BIR has the duty and the exclusive power of enacting, implementing,
and interpreting tax.
ANSWER: FALSE (It is the LEGISLATIVE branch (Congress) that has the duty
and exclusive power to do all three mentioned. The BIR can only implement
and interpret tax.)