31.

Subject to inherent and constitutional limitations, the power of taxation is regarded as

supreme, plenary, unlimited and comprehensive.

A. Basis of taxation C. Scope of taxation

B. Situs of taxation D. Theory of taxation

32. Our National Internal Revenue Laws are

A. Political in nature C. Criminal in nature

B. Penal in nature D. Civil in nature

33. The levying or imposition of tax and the collection of the tax are processes which constitute

the taxation system.

A. Basis of taxation C. Nature of taxation

B. Aspects of taxation D. Theory of taxation

34. The process or means by which the sovereign, through its law-making body raises income to

defray the expenses of the government.

A. Toll C. Taxation

B. License fee D. Assessment

35. Enforced proportional contributions from persons and property levied by the state by virtue

of its sovereignty for the support of the government and for all public needs.

A. Toll C. Taxes

B. License fee D. Assessment

36. An escape from taxation where the tax burden is transferred by the one on whom the tax is

imposed or assessed to another.

A. Shifting C. Transformation

B. Exemption D. Capitalization

37. An escape from taxation where the producer or manufacturer pays the tax and endeavors to

recoup himself by improving his process of production thereby turning out his units of

products at a lower cost.

A. Shifting C. Transformation

B. Exemption D. Capitalization

38. An escape from taxation where there is a reduction in the price of the taxed object equal to the
capitalized value of future taxes which the taxpayer expects to be called upon to pay.

A. Shifting C. Transformation

B. Exemption D. Capitalization

39. The use of illegal or fraudulent means to avoid or defeat the payment of tax.

A. Exemption C. Avoidance

B. Shifting D. Evasion

40. The use of legal or permissible means to minimize or avoid taxes.

A. Exemption C. Avoidance

B. Shifting D. Evasion