TAXATION 1 – Income Taxaton

General Principles of Taxation

1. Taxaton as distnguished from police power and power of eminent domain.

A. Property is taken to promote the general welfare.

B. Maybe exercised only by the government.

C. Operates upon the whole citzenry.

D. There is generally no limit as to the amount that may be imposed.

2. The following are consttutonal limitatons, except

A. No imprisonment for non-payment of poll tax.

B. Non-impairment of the obligaton of contracts.

C. Rule of uniformity and equity in taxaton.

D. Exemption from income tax of charitable institutions, cemeteries, churches,

personage or convents appurtenant thereto, as well as all lands, buildings and

improvements actually, directly and exclusively used for religious, charitable and

educational purposes.

3. Which of the following statements is correct?

A. The President is authorized to increase or decrease natonal internal revenue tax rates.

B. One of the nature of taxaton is the reciprocal dutes of protecton and support between the state
and subjects thereof.

C. Every sovereign government has the inherent power to tax.

D. Income tax in an indirect tax.

4. A tax must be imposed for public purpose. Which of the following is not a public purpose?

A. Natonal defense

B. Public educaton

C. Improvement of the sugar and coconut industries.

D. Improvement of a subdivision road.

5. Which is not an essental characteristc of a tax?

A. It is unlimited as to amount.

B. It is payable in money.

C. It is proportonate in character.

D. It is an enforced contributon.

6. Special assessment is an enforced proportonal contributon from owners of land especially

benefited by public improvement. Which one of the following is not considered as one of its

characteristcs?

A. It is levied on land.

B. It is based on the government’ s need of money to support its legitimate objectives.

C. It is not a personal liability of the persons assessed.

D. It is based solely on the benefit derived by the owners of the land.

7. It is the privilege of not being imposed a financial obligaton to which others are subject.

A. Tax incentve

B. Tax exemption

C. Tax amnesty

D. Tax credit
8. As to scope of the legislatve power to tax, which is not correct?

A. Where there are no consttutonal restrictons, and provided the subjects are within the
territorial jurisdicton of the state, Congress has unlimited discreton as to the persons, property
or occupatons to be taxed.

B. In the absence of any consttutonal prohibiton, Congress has the right to levy a tax of any
amount it sees fit.

C. The discreton of Congress in imposing taxes extends to the mode, method or kind of tax, unless
restricted by the consttuton.

D. The sole arbiter of the purpose or which taxes shall be levied is Congress, provided the
purpose is public and the courts may not review the levy of the tax to determine whether or
not the purpose is public.

9. Which of the following is a nature of taxaton?

A. The power is granted by legislative action.

B. It is essentally an administratve functon.

C. It is generally payable in money.

D. Without it the state can contnue to exist.

10. Which of the following is not a determinant of the place of taxaton?

A. Source of the income

B. Citzenship of the taxpayer

C. Residence of the taxpayer

D. Amount of tax to be imposed